Báo cáo tổng quan về thị trường bán lẻ Việt Nam: - Kinh tế - Thị trường bán lẻ - Các nhà bán lẻ - Hành vi của người mua và xu hướng mua hàng

1. VIETNAM
RETAIL REPORT
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2. TABLE OF CONTENT
I. Overview of Vietnam’s retail sector
II. Economic Status
III. Retail Market Size
IV. Retail Market Players
V. Consumer Behavior and Retail Trends
VI. Vietnam and Philippines Comparison
VII. Conclusion

3. Like most countries in Southeast Asia, Vietnam’s retail landscape is heavily dominated by its
traditional wet markets and small independent stores catering small quantities of goods and
products for day to day consumption of shoppers. However, modern retail is a concept that have
grown tremendously in the country – from 2 supermarkets in the 1990s to thousands of modern
stores to date.
The economic growth, rising middle class, urbanization and higher standards and demands for
sanitationand hygienekeeps on fueling its growth in Vietnam’sretail industry.
OVERVIEW

4. CURRENT GROSS DOMESTIC PRODUCT
According to the latest data by World Bank, the Gross
Domestic Product (GDP) of Vietnam started to flourish
by 2000. By 2016, Vietnam’s GDP is at 202.616 billion
USD.
Source: World Bank Indicators, The World Bank
ANNUAL GDP GROWTH
Vietnam’s GDP is forecasted to grow by 6.3% in 2017,
Maintain this growth in 2018, and a minimal decline in
the following year (2019) at 6.2%.
VIETNAM (2017)
6.3
ECONOMICSTATUS
VIETNAM (2016)
202.616 BILLION

5. The populationgrowth in Vietnam is similar to the trend in the Southeast Asian Nations – it has been on a steady
rise for years. The country’s populationis characterized by the large number of young workforce, making labor for
foreign investments more cost-efficient. In additionto this, Vietnam’s dependencyratio, or the percentage of
people in the workforce keeps on declining – from 75% in the 1990s to 42% in 2016.
VIETNAM’S POPULATION GROWTH
Source: World Bank Indicators, The World Bank
ECONOMICSTATUS

6. WHAT DRIVES VIETNAM’S ECONOMIC GROWTH?
2016 GDP WEIGHT (%)
Source: General Office of Statistics of Vietnam, HSC, TIM
ECONOMICSTATUS
Trade and Services continue to be the main economic driver for Vietnam at 38.57%. This can be attributed to
the strong domestic consumption. The industry sector, at 34.6% continues to contribute a lot, with robust growth
on mining, manufacturing, utilities and construction.
15%
8%
16%
5%
6%
39%
11%Agriculture, Forestry, Fishery
Mining
Manufacturing
Utilities
Construction
Trade and Services
Tax Excluded Subsidy

7. WHAT DRIVES VIETNAM’S ECONOMIC GROWTH?
2016 vs FORECASTED 2017 GDP GROWTH
Source: General Office of Statistics of Vietnam, HSC, TIM
ECONOMICSTATUS
Most sectors are forecasted with a robust growth. However, they are at lower growth rate in comparison to
2016 with the exception of the Mining sector growing from -4% at 2016 to 1.64% by 2017 forecast.
-6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
Agriculture, Forestry, Fishery
Mining
Manufacturing
Utilities
Construction
Trade and Services
Tax Excluded Subsidy
2017F Growth 2016 Growth

8. WHAT DRIVES VIETNAM’S ECONOMIC GROWTH?
Trades and Services
Source: Vietnam General Department of Customs, HKTC
ECONOMICSTATUS
Exports surged at 15.10% amounting to
44.7 Billion US Dollars. Imports, on the
other hand has a growth rate of 24.9%
amounting to 46.6 Billion US Dollars.
The surge in exports is because of the
huge demand for electronics, computers
and components driven by the foreign-
invested manufacturing sector. Top exports
markets of Vietnam in 2016 are US, China
and Japan.
Exports
Imports
4.5
6.9%
44.7 billion
46.6 billion
March 2017
YOY
Amount USD
Whereas, the largest source of Vietnam’s imports are: Chins, Korea and Japan. Most of the imported items in
2016 consisted of machinery, equipment, electronics and computers which is heavily related to export
assembly.

9. MODERN RETAIL CHANNEL SALES (Trillion VND)
Source: Euromonitor, USDA
Unlike most of its neighboring countries, convenience stores in Vietnam accounts for the lowest sales among
retailing channels. In 2015 alone, sales among convenience stores accounted only to 2.3 trillion VND, while
hypermarkets accounted to 27.2 trillion VND and supermarket with the highest sales at 39.8 trillion VND.
However, it is also worth noting that modern retail sales in Vietnam is in a steady growth every year, growing
from 30.9 trillion VND in 2011 to 69.2 trillion VND in 2015 – A 124% growth rate in 5 years.
RETAILMARKETSIZE
0
5
10
15
20
25
30
35
40
45
2011 2012 2013 2014 2015
Convenience Stores Hypermarkets Supermarkets

10. TRADITIONAL RETAIL CHANNEL SALES (Trillion VND)
Source: Euromonitor, USDA
On the other hand, other grocery retailers (wet markets, food stalls, etc) account for the largest sales among
traditional markets. In 2015, other grocery retailers account for 895.6 trillion VND, followed by independent
small grocers at 374.6 trillion VND and lastly, food/drink/tobacco specialists at 32 trillion VND.
Similar with modern retailing channels, the growth among traditional market channels continue to grow
progressively.
RETAILMARKETSIZE
0
100
200
300
400
500
600
700
800
900
1000
2011 2012 2013 2014 2015
Food/Drink/Tobacco Specialists Independent Small Grocers Other Grocery Retailers

11. TRADITIONAL RETAIL VS MODERN RETAIL (Trillion VND)
Source: Euromonitor, USDA
Despite both channels’ steady growth in the past years, the growth rate of its traditional market is declining in
comparison to modern retail. Modern retail experienced a steep growth rate by 2014 at 28%. However declined
the following year at 18%.
TraditionalRetailing declined from 2012 having the growth rate of 24% down to 8% by 2015.
RETAILMARKETSIZE
0%
5%
10%
15%
20%
25%
30%
2012 2013 2014 2015
Modern Retailing Channel Traditional Market Channel

12. 82
outlets
Considered as the largest
retailer in Vietnam
A specialty store in Vietnam offering
wide range of imported goods and
private brands
Japaneseretailer expanding
its domain in Vietnam
55
outlets
Owned by a private company,
second largest retailer in Vietnam
80
outlets
Owned by a French
Retailing Company
present in 16 countries
around the world
8
outlets
RETAILMARKETPLAYERS
5
outlets
SUPERMARKETS AND HYPERMARKETS

13. RETAILMARKETPLAYERS
CONVENIENCE STORES
700
outlets
217
outlets
Convenience Store in
Vietnam with the
highest number of
outlets nationwide
Malaysian-Invested
company expanding its
domain mainly around
Ho Chi Minh City
Second to Vinmart with
the most number of
outlets
128
outlets

14. Most of Vietnam’s population still rely on wet markets or traditional retail channels in making their day to day
purchases.
Primarily,Vietnamesedishesarecomposedmainlyoffresh fruitsand vegetables,makingwetmarketsthemost
convenientplacetopurchasefreshgoodsfor everydayconsumption.Inadditionto this, traditionalretailoutlets
also poseas a moreviableoption for mostVietnameseshoppers.
RETAILMARKETPLAYERS
Image Source

15. However, it is evident that modern retailing
continues to flourish in a country heavily
dominated by its traditional market.
Remarkably, from 2 supermarkets in 1990s,
thousands of modern concept retail stores are
built around Vietnam and their numbers
continue to grow each year.
Vietnamese love fresh vegetables and fruits.
Thus, modern retailing outlets make it a point
to offer fresh products that can compete with
goods sold in the wet market. Besides the
impeccable look and feel, they assure their
consumers that all areas of the store is
completely sanitary.
RETAILMARKETPLAYERS

16. The deli section also
offers a wide range of
cheeses and cold cuts for
foreigners or expats and
even for the Vietnamese
consumers to enjoy.
RETAILMARKETPLAYERS

17. Imported wines and liquors from different continents are also
offered, giving the consumers a variety of choices that can be
accompanied by cold cuts and cheeses that they purchase.
RETAILMARKETPLAYERS

18. Modern retailing outlets also offer wide range of
imported products. With the growing number of
tourists and expats in the country, the demand
for imported products also continue to grow. In
addition to this, Vietnamese consumers are
developing a taste and appreciation for
imported products.
RETAILMARKETPLAYERS

19. Modern retail outlets also offer private
brands/products that can be exclusively
purchased in their stores. In this way, they can
assure every consumer that the products they
sell are specially made to fit the demands and
needs of their shoppers.
RETAILMARKETPLAYERS
Image Source

20. One key factor why Vietnamese consumers
choose to shop in traditional markets is
because they can decide to buy ingredients in
smaller portions. In response to this,
supermarkets are offering RTCs or ready to
cook packages that is better suited with the
daily needs of an average consumer.
RETAILMARKETPLAYERS

21. Besides food products, non-food products and home appliances
are also offered in supermarkets making shopping for house
needs easier and possible under one roof.
RETAILMARKETPLAYERS

22. To further improve shopping experience, some stores have in-
house bakeries and cafés where consumers can hang out and
enjoy with family or friends.
RETAILMARKETPLAYERS

23. The local population’s inclination to make their purchases in the traditional
outlets are hinged on four major factors. (1) Traditional outlets are seen
everywhere posing convenience and ease of access for consumers. (2)
Comparatively lower prices of goods and products to which consumers can still
bargain (3) Fresh produce supply source is better at wet markets (4) Traditional
retailers offer flexible package sizes for day to day consumption.
A. VIETNAM’S POPULATION IS STILL INCLINED TO
BUY FROM TRADITIONAL RETAIL CHANNELS
CONSUMERBEHAVIOR
ANDRETAILTRENDS

24. CONSUMERBEHAVIOR
ANDRETAILTRENDS
94%
6%
Traditional Modern
According to Euromonitor’s 2016 report, traditional
Market accounts for 94% of retail sales while
modern accounts to the remaining 6%.
However…
The growth of sales in Traditional Market is declining compared to Modern
Retailers. According to Nielsen, foot traffic on traditional outlets declined. In
2012, 81% of consumers go to traditional outlets while in 2014, it declined to
64%. On the other hand, foot traffic on convenience stores increased from
5% (total number of consumers) on 2012 to 11% on 2014.

25. B. INCREASED HEALTH CONSCIOUSNESS AND SPEND
CONSUMERBEHAVIOR
ANDRETAILTRENDS
Top 5
concerns in
Vietnam
1
2
3
4
5
Health
Economy
Job Security
Increased Utility Bills
Work Life Balance
Source: Nielsen

26. CONSUMERBEHAVIOR
ANDRETAILTRENDS
Health consciousness ranks 1st on top 5 concerns by Vietnamese people according to a research conducted by
Nielsen. In addition to this, the latest data released by the world bank proves the growth on healthcare
spending in Vietnam (% of GDP).
0
1
2
3
4
5
6
7
8
2000 2002 2004 2006 2008 2010 2012 2014 2016
Source: World Bank
2002
2014
4.698
7.067

27. CONSUMERBEHAVIOR
ANDRETAILTRENDS
0
1
2
3
4
5
6
7
8
2011 2012 2013 2014
Vietnam Malaysia Philippines Indonesia Thailand
In comparison to its neighboring Asian countries, Vietnam has the highest spending on healthcare particularly
due to its high demand from citizens. Spendingon healthcare grew by 241% over the past decade.
Source: World Bank
ASEAN Healthcare Spending (% of GDP)

28. C. BEVERAGE TOPS IN CONTRIBUTION AMONG ALL CATEGORIES
CONSUMERBEHAVIOR
ANDRETAILTRENDS
Source: Nielsen
40%
15%
15%
6%
8%
13%
3%
Beverage Food Milk Base Home Care
Personal Care Cigarette Baby Care
0%
2%
4%
6%
8%
10%
12%
Q1 - 15 Q2 - 15 Q3 - 15 Q4 - 15 Q1 - 16 Q2 - 16 Q3 - 16 Q4 - 16
Growth
Beverage tops in Contribution among all categories at 40%.
Far behind is the second category which is food at 15%.

29. With the maturing life stages (more and more family are having no dependent
children), kids will have less influence in determining purchase priorities. Baby
formula or children’s snack and beverage is starting to be bought seldom on retail
stores.
In 2015 alone, 44% of the total households in Vietnam have no dependent
children. This is forecasted to grow up to 60% by 2025.
D. KIDS ARE LESS INFLUENTIAL IN DETERMINING
PURCHASE PRIORITIES
CONSUMERBEHAVIOR
ANDRETAILTRENDS

30. CONSUMERBEHAVIOR
ANDRETAILTRENDS
Old and Single
74%
Empty Nesters
63%
Families with
dependent kid/s
36%
The number of Old and Single among the population has the highest growth rate in Vietnam while Families
that have dependentkid/s has the lowest growth rate and is forecasted to even drop further.
LIFE STAGES GROWTH 2015
Source: Cimigo

31. CONSUMERBEHAVIOR
ANDRETAILTRENDS
Source: Nielsen
Baby Care
Baby Care Products have the lowest contribution among all
categories and continues to decline per quarter.
40%
15%
15%
6%
8%
13%
3%
Beverage Food Milk Base Home Care
Personal Care Cigarette Baby Care
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
Q1 -
15
Q2 -
15
Q3 -
15
Q4 -
15
Q1 -
16
Q2 -
16
Q3 -
16
Q4 -
16
Moreover…

32. D. E-COMMERCE IS A RETAIL CHANNEL THAT HALF VIETNAM’S
POPULATION IS UNFAMILIAR OF
CONSUMERBEHAVIOR
ANDRETAILTRENDS
Internet Users
50.05
Million
Penetration
53%
Mobile Internet
Subscription
47.19
Penetration
50%
Million
94.93
Million
Urbanization
31%
Population
Source: wearesocial

33. VIETNAM AND PHILIPPINES
IN COMPARISON

34. PERCENTAGE OF THE POPULATION 0 – 14 ARE BOTH DECLINING IN
VIETNAM AND PHILIPPINES WHILE 15 – 65 AGE GROUP ARE BOTH
ON THE RISE
0 – 14 AGE GROUP. 15 – 65 AGE GROUP
Source: World Bank
VIETNAM-PHILIPPINES
Despite their similarities, it can also be noted that the ratio of adults to children in Vietnam is 3:1 whereas in the
Philippines it is at 2:1. This denotes that there are fewer families in Vietnam with dependent children, highly affecting
the purchase priorities.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
1990 1995 2000 2005 2010 2015 2020
PHILIPPINES VIETNAM
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
1990 1995 2000 2005 2010 2015 2020
PHILIPPINES VIETNAM

35. VIETNAMESE PEOPLE TEND TO SPEND MORE ON
HEALTHCARE COMPARED TO FILIPINOS
Source: World Bank
Based on the data released by the World
Bank, among the neighboring countries,
Vietnam has the most percentage in its
GDP allotted for healthcare, characterized
by the population’s demand. Furthermore,
health and wellness is a booming sector in
Vietnam.
COMPARISON
0%
1%
2%
3%
4%
5%
6%
7%
8%
Vietnam Indonesia Malaysia Philippines Thailand
7%
5%

36. PHILIPPINES HAS A BETTER PLATFORM FOR E – COMMERCE
COMPARED TO VIETNAM
COMPARISON
Source: wearesocial
Mobile Subscription
Penetration Rate
50%
Penetration
126%
Penetration

37. Philippines Vietnam Philippines Vietnam
9H 00M 6H 53M 3H 36M 2H 33M
On average, Filipinos spend more time on their computers and mobile phones compared to Vietnamese
people. This implies the inclination to purchase services or goods online is stronger in the Philippines
compared to Vietnam.
Averagetime spent
via PC or Tablet
Averagetime spent
via mobile phone
COMPARISON
TIME SPENT ON INTERNET USAGE
Source: wearesocial

38. TRADES AND SERVICES
Vietnam’s GDP growth can be attributed to its strong trade and services
sector, further fueled by Foreign Direct Investments and Free Trade
Agreements.
TRADITIONAL MARKET
Traditional Market still rules the retail landscape in Vietnam. However,
sales on this channel is declining while modern retail sales is on the rise.
CONCLUSION

39. FAMILIES
The number of families with dependent children in Vietnam is declining
making baby/kids products have the lowest sales.
HEALTH AND WELLNESS
Health and Wellness sector in Vietnam’s market is a good place of
investment as it is the primary concern of the population.
CONCLUSION

40. E - COMMERCE
In comparison, Philippines sets a better platform for E-Commerce to
flourish. If Vietnam wants to tap into this market, penetration rates for
internet usage should improve.
CONCLUSION

41. END OF REPORT