1.
VIETNAM
THE SNAPSHOT
DENTSU VIETNAM, OCT 2013
1

2.
Welcome to VIETNAM
WHERE WILL WE CHECK YOU IN TODAY?
5.
SUMMARY
1.
VIETNAM
THE BIG PICTURE
3.
CONSUMERS & BRANDING
2.
CONSUMERS
THE KEY INDICATORS
4.
ADVERTISING INDUSTRY
THE KEY HIGHLIGHTS
2

3.
1.
VIETNAM
THE BIG PICTURE
3

4.
SOCIALIST REPUBLIC OF VIETNAM
AREA: 330,991 SQUARE KILOMETERS
POPULATION: 89 MILLIONS
CAPITAL: HANOI
LANGUAGE: VIETNAMESE OR KINH (80%)
ERE
E H
AR
WE
ETHNIC: 54 GROUPS (THE VIET 88%)
CURRENCY: VIETNAMDONG (VND)
TOTAL PROVINCE: 63
GEOGRAPHY: 5 KEY AREA
SOUTH, NORTH, CENTRAL, HIGHLAND, MEKONG DELTA
4
Source: Vietnam Statistic

5.
SOCIALIST REPUBLIC OF VIETNAM
LONGEST SPELL OF SLOW GROWTH SINCE THE ONSET
OF ECONOMIC REFORMS IN THE LATE 1980S
REAL GDP GREW BY 5.25 PERCENT (NEW SERIES) IN
2012, THE LOWEST LEVEL SINCE 1998
DURING 2010-13 PERIOD VIETNAM WILL GROW AT A
SLOWER PACE THAN INDONESIA AND PHILIPPINE
FIRST TIME IN TWO DECADES
5
Source: worldbank.org, updated Jul 2013

6.
SOCIALIST REPUBLIC OF VIETNAM
ACROSS THE BOARD DECLINE IN INVESTMENT RATES
TOTAL INVESTMENT HAS FALLEN FROM 29.6%
IN THE FIRST QUARTER OF 2013
FROM 38.5% IN 2010
6
Source: worldbank.org, updated Jul 2013

7.
SOCIALIST REPUBLIC OF VIETNAM
GROWTH IN RETAIL SALES AND SERVICES (IN
NOMINAL TERMS)
HAS FALLING FROM 24% IN 2011 TO 16% IN 2012
AND TO 11.9% IN THE FIRST HALF 2013
IMPORTS BY DOMESTIC SECTOR
FELL BY 7% IN 2012
INDICATING A LOW DEMAND FOR CAPITAL
INVESTMENT AND INTERMEDIATE GOODS, AS WELL
AS WEAKER PRIVATE CONSUMPTION
7
Source: worldbank.org, updated Jul 2013

8.
SOCIALIST REPUBLIC OF VIETNAM
MODERATE INFLATION: 6.7% IN JUNE 2013
STABLE EXCHANGE RATE—DONG DEPRECIATED BY
1.6% PERCENT IN THE PAST 12 MONTHS
SOLID EXPORT GROWTH THANKS TO STRONG
PERFORMANCE OF FOREIGN-INVESTED SECTOR
8
Source: worldbank.org, updated Jul 2013

9.
SOCIALIST REPUBLIC OF VIETNAM
LARGEST CURRENT ACCOUNT SURPLUS IN COUNTRY’S
HISTORY
CHANGED FROM A CURRENT ACCOUNT DEFICIT OF
11% OF GDP IN 2009 TO A SURPLUS OF 5.9% IN
2012
IT IS PROJECTED TO REMAIN IN SURPLUS IN
2013, THOUGH WILL BE A LOWER AMOUNT THAN
PREVIOUS YEAR
9
Source: worldbank.org, updated Jul 2013

10.
SOCIALIST REPUBLIC OF VIETNAM
THE NUMBER OF EMPLOYED PERSONS IN VIETNAM
INCREASED TO 51.71 MILLION PERSONS IN 2012
FROM 50.40 MILLION PERSONS IN 2011
THE NUMBER OF UNEMPLOYED PERSONS IN
VIETNAM DECREASED TO 0.90 MILLION
PERSONS IN 2012 FROM
1 MILLION PERSONS IN 2011
10
Source: Tradingeconomics.com

11.
SOCIALIST REPUBLIC OF VIETNAM
CONSUMER PRICE INDEX (CPI) IN VIETNAM INCREASED TO 153.63
INDEX POINTS IN SEPTEMBER OF 2013 FROM 152.02 INDEX
POINTS IN AUGUST OF 2013
11
Source: Tradingeconomics.com

12.
SOCIALIST REPUBLIC OF VIETNAM
RETAIL SALES IN VIETNAM
INCREASED 14.04 PERCENT IN SEPTEMBER OF 2013 OVER THE
SAME MONTH IN THE PREVIOUS YEAR
12
Source: Tradingeconomics.com

13.
FMCG MARKET DYNAMICS
GROWS FASTEST IN THE REGION
13
Source: Nielsen Pocket Book 2013

14.
SOCIALIST REPUBLIC OF VIETNAM
FOREIGN INVESTORS STILL RANK VIETNAM AS AN
ATTRACTIVE DESTINATION FOR FUTURE
INVESTMENTS
VIETNAM REMAINS ONE OF THE MOST POPULAR
DESTINATIONS FOR EXPANSION WITHIN THE ASEAN
REGION
14
Source: worldbank.org, updated Jul 2013

15.
2.
CONSUMERS
THE KEY INDICATORS
15

16.
HOUSEHOLD INCOME CLASSIFICATION
This classification system is based on gross
monthly income
B,C (MIDDLE CLASS) STILL TAKE THE BIGGEST
PART OF TOTAL POPULATION
Source: TNS
Source: Nielsen Pocket16
Book 2013

17.
AND ALSO CONTRIBUTE THE BIGGEST CONSUMPTION
VIETNAM
Source: Nielsen Pocket Book 2013
17

18.
CONSUMERS ARE LOSING THEIR CONFIDENCE IN
VIETNAM ECONOMY
18
Source: FTA, VietTrack 2012

19.
CONSUMERS ARE CUTTING DOWN THEIR SPENDING ON
ENTERTAINMENT, BEAUTY, CLOTHES, LUXURY GOODS
& TRAVEL
19
Source: FTA, VietTrack 2012

20.
ITS SAVING SHOW DIFFERENT BEHAVIOR ACROSS CATEGORIES
20
Source: Nielsen Pocket Book 2013

21.
ESPECIALLY ON BOUILLON (SEASONING),
CONSUMERS TEND TO SAVE COST BY
PURCHASING THE SAME AMOUNT, BIG PACK AND
CHEAPER BRAND
21
Source: Nielsen Pocket Book 2013

22.
BESIDE SAVING COST CONCERN, IN URBAN, HEALTH, CONVENIENCE AND
SOPHISTICATED ARE THE KEY TREND
HEALTH
89%
95%
WORRY ABOUT MY HEALTH MORE THAN EVER BEFORE
WORRY MORE TODAY ABOUT FOOD SAFETY
CONVENIENCE
72%
63%
PREFER TO BEVERAGES I CAN DRINK FROM THE CONTAINER
PREPARE FOOD THE REQUIRE LITTLE PREPARATION
SOPHISTICATED
90%
55%
BUY PRODUCTS OF GOOD QUALITY, EVEN IF MORE EXPENSIVE
THINK HIGHER PRICE PRODUCTS MEANS HIGHER QUALITY
22
Source: TNS Crystal Ball Consumer Forecast 2012

23.
IT LEADS TO THE NEW FACT, TODAY VIETNAMESE CONSUMERS, NOT ONLY IN
URBAN, NATIONWIDE, CONSUMERS ARE MOVING FROM WET MARKET TO
SUPERMARKET TO MEET THE NEEDS OF HEALTH, CONVENIENCE &
SOPHISTICATED
Source: Nielsen Pocket Book 2012
Source: Kantar 2012
23

24.
DESPITE HEALTH CONCERN, VIETNAMESE CONSUMERS TODAY ARE MORE BUSY,
FOOD SERVICES ARE GROWING QUICKLY, ESPECIALLY IN KEY CITIES
Source: Euromonitor, Food Service in Vietnam 2012
24

25.
BESIDE BOOMING OF MODERNTRADE, LOCAL BRANDS, FOOD SERVICES, IT’S
ALSO ROARING OF INTERNET & TECHNOLOGY
25
Source: We Are Social Report, 2012

26.
3.
CONSUMERS & BRANDING
26

27.
CONSUMERS CHOOSE LOCAL BRANDS DUE TO
THEIR AFFORDABLE PRICE & ACCEPTABLE
QUALITY
LOCAL BRAND CHOSEN
WHILE INTERNATIONAL BRANDS ARE
PERCEIVED AS HIGH QUALITY, VALUE FOR
MONEY & PREMIUM IMAGE
INTERNATIONAL BRAND CHOSEN
27
Source: FTA, VietTrack 2012

28.
70% FOCUS ON ORIGIN & BRAND WHEN CONSUMERS CONSIDER PRODUCT QUALITY
WOM & TV ADS ARE THE MOST RELIABLE SOURCE TO IDENTIFY HIGH QUALITY
BRAND
SUPERMARKET IS THE PERCEIVED AS SELLING HIGH QUALITY BRAND THAN WET
MARKET & STREET VENDOR
FACTOR SIGNALING HIGH QUALITY BRAND
HOW TO DEFINE A BRAND HAS HIGH QUALITY
SOURCE TO IDENTIFY HIGH QUALITY BRAND
28
Source: FTA, VietTrack 2012

29.
80% CONSUMERS CARE ABOUT SAFETY MORE
THAN PRICING & BRAND CREDIBILITY
29
Source: FTA, VietTrack 2012

30.
36% CONSUMERS WOULD BOYCOTT THE BRAND
AND CHANGE TO OTHER BRAND IMMEDIATELY
WHEN THEY SEE OR FEEL THE UNSAFE
FACTOR ON CURRENT BRAND
30
Source: FTA, VietTrack 2012

31.
TELEVISION IS THE MAIN CHANNEL THAT
CONSUMERS SEEK FOR WHEN CRISIS OCCUR
31
Source: FTA, VietTrack 2012

32.
80% CONSIDER BUYING AFTER EXPOSING
EXPERT ENDORSEMENT
32
Source: FTA, VietTrack 2012

33.
35% CONSUMERS WOULD STOP AND CHANGE
THE BRANDS IF THEY FIND ITS BRAND
CAUSE HARMFUL TO ENVIRONMENT
33
Source: FTA, VietTrack 2012

34.
BUT IT’S DIFFERENT
BETWEEN MALE & FEMALE
BASIC IS THE KEY
VALUE THAT MALE
LOOKING FOR
WHILE WOMEN IS MORE
DEMANDING, AND TEND
TO BE MORE
SOPHISTICATED
MALE & FEMALE
34
Source: Nielsen Pocket Book 2012

35.
MALE IS MORE ABOUT NEEDS FULFILLMENT WHO
IS QUALITY SEEKER, GRAB & GO
WHILE FEMALE IS MORE LIKE A JOURNEY AND
PRETTY EASY TO INFLUENCE
MALE & FEMALE
35
Source: Nielsen Pocket Book 2012

36.
4.
ADVERTISING INDUSTRY
THE KEY HIGHLIGHTS
36

37.
ADVERTISING IMPACTS STRONGLY ON
CONSUMER’S BEHAVIOR
37
Source: FTA, VietTrack 2012

38.
Millions USD
TOTAL MEDIA SPENDING (TV & PRINT)
KEEP INCREASING 20% BY 2011
1,200
1,008
1,000
835
800
600
682
704
2009
2010
549
400
200
-
2008
2011
2012
38
Source: Dentsu Media, Media Report 2013

39.
Millions USD
TV STILL KEEP INCREASING AS THE KEY MEDIUM FOR
ADVERTISING (>80%)
PRESS SPEND SEEMS TO KEEP THE SAME YEAR ON YEAR
1,200
1,000
800
600
400
200
-
TV
2008
2009
Radio
2010
2011
Press
2012
39
Source: Dentsu Media, Media Report 2013

40.
Y2011
FOOD & HYGIENE-BEAUTY MAINTAIN THE TOP
LEADING INVESTMENT IN ADVERTISING MARKET
DIVERSE PUBLICITY
DISTRIBUTION
HOUSEHOLD
SERVICES
TRANSPORTATION
Y2012
TRANSPORTATION
TELECOMMUNICATIO
FINANCE - INSURANCE
DISTRIBUTION
TELECOMMUNICATION
HOUSEHOLD
PHARMACY & MEDICINE
DRINKS
PHARMACY &
DRINKS
HYGIENE & BEAUTY
HOUSEHOLD CLEANING
FOOD
HYGIENE & BEAUTY
0
200
Millions USD
FOOD
0
200
Millions USD
40
Source: Dentsu Media, Media Report 2013

41.
Y2011
TO COMPARE WITH 2011 RANKING, TOP 3
ADVERTISERS HAVE NO CHANGE
NESTLE OVERCAME MASAN TO GET THE 4TH POSITION
IN 2012
FONTERRA BRANDS
Y2012
COCA-COLA VIETNAM
TRUNG QUOC Med.
NHAT NHAT Traditional
COCA-COLA VIETNAM
FONTERRA BRANDS
FRIESLAND CAMPINA
FRIESLAND CAMPINA
NESTLE VIETNAM Ltd.
VINAMILK CORPORATION
VINAMILK CORPORATION
MASAN Food Corp
MASAN Food Corp
NESTLE VIETNAM Ltd.
TAN HIEP PHAT Beverage
TAN HIEP PHAT Beverage
P&G VIETNAM CO. LTD.
P&G VIETNAM CO. LTD.
UNILEVER VIETNAM
UNILEVER VIETNAM
0
100
200
Millions USD
0
100
200
Millions USD
41
Source: Dentsu Media, Media Report 2013

42.
ALMOST OF BRANDS IN CATEGORY “HYGIENE &
BEAUTY” OCCUPIED THE TOP OF BRAND SPENT MOST
Y2011
Y2012
NUMBER 1- 0 DO (RTD
OMO (Washing Liquid)
P/S (Toothpaste)
Dr.THANH (RTD Herbal Tea)
CLEAR (Shampoo)
HEAD & SHOULDERS
REJOICE (Hair Care
DOVE (Hair Care Lines)
Dr.THANH (RTD Herbal Tea)
CLEAR (Shampoo)
TRUNG QUOC Med.
REJOICE (Hair Care
HEAD & SHOULDERS
P/S (Toothpaste)
PANTENE PRO-V (Shampoo
PANTENE PRO-V (Shampoo
COMFORT (Fabric
DOWNY (Fabric
DOWNY (Fabric
COMFORT (Fabric
0
10
20
Millions USD
0
10
20
Millions USD
42
Source: Dentsu Media, Media Report 2013

43.
VTV3 & HTV7 MAINTAIN THE TOP 2, THVL1 & VTC9
GOT THE IMPRESSIVE GROWTH IN 2012
Y2012
Y2011
HTV9
VTC4 - Yeah1 Family
VTC7 - Today TV
HN1 (Ha Noi)
HTV2
VTC7 - Today TV
HN1 (Ha Noi)
VTV1
VTV1
VTV9
VTC9 - Lets Viet
HTV2
THVL1 (Vinh Long)
VTC9 - Lets Viet
VTV9
THVL1 (Vinh Long)
HTV7
HTV7
VTV3
VTV3
0
100
200
Millions USD
0
100
200
43
Millions USD
Source: Dentsu Media, Media Report 2013

44.
TUOI TRE, THANH NIEN, TIEP THI & GIA DINH ARE
THE TOP PRINT HEADERS INVESTMENT IN 2012
Y2011
Y2012
THOI TRANG TRE
DOANH NHAN SAI GON
LAO DONG
HERITAGE FASHION
AN NINH THU DO
THOI TRANG TRE
HA NOI MOI
PHONG CACH - HARPER'
HERITAGE
SAIGON TIEP THI
SAIGON TIEP THI
HERITAGE
THE GIOI PHU NU
THE GIOI PHU NU
TIEP THI & GIA DINH
TIEP THI & GIA DINH
THANH NIEN
THANH NIEN
TUOI TRE
TUOI TRE
0
20
Millions USD
0
20
Millions USD
44
Source: Dentsu Media, Media Report 2013

45.
5.
SUMMARY
45

46.
1.
VIETNAM
THE BIG PICTURE
2.
CONSUMERS
THE KEY INDICATORS
LONGEST SPELL OF SLOW GROWTH
TOTAL INVESTMENT HAS FALLEN
GROWTH IN RETAIL SALES AND
SERVICES HAS FALLING
IMPORTS BY DOMESTIC SECTOR
FELL
MODERATE INFLATION 6.7%
STABLE EXCHANGE RATE—DONG
SOLID EXPORT GROWTH
LARGEST CURRENT ACCOUNT
SURPLUS
THE NUMBER OF EMPLOYED
PERSONS INCREASED
CONSUMER PRICE INDEX (CPI)
INCREASED
RETAIL SALES INCREASED
FMCG MARKET GROWS FASTEST IN
THE REGION
VIETNAM REMAINS ONE OF THE
MOST POPULAR DESTINATIONS
FOR EXPANSION WITHIN THE
ASEAN REGION
B,C (MIDDLE CLASS) TAKE
BIGGEST PART OF TOTAL
POPULATION & CONSUMPTION
CONSUMERS ARE LOSING
CONFIDENCE IN VIETNAM
ECONOMY
CUTTING DOWN THEIR SPENDING
ON ENTERTAINMENT, BEAUTY,
CLOTHES, LUXURY GOODS &
TRAVEL, ESPECIALLY ON
BOUILLON (SEASONING)
IN URBAN, HEALTH,
CONVENIENCE AND
SOPHISTICATED ARE THE KEY
TREND
MOVING FROM WET MARKET TO
SUPERMARKET
PAYING HIGH ATTENTION ON
PROMOTION
FOOD SERVICES ARE GROWING
QUICKLY
ROARING OF INTERNET &
TECHNOLOGY
3.
CONSUMERS & BRANDING
LOCAL BRANDS = AFFORDABLE
PRICE & ACCEPTABLE QUALITY
INTERNATIONAL BRANDS = HIGH
QUALITY, VALUE FOR MONEY &
PREMIUM IMAGE
70% FOCUS ON ORIGIN & BRAND
WOM & TV ADS = MOST RELIABLE
SOURCE TO IDENTIFY HIGH
QUALITY BRAND
SUPERMARKET = SELLING HIGH
QUALITY BRAND VS. WET MARKET
& STREET VENDOR
80% CONSUMERS CARE ABOUT
SAFETY
80% CONSIDER BUYING AFTER
EXPOSING EXPERT ENDORSEMENT
35% CONSUMERS WOULD STOP AND
CHANGE THE BRANDS IF THEY
FIND ITS BRAND CAUSE HARMFUL
TO ENVIRONMENT
BASIC = MALE
SOPHISTICATED = FEMALE
4.
ADVERTISING INDUSTRY
THE KEY HIGHLIGHTS
ADVERTISING IMPACTS STRONGLY
ON CONSUMER’S BEHAVIOR
TOTAL MEDIA SPENDING KEEP
INCREASING 20% BY 2011
TV STILL KEEP INCREASING AS
THE KEY MEDIUM FOR
ADVERTISING (>80%)
PRESS SPEND SEEMS TO KEEP
THE SAME YEAR ON YEAR
FOOD & HYGIENE-BEAUTY
MAINTAIN TOP LEADING
INVESTMENT IN AD MARKET
NESTLE OVERCAME MASAN TO GET
THE 4TH POSITION IN 2012
“HYGIENE & BEAUTY” OCCUPIED
TOP OF BRAND SPENT MOST
VTV3 & HTV7 MAINTAIN THE TOP
2, THVL1 & VTC9 GOT THE
IMPRESSIVE GROWTH IN 2012
TUOI TRE, THANH NIEN, TIEP
THI & GIA DINH ARE THE TOP
PRINT HEADERS INVESTMENT IN
2012
46

47.
THANK YOU
47