Vietnam Digital Landscape Q3/2015 by Moore Corporation

VIETNAM DIGITAL LANDSCAPE Q3/2015 BY MOORE CORPORATION

TABLE OF CONTENT 3 4 - 9 10 - 16 23 - 31 32 - 36 VIETNAM IN A GLOBAL CONTEXT VIETNAM DIGITAL MARKET OVERVIEW VIETNAM INTERNET USER BEHAVIOR VIETNAM MOBILE VIETNAM SOCIAL NETWORK VIETNAM E-COMMERCE 37 - 44 17 - 22 VIETNAM ONLINE VIDEO

VIETNAM IN GLOBAL CONTEXT 01 3 In Asia: Internet Users: 7th Digital Access Index: 0.31 Smartphone Users: 15th In the world: Population: 14th GDP Growth Rate: 2nd Internet Penetration Rate: 48%

4 02 VIETNAM DIGITAL MARKET OVERVIEW

5 INTERNET USERS 0.3% 4.0% 13.0% 17.6% 21.0% 24.5% 26.5% 30.8% 34.8% 39.3% 40.2% 43.8% 47.8% 0% 10% 20% 30% 40% 50% 60% 2000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 With signiﬁcant growth over years, in 2015 Internet Users account for 48% Vietnam Total Population PERCENTAGE OF INTERNET USER OVER POPULATION Source: Accumulated by Moore, 2015 Base: Total Population

Besides the sharp increasing of Internet User, Mobile 3G remarked with meaning growth in 2015 compared with 2005. Mobile now has more power than ever. 6 CHANGES FROM 2005 TO 2015 82.4 12.9 0 92.0 43.9 29.3 0 10 20 30 40 50 60 70 80 90 100 POPULATION INTERNET USERS MOBILE 3G Millions VIETNAM CHANGES FROM 2005 TO 2015 2005 2015 Source: Accumulated by Moore, 2015

4% 5% 36% 44% 93% 8% 12% 55% 46% 93% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Internet TV Tablet Smartphone Computer Mobile Phone “Moving screen” such as Smartphone and Tablet prove the highlight expansion from year to year, in which remarkably change people’s behavior in Media consumption. Source: Google, 2015 Base: Total Population 7 2014 2015 52% 140% 100% DEVICE PEOPLE USE DEVICE USED IN 2014 AND 2015

5.5 5.1 6.3 5.2 5.2 3.9 4.7 4.1 3.7 3.3 3.2 2.7 2.6 2.3 0 1 2 3 4 5 6 7 Thailand Malaysia Philippines Indonesia Vietnam China Singapore PC - TSOI Mobile - TSOI 8 TIME SPENDING ON INTERNET (TSOI) Source: GlobalWebIndex, Q4.2014 At average, Vietnam Internet User spends about 5.2h on PC and 2.7h on Mobile

ESTIMATION VIETNAM ONLINE ADVERTISING REVENUES IN 2014 70% total online advertising revenue in Vietnam belongs to Google and Facebook 42% 27% 11% 8% 5% 3% 4% Facebook Google Admicro FPT 24H VNG Other Source: Moore Estimation 2014 9 ADVERTISING REVENUE

10 03 VIETNAM INTERNET USERS BEHAVIOR

ONLINE ACTIVITIES ONLINE ACTIVITIES OF 18-24 YEAR OLD USERS Young People (18 – 24) spend most of time on connecting, entertaining or learning something new. Moreover, they join in online activities mainly by their smartphone. Source: Google, 2015 Base: Vietnam Internet User 11 50% 48% 46% 41% 27% 25% 16% 3% 76% 68% 69% 60% 46% 28% 31% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% Social networks Online videos Search engines Listen to music Online games Check email Look for product information Purchase products Smartphone Computer

48% 47% 46% 36% 30% 23% 22% 2% 72% 65% 63% 46% 32% 26% 31% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% Social networks Search engines Online videos Listen to music Check email Look for product informaNon Online games Purchase products Smartphone Computer ONLINE ACTIVITIES OF 25-34 YEAR OLD USERS Social Network still be the main platform Internet User jump in besides Search and Online Video. Smartphone seems being their “must have screen” Source: Google, 2015 Base: Vietnam Internet User 12 ONLINE ACTIVITIES

ONLINE ACTIVITIES OF 35-44 YEAR OLD USERS Source: Google, 2015 Base: Vietnam Internet User 13 51% 50% 46% 35% 24% 18% 16% 3% 59% 50% 54% 38% 20% 21% 18% 4% 0% 10% 20% 30% 40% 50% 60% 70% Search engines Social networks Online videos Listen to music Check email Look for product information Online games Purchase products Smartphone Computer ONLINE ACTIVITIES Internet User at 35-44 years old spend online time the most on Search Engines, besides Social Network and Online Video, especially via their smartphone.

ONLINE ACTIVITIES OF 45-54 YEAR OLD USERS Source: Google, 2015 Base: Vietnam Internet User 14 35% 33% 23% 19% 12% 11% 8% 3% 29% 34% 37% 28% 16% 7% 12% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Search engines Online videos Social networks Listen to music Look for product informaNon Check email Online games Puchase products Smartphone Computer ONLINE ACTIVITIES Among digital late adopter generation (45 – 54), they use computer to access to the Internet more often than smartphone. But smartphone still be the main device in some activities, especially Visiting Social Network

MEDIA ACTIVITIES DEVICE ACCESS BY TIME OF DAY 0% 5% 10% 15% 20% 25% 30% 35% 40% Before 9am 9am - Before 12pm 12pm - Before 2pm 2pm - Before 4pm 4pm - Before 6pm 6pm - Before 8pm 8pm - Before 10pm 10pm Onwards Desktop Laptop/Notebook Mobile Phone Tablet “Prime Time” for advertising is 8PM-10PM - the peak time for using Laptop and Mobile Phone Source: Nielsen, 2014 15

ONLINE ACTIVITIES BY TIME OF DAY 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Before 9am 9am - Before 12pm 12pm - Before 2pm 2pm - Before 4pm 4pm - Before 6pm 6pm - Before 8pm 8pm - Before 10pm 10pm Onwards Social Media Online News Online Video (+ Internet TV) Online Shopping Source: Nielsen, 2014 16 MEDIA ACTIVITIES “Prime Time” for advertising is 8PM-10PM - the peak time for jumping in Social Media, Online Video, even Online Shopping

17 03 VIETNAM ONLINE VIDEO

ONLINE VIDEO ACTIVITIES POPULAR SOURCE OF ONLINE VIDEO (IN PAST 12 MONTHS) (Not include on Facebook) 18 4% 5% 18% 24% 37% 38% 40% 60% 90% 0% 20% 40% 60% 80% 100% nhaccuatui.com vnexpress.net soha.vn vietnamnet.vn clip.vn kenh14.vn dantri.com.vn 24h.com.vn YouTube Source: Nielsen, 2014 Base: Vietnam Internet User who watched online video In 2015, dantri, kenh14 and clip.vn dominated as main platform besides Youtube in which people consume Online Video

ONLINE VIDEO ACTIVITIES FREQUENCY OF ONLINE VIDEO WATHCHED 19 Source: Google, 2015. Base: Vietnam Internet User who watched online video 3% 8% 10% 36% 42% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Less than once a month Never Monthly Weekly Daily Internet User behavior is now changing sharply. They usually watch online video instead of TV more than ever before

ONLINE VIDEO ACTIVITIES FREQUENCY OF ONLINE VIDEO WATHCHED IN DETAIL 20 Source: Nielsen, 2014 27 38 17 12 0 4 60 26 9 4 2 1 0 10 20 30 40 50 60 70 Daily Weekly Monthly In past 12 month Not in past 12 month Never done Downloading Video Streaming Video Streaming Video tend to be dominated than Downloading Video

ONLINE VIDEO ACTIVITIES ONLINE VIDEO WATCHED’S MOTIVATION 21 Source: Nielsen, 2014 Base: Vietnam Internet User who watched online video 19% 22% 26% 46% 65% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% To ﬁnd out something new To feel connected with people To stay up to date To learn something new To be entertained/inspired To relax/escape

ONLINE VIDEO ACTIVITIES ONLINE VIDEO WATCHED DURING DAYTIME 22 Source: Nielsen, 2014 Base: Vietnam Internet User who watched online video 15% 12% 14% 43% 8% 5% 11% 62% 0% 10% 20% 30% 40% 50% 60% 70% In the morning During lunchtime In the afternoon In the evening Weekday Weekend Almost Internet Users (62%) watch online video in the evening

23 05 VIETNAM MOBILE

15.7 19.7 27.5 29.3 11.9% 15.9% 19.8% 21.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2012 2013 2014 2015 VIETNAM 3G SUBSCRIPTION Số thuê bao 3G 3G trên tổng thuê bao di động 3G SUBSCRIPTION Millions 3G Subscriptions % 3G Subscriptions over total subscriptions 24 Source: Accumulated by Moore, 2015

VIETNAM SMARTPHONE MARKET 25 Source: Nielsen, 2014 57% 43% Smartphone Feature Phone SMARTPHONE & FEATURE PHONE 64% 19% 9% 3% 2% Android IOS Window 8 Window 7 Other SMARTPHONE OPERATION SYSTEM Within smartphone operation system, Android is surpassing. IOS takes in 2nd.

SMARTPHONE USER DEMOGRAPHIC Source: Nielsen, 2014; VSERV, 2013 76% 70% 57% 34% 19% 0% 20% 40% 60% 80% Under 25 25 - 34 35 - 44 45 - 54 55 and over SMARTPHONE USERS BY AGE 26 52% 48% MALE FEMALE SMARTPHONE USERS BY GENDER Vietnam Smartphone User is dominated by early digital adopter generation ( < 35 years old)

6% 13% 23% 23% 28% 43% 54% 56% 59% 0% 10% 20% 30% 40% 50% 60% 70% Purchase Products/services Maps and Directions Product Information Searching Check Email Play Game Listen to Music Watch Online Video Use Search Engine Visit Social Network SMARTPHONE USER ACTIVITIES ONLINE ACTIVITIES WHICH PEOPLE DO ON THEIR SMARTPHONE (at least weekly) Source: Google, 2015 Base: Internet User who have smartphone 27

28 SMARTPHONE USER ACTIVITIES 44% Of simultaneous use is looking at RELATED content 56% Of simultaneous use is looking at UNREATED content Source: Millward Brown, 2014 While watching TV, people still use their “second screen” to browse for both related and unrelated content

29 MOBILE’S SHARE OF WEB TRAFFIC Source: GlobalWebIndex, 2014 50% 36% 35% 34% 21% 21% 20% 0% 10% 20% 30% 40% 50% 60% Indonesia Thailand Malaysia Singapore Philippines China Vietnam Mobile's share of website traﬃc

VIETNAM OTT OVERVIEW 30 32 29 23 12 4.5 0 5 10 15 20 25 30 35 Zalo FB Messenger Viber Line WhatApps Number of OTT users in Vietnam Source: According to OTT Vendors, Moore Estimation, 2015 Zalo in Q3/2015 surpasses Facebook Messenger in number of User

VIETNAM TOP OTT PLATFORMS 31 8% 71% 20% 1% Zalo by Age -18 18 - 34 35 - 54 55+ 50% 33% 17% Line by Age 16 - 22 23 - 27 Others Source: According to OTT Vendors, 2015

32 06 VIETNAM SOCIAL NETWORK Go Mobile & Always On

FACEBOOK USERS NUMBER OF FACEBOOK ACTIVE USERS 33 18.85 23.16 32 0 10 20 30 40 2013 2014 2015 Millions 14.7 19.7 29 0 10 20 30 40 2013 2014 2015 Millions NUMBER OF FACEBOOK ACTIVE USERS ON MOBILE From 2013 to 2015, number of Facebook Active User increased average 23%. Especially, the number of User Active on Mobile growth signiﬁcantly as 36%. It’s time to go mobile. + 40% + 30% Source: Facebook, 2015

13 - 17 19% 18 - 24 39% 25 - 34 30% 35 - 44 8% 45 - 65 4% FACEBOOK USERS BY GENDER 34 FACEBOOK USERS DEMOGRAPHIC Male 46% Female 54% FACEBOOK USERS BY AGE Facebook User is dominated by Female and people who are 18 – 34 years olds Source: Facebook, 2015

FACEBOOK AS A DISCOVERY TOOLS 35 Facebook is where people turn to learn new information FACEBOOK USERS ACTIVITIES 52% 55% 56% 58% First hear about a new product, brand or service First hear about a new movie, album, book, festival or show First hear about new game First hear breaking news Source: Facebook, 2015

36 FACEBOOK USERS ACTIVITIES Source: Facebook, 2015 Facebook is used much more often than TV

13-17 20% 18-24 54% 25-34 18% 35-44 5% 45-65 3% 37 A LOOK AT INSTAGRAM Source: Facebook and Moore Estimation, 2015 Instagram seems being a platform for Female and Internet User at 18-24 years old Male 35% Female 65% 750,000 Users

38 A LOOK AT INSTAGRAM Source: Instagram, 2015 Image Ads Video Ads Carousel Ads

39 07 VIETNAM E-COMMERCE

REVENUE VIETNAM B2C E-COMMERCE REVENUE 2012 - 2014 40 0.7 2.2 2.97 0 0.5 1 1.5 2 2.5 3 3.5 2012 2013 2014 Billions USD In 2014, revenue on each user is 145 USD/year and is expected increase in 2015 Source: Vecita, 2015

ONLINE ITEMS PURCHASED 41 81 19 No Yes Past 3 months online purchase (including CoD): 85% Clothing 27% 9% 9% Fashion accessories Home appliances Personal grooming/ cosmetics products 6% Food / online delivery 4% 2% 2% Voucher at restaurant / cafe Personal devices Others Online items purchased Source: TNS, 2015 Clothing and Fashion Accessories is purchased online the most

HOW PEOPLE HEAR ABOUT THE PRODUCT THAT THEY PURCHASED ONLINE CUSTOMER BUYING PROCESS Source: Google, 2015. Base: Vietnam Internet User who purchased online 42 40% 25% 13% 12% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2% 5% 6% 6% 12% 24% 43% Email Others Magazine/ Poster Instore ads Tivi Online HOW DID PEOPLE FIRST HEAR ABOUT THE PRODUCT / OFFER FROM ADVERTISING?

THE ONLINE SOURCES PEOPLE USE TO MAKE PURCHASING DECISIONS Source: Google, 2015. Base: Buyers who use Internet 43 6% 9% 11% 11% 12% 17% 26% 27% 36% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% Email Brand pages on social networks site Price comparison website Online magazines/ news sites Advice sites/ review sites/ forums/ blogs Online videos sites Social networks On retailer website On brand website Search Engines PURCHASE ACTIVITIES People those days have more power and more information than ever. They always proactive in ﬁnding product/service information before making decision

Source: Google, 2015. Base: Buyers who use Internet PRE-PURCHASE ACTIVITIES INTERNET HELPS PEOPLE TO MAKE PURCHASING DECISIONS BY 44 15% 19% 21% 23% 30% 29% 39% 39% 61% 0% 10% 20% 30% 40% 50% 60% 70% Made contact/ requested contact (with Watched relevant videos online Got ideas/ inspiration online Looked for /redeemed relevant oﬀtens/ Checked where to buy/ product availability Got store locations/ directions online Discovered relevant brands online Looked for opinions/ reviews/ advice online Compared products/prives/ features online People those days have more power and more information than ever. They always proactive in ﬁnding product/service information before making decision

WHAT DID PEOPLE DO ONLINE AFTER COMPLETING THEIR PURCHASE? Source: Google, 2015. Base: Buyers who use Internet 45 0% 5% 10% 15% 20% 25% 30% Shared purchase experience on social networks Posted reviews/ratings Looked for help on setup/ usage PRE-PURCHASE ACTIVITIES They’re also ready for sharing their experience on Social network

Source: Accumulated by Moore. 2015 46 “18% purchase online.” “21% use the Internet to get ideas” “39% discovered relevant brands.” “48% research hours before purchase.” “18% looked for help on setup/usage online.” 15% posted reviews/rating “61% compared choice online.” “39% sought advice online.” “53% prepared for oﬄine purchase.” 28% shared experiences on social network Evaluation Purchase Enjoy & Advocate Consideration Trig ger INTERNET ROLE IN ONLINE CUSTOMER BUYING PROCESS Never than before Internet prove its signiﬁcant role in customer buying journey

REFFERENCE SOURCES •  Meet the new media consumer in Vietnam 2014, Nielsen Vietnam, 2014 •  Marketing in a multiscreen world – Vietnam report, MillwardBrown, 2014 •  The mobile internet consumer Vietnam 2013, VSERV.mobi, 2013 •  Consumer Barometer, Google, 2015 •  Digital, Social & Mobile, WeAreSocial, 2013 - 2015 •  General Statistics Oﬃce of Vietnam, 2011 - 2015 •  Internet World Stats, 2015 •  Emarketer, 2015 •  IDG, 2015 •  Global Web Index, 2015 •  Meet the new media customer, Nielsen 2014 •  Others 47

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