2. Over TWO DECADES OF DRIVING
SMARTER, BETTER AND FASTER
DECISIONS IN VIETNAM
1923 1923 1946 1955 1968
The Company
is founded and
incorporated in
Chicago, IL
Nielsen produces
the first marketing
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surveys Nielsen presents
the first
instantaneous
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Nielsen creates
the Designed
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defining a
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We measure the activity
of more than
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online panelists worldwide
4. Driving smarter business Decisions in Vietnam 2014
WELCOME
Vaughan Ryan
MANAGING DIRECTOR
Vietnam
Vietnam continues to be a volatile market. In less than two years,
we have gone from the fastest-growing, retail environment in the
world, to a declining market, with many new challenges. As a
result, companies need to be better informed. Decision-making
can no longer rely on gut feel and historic trends, as uncertain
times stand before us. Organic growth will certainly slow down,
especially in the key cities of Ho Chi Minh and Hanoi. For this
reason, companies need to look at new markets within the country.
Companies that succeed in the future need to be present across
the total market. As you will see in this 9th edition of the Nielsen
Pocket Reference Book, we must start thinking about RURAL
Vietnam as our next source of growth. With over 65% of the
country’s population living in rural areas and accounting for around
50% of the country’s GDP, rural Vietnam is the “greener pasture”
that will drive growth for many businesses for at least the next
decade and beyond.
12. 4 Driving smarter business Decisions in Vietnam 2014
VIETNAMESE CONSUMERS ARE
CAUTIOUSLY OPTIMISTIC
of Vietnamese respondents
are confident about
job prospects
45%
of Vietnamese respondents
are confident about
personal finances
54%
of Vietnamese respondents
think now is the time
to buy
37%
of Vietnamese respondents
have recently
changed spending to
save more
85%
22. 14 Driving smarter business Decisions in Vietnam 2014
middle class SPENDING
ON THE RISE
percentage increase 2013 vs. 2014
cars
+70%electronics
(ipods)
+262%
international
travel
+13%
URBAN RURAL
CLASS C
CLASS B
CLASS D
CLASS E
CLASS F
CLASS A+
CLASS C
CLASS B
CLASS D
CLASS E
CLASS F
CLASS A+
10
12
15
2011
2013
2012
26
33
35
40
40
37
20
13
12
10
12
15
0
0
0
3
2
0
1
4
5
8
15
24
29
37
42
40
31
22
19
11
7
24. 16 Driving smarter business Decisions in Vietnam 2014
QUICKER premiumization in
baby categories
Except for Milk Powder driven by heavy
communications against prices
baby pants
139%
of category growth
premium
baby
cereal
56%
of category growth
Source: Nielsen Retail Audit 6 Cities, data to MAT May’14, premium based on Price Index >120
28. 20 Driving smarter business Decisions in Vietnam 2014
BODY, MIND AND SOUL –
IT’S A BALANCING ACT
WHAT WE
EAT
HOW WE
LIVE
LIVING HAPPILY
92%
WORK LIFE BALANCE
89%
DOING EXERCISE
82%
EATING
HEALTHY FOOD
99%
BALANCED DIET
95%
30. 22 Driving smarter business Decisions in Vietnam 2014
Top health and nutrition problems –
Those NOT confident in current health (%)
the most important concerns in life (%)
HEALTH OF HUSBAND/
WIFE/CHILDREN
MY PERSONAL HEALTH
MY CAREER
RELATIONSHIP BETWEEN
FAMILY MEMBERS
FINANCE (MONEY, PROPERTY,
HOUSE, VEHICLES ETC.)
26
13
13
12
11
Middle-aged
30+ y.o.: 34%
Youth: 19%
OFTEN/EASILY FALLS SICK
DON’T KNOW WHERE TO EAT
HEALTHY FOOD
WEIGHT LOSS
HEART DISEASE
EATING/DRINKING FOOD
THAT LACK IN NUTRITION
17
14
12
12
9
family health is the top concern
1 in 3 VIETNAMESE ARE WORRIED ABOUT THEIR HEALTH
AND WEAK IMMUNITY
Q13. Self-evaluation o own health confidence ((All respondents n=700)
Q16. First mention on most common H&N concerns (Those not confident in health n=284)
34. 26 Driving smarter business Decisions in Vietnam 2014
ENORMOUS OPPORTUNITIES
FOR BRANDS
more
wealth
more
educated
more
mobile
MORE COLLEGE
GRADUATES
(2014 vs. 2009)
2.5 TIMES
INCOME PER
CAPITA GROWTH
(2012 vs. 2010)
44%
MORE INDUSTRIAL,
CONSTRUCTION and
SERVICE HOUSEHOLDS
(2011 vs. 2006)
49%
OUT-MIGRATION RATE
(2011)
3.9%
36. 28 Driving smarter business Decisions in Vietnam 2014
WHAT’S IMPORTANT:
The ties that bind
Rural Vietnamese consumers have a strong sense
of community. Family and community bonding is a
high priority, and they listen to and value advice
from those around them.
crowd play clout play
CONCERNED WITH
WHAT OTHERS THINK
74%
DARE TO BE
DIFFERENT
46%
IS MOST IMPORTANT
DRIVER FOR TRIAL
(70%)
‘POPULAR
BRAND’
CONCERNED WITH
WHAT OTHERS THINK
81% RURAL
ARE AFFECTED
BY OTHERS’
RECOMMENDATIONS IN
PURCHASE DECISION
70%
WOULD GET
OTHERS’ IDEAS FOR
REFERENCE ONLY
70%
46% URBAN
Source: Nielsen Rural 2014; Nielsen Regional Difference 2010
VS.
38. 30 Driving smarter business Decisions in Vietnam 2014
The importance of
trust and reasons
Although their wealth and affluence is
expanding, consumers in rural Vietnam remain
frugal in their spending and look for products
which provide reassurance and low risk
limited
income
low
education
12%
completed college
(1/3 x urban)
1.5m
monthly income
per capita in 2012
(0.5 x urban)
seasonal
income
70%
rely on farming/fishing
and hired labour
limited job
opportunities
3%
underemployment
(0.5 x urban)
NEED TO SCRUTINISE EVERY PURCHASE DECISION
for benefits, risks, value
Source: GSO 2012; GSO 2012; Nielsen Rural study 2014; Nielsen Rural Syndicated Study 2009 &
Nielsen Rural 2014
42. 34 Driving smarter business Decisions in Vietnam 2014
technology OWNERSHIP among online VIETNAMESE (smartphone is
personal ownership, all other devices are household ownership)
CONSUMERS HAVE ACCESS TO A LARGE AND GROWING RANGE OF CONNECTED
DEVICES AND SCREENS
*‘Connected TV’ combines Smart TV and TV which connects to the internet via a separate device
Smartphones
top the list
of personally
owned devices
More
connected
screens
and devices
= more
opportunity
to reach
and engage
consumers in
unique ways
82
81
75
74
70
58
49
37
35
33
19
SMARTPHONE
LAPTOP/NOTEBOOK
PAY TV
DESKTOP COMPUTER
CONNECTED TV
SMART TV
CONNECTED TV VIA
SEPARATE DEVICE
GAMES CONSOLE
PAY
SMART
HOME INTERNET
CONNECTION
WIRELESS LAN
TABLET
44. 36 Driving smarter business Decisions in Vietnam 2014
Digital media is a vital component to an
organisation’s cross-platform strategy
Online activities across day-parts
(as a proportion of total online population)
ONLINE MEDIA HAS SUBSTANTIAL REACH throughout THE DAY, FACILITATED
BY MANY CONNECTED AND ‘ALWAYS ON’ DEVICES
USING THE INTERNET
LISTENING TO THE RADIO
READING PRINT NEWSPAPER
WATCHING TRADITIONAL TV
Before9am
9am
-Before12pm
12pm
-Before2pm
2pm
-Before4pm
4pm
-Before6pm
6pm
-Before8pm
8pm
-Before10pm
10pm
Onwards
10
20
30
40
50
60
70
80
90
46. 38 Driving smarter business Decisions in Vietnam 2014
BROADCAST TV REMAINS STRONG BUT VOD IS GROWING
How TV and movie content is accessed in 2014
Broadcast TV
TV/movie snippets or entire shows
streamed on sites like YouTube
Legal (non-pirated)
Internet sources or VOD services
Time-shifted TV
Illegal (pirated sources) such as
BitTorrent, Usenet etc.
Combined Internet TV
79
40
35
16
10
67
Consumers now obtain their video
content from a variety of sources
– traditional and digital
50. 42 Driving smarter business Decisions in Vietnam 2014
A ‘GOOD’ BANK IS...
• Popular and known by many people
• Strongly recommended by everyone
BANKS’ REPUTATIOn
DRIVE CONSUMER DECISIONS
I had deposited savings
in a small bank due
to the higher interest
rate, but I felt insecure
during this time. When
the term ended, I went
back to the prestigious
bank.
“
”
SAVINGS TRIGGERS
BANK PRESTIGE
HCM (A)
N=60
HN (B)
N=600
ATM/DEBIT TRIGGERS
LOAN TRIGGERS
BANK PRESTIGE
BANK PRESTIGE
1ST
3RD
6TH
Source: Nielsen PFM – Q4’13; Quali July’13.
(*
) Significance higher
70B(*)
78B
70B
73A65
59
59
58
52
48
48
61
HCM (A)
N=300
HN (B)
N=300
HCM (A)
N=300
HN (B)
N=295
Q4’13
Q3’13
64. 56 Driving smarter business Decisions in Vietnam 2014
HOUSEHOLD BY PROVINCE – URBAN/RURAL – 2012
region/province TOTAL urban rural
Tổng số – TOTAL 23,335,345 7,490,884 15,844,461
Red River Delta 5,781,914 1,785,057 3,996,857
Ha Noi 1,901,139 814,250 1,086,889
Vinh Phuc 275,838 63,676 212,162
Bac Ninh 299,972 78,611 221,361
Quang Ninh 327,000 170,944 156,056
Hai Duong 525,788 115,576 410,212
Hai Phong 560,029 260,294 299,735
Hung Yen 336,941 43,735 293,206
Thai Binh 558,531 55,844 502,688
Ha Nam 239,394 25,121 214,273
Nam Dinh 556,636 100,515 456,121
Ninh Binh 261,686 49,714 211,971
Northern Midlands
and Mountain
2,850,050 485,600 2,364,450
Ha Giang 168,444 25,356 143,089
Cao Bang 125,659 25,317 100,341
Bac Kan 77,179 12,564 64,615
Tuyen Quang 189,462 24,821 164,641
Lao Cai 154,000 34,786 119,214
Yen Bai 196,000 38,308 157,692
Thai Nguyen 338,294 96,235 242,059
Lang Son 186,025 35,775 150,250
Bac Giang 418,026 40,816 377,211
Phu Tho 371,083 67,528 303,556
Dien Bien 112,891 16,957 95,935
Lai Chau 82,813 11,917 70,896
Son La 257,795 36,000 221,795
Hoa Binh 201,525 30,275 171,250
66. 58 Driving smarter business Decisions in Vietnam 2014
region/province TOTAL urban rural
Mekong River Delta 4,347,625 1,082,275 3,265,350
Long An 383,737 68,895 314,842
Tien Giang 445,395 65,658 379,737
Ben Tre 359,571 36,086 323,486
Tra Vinh 253,825 41,200 212,625
Vinh Long 272,000 42,342 229,658
Dong Thap 419,075 74,425 344,650
An Giang 525,293 157,537 367,756
Kien Giang 411,000 112,190 298,810
Can Tho 296,122 196,390 99,732
Hau Giang 192,425 50,700 141,725
Soc Trang 317,537 107,927 209,610
Bac Lieu 198,500 54,114 144,386
Ca Mau 289,786 62,476 227,310
Source: Statistical Yearbook 2012
household BY PROVINCE – URBAN/RURAL – 2012 (CONT’D)
68. 60 Driving smarter business Decisions in Vietnam 2014
Region/province
POPULATION
(Thousand people)
AREA (Km2
)
POPULATION DENSITY
(People/Km2
)
North and South
Central Coast
19,173.6 95,835.8 200
Thanh Hoa 3,426.6 11,132.2 308
Nghe An 2,952.0 16,490.9 179
Ha Tinh 1,230.5 5,997.8 205
Quang Binh 857.9 8,065.3 106
Quang Tri 608.1 4,739.8 128
Thua Thien Hue 1,114.5 5,033.2 221
Da Nang 973.8 1,285.4 758
Quang Nam 1,450.1 10,438.4 139
Quang Ngai 1,227.9 5,153.0 238
Binh Dinh 1,501.8 6,050.6 248
Phu Yen 877.2 5,060.6 173
Khanh Hoa 1,183.0 5,217.7 227
Ninh Thuan 576.7 3,358.3 172
Binh Thuan 1,193.5 7,812.8 153
Central Highlands 5,379.6 54,641.1 99
Kon Tum 462.4 9,689.6 48
Gia Lai 1,342.7 15,536.9 86
Dak Lak 1,796.7 13,125.4 137
Dak Nong 543.2 6,515.6 83
Lam Dong 1,234.6 9,773.5 126
South East 15,192.3 23,598.0 644
Binh Phuoc 912.7 6,871.5 133
Tay Ninh 1,089.9 4,039.7 270
Binh Duong 1,748.0 2,694.4 649
Dong Nai 2,720.8 5,907.2 461
Ba Ria - Vung Tau 1,039.2 1,989.5 522
POPULATION, AREA AND POPULATION DENSITY BY PROVINCE 2012
(CONt’d)
76. 68 Driving smarter business Decisions in Vietnam 2014
NUMBER OF FOREIGN VISITORS TO VIETNAM 2008–2012
(Thousand VISITORS)
2008 2009 2010 2011 Prel. 2012
Tổng số – TOTAL 4,236 3,747 5,050 6,251 6,848
By main purpose of journey
Tourism 2,613 2,241 3,110 3,888 4,171
Business 844 742 1,024 1,003 1,166
Visiting friends
and relatives
511 518 574 1,007 1,151
Others 268 247 342 353 360
By means of transport
Air ways 3,283 3,026 4,062 5,032 5,576
Water ways 152 66 51 46 286
Roads 801 656 938 936 986
Source: Statistical Yearbook 2012
80. 72 Driving smarter business Decisions in Vietnam 2014
AVERAGE EMPLOYED POPULATION IN STATE SECTOR BY KIND OF ECONOMIC
ACTIVITY (Thousand PER)
2008 2009 2010 2011 prel.
2012
Tổng số – TOTAL 5,059.3 5,040.6 5,107.4 5,250.6 5,381.0
Agriculture, forestry and fishing 193.2 187.0 184.1 183.7 169.4
Mining and quarrying 98.1 94.4 96.6 96.4 122.2
Manufacturing 588.2 649.4 635.4 408.9 424.7
Electricity, gas, stream and air
conditioning supply
90.4 92.4 101.2 111.4 102.0
Water supply, sewerage, waste
management and remediation activities
31.1 31.7 33.7 58.4 59.9
Construction 422.0 438 435.2 117.3 109.3
Wholesale and retail trade; repair of motor
vehicles and motorcycles
87.8 88.1 82.7 98.6 97.4
Transportation and storage 199.1 200.4 199.7 166.9 147.9
Accommodation and food
service activities
38.6 40.1 38.3 27.3 45.7
Information and communication 28.4 29.3 32.6 150.5 163.7
Financial, banking and insurance activities 80.5 76.1 78 152.1 148
Real estate activities 3.2 3.2 3.0 8.9 5.4
Professional, scientific and technical
activities
71.2 72.1 69.4 63.5 84.6
Administrative and support service
activities
26.6 26.8 31 31.3 32
Activities of Communist Party,
socio-political organizations; public
administration and defence; compulsory
security
1,604.2 1,504 1,523.6 1,523.3 1,568.1
Education and training 1,205 1,213.8 1,251.3 1,600.6 1,647.9
Human health and social work activities 229.1 230 244.4 398.8 391.1
Arts, entertainment and recreation 28.2 30 29.7 39.6 47.8
Other service activities 34.5 34.6 37.9 13.1 14.1
Source: Statistical Yearbook 2012
96. 88 Driving smarter business Decisions in Vietnam 2014
NUMBER OF HEALTH Establishments UNDER PROVINCIAL DEPARTMENT OF
HEALTH IN 2012 BY PROVINCE (UNIT)
Tổng số
–Total
Hospital Regional
polyclinic
Sanatorium
and
rehabilitation
hospital
Medical
service
unit
WHOLE
COUNTRY
12,407 963 621 35 10,757
Red
River Delta
2,489 210 89 8 2,170
Ha Noi
673 41 49 n.a. 577
Ha Tay
Vinh Phuc 162 14 8 1 139
Bac Ninh 140 12 1 126
Quang Ninh 218 19 11 1 186
Hai Duong 291 19 5 1 265
Hai Phong 251 23 2 1 224
Hung Yen 179 17 n.a. n.a. 162
Thai Binh 24 22 n.a. 1
Ha Nam 131 12 2 n.a. 116
Nam Dinh 248 18 n.a. 1 229
Ninh Binh 172 13 12 1 146
Northern
Midlands
and Mountain
2,940 187 218 8 2,524
Ha Giang 211 14 19 1 177
Cao Bang 235 16 20 n.a. 199
Bac Kan 133 9 2 n.a. 122
Tuyen Quang 166 12 12 1 141
Lao Cai 213 12 36 1 164
Yen Bai 213 14 19 n.a. 180
Thai Nguyen 209 13 13 1 181
Lang Son 264 13 24 1 226
102. 94 Driving smarter business Decisions in Vietnam 2014
MONTHLY AVERAGE CONSUMPTION EXPENDITURE PER CAPITA AT CURRENT
PRICES BY RESIDENCE AND BY REGION (Thousand VND)
2004 2006 2008 2010 2012
WHOLE COUNTRY 360.0 460.0 705.0 1,139.0 1,608.0
By Residence
Urban 595.0 738.0 1,115.0 1,726.0 2,304.0
Rural 284.0 359.0 548.0 891.0 1,316.0
By Region
Red River Delta 378.0 479.0 725.0 1,343.3 1,898.0
Northern midlands
and mountain areas
265.0 336.0 500.0 814.6 1,196.0
North Central area
and Central coastal area
288.0 362.0 559.0 957.5 1,406.0
Central Highlands 295.0 391.0 606.0 915.1 1,535.0
South East 611.0 785.0 1,240.0 1,639.9 2,145.0
Mekong River Delta 335.0 435.0 624.0 987.6 1,373.0
Source: Statistical Yearbook 2012
104. 96 Driving smarter business Decisions in Vietnam 2014
Monthly average income per employee in state sector at current
prices by kind of economic activity (Thousand VND)
2005 2009 2010 2011 Prel.2012
WHOLE COUNTRY 1,639.5 3,027.2 3,259.5 3,775.2 4,465.6
Agriculture, forestry and fishing 1,130.4 2,688.3 3,125.2 4,165.7 5,199.0
Mining and quarrying 3,504.0 6,439.9 4,453.2 4,852.8 5,532.9
Manufacturing 1,777.4 2,742.2 3,280.0 3,955.6 4,472.3
Electricity, gas, steam and
air conditioning supply
2,620.3 4,343.2 5,551.4 5,934.5 5,575.3
Water supply, sewerage, waste
management and remediation
activities
1,475.0 2,939.2 3,794.4 4,095.2 3,957.1
Construction 1,566.9 2,746.2 3,122.5 3,669.0 4,624.1
Wholesale and retail trade; repair of
motor vehicles and motorcycles
1,836.0 3,042.7 3,357.0 4,397.7 5,043.9
Transportation and storage 2,973.8 4,261.1 4,296.4 5,036.2 5,693.3
Accommodation and
food service activities
1,853.0 3,325.0 3,387.0 3,847.3 5,205.5
Information and communication 3,688.7 4,973.7 5,104.5 5,342.2 5,644.3
Financial, banking and
insurance activities
3,353.0 6,811.0 6,380.6 6,573.2 6,853.7
Real estate activities 2,280.2 3,967.4 4,365.8 4,601.3 6,761.9
Professional, scientific and
technical activities
2,582.0 3,206.2 3,542.7 4,333.3 5,521.3
Administrative and support
service activities
2,170.5 2,875.7 3,344.6 3,583.7 4,321.4
Activities of Communist Party,
socio-political organizations;
public administration and defence;
compulsory security
1,019.5 2,315.5 2,536.1 2,963.0 3,880.3
Education and training 1,337.0 2,754.2 2,980.0 3,426.4 4,263.0
Human health and social work activities 1,322.1 2,840.5 3,104.6 3,628.4 4,490.6
Arts, entertainment and recreation 1,254.7 2,765.6 2,946.5 3,444.4 4,343.8
Other service activities 1,287.4 2,563.2 2,524.4 2,507.5 3,090.8
Source: Statistical Yearbook 2012
111. 2013 YEAR IN REVIEW 09
CONSUMERIZATION
Nielsen provides extensive
segmentation analysis
across industries to help
clients understand their
consumer. Our measurement
enables clients to create
products and experiences to
effectively reach those unique
customer segments.
INNOVATION
Once we’ve helped identify
the desires and needs of
consumers, clients rely on our
ability to shape and develop
breakthrough products and
services. This not only includes
effective go-to-market plans,
but also innovative solutions
to expand their product
portfolio for future growth.
MARKETING
EFFECTIVENESS
Our differentiated perspective
into what consumers watch
and buy helps clients prioritize
marketing spend and maximize
return on investment (ROI).
Nielsen determines whether
campaigns reached the right
consumers, how the message
resonated and what action was
taken as a result.
PERFORMANCE
MANAGEMENT
We provide our clients with
tools and processes to ensure
their product is available,
visible and effectively
promoted. With insights into
marketplace trends, we help
clients get the right price, and
create promotional and retail
experiences that get results.
PERFORMANCE FRAMEWORK
At Nielsen, we analyze billions of data points to see consumers
in an uncommon way. We provide unique insights that allow our
clients to unlock demand. The performance framework supports
our mission to help clients make faster, smarter, more confident
decisions to improve profitable growth.
CONSUMERIZATION INNOVATION MARKETING
EFFECTIVENESS
PERFORMANCE
MANAGEMENT