Consumer Lifestyles - Vietnam

Euromonitor International November 2010

Consumer Lifestyles

Vietnam

List of Contents and Tables
Structure of the Report........................................................................................................................................... 1 Consumer Trends.................................................................................................................................................... 1 the Majority Are Spending Less, While A Few Are Spending More .......................................................................... 1 the Young Generation Are the Most Powerful Consumers ........................................................................................ 2 Promotion of Products Made in Vietnam .................................................................................................................. 3 Hi-tech Consumers.................................................................................................................................................... 4 A Poor Country, But A Profitable Market for High-end Cars................................................................................... 5 Consumer Segmentation......................................................................................................................................... 6 Babies and Infants..................................................................................................................................................... 6 Kids ........................................................................................................................................................................... 7 Tweenagers ............................................................................................................................................................... 8 Teens ......................................................................................................................................................................... 9 Twenty-somethings...................................................................................................................................................10 Thirty-somethings ....................................................................................................................................................11 Middle-aged Adults ..................................................................................................................................................12 Older Population .....................................................................................................................................................13 Table 1 Consumer Segmentation: 2005-2009................................................................................13 Table 2 Consumer Segmentation: 2010-2020................................................................................13 People ......................................................................................................................................................................13 Population................................................................................................................................................................14 Marital Status ..........................................................................................................................................................14 Town Or Country .....................................................................................................................................................15 Table 3 Population by Age: 2005-2009 .........................................................................................16 Table 4 Population by Age: 2010-2020 .........................................................................................16 Table 5 Male Population by Age: 2005-2009 ................................................................................17 Table 6 Male Population by Age: 2010-2020 ................................................................................17 Table 7 Female Population by Age: 2005-2009 ............................................................................17 Table 8 Female Population by Age: 2010-2020 ............................................................................17 Table 9 Population by Ethnic Groups: 2005-2009.........................................................................18 Table 10 Population by Ethnic Groups: 2010-2020.........................................................................18 Table 11 Population by Marital Status: 2005-2009 .........................................................................18 Table 12 Population by Marital Status: 2010-2020 .........................................................................18 Table 13 Marriage and Divorce Rates/Average Age at First Marriage: 2005-2009 ........................18 Table 14 Population by Urban/Rural Location and Population Density: 2005-2009.......................19 Table 15 Population by Urban/Rural Location and Population Density: 2010-2020.......................19 Table 16 Population by Major Cities: 2005-2009............................................................................19 Table 17 Population by Major Cities: 2010-2020............................................................................19 House and Home ....................................................................................................................................................20 Households by Annual Disposable Income ..............................................................................................................20 Households by Number of Occupants ......................................................................................................................20 Single-person Households........................................................................................................................................21 Couples Without Children ........................................................................................................................................21 Couples With Children .............................................................................................................................................22 Single-parent Families .............................................................................................................................................22 Table 18 Annual Disposable Income per Household (Current Value): 2005-2009 .........................22 Table 19 Annual Disposable Income per Household (Constant 2009 Value): 20102020 ..................................................................................................................................23

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Consumer Lifestyles

Vietnam

Table 20 Households by Number of Persons: 2005-2009 ...............................................................23 Table 21 Households by Number of Persons: 2010-2020 ...............................................................23 Table 22 Households by Type: 2005-2009 ......................................................................................23 Table 23 Households by Type: 2010-2015 ......................................................................................24 Home Ownership .....................................................................................................................................................24 Running Costs ..........................................................................................................................................................25 Shopping for Household Goods ...............................................................................................................................26 Possession of Household Durables ..........................................................................................................................27 DIY and Gardening ..................................................................................................................................................27 Pet Ownership..........................................................................................................................................................28 Table 24 Households by Tenure: 2005-2009 ...................................................................................28 Table 25 Households by Tenure: 2010-2020 ...................................................................................29 Table 26 Running Costs: 2005-2009 ...............................................................................................29 Table 27 Possession of Household Durables: 2005-2009 ................................................................29 Table 28 Possession of Household Durables: 2010-2020 ................................................................29 Table 29 Pet Population: 2005-2009 ...............................................................................................30 Income .....................................................................................................................................................................30 Average Income .......................................................................................................................................................30 Average Income by Age............................................................................................................................................30 Table 30 Annual Gross and Disposable Income (Current Value): 2005-2009.................................30 Table 31 Annual Gross and Disposable Income (Constant 2009 Value): 2005-2009 ......................31 Table 32 Annual Gross and Disposable Income (Constant 2009 Value): 2010-2020 ......................31 Table 33 Average Annual Gross Income by Age (Current Value): 2005-2009 ...............................31 Table 34 Average Annual Gross Income by Age (Constant 2009 Value): 2005-2009 ....................31 Consumer Expenditure..........................................................................................................................................32 Living Costs .............................................................................................................................................................32 Table 35 Consumer Expenditure by Broad Category (Current Value): 2005-2009 .........................33 Table 36 Consumer Expenditure by Broad Category (Constant 2009 Value): 20052009 ..................................................................................................................................33 Table 37 Consumer Expenditure by Broad Category (Constant 2009 Value): 20102020 ..................................................................................................................................33 Work .......................................................................................................................................................................34 Working Conditions .................................................................................................................................................34 Commuting ...............................................................................................................................................................34 Working Women .......................................................................................................................................................35 Alternative Work Options.........................................................................................................................................35 Retirement ................................................................................................................................................................35 Unemployment .........................................................................................................................................................36 Table 38 Employed Population: 2005-2009 ....................................................................................36 Table 39 Employed Population: 2010-2020 ....................................................................................36 Table 40 Unemployed Population: 2005-2009 ................................................................................36 Table 41 Unemployed Population: 2010-2020 ................................................................................37 Learning ..................................................................................................................................................................37 School Life ...............................................................................................................................................................37 University Life..........................................................................................................................................................38 Adult Learning .........................................................................................................................................................39 Table 42 School Students: 2005-2009 .............................................................................................39 Table 43 Graduates: 2005-2009 ......................................................................................................39 Table 44 Higher Education Students: 2005-2009 ............................................................................40 Eating (including Soft Drinks) ..............................................................................................................................40

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..............................53 Table 57 Consumer Expenditure on Clothing and Footwear (Constant 2009 Value): 2005-2009.........................................................43 Table 45 Consumer Expenditure on Food (Current Value): 2005-2009 ................................................................................................................................................................................................................................................................................................................................................44 Table 47 Consumer Expenditure on Food (Constant 2009 Value): 2010-2020 ..............................................................................................................................41 Dining Out ........................................................................................................................................................................................50 Table 55 Expenditure on Cosmetics and Toiletries (Constant 2009 Value): 2005-2009 ........................45 Shopping for Alcoholic Beverages .........................51 Fashion Trends ........53 Health and Wellness.....50 Fashion ......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................57 Table 60 Healthy Life Expectancy at Birth: 2005-2009 .................................................................................................................................................................................................................................46 Table 50 Consumer Expenditure on Alcoholic Beverages and Tobacco (Current Value): 2005-2009 ..............................................................48 Table 53 Smoking Prevalence: 2005-2009 ......................................................49 Table 54 Expenditure on Cosmetics and Toiletries (Current Value): 2005-2009 ..................................................................................................................45 Drinking ................................................................................45 Drinking Habits .....................................................................................................................................................................................................................................................................................58 © Euromonitor International Page iii ..................................................................................................................................54 Sport and Fitness ........................................47 Smoking .........................................53 Health and Well-being ................................................................56 Home Medication and Vitamins ....................................................................................................................................................................44 Table 49 Consumer Foodservice by Type (Constant 2008 Value): 2004-2008 .............................................................47 Smoking Habits ........................................................57 Table 61 Obese and Overweight Population: 2005-2009 ..47 Shopping for Cigarettes and Tobacco ..................................................................49 Personal Appearance .......44 Table 48 Consumer Foodservice by Type (Current Value): 2004-2008 ..............................................................................................................47 Table 51 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2009 Value): 2005-2009 ..42 Café Culture.........................................................................................................................................................................................56 Table 59 Health Expenditure: 2005-2009 ..............................................................55 Nutrition ..................51 Shopping for Clothes...........58 Staying in .......................................53 Table 58 Consumer Expenditure on Clothing and Footwear (Constant 2009 Value): 2010-2020.............49 Shopping for Toiletries and Cosmetics ................................49 Attitudes Towards Hair and Beauty ..................................................................................................................................................................................................................................................................................Consumer Lifestyles Vietnam Shopping for Food and Drinks ........................................................................................................................................47 Table 52 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2009 Value): 2010-2020 ........................................................................43 Table 46 Consumer Expenditure on Food (Constant 2009 Value): 2005-2009 ..................................................................................................................................................................................... Shoes and Luxury Goods ............................................................52 Table 56 Consumer Expenditure on Clothing and Footwear (Current Value): 20052009 ..........................................................................................57 Table 62 Consumer Expenditure on Health and Wellness (Current Value): 2005-2009 ...................................................................................................................................................................40 Dining in .53 Healthcare .....................................57 Table 63 Consumer Expenditure on Health and Wellness (Constant 2009 Value): 2005-2009..........................................................................................................................................................................................................................................................................................................................................................58 Leisure and Recreation ..................................................

............................66 Money..67 Credit ....................................................63 Table 71 Household Possession of Mobile Telephones: 2005-2009 .........................................................................61 Portable Technology ..............................................68 Table 79 Consumer Loans.........................................................................................................................................Consumer Lifestyles Vietnam Going Out .......................................................................................................66 Table 77 Consumer Expenditure on Transport Services (Constant 2009 Value): 20102020 ...................................... DVD Players and Video Game Consoles: 2010-2020 ........................................................................................................................................................63 Table 69 Household Possession of Broadband Internet-Enabled Computers............................................................................................................................65 Table 75 Consumer Expenditure on Transport Services (Current Value): 2005-2009 ..................................................69 © Euromonitor International Page iv ..................61 Table 68 Consumer Expenditure on Package Holidays (Constant 2009 Value): 20102020 .................................................................................................................................................................................................................................................66 Loans and Mortgages..66 Table 76 Consumer Expenditure on Transport Services (Constant 2009 Value): 20052009 .......................................................................................................................................................... Celebrations and Gift-giving Occasions...................................................................................................................................................................................68 Table 81 Financial Cards in Circulation: 2005-2009 ............................. Mortgages and Credit (Current Value): 2005-2009 ..............................................................................................................................................................................................................................................................61 Table 66 Consumer Expenditure on Package Holidays (Current Value): 2005-2009................................................................67 Table 78 Savings and Savings Ratio: 2005-2009 ......................................................................................................................................63 Table 70 Household Possession of Broadband Internet-Enabled Computers..................................................................................................................................................................................................................................................................64 Getting Around ...................................................................64 Transport ......................60 Table 65 Household Possession of Cable TV and Satellite TV: 2010-2020 ................................................................61 Consumer Technology ..................................................................................................59 Holidays .........................................................................................................................63 Table 72 Household Possession of Mobile Telephones: 2010-2020 ............61 In-home Technology..................................................................................................................................................................................................................................................................................................66 Savings ............................................................................60 Table 64 Household Possession of Cable TV and Satellite TV: 2005-2009 ....................................................68 Table 80 Consumer Loans.............65 Table 74 Household Possession of Passenger Vehicles: 2010-2020 ...................................................................... DVD Players and Video Game Consoles: 2005-2009 .................................................................................................................... Mortgages and Credit (Constant 2009 Value): 2005-2009 .............65 Table 73 Household Possession of Passenger Vehicles: 2005-2009 ....61 Table 67 Consumer Expenditure on Package Holidays (Constant 2009 Value): 20052009 ....................................................58 Public Holidays.....64 Air Travel ......................................59 Culture .......................................62 E-commerce and M-commerce .........................................................................................................

such as total population in a particular year. the report seeks to fill the gaps in the official national statistics by using private-sector surveys and official pan-regional and global sources. Furthermore. Euromonitor International has undertaken an extensive amount of modelling in order to generate unique datasets that complement the available national standards. This information was cross-checked for consistency. starting with national statistics offices. probability and mathematical accuracy. 2008 and 2009. As well. 2015 and 2020.Consumer Lifestyles Vietnam CONSUMER LIFESTYLES IN VIETNAM STRUCTURE OF THE REPORT This report forms part of the report series that complements the Euromonitor International Countries and Consumer Database. To identify recent past trends. While A Few Are Spending More © Euromonitor International Page 1 . which were not reconcilable in every instance. For projections. data are presented for 2005. 2006. Even when data are produced on specific parameters by the same national statistical office. CONSUMER TRENDS the Majority Are Spending Less. a national census or a projection and whether the data were based on mid-year or January figures. data are presented for 2010. discrepancies can occur depending on whether the data were derived from a survey. The wide range of sources used in the compilation of this report means that there are occasional discrepancies in the data. 2007. Each country profile is structured under the following primary headings: • • • • • • • • • • • • • • • • • • Consumer Trends Consumer Segmentation People House and Home Income Consumer Expenditure Work Learning Eating (including Soft Drinks) Drinking Smoking Personal Appearance Fashion Health and Wellness Leisure and Recreation Consumer Technology Transport Money The information in this report was gathered from a wide range of sources.

Thus most Vietnamese consumers will become poorer. It is likely. Thus this group of consumers has been considered the most powerful in recent years. in particular clothes. the wealthier section of Vietnamese are being targeted by high-end international brands.2% of the country’s consumption. Estée Lauder. according to the Vietnam Household Standard Living Survey 2008. They are especially interested in fashionable clothing and accessories. wealthy and generous are typical characteristics of this group and it is said that they not only create consumer trends and the market for the goods that they demand. With high incomes that are growing rapidly as a share of total expenditure. On the one hand this is because. therefore. shoes. © Euromonitor International Page 2 . As a result. as salaries will not increase at the same rate as inflation. Impact Vietnamese are estimated to spend more than 40% of their income on food. This consumer group tends to go shopping quite regularly. only spending money on necessary items. behaviour and demands of other consumer age groups in society. Mango. they will buy it. An increase in the number of outlets selling imported products are predicted to grow in coming years. The Vietnamese will continue to follow the saving trend in the short term.3% of total consumption. conducted by the General Statistics Office (GSO). Etam. that fresh food will continue to be favoured by the majority of the population for the foreseeable future. Young. Estimates suggest that this top 20% of consumers can spend around VND80 million-VND100 million (around US$4. while the majority of the population are trying to save more. and they are willing to express their preferences with regards to products and services. Vietnam is facing tougher economic times alongside other countries. It is estimated that almost 90% of housewives go to the market every day. the Young Generation Are the Most Powerful Consumers Nearly 60% of the Vietnamese population are under 30 years old. dynamic. Meanwhile. Their high incomes mean that this section of the population does not pay attention to product prices when making a purchase. This has created a profitable market for expensive imported branded goods. meat and seafood is cheaper than that of processed and packaged versions. in the current economic climate. handbags and cosmetics. cosmetics. On the other hand. Outlook The economic situation is forecast to improve in coming years. owing to agricultural and fisheries sectors. they confidently establish new consumer trends. They are also able to influence consumers through their posts on internet forums. Valentino. The Government aims to stabilise food prices to protect the lives of the population. Revlon and Shiseido. Some choose to travel further to find a cheaper price. Prices are not a major consideration: if this consumer likes a product. They are confident buyers who know what they want. With financial independence and dedication to receiving and spreading information rapidly through the mass media and internet. of which 20% are the poorest segment of the population whose spending only accounts for 7. Vietnamese consumers are generally becoming more careful when making purchases. but prices of goods and services are expected to increase. the wealthiest 20% of the population are responsible for 43. the price of fresh foods such as vegetables.000-$5. Consumers prefer fresh foods rather than processed or packaged ones.Consumer Lifestyles Vietnam Impacted by economic fluctuations and the worldwide financial crisis. technology and processed foods. Meanwhile. Louis Vuitton. L’Oréal. including Calvin Klein. on average weekly or fortnightly. even bringing about boycotts of products through complaints online. visiting the market every day is favourable when prices are fluctuating. thus the market for food is likely to continue its healthy and substantial growth.000) in a shopping trip to premium stores. This small section of people purchase luxury products. and the growth rate of spending by this group is expected to increase rapidly in coming years. Bossini. According to Vietnamese newspaper. but that they also impact on the consumption psychology. Esprit. The Labourer. a small proportion of the population continues to buy expensive luxury products and invest in internationally famous brand names. almost 80% of the Vietnamese population claim to be spending less.

owing to higher production costs. mobile phones. which has resulted in Vietnam becoming a dynamic and profitable market for high-tech goods in recent years. This consumer prefers shopping in modern outlets. so when Vietnamese television shows lots of Korean movies. which impact on demand and sales of cosmetics. has contributed to a decline in the agricultural sector in recent years. In consequence.Consumer Lifestyles Vietnam Product quality is not deemed an essential criterion. The clothing market has been heavily dominated by China. many retailers have been trying to introduce and deliver Vietnamese products to consumers. As this group always want the latest models and gadgets. This. the Government and domestic farmers and manufacturers are trying to influence consumers through a campaign to encourage them to buy products made in Vietnam. This campaign has been running for several years. increasing this former section’s influence in the market. these items are changed regularly. Instead. clothes. style. fruit. the cosmetics market has welcomed Korean products including OHUI. At the Government’s encouragement. Supermarkets and hypermarkets have been increasing their share of Vietnamese products and giving key placements within the store to these products to make it easy for customers to choose them. Outlook Vietnam has a young population and the country’s relatively high birth rate means that the younger segment is going to continue to account for a major share in the country’s population. Owing to trade liberation rules applied since Vietnam became the 150th member of the World Trade Organization (WTO). such as South Korea and Japan. Therefore. such as department stores and supermarkets. and critically important. and then adjusting slightly for other age and income groups. digital cameras and Bluetooth technology. communicating and shopping online while on-the-go is seen as increasingly. netbooks. Another consequence of this technology-friendly group is the high demand for wi-fi in coffee shops in the larger cities. access to the internet for downloading information. Etude and the Face shop. but it was heavily emphasised in early 2010. They like to try new things. Vietnam is also currently at a “golden stage”. Young people also establish and influence trends in make-up and cosmetics. function and characteristics. As a result. working or entertainment. even though this means that they will pay higher prices. wherein the money-earning section of the population is twice as large as the dependent section. The younger generation are considered fastidious consumers. L’Oréal and Shiseido. Young people look to fashion styles of other countries. With an increasing number of young people using a laptop or netbook for studying. coffee shops offering wi-fi access are increasing in popularity. as there is a standing assumption that all products should be of high quality. the Vietnamese Government cannot set up tariffs to protect domestic production. Missa. despite national production and export of textiles and garments. It is estimated that Chinese products account for around 60%-80% of the market and Vietnamese producers cannot compete. with an increasing number using laptops. Great attention is also given to quality of service received when buying: the aesthetics of the store. together with industrialisation and urbanisation. material. for their inspiration and as a result. rather than traditional markets. after-sales service and the service given by sales staff. shoes and electric appliances. Promotion of Products Made in Vietnam The Vietnamese market has been flooded for years with Chinese-made or Chinese-grown products. the younger generation shows a preference for Korean make-up techniques. Impact It is the younger Vietnamese who establish the fashion. Simultaneously. these consumers pay attention to a product’s design. The younger generation also favour high-tech products. in conjunction with producers. they have organised promotional programmes to reduce © Euromonitor International Page 3 . webcams. because they do not like bargaining. the clothing market in Vietnam has rapidly improved in recent years. including vegetables. in addition to the popular brands of Revlon. and the easiest way to identify current trends is by watching young people.

Consumer Lifestyles Vietnam domestic product prices. Based on this survey. According to the Ministry of Information and Communication. Dai Dong Tien Plastic. Duy Tan Plastic. Sifa Fashion. laptops. Trung Nguyen Coffee. PT 2000 and Viet Thy are sure to figure. while Viet Tien. which are well known in the market. accounting for 26. Gia Lai. With regard to casual wear for younger generations. Hai Phong. Cholimex. Hue. Rach Gia. even where they know the Chinese products to be of lower quality. This is mainly because they are very cheap and thus more affordable for the majority of Vietnamese. Additionally. NEW and Senorita are equally popular with women. Nghe An. However. Moreover. some Vietnamese producers have marketed their products successfully in both the domestic and international markets. Cambodia and Vung Tau. They account for a firm market share and have built up loyal customers.8 million internet subscribers in Vietnam in 2009. Chinese products are said to be well designed and offer numerous styles and models. in order to support domestic producers. Moc Mien. young fashion designers are winning customers with well-designed Vietnamese clothes. Lien Thanh Fish Sauce and Thien Huong Fish Sauce are high-quality Vietnamese products that meet the demand for this traditional item. there has been an increasing number of Vietnamese manufacturers successfully establishing their brands and becoming increasingly popular with and familiar to Vietnamese consumers. netbooks. Buon Me Thuot. Hi-tech Consumers Despite being a low-income country. Owing to cheap connection fees. Vietnam is potentially highly profitable when it comes to high-tech users. Vinacafe. Other areas where domestic products dominate include the market for sauces and spices. especially young people. Vietnamese coffee is best known through Trung Nguyen Coffee. As a result. This encouragement has been stressed for several years and it has created a movement towards domestic product purchases. Tam Chau Tea and Hung Phat Tea have created many kinds of herbal tea. informing consumers of the results. Da Nang. Fortunately for the domestic market. Moreover. many Vietnamese consumers still buy Chinese goods. and it has become a reliable source of information on which consumers often rely when making a purchase. Vinh Hao Mineral Water. there were 22. with brand names showing success including An Phuoc. With the advantage of being the largest producer and exporter of coffee in the world. Computers. Outlook Knowing that Vietnamese products cannot compete with Chinese ones on many levels. Impact Although the clothing market has been flooded by Chinese products. especially in rural areas. Meanwhile. Tea and coffee are two products with which Vietnamese producers can compete against China to win Vietnamese customers. Vietnamese consumers throughout the country are more aware of high-quality Vietnamese products and they are more willing to buy them. while another Vietnamese coffee brand is Vinacafe. the number of Vietnamese products voted for by consumers has increased over time. despite efforts made by the Vietnamese Government and manufacturers. © Euromonitor International Page 4 . Binh Dinh. For the Vietnamese. Ninomax. The Government will continue to encourage Vietnamese consumers to use domestic products. the number of internet subscribers has risen sharply. not only for its coffee products but also its franchise of coffee shops. many trade fairs have been organised in provinces such as Ho Chi Minh City. Viet Tien. Tribeco. a consumer product survey called “high-quality Vietnamese products”. Tuong An and My Hao. who have increased significantly in recent years. An Giang. An Phuoc and Nha Be are popular Vietnamese men’s wear and accessories brands and OXY. retailers such as Saigon Co-op deliver Vietnamese products by van to customers in rural areas.6% of the total population. fish sauce is necessary for every meal and thus Phu Quoc Fish Sauce. Vinasoy. the Vietnamese Government has been encouraging national consumers to buy products that are made in Vietnam. internet access and mobile phones are increasingly popular and have been widely used by Vietnamese consumers for some years. has attracted a lot of attention from the mass media. Vietnam has had a high growth rate of internet users in recent years. Hanoi. With regards to tea. Hung Phat Tea. conducted by Saigon Tiep Thi magazine each year.

an increase of 62. This is mainly because of the Government’s protection of the country’s infant automobile industry. Compaq.3 million telephone users in January 2010.3% on the same period of the previous year. As a result. HTC and BlackBerry devices. including brands such as eMachines. However. in addition to foreign brands such as HP. an increase of 6. VENR. especially in the current economic climate. Only a very small number of Vietnamese drive cars. there were 135. The number of internet subscribers is expected to increase significantly alongside the rising number of laptop owners and mobile phone subscribers. Mobell and MobiStar.000 inhabitants. among whom were 115. despite the fact that Vietnam is one of the poorest countries.vn.7 million mobile phone subscribers. the number of cars is indeed a tiny one. such as Q-Mobile. hello247. which is that the prices at which cars are sold in Vietnam are said to be some of the highest in the world. With this number of internet users.6 million landline telephone users. Axioo and MSI. Impact Laptops are increasingly favoured by consumers. cheap mobile phones are in high demand and this is an important market segment for producer and seller alike. resulting in a lower growth rate for high-tech goods in 2009. in addition to brands such as Nokia and Samsung. and six times higher than the 19. especially younger consumers. This meant that the share of Vietnamese households with a mobile phone reached 27.com and vitinhphongvu. a significant increase from 7. with a rate of 8 cars per 1. there were more than 1. it is becoming a more familiar option for Vietnamese consumers.com. nguyenkim. Although e-commerce in Vietnam is in the early stages. but they contribute 25% of total market turnover. Smart phones are currently estimated to account for around 7% of the market.com. A Poor Country.5% in 2009.com are becoming ever-more popular with those choosing to shop online. With a population of more than 86 million people. Lenovo.vn. who have a high demand for finding information on-the-go. According to the Ministry of Information and Communication. 123mua. and online stores such as muare. especially since 2007 when the stock market and real estate netted some Vietnamese high earnings. cheaper.vn. a domestic laptop market has appeared. owing to their flexibility of use. But A Profitable Market for High-end Cars Cars are not a main means of transportation in Vietnam. Therefore. a small number of high-income earners are willing to pay the high price demanded. I-Mobile. Vietnam has been ranked seventh among countries in Asia by Internet World Stats. Therefore. Asus. The sustained increase in the number of internet users and internet-enabled computers in Vietnam has encouraged the development of e-commerce.net. © Euromonitor International Page 5 . Since most Vietnamese consumers are on a low income. as a result of which Vietnam is considered a prime market for smart phones such as the iPhone. Currently. mobile phones are not just a means of communication. now estimated to account for around 40% of the market share. Outlook The latest gadgets are always attractive to young people: they always want the most up-to-date technology. especially students.3% on the previous year according to the Department of Land Transportation Police. A small proportion of Vietnamese consumers are willing to pay significant amounts of money for expensive mobile devices. Although coping with a harsher economic reality. an increase of 68% on 2009. All laptop producers have been cutting their prices to make their products more affordable for the majority of Vietnamese users.5% in 2005.Consumer Lifestyles Vietnam and an increase of 112.6 million registered cars in Vietnam as of June 2010. F-Mobile. as they are not affordable and the roads in Vietnam are unsuitable. Sony and Dell. Vietnam also has one of the most rapidly growing mobile phone markets in the world. this market is forecast to grow quickly over the next few years. there is a paradox here. dienmaythienhoa. and their ideal form for students for study purposes.7% from 2005. the market for high-tech products is expected to become more crowded and develop significantly over the next few years. goldmart. Acer. For Vietnamese consumers. domestic brands have been successfully marketed in recent years. However. but are also a fashion statement and demonstration of one’s social status.

most Vietnamese mothers now just ask for a few old items of clothing as a symbol. Impact In 2009. with most babies being well cared for from the time they are born. CONSUMER SEGMENTATION Babies and Infants In 2000 the Vietnamese Prime Minister launched the Strategic Population Programme for the period 2001-2010. Since the first Maybach 62 arrived in Vietnam at the end of 2006. the number of children in each household has fallen. an increasing number of baby care products are being used in Vietnam. As living standards and average family income in Vietnam have increased. car seats and breast pumps. a fall of 1. the situation is now significantly altered. Besides essentials such as clothes and nappies (diapers). The Programme has been implemented in two stages. the busier lifestyles and higher ambitions of Vietnamese women have resulted in an increase in bottle feeding for babies. and providers of imported luxury cars are earning money while domestic automobile makers are facing difficulties in the harsher economic climate. there were around 15 Rolls Royce Phantoms. the Ministry of Trade and Industry asked the Government to increase import duty on imported cars from 83% in 2008. and 4. there has been a newly emerging high-income group. especially in rural areas. According to the National Population Survey conducted by the GSO in April 2009. baby strollers and buggies. However.6% from 2005. However.3 infants/female in 1999. especially in big cities such as Ho Chi Minh City or Hanoi. one couple might have had 10 or more children and thus not have had enough time and money to take good care of all of them. to 91%. Despite having fewer babies.7 million babies and infants in Vietnam in 2009. in order to reduce the trade deficit. and they do not use new clothes for the new-born baby. the number of babies born in Vietnam has been decreasing continuously during 2005-2009. and it was estimated that there were 4. valued at hundreds of thousands of US dollars even without including taxes. © Euromonitor International Page 6 . in an attempt to solve the high population problem in the country. in the hope that the number of imported cars would decline. Owing to the Programme. A traditional belief in Vietnam is that dressing a new baby in the old clothes of a healthy and rapidly growing baby might help the new-born. A higher living standard. As a result. training cups. Babies receive more individual care and attention now from their parents. Outlook Since 2007. Bentley.Consumer Lifestyles Vietnam There is also a small group of high-income earners who only wish to drive the most luxurious cars in the world. when the Vietnamese stock market and real estate become very hot. which was lower than the 2. but as a status symbol. especially in rural and remote areas. the birth rate in that year was two infants per female. Ford and Peugeot. and some families even buy all new clothes for their baby. These individuals invest in luxury cars. As of mid-2008. The demand for the most luxurious of cars by Vietnamese high earners is predicted to increase over the next few years. despite this move. first by reducing the birth rate sharply and sustainably by providing through the mass media educational information on family planning. higher disposable incomes and lifestyle changes have moved parents towards the convenience of modern baby-care products such as food-makers. so mothers-to-be usually ask their relatives or friends for old clothes before giving birth. BMW and Mercedes. baby walkers. more than 20 Bentleys and seven BMW X6s (the latter after its launch in the USA in April 2008). not merely as a means of transport. although breast feeding is still generally encouraged. alongside popular brand names such as Toyota. the number of luxury cars being imported has continued to increase. the belief is gradually changing and although some families in rural areas still follow this tradition. it seems as if all the most luxurious and expensive cars in the world. Whereas in the past.9% from the previous year. have been imported into Vietnam by sea and air. the Vietnamese birth rate has fallen significantly over the past 10 years. such as Rolls Royce.

Similac. including wanting a boy. MBCare Group has been successful in creating a chain of outlets named Me&Be. Manufacturers are working hard to persuade female consumers to trust their products for babies and this is expected to continue to be a profitable market over the next few years. There are many brands of powdered milk for each stage of a child’s growth. In the past. Lactogen. are quite expensive for Vietnamese consumers. selling colourful. related markets have been growing substantially due to changes in consumer habits and perception. however. beautiful and cheap clothing in supermarkets and traditional markets all over the country. In Ho Chi Minh City. most families now using disposable nappies for their babies. domestic clothing manufacturers dominate this market. Nannys and Zuno. The market for such products remains small and mostly imported from abroad. such as baby strollers. and have to go back to work to keep their position at work. so this will be a slowly growing market in coming years. such as MBCare Group. the Vietnamese only used cotton nappies for their babies. these families decide to have a third child and accept the punishment from the Government for this. Impact While the number of babies in Vietnam will continue to decline in coming years due to the Government’s family planning programme. An increasing number of Vietnamese are using modern baby care products. Rainbow and World of Toys. Vietnamese consumers have also become familiar with well-known brands such as Huggies. the number of kids of three to eight years old increased by 4. and the number of kids is expected to increase again in 2010. as transport in Vietnam discourages the use of such products. distributing mother and baby care products imported from countries including Taiwan. There are several retailers focusing on high-income consumers. which produce few toys that are not good quality. after which some of them ask for two more months off without salary. © Euromonitor International Page 7 . According to the Labour Code. women can take four months off after giving birth. the baby will be sent to a crèche. The number of consumers. imported toys that are classified for these ages. Kids Although the general birth rate in Vietnam has been declining over the past 10 years under the campaign “each family should have one or two children only”. the Vietnamese had to make clothes and other things related to caring for a baby. and disposable nappies were imported from other countries such as Thailand or Taiwan. South Korea and Germany. even cheaper Chinese products. Thailand or Taiwan are rarely chosen by Vietnamese consumers due to higher prices or concern about materials used to make Chinese products. particularly among families living in urban areas. More players have joined the baby clothing market. is small. and these products have become so popular that the three producers involved have won and retained significant market share in the country. However. the number of families having a third child has been increasing. Therefore.Consumer Lifestyles Vietnam Parents also now tend to send their babies to crèches sooner. There are not many toys for babies up to two years old and it is not a good market for domestic manufacturers. Dutch Lady and Vinamilk. especially since 2006-2007. and owing to the sustainable consumer habits for Vietnamese products. Bobby. especially products for going out.8% during the review period of 2005-2009. use domestically produced nappies. the baby clothing market in Vietnam is predicted to remain dominated by domestic players rather than imported products. However. However. Thailand and Malaysia. It will be quite difficult for new players joining this market in the future. who can afford to care about the quality of the toys for their babies. but they now usually use ready-made products to save time. Pampers. Currently. The fact that fewer women are breast feeding their babies has created an opportunity for powdered milk producers and helped this market grow sharply in Vietnam in recent years. while products made in China. buggies and car seats. As textiles and garments are one of Vietnam’s comparatively advantageous markets. despite its inconvenience. so the market has been flooded with Chinese products for many years and most Vietnamese buy them without caring about the quality or about which kind of toy is suitable for which age. Meiji. For a number of different reasons. For those whose parents cannot help them to take care of the baby or who cannot find domestic help. the number of kids is expected to decline after 2010 as a result of the aforementioned family planning programme that started in 2001. Dumex. especially those living in urban areas. Formerly. including Friso. such as Fisher-Price. which sell imported high-quality products from the European Union (EU).

However. for products such as fish sauce. family items such as electronics. but also an increase in demand for essential goods and services for this age group. however. Anh Thu. Therefore. although several domestic brands have managed to build a positive image. However. Kids in Vietnam are becoming ‘older’ than their age. From the age of three. thus they need a uniform. this issue is still open in Vietnam. this market is predicted to be flooded by principally Chinese products in coming years. and the range of goods and services that they are requesting from their parents is changing accordingly.5% from 2005. Some kids in high-income families may have a computer on which they can play and learn. At present. Vietnamese children now to some extent can choose the products that they use. Vietnamese products cannot compete with Chinese products due to higher production costs. and so demand for toys in this group is high. Demand for toys in this group is high. a freer and more liberal lifestyle development in recent years in Vietnam has encouraged some children to give their opinions on what they like and what they think. and some families even prevent the kids from watching too much TV. including YF (Young Fashion). even at home or on the way to and from school. Hoa Kim and Sun & Moon. etc. and not yet broad in influence. the Chinese products are well made and well styled in fashionable colours. advertising targeting children is not of major concern for Vietnamese parents and so there are no debates in the mass media on the subject. food. as they risk being blocked entirely from the market.Consumer Lifestyles Vietnam With the increase in the number of kids. The parents are always watching their kids. Domestic manufacturers have no expressed intention of focusing on this age group. To ignore this development would be a mistake for domestic manufacturers. While advertisements targeting children are discouraged at certain times and in certain places in other countries. Viet Thy. milk. Vietnamese kids have no influence over their parents’ decisions to buy larger. drinks or toys. but domestic manufacturers ignore this market because they cannot compete with Chinese products in terms of cost or creativity. Besides the domestic brands Biti’s and Bita’s. almost all toys sold in Vietnam are made in China and this situation is likely to continue. consumer durables and cars. As a result. while some existing producers are looking to exit the market due to the high cost of production. all footwear sold in the Vietnamese market is also made in China. Equally. spending for this group has also risen. Tweenagers Vietnam has successfully implemented family planning since the 1990s. The fact that advertising aimed at children is allowed in Vietnam has increased children’s ‘pester power’. cheese. notebooks. however. Thus. clothing. although most consumer decisions for this age group are made by their parents. there was no indication that the Government would regulate advertising for children over the next few years. many of whom are now tweenagers and teenagers. This is not only because of an increase in parental incomes.1 million tweenagers in Vietnam in 2009. etc. New Vietnamese manufacturers are afraid of entering the market. The toy market for this age group faces the same problem. bags. the number of births in the 1990s. Equally. Consumers can buy clothes made in China for VND15. it is said that the result of the family planning programme in the 1990s was much better than that of the programme in the 2000s. instant noodles. Impact The clothing market for kids has great potential. There were 6. There are many adverts on TV targeting children. most children have to go to kindergarten or school.000 (less than US$1). Although ‘pester power’ is a new phenomenon in Vietnam. due to lack of demand. At the time of writing. However. kids can only influence their parents over choices of clothing. this number © Euromonitor International Page 8 . creative and want to learn. has been decreasing over time. children are expected to listen to their parents without demur. while locally produced clothing tends to be simple and unattractive to kids. Vietnamese kids are rarely allowed to have a mobile phone or play video games. it is a powerful tool and manufacturers are taking advantage of it to push sales by using attractive adverts on TV. Kico. at this age children are dynamic. Being a traditionally Eastern country. with which price domestic manufacturers cannot compete. a fall of 12. but it is estimated that Chinese-made products account for around 60%-80% of the market. as has happened in other product sectors.

In Ho Chi Minh City. The higher the grade. Normally. Although the impact of this programme did not result in such significant decreases as for current tweenagers. and this is an age group that is easily influenced by advertisements and personal recommendations (such as from friends). it did reduce the growth rate by 2. Over coming years. ringtones and wallpapers. This group has become more powerful in consumer terms in recent years. the milk market has been one of the fastest growing in Vietnam in recent years.3 million tweenagers in 2020. Chinese-made goods are dominant.9% from 2010. when there will be nearly 11 million teenagers. The amount of money that parents give their children depends on the family’s income. however. as with kids. Here. some in this age group have started to use mobile phones. “Ngay xua ngay xua” (Once Upon a Time)”. access the internet and watch films. The change has come about because this group has started to decide how to spend their pocket money. Teens Current teenagers were born in the early 1990s. This age group is easily influenced by advertising. the heavier the educational workload and the less time allowed for entertainment. etc. although parents are still the main decision-makers for consumption by tweenagers. tweenagers and teenagers enjoy the TV drama series. GPRS has become the most popular mobile service and is advertised on all TV channels. Learning is required even during the summer holiday and sometimes it seems as if children have forgotten playtime. The target consumers for mobile phones are not tweenagers. Even when tweenagers have playtime. cakes. Teenagers can decide independently how to spend their pocket money. Thus. this growth rate will continue to decline. Pocket money is usually enough to allow the tweenagers to buy sweets.4 million teens in 2009. the parents give pocket money to the children monthly or weekly (a few give it daily). regulated by the Ministry of Education and Training. the leisure activities available are poor. Besides making and receiving calls. Impact Demand for clothes in this age group is high and tweenagers can influence their parents’ decisions on clothing purchases. There is no current survey data available about average pocket money allowances for tweenagers. of course. when Vietnam started to implement family planning. teenagers need money to meet their daily needs. play computer games. In most families. to 12. as they provide fashionable and attractive clothing for the age group. this group may use mobile phones to play games or even to access the internet or to watch movies. many kids. © Euromonitor International Page 9 . from the time they start school at six years old. reaching 6. with traditional games such as skipping. go shopping or to the theatre with their parents. especially in urban areas. Teenagers have more freedom then tweens.Consumer Lifestyles Vietnam was expected to rise by 4. Some of this age group are allowed by their parents to use a mobile phone. falling. and most Vietnamese parents give teenagers monthly pocket money for them to spend. In free time tweens may choose to watch TV. due to an increase in the number of kids in the 2000s. children familiarise themselves with technology rapidly and it is easy for them (particularly with GPRS – general packet radio service) to download games. by 10% to 2020. if children persuade their parents to buy milk for them to grow as strong and healthy as the actors in the advertisements. The argument given is usually that of convenience for the parents to be able to contact the tweenagers if need be. as the tweenagers become teenagers. and it is targeted through television Milk producers are a good example here: since milk is deemed a necessary nutritional item. the money spent by this age group comes from parents. especially those living in urban areas such as Ho Chi Minh City. where playgrounds are less common. the parents are happy to comply. Vietnamese children face a difficult curriculum. or snacks for themselves and their friends during break time at school. Of course. which relates fairytales. Parents give their children mobiles in order to contact them more easily. hide and seek. who are normally treated as kids.8% from 2005. however.

At the time of writing. The USB stick is the 8X-er’s mobile hard disk.7% during the forecast period. what to do and with whom to make friends. pictures. mobile phones are no longer just a means of contacting others. over teenagers recording and uploading to the internet clips of them fighting one-another. for whom it is said that a mobile phone is one of their three indispensable belongings. working materials and books. with decreasing numbers of teens. In Vietnam. Vietnamese teenagers are significantly influenced by South Korean fashions and movie celebrities. The USB storage device is increasingly a complement to 8X-ers’ laptops or netbooks. model. as it allows teenagers to grow more independent. 3G. However. and was predicted to grow sharply over the next few years. stories. perhaps being a stylist. they are early adopters of new technology. but are fashion statements and status symbols. often for the first time. intelligent. mobile phones. They are said to be dynamic. Despite this. which makes it easy for manufacturers to produce in bulk. mobile phones and Bluetooth devices are popular with the 8X generation. mostly to shop online. Impact Teenagers are interested in fashion. The other two indispensable items for an 8X-er are said to be a credit card and a USB storage device. the internet. usually for cheaper prices. and they take more care over their appearance than previous generations. 8X-ers can shop easily for books and other items. this is an interesting and positive development. to 16. tweens and kids. In addition to the positive aspects of mobile phone use. Because twenty-somethings are dynamic. However. on which they can exchange and store music. online gaming was one of the fastest growing markets in Vietnam in 2009-2010. many teenagers are becoming addicted to online gaming. especially in urban areas. and combined with a lack of supervision on the part of some parents. educational files. People in their twenties are known as the “8X generation” in Vietnam. for example. netbooks. instead earning a wage in a part-time job. In fact. With the ability to connect to the internet on their laptop via wi-fi in a coffee shop. At this age mature. make their own decisions. This is a positive development if used in the right way. Twenty-somethings Owing to high birth rates in the 1980s. They may frequent shopping malls. to reach 16. For them. the number of people in their twenties increased by 7. idealist. independent and hard-working. shoes and cosmetics. and there is no clear distinction in products for teens and for twenty-somethings. half child.7 million people in 2009. of whom at least 50% are of the 8X generation. this age group is expected to decrease by 2. Teenagers are at an age where they are half mature. negative aspects of this technological freedom are emerging. They are easily influenced and subject to peer pressure.9% during the review period. as they were born in the 1980s. and they tend to show off to get attention and prove themselves. Teenagers today are more concerned with appearing attractive and fashionable. An increasing number of twenty-somethings now use a credit card. as both groups look constantly for new styles and influences in fashion. writing articles or organising events. An increasing number of teenagers use mobile phones. but means that there is no differentiation for these two age groups. there was concern. Clothing and footwear styles and brands for teens and those in their twenties are mixed together. It is estimated by the Ministry of Post and Telecommunication that there are more than 3 million mobile phone subscribers in Vietnam.5 million in 2020. such easy access to the internet (with the popular GPRS) has created some negative aspects. stores or traditional markets. etc. and choose what to wear. however. laptops/netbooks. where traditionally most children have relied on their parents until they become an adult. as yet there is no targeted market segment for teens in any of these three products.Consumer Lifestyles Vietnam Some teenagers are quite mature and do not ask their parents for money. © Euromonitor International Page 10 . and they thus use the cosmetics and imitate the hair styles (including dying their hair red or brown) popular in South Korea. twentysomethings start to work and earn money. Teenagers have no qualms about using new technologies such as computers. and they shop for clothes. the clothing and footwear market has grown quickly in recent years. Laptops. Online retail is not regulated with regard to the age of shoppers. creative. musician.

there is a trend for scooters in Vietnam. These outlets have also embraced e-commerce. to parks. Laptops are also highly attractive to twenty-somethings. especially in big cities such as Ho Chi Minh City or Hanoi.6 million in 2009. while the men go to coffee shops. cheap ones. for the wealthier individuals.7 million in 2020. Acer and HP-Compaq are two brands that are mostly bought by twenty-somethings. Working dinners and eating out with friends have reduced the number of family meals held. Indeed. thus they numbered 13.vienthonga. although some 8X-ers use brands such as IBMLenovo.4% on 2005. There are more and more coffee shops following this pattern in Ho Chi Minh City. to meet friends or business associates. Hanoi and similar cities or provinces throughout the country. as those in their thirties often have jobs. restaurants.Consumer Lifestyles Vietnam Impact The rapid growth of the mobile phone market is put down to twenty-somethings. find new jobs or business opportunities. for which Vietnamese manufacturers imported spare parts from China and assembled them in Vietnam. in chain outlets across the country. apps and software on phones and laptops for buyers. Laptop providers have given twenty-somethings discount offers and ‘affordable’ models. far less time can be devoted to leisure. This age group was expected to continue to grow. However. to popular. When twenty-somethings start to earn their own money. often leisure time consists of trips to the country or. WellcoM. as they will have just entered the job market. LG. lifestyles are changing and a greater sense of freedom and equality for Vietnamese women has permeated the country.0% over the forecast period. In addition to imported mobile phones of popular makes such as Nokia. As the main mode of transportation in Vietnam is motorcycle. after work each day Vietnamese women do the housework and take care of their children (some may have domestic help). they also need to have their own transport. they are also likely to have established a career and their place in society. VienthongA (www. has been changing. A laptop can be taken everywhere. selling phones and laptops online and providing additional services such as installing games. However. At this age. 8X-ers have been driving the development of this market. children and parents. where all family members meet to eat and talk. and they often buy a motorbike to replace a bicycle or old motorbike given them by their parents when they were teenagers. Impact © Euromonitor International Page 11 . Asus or the Apple MacBook. as they are affordable.thegioididong. Traditionally. F-Mobile and MobiStar. mobile users can change their phone regularly. the Vietnamese market has welcomed new mobile phone brands such as Mobell. particularly among twenty-somethings. As a result. Mobile phones are also seen as fashion statements and with mobile providers’ continuous special offers and discounts. coffee shops in larger cities such as Ho Chi Minh City or Hanoi have installed internet routers to provide wi-fi to their customers. with the most popular brands being SYM. Thirty-somethings People in their thirties were born in the 1970s when Vietnam had no family planning programme. on public holidays.com) and Viettel mobile supermarket. or to relax. with consumer power to match. Currently. have redesigned their shops with different areas for different activities. work and families. by 21. high-tech image. from classes at university. and are the principal decision-makers in their life. Some of the more successful of these outlets include gioi di dong (www. such as group gatherings in one area and workers in another. as their demand for communication is high: they need to contact friends. and with family responsibilities comes a new level of maturity. each Vietnamese adult needs their own motorcycle to travel. resulting in a higher divorce rate in Vietnam. The motorcycle market also has been impacted by this age group. Coffee shops offering wi-fi internet access are thus in great demand and to meet it. increasing the handset market. with traditional family life gradually changing. owing to their mobile convenience. Samsung.com). BenQ-Siemens and Sony Ericsson. the connection between husbands and wives. Honda and Suzuki. an increase of 7. abroad. bars or pubs to meet their friends or business associates to maintain and build up social relationships. Most thirty-somethings at some point get married and have children. Mobile providers offer everything from premium handsets such as Vertu. With their dynamic. Apple and Mobiado. coffee shops and the workplace. Coffee shops are the most popular places for twenty-somethings to go when they have free time. Dell. to reach 16.

Middle-aged adults tend to be more wary in their decision-making. with middle-aged Vietnamese expected to increase by a large 37. An increasing trend in recent years has been for the more successful and wealthy members of this age group to send their children to study abroad. therefore. this market has been developing rapidly and the Vietnamese no longer just buy domestically manufactured cars. while northern Vietnamese favoured specialist stores and the central and highland area consumers predominantly shopped in traditional markets. In fact. reaching 28.3 million in 2020. The Saigon Coop launched its 44th outlet in Da Nang City in January 2010 and planned to have 100 outlets by 2015. with its CoopMart. Middle-aged Adults There were 19. middle-aged adults have started to buy cars. throughout the country. although otherwise they share many of the characteristics of thirty-somethings. or Apple phones. but also on real estate and investments. an increase of 18. despite the failings of the road network. soft drinks and other alcohol. Where the Vietnamese go to buy food and household items varies according to the different regions of the country. Value sales from this age group are high and sustainably so. they may be executives or even own their own business. for this consumer segment. Manufacturers find it easy and worthwhile. but also imported luxury models. they may travel with their families on holiday or go to the theatre at the weekend. While lower age groups buy motorcycles. and leisure clothes. This trend continues to grow. Dylan and Piaggio brands for this age group. The most successful supermarket in Vietnam is Saigon Coop. Popular items in this category in Vietnam are LCD TVs and home cinema systems. while motorcycle vendors favour SH.6% over the forecast period. even if the item is expensive. In recent years. Middle-aged adults use their free time to eat out with friends or business associates. Being important decision-makers in both their families and businesses. While traditional markets are everywhere in Vietnam. to cater for this broad demand. but the handsets that they use will be more expensive or even high-end.8 million middle-aged Vietnamese in 2009. Impact Middle-aged adults are careful when spending money. However. By contrast. but also possibly by their grandchildren. from a survey on household living standards in 2008. This age group spends not only on consumer durables.3% of southern Vietnam consumers chose to shop in supermarkets. they may have become expert in a particular area. It is estimated by the GSO. most restaurants. Equally. party clothes. middle-aged adults have the highest spending power of all groups. the Vietnamese population is entering an ageing trend. and as a result many restaurants have opened to meet the high demand for eating out. Therefore. as there is demand for work clothes. while the market segment is predicted to expand along with the number of thirtysomethings over coming years. from high-class to low-end. Thirty-somethings also. that food accounted for more than 40% of a Vietnamese’s expenditure. but on social status. clothes for special occasions (such as weddings). © Euromonitor International Page 12 . they look to reinforce their status in society through their consumer decisions. despite the financial crisis worldwide. The same is true for motorbikes. of course. but less regularly than those in their thirties. use mobile phones and motorbikes. Thus they will change their mobile less often than those in their twenties. are crowded at night. They sell not only food but also drinks including beer. most middle-aged adults are concentrating on saving money for their old age. With many years of employment and establishing relationships. Most successful businessmen are of around this age. A survey on high-quality Vietnamese products conducted by Sai Gon Tiep Thi magazine in 2008 showed that 67. although for them the onus is not on fashion. Working dinners have become more and more popular in Vietnam. supermarkets have expanded their outlets widely to popularise these modern channels of consumption. looking at value for money. mobile providers usually look to sell Nokia E or N series. The clothing market for this age group is diverse.1% on 2005.Consumer Lifestyles Vietnam Although this age group has high spending power. impacting purchases not only by their children. they usually spend money on necessary goods. As a result of family planning programmes.

881 17.714 9.790 4. they gather in groups to do exercises in the early morning in parks.219 6.550 12.657 16.589 4.0 37.404 6. although some continue to work as advisers or run their own businesses. Euromonitor International PEOPLE © Euromonitor International Page 13 .338 7.670 9.957 8. and insurance companies have expanded sales of life insurance products in recent years.531 6.6 4. the older population of Vietnam is expected to increase significantly over the forecast period.301 10.8 -12.620 16. as with the middle-aged group.6 41. some Vietnamese purchase insurance packages for their parents.0%.352 19.499 16.790 15.035 13.515 2020 4.763 2008 4.122 12.542 9.913 9.009 % Growth -2.4 18.819 9. Table 1 '000 2005 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (4064 years) Older Population (65+ years) Source: Consumer Segmentation: 2005-2009 2006 4.935 6.182 16.973 6.7 21.427 16.694 17. owing to the high numbers of younger groups. However. thus the older population numbered 4.743 28. their spending power is not high. as a result.313 10. an increase of 5.136 24.751 16. as their children make all the necessary purchases. Most Vietnamese over 65 years old are retired. rising by 41.0 million in 2020.435 12.957 13.960 16. they are extremely careful about spending money.349 13. Normally. However.973 National statistics.113 18.9% over the review period. helping their children to look after the house and children. As it is traditionally seen as their children’s responsibility to support them in old age. to reach 7.996 12.832 2009 4.7 -1.036 6.728 9. or even in the road.628 National statistics.6 4.9 million in 2009.1 5.9 -10.762 4.789 12. Euromonitor International Table 2 '000 Consumer Segmentation: 2010-2020 2010 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (40-64 years) Older Population (65+ years) Source: 2015 4. it is often the case that older people need spend nothing.0 4.594 19.695 2007 4.Consumer Lifestyles Vietnam Older Population Vietnam has a young population due to a high birth rate.683 5.838 20.968 8.314 12.902 % Growth -4.009 4.245 4. Former public sector workers receive a retirement pension.376 6.496 4. The older population usually stays at home.659 13. Therefore.5 -2.006 12.809 15.0 -2.9 4. Impact As older Vietnamese rely on their savings or pensions. most are not earning.9 7.880 15. this age group is the target of insurance companies.728 12. but other older Vietnamese rely on their children to support them.437 6. In order to remove the worries of old age.8 7.

6 million in 2009. This was due to successful healthcare programmes conducted during the previous 10 years. Impact Despite improvements to living standards in recent years.7 million married people in Vietnam in 2009.2% of the population. and over 60s had increased from 8% in 1999 to 9% in 2009. In 2009 there were 43.4 in 2009. this has had the effect of lowering the growth rate of Vietnamese compared with all other ethnic groups.3% from 2005. with high rates of spending opening ever-more consumer opportunities. The majority of Vietnamese incomes is spent on food and other necessities. and it is estimated that the median age was expected to reach 31. Vietnamese manufacturers have found it difficult to turn to domestic markets in an attempt to stabilise sales. estimated at 87. Vietnam ranks as the third largest population in the Association of Southeast Asian Nations (ASEAN) and 13th in the world. The Vietnamese population is young. an increase of 5. people got married when they were very young. with its accompanying move into a new stage of life.9% – an increase of 11. However. Vietnam was expected to continue to grow at a rate of 12. However. of which Vietnamese accounted for 74.8 million people in 2020. reaching 99.9% of the total population. There were an estimated 39. Meanwhile. stretching from 15 to 40 years.4 percentage points from 1999. Vietnamese law has changed. owing to medical concerns about the effects of such early marriages. However. The results included the fact that the proportion of under 15s had fallen from 33% in 1999 to 25% in 2009. The tendency of the younger generations now is to get married whenever they are in a stable job and earning enough money to support their family life. with the ageing rate in 2009 at 35. according to the GSO. There are 54 ethnic groups in Vietnam. The average life expectancy for males had increased from 66.8 million males and almost the same number of females in the country. In the past. accounting for 45.5 years old in 1999 to 70. This advantageous population ratio only happens for one generation.1 years old in 1999 to 75. they have also embraced a more modern lifestyle than other ethnic groups. feeling the knock-on effect of downturns such as the recent financial crisis. As the Vietnamese tend to be better educated. while the proportion of 15-59 year-olds had increased from 58% in 1999 to 66% in 2009. with a median age of 26. resulting in a more controlled birth rate. The survey also revealed that the life expectancy of the Vietnamese had improved during 1999-2009.2 by 2020. the proportion of males to females is nearly balanced. the life expectancy for females had increased from 70. While foreign investors explore the domestic market. calculated by the number of those above 60 years old against those below 15 years old. focusing on exports as a result of a national development strategy to increase exports for economic development. Owing to the gradual changes towards gender equality in the country.Consumer Lifestyles Vietnam Population Vietnam has a large population. However.4% from 2010. According to the population survey conducted by the GSO in 2009. has been increasing. with a large earning population. Marital Status Marriage is seen as one of the key life decisions for a Vietnamese. The average age of first marriage has been increasing and marriage at © Euromonitor International Page 14 . depending on how well the birth rate is controlled.6 years old in 2009. domestic manufacturers have been ignoring it.2 years in 2009. with average ages at first marriage for women of 13 and for men of 16. Vietnam had an earning population twice as large as its dependent group. the Vietnamese ageing rate. Vietnam remains a poor country with a large population. According to the results of a population survey carried out by the GSO in 2009. the fact that national economic growth has relied on exports has made the country heavily dependent on foreign markets. and nowadays women can marry from the age of 18 and men from the age of 20. Vietnam has enormous potential as a market. this median age has been rising gradually following several decades of the family planning programme.

Gia Lai and Da Nang. This developing trend has impacted the housing market for rentals in recent years. Most of these are either students or those starting out in their careers. while the age for first marriage in rural areas may be under 25. study hard. these marriages are legal. while some cities have incorporated their rural outlying areas in their expansion. Industrialization has created a wave of migrants from rural to urban areas.0 years old. The positive growth here is generally as a consequence of high birth rates in these areas. but also between the two families. friends and work colleagues. in the case of the children. However. On average. part two is a wedding party organised in a restaurant or hotel for relatives. increasing the urban population enormously. modern couples are getting married without their parents’ consent. with activities bringing all family members together. In the past. the process of urbanization has turned some rural areas into cities. society still tends to view these as negative developments. The survey also revealed that some cities and provinces had population growth rates more than two times higher than the country’s average growth rate during 1999-2009. These included Binh Duong Province. While parents can still present an obstacle to marriage if they disagree with the couple’s decision to wed. as they wish to focus on their career and higher studies.6% from 2005. Binh Duong. despite a noted rise in co-habitation and singlemotherhood. more than doubled its population over this 10-year period. including Hanoi and Ha Tay becoming “new Hanoi” in 2008. The couple therefore often rent an apartment or even just some rooms for this “trial marriage” stage.7. have been replaced by an urge to make money. © Euromonitor International Page 15 . It is estimated that there are 62. almost 72% of the Vietnamese population live in rural areas.2% population living in urban areas. it is practically compulsory to have a wedding ceremony in two parts: part one is the traditional ceremony held at home with relatives of the two families. divorce was seen as a serious problem for society. which had become Tuyen Quang City and Tra Vinh City by 2010. have a successful career and. It is estimated that the population in urban areas in 2009 had increased by 12. Traditionally. more independent. with consequential break-ups. thus. Modern. the south-east areas had the highest level of urbanization. such as Tuyen Quang Town and Tra Vinh Town.Consumer Lifestyles Vietnam the age of 25-30 is popular in urban areas. but nowadays it is becoming more familiar and less serious. Town Or Country Being an agricultural economy. Meanwhile. According to the GSO population survey in 2009. The demise of the more traditional family lifestyle. However. event companies and a wedding industry has appeared and rapidly grown in recent years to help couples to simplify their wedding plans. reaching 24. Impact Wedding ceremonies are increasingly expensive. more liberated women do not want to have children quickly. The second is single parenthood.7 million people living in rural areas. in particular. However. Recently. marriage must be approved by the couple’s parents. This is partly owing to an increase in the average age of marriage. two trends have emerged in recent years. Time spent as a family has fallen. as incomes have not increased in line with inflation. which has had an important influence on the younger generation. Because marriage today is made official by the registration of a certificate issued by the Government. This is now a lucrative industry in Vietnam. The average age for women having their first child has also been increasing in Vietnam in recent years. Ho Chi Minh City. having increased by 2. The next highest urban population was in the Red River Delta. Kon Tum. the age of men at first marriage in 2009 was 23. which is problematic for a couple who both work. Co-habitation is often a consequence of the couple not having enough money to pay for a wedding ceremony. a number of movie stars and singers have become single mothers. The first is that some couples choose to live together before getting married. with 57. as it is not only a serious commitment between the couple. while that of women was 21. Binh Phuoc. but equally. nor buy their own home. Organising a wedding party takes an enormous amount of time.1% of the population living in urban areas. liberated lifestyles have resulted in a higher divorce rate in recent years.8% from 2005.9 million. with 29.

365 69.000 in 2009.8 5.915 4.211 4.009 99. including Saigon Coop and Fahasa. while only 19% of the population live in the two mid-land areas and in the mountains in the north and Highlands.4% of the population live in urban areas. increasing its population by 2.Consumer Lifestyles Vietnam The Vietnamese population is not distributed equally: 43% of Vietnamese live in the Red River Delta and Mekong Delta.6 million people. but immigration is causing social problems such as housing shortages. People in urban areas have higher incomes than those who live in rural areas and thus their living standard is also higher.000 and Bien Hoa with 626. According to a survey on household living standards conducted in 2008 by the GSO.0 14. especially for necessary goods and services. Most rural inhabitants work on farms. The GSO conducts a household living standards survey every two years.1 times in 2006.628 83.395 7.902 87.0 12. some retailers have been selling products in rural areas by means of mobile shops on lorries. and those living in the centre of the country are miserable.2 times in 2004 and 2.405 4.4 years © Euromonitor International Page 16 .000.6 9. has reduced the agricultural area of the country.627 26. Some agricultural workers have become unemployed as a consequence.763 85.4 % Growth -4. to find new job opportunities. Da Nang with 771. which showed that the gap between monthly income per capita of urban and rural inhabitants was 2.4 times in 2002. than southern producers to enlarge their market in the north.695 84.2% annually. purchasing power in such places is quite high and these are the target consumers in the country.265 4. combined with industrialization.3 1.515 94.198 24.029 56.9 National statistics. rural dwellers are now considered a market with great potential.3 2007 24.655 53.373 28. Euromonitor International As of 1st January Table 4 '000/as stated Population by Age: 2010-2020 2010 0-14 yrs 15-64 yrs 65+ yrs TOTAL Median age of population (years) 23.0 2009 23.940 4.8 2015 23.1 times higher than that in rural areas. while northerners are serious and thrifty.5 years 24. while the Highlands had the highest immigration rate.9 5. 2.4 4. as the income gap between urban and rural areas is shrinking. monthly income per capita in urban areas was VND995. followed by Hanoi with 2. The survey data also showed that the south-east had the highest growth rate of population.514 59.515 26. and have moved to urban areas. However. crowded public transport and increased pressure on services.615 4. Southern Vietnamese are said to be easy-going and generous.554 65. some are under-employed and this.9 41. especially Hanoi and Ho Chi Minh City. however. Therefore. In recent years. Many manufacturers and retailers are focusing on this market. Haiphong with 846.3% annually.973 88.742 57.367 60. it is deemed easier for northern producers to enter the southern market. This has a positive effect in terms of increasing the labour force in urban areas and creating faster growth for the housing services and essential goods markets. with 72% of the population. at 3.2 % Growth 0. Table 3 '000/as stated 2005 0-14 yrs 15-64 yrs 65+ yrs TOTAL Median age of population (years) Source: Note: Population by Age: 2005-2009 2006 24.769 31.407 25. UN.200. This became particularly popular under the government scheme to promote Vietnamese-made products. Impact Although 28.9 2020 23.6 2008 23. Ho Chi Minh City had the highest population in the country at almost 6 million people.832 86.744 26.343 55.303 5.302 25. being 2.

Euromonitor International As of 1st January © Euromonitor International Page 17 . Euromonitor International As of 1st January Table 8 '000/as stated Female Population by Age: 2010-2020 2010 0-14 15-64 65+ TOTAL Median age of female population (years) Source: Note: 2015 11. UN.1 15.670 44. UN.154 2.378 2.4 years 11.6 5.232 49.4 4.086 27.631 2.259 25.907 2.2 2008 12.243 43. Euromonitor International As of 1st January Table 5 '000/as stated Male Population by Age: 2005-2009 2005 0-14 15-64 65+ TOTAL Median age of male population (years) Source: Note: 2006 12.810 26.2 5.149 24.183 42.661 2.672 2.975 47.7 % Growth -0.5 years 12.181 29.4 years 11.717 3. UN.589 43.6 2009 11.605 25.8 2007 12.237 2.879 30.3 National statistics.550 2.633 29.678 3.033 2.153 41.817 25.3 1.512 42.920 30.6 41.303 44.1 40.629 43.377 26.020 32.4 2020 11.9 % Growth -4.154 25.593 24.Consumer Lifestyles Vietnam Source: Note: National statistics.994 29.7 9.109 28.5 years 12.3 National statistics.435 34.5 2020 11.554 2.044 2.3 1. UN.704 26.7 2007 11.1 14.703 25.7 % Growth 0.4 National statistics.9 % Growth -4.273 43.6 10.447 30.254 28.711 2. Euromonitor International As of 1st January Table 6 '000/as stated Male Population by Age: 2010-2020 2010 0-14 15-64 65+ TOTAL Median age of male population (years) Source: Note: 2015 12.871 2.213 42.0 5.475 41.3 National statistics.5 12.777 49.368 27. UN.534 32.890 31.5 2009 11. Euromonitor International As of 1st January Table 7 '000/as stated Female Population by Age: 2005-2009 2005 0-14 15-64 65+ TOTAL Median age of female population (years) Source: Note: 2006 11.540 47.191 28.255 26.520 29.412 27.4 12.4 4.7 6.251 2.931 27.550 42.1 2008 11.570 26.775 28.930 34.

4 9.627 % Growth 7.8 16.515 2009 39.929 42.373 2020 84.707 1.407 2008 38.769 % Growth 11.169 210 99.472 1. UN.3 71.418 45.804 41.282 84.594 1.8 5.213 6.178 6.407 2008 74.414 7.319 1.687 1.162 6.0 -15.7 14.196 6.383 85.913 253 87.254 1.674 1.053 1.344 1.Consumer Lifestyles Vietnam Table 9 '000 Population by Ethnic Groups: 2005-2009 2005 Vietnamese Tay Thai Muong Khome Other TOTAL Source: 2006 72.973 724 3.529 1.198 National statistics.770 1.515 2009 74.710 47.744 National statistics.6 34.627 % Growth 5.4 40.248 6.988 1. Euromonitor International Table 11 '000 Population by Marital Status: 2005-2009 2005 Married Divorced Widowed Single Unknown TOTAL Source: 2006 37.198 National statistics.5 8.298 690 3.2 12.203 225 94.744 National statistics.0 7.617 1.486 86.053 42. UN.0 12.116 43.589 937 4.6 3.841 1.333 789 4.224 265 85.800 1.362 1.539 1.908 272 84.8 5.654 1.230 6.2 -9.984 1. Euromonitor International Table 13 Marriage and Divorce Rates/Average Age at First Marriage: 2005-2009 © Euromonitor International Page 18 .562 1.9 16.8 6.302 2007 73.153 1.395 1.302 2007 38.373 2020 46.599 279 83.657 1.129 1.567 259 86.063 4.867 41.294 1.602 654 3.3 36.4 75.332 7.2 5.887 2.204 94.259 248 88.368 1.5 22. UN.831 1.866 1.697 99.4 7.596 87.3 17. Euromonitor International Table 12 '000 Population by Marital Status: 2010-2020 2010 Married Divorced Widowed Single Unknown TOTAL Source: 2015 43.7 13.769 % Growth 15.949 1.3 6.696 88.3 15.625 1.898 619 3. Euromonitor International Table 10 '000 Population by Ethnic Groups: 2010-2020 2010 Vietnamese Tay Thai Muong Khome Other TOTAL Source: 2015 80.738 1.417 1. UN.177 83.651 757 4.992 42.

4 National statistics.6 26.095 651 673 545 National statistics.195 939 766 2020 8. Euromonitor International Table 15 As stated Population by Urban/Rural Location and Population Density: 2010-2020 2010 Urban ('000) Rural ('000) Population density (people per sq km) Source: 2015 29.1 14. UN.341 279 2009 24. UN.542 1.6 2009 23.095 286 National statistics.1 6.451 64.135 268 National statistics.9 39.7 22.7 21.221 694 696 564 2007 5.Consumer Lifestyles Vietnam As stated 2005 Average age of men at first marriage (years) Average age of women at first marriage (years) Source: 2006 22.8 2.171 2.7 21.1 12.099 901 % Growth 37. Euromonitor International © Euromonitor International Page 19 .9 37.578 2.6 2008 22.795 900 797 648 National statistics.7 62. Euromonitor International Table 17 '000 Population by Major Cities: 2010-2020 2010 Ho Chi Minh City Hanoi Haiphong Da Nang Bien Hoa Source: 2015 7.174 62.496 793 745 605 2009 5.392 2.6 5.612 1.9 21. UN.500 4.928 275 2008 24.3 30.8 21.210 2.355 742 720 584 2008 5.650 63.264 3.771 2.3 22.645 846 771 626 % Growth 14. UN. UN.283 322 % Growth 30. Euromonitor International Table 16 '000 Population by Major Cities: 2005-2009 2005 Ho Chi Minh City Hanoi Haiphong Da Nang Bien Hoa Source: 2006 5.0 21.505 272 2007 23.479 61.4 25.6 14.922 304 2020 33.739 283 % Growth 12.486 66.6 5.9 5.887 62.797 61. Euromonitor International Table 14 As stated Population by Urban/Rural Location and Population Density: 2005-2009 2005 Urban ('000) Rural ('000) Population density (people per sq km) Source: 2006 22.530 1.5 69.968 2.5 2007 22.063 61.

However. However. to 749. Vietnam was said to be good at controlling its inflation rate up to 2006 when it joined the WTO. Households by Number of Occupants Household size in Vietnam has been getting smaller for years. especially in big cities such as Ho Chi Minh City or Hanoi. offering excellent opportunities for investors and even speculators. have made the inflation rate in Vietnam jump significantly since 2007. Meanwhile. As a result. owing to rapid economic development. © Euromonitor International Page 20 . but its real value.1 million in 2005. High inflation has made the real value of incomes lower. in 2009 this had increased substantially to 96. It was estimated that there were 6. it is expected that the number of middle. while the majority fall into the under US$5. housing supply in Vietnam never meets the high demand. It is estimated that 19. has sustained the car market. an increase of 10. As a result.and high-income households will increase rapidly in the future. and households are said to be poorer even though their income has increased. respectively.000 in 2005.2 million households had a disposable income of US$1. influencing the growth rate of households with a disposable income of more than US$5. The stock market and real estate boom have created a “nouveau riche”.000 in 2009.000. However. The import of luxury cars.5% from 2005. This household size was expected to continue to be most common in Vietnam. These are the white-collar workers or self-employed. Spending was most likely to be on necessary goods and services rather than luxury items. complicated relationships between family members. who rarely lost their money. middle-income Vietnamese have gradually increased. in particular. In the past.7% of households earned over US$500 and 68. in addition to the macroeconomic environment. which has pushed housing prices up sharply. as traditional four-generation families no longer exist due to more independent children who are choosing to avoid insular. The large part of households have low annual disposable income. the most common household size in Vietnam is now around four people. Despite the worldwide financial crisis in 2008-2009. A stock market and real estate boom in recent years caused some Vietnamese households to acquire riches rapidly. The early stage of development in the stock market was in safe transactions for investors. Impact The high inflation rate has made Vietnamese households poorer. In 2005 89.000 in 2009. increasing from 1. the real measurement of living standards is not based on the current value of disposable income. the number of households with annual disposable incomes above US$10. partly as a result of government family planning programmes which have reduced families to one or two children. these increasingly open opportunities have shown Vietnam’s market potential to investors. which have continued despite inflation and a fragile economy. of which 17.2 million households of four members in 2009. which is subject to inflation.000 income bracket.Consumer Lifestyles Vietnam HOUSE AND HOME Households by Annual Disposable Income Although gross domestic product (GDP) per capita in Vietnam has increased by more than US$1. the main consumer trend in Vietnam in 2009 was of saving more and spending less.000 per year. High inflows of foreign direct investment and a boom on the stock market that attracted foreign portfolios and domestic investment. one four-generation household might have contained more than 10 people.000 increased from 304. Therefore.6% earned over US$1.7%. whose rapid acquisition of wealth has come too easily to be carefully saved: instead they buy imported luxury goods. In 2009 it was estimated that there were 3. which has made goods and services more expensive.0 million households with a disposable income of this level or above. and an increasing number have started businesses and become self-employed. the stock market in Vietnam and its investors were not badly impacted.1 million households had a disposable income of above US$500. Although the real estate market in Vietnam has now frozen and the stock market has cooled due to government regulation. Economic development and the opening of the market has given Vietnamese citizens numerous opportunities to earn money. Vietnam is still considered a poor country.000 since 2008.6% and 86. while most other markets are facing difficulties.

1% of total households. there have been many real estate investors building new cities. While the number of singleperson households was expected to increase to 965. which have industrial zones or export processing zones. There is also a belief that some couples are rendered unable to have children owing to chemicals in the food and health system causing infertility. Owing to the time spent on shopping and cooking. the percentage of total households that this represented (4. Single-person Households Better educated. hard work for a career and ambition for higher social status and income have all influenced an opinion that having children can present an obstacle to promotion. As housing prices are very high in comparison with other countries.000 in 2020. Busy lifestyles. demand is for the more unusual rental market. which will be well decorated and well equipped. They also tend to enjoy relaxing in their own homes. therefore often they will own their own home. Either way. Impact Of course. though. © Euromonitor International Page 21 . with higher social status and earning a higher income. liberated. the Vietnamese like to have children and couples that cannot have any are considered unfortunate. Therefore Vietnamese households still sometimes contain more than two generations. thus housing and land prices rarely decline. some Vietnamese are now deciding to live separately from their parents while they are still single.9% of total households being of this type in 2005. especially in Ho Chi Minh City and Hanoi. such as Phu My Hung.1%) was to remain the same. causing high demand for homes. when they move out to live independently.5 million households were couples without children. their higher income and free time is often spent on leisure. the Vietnamese like to live in their own home. do have children. may choose not to have any. especially those who have lived abroad or who are well educated and live in urban areas. and there has been a fall in the average size of a household. accounting for 4. have also attracted many workers (usually immigrants from rural areas). Vietnamese live in apartments and owing to high demand for housing. Impact There is no tradition of renting a home in Vietnam. Here. Couples Without Children Traditionally.000 single-person households. Thu Thiem and Nam Thang Long. It is more common for single-person households to be on higher incomes. All this has resulted in the highest increase for couples without children. Although quite rare in Vietnam. either of homes or just rooms. accounting for 7. Any family renting a home will think of this as a short-term measure. instead eating out with friends or business partners after work. Cities and industrial areas such as Binh Duong or Dong Nai. Impact An individual living alone typically has a simple life. It is very difficult to buy a home in big cities such as Ho Chi Minh City or Hanoi. singleperson households are an increasing trend. especially in urban areas. Vietnamese children usually stay with their parents until they get married. an increase from 6. Although most couples. then. a small number of Vietnamese couples. In 2009 1. This has the result of demand exceeding supply in the real estate market. Some even continue to live with their parents after their wedding because they cannot buy their own home.Consumer Lifestyles Vietnam Unlike some Western countries where children usually live with their parents until the age of 18. including travel. As well as houses.3% of total households. In 2009 there were around 816. couples without children have more freedom. but those who are unable rather than unwilling to have children may feel sadness as a result. residents of single-person households might only cook once or twice a week. the average size of homes has also decreased.

Spending patterns between those who have children and those who do not differ mostly in the amount spent on consumer durables. as most are oversubscribed and do not meet standards. Impact The large number of households of couples with children has created high demand for consumer goods and services catering to them.146 17. Parents’ greatest concern.361 13.858 1.280 1. public schools are known to be strict and the national curriculum gives little free time to students for relaxation.949 3. both domestic and foreign. If the children are grown up. owing to the government family planning programme.842 16. There are an increasing number of international kindergartens and schools. However. with the parent having to play both mother and father. from primary to higher levels. and most hospitals are overloaded. however. the options available for having a child through artificial means are very expensive.8% during the review period.6% on 2005.097 15. compared with 937. single-parent households do not have different consumption patterns to other households with children. if the children are still young. the trend for single-motherhood has increased in recent years.000 in 2005. opening in the larger cities. it is quite hard for single parents in both economic and psychological terms. partly owing to some high-profile single mothers among Vietnamese celebrities.Consumer Lifestyles Vietnam For those who wish to have children. private educational services is a profitable industry for investors. As a result of all this.3% of total households. Single-parent Families The number of single-parent families decreased by 9. having children outside marriage has been condemned strongly by society. This is especially welcome in the current economic climate. Demand for these services in Vietnam have increased significantly in recent years. Alongside this. those who are bringing up children alone on one income will tend to buy only necessary items and try to save more.876 503 2008 18. an increase of 9.176 3. Traditionally. tends to be the choice of a good kindergarten or school for their child.000 16. especially in big cities. and even luxuries such as travel services.000 single-parent families in Vietnam. Although private school fees are higher than public ones. accounting for 78. an increasing number of parents are sending their children to study privately due to the perceived quality of these institutions. at 15. In general. In 2009 there were 845.065 304 2006 17. and the expense of school fees. British International Schools and Vietnam-Australia International Schools. Impact Single-parenthood is difficult.7% of total households. at more than VND100 million.000 above US$10.696 1. which has reduced pressure on parents to have many children. durable goods such as refrigerators. the family will not be considered any differently to other families in society. Couples With Children Households of couples with children are the most common in Vietnam. TVs. which include Anh Duong Nursery. The birth rate in Vietnam has been decreasing over time. including foods.046 750 2009 19.027 749 Annual Disposable Income per Household (Current Value): 2005-2009 © Euromonitor International Page 22 .6 million in 2009. clothes. There is a shortage of kindergartens with qualified staff. However. Table 18 '000 2005 above US$500 above US$1.601 12.000 above US$5. and accounting for 4.375 395 2007 18. but cannot. motorbikes.

966 4.8 0.882 2020 965 2.0 17.4 7.632 3.5 8.503 National statistics.3 18.952 3. UN.746 19.516 17.0 432.000 above US$45.762 19.468 1.802 5.3 9.480 6.824 20.343 3.6 © Euromonitor International Page 23 .273 806 211 102 54 23 National statistical offices.0 277.148 National statistics.736 347 166 89 38 2020 23.280 14. UN.772 2. Euromonitor International Constant value at 2009 prices Table 20 '000 Households by Number of Persons: 2005-2009 2005 1 person 2 persons 3 persons 4 persons 5 persons 6+ persons Total households Source: 2006 783 1.000 Source: 98 47 25 11 117 57 30 13 142 68 36 15 198 96 51 22 200 97 52 22 National statistical offices.850 5.825 2007 793 1.451 15.968 2008 804 1.263 3.6 17.180 3.759 18.096 3.2 202.255 6.000 above US$150.5 31.515 7.739 4.948 4.0 14.076 21.416 15.287 2009 816 1.3 13.5 201.601 % Growth 5.550 20.0 10. Euromonitor International Table 22 '000 Households by Type: 2005-2009 2005 Single-person Couples without children Couples with children 775 1.601 2007 793 1.9 19.385 14.355 4.523 23.236 2006 783 1.000 above US$10.107 3.381 23.000 above US$75.294 728 309 164 70 % Growth 20.8 7.225 4. Euromonitor International Table 19 '000 Annual Disposable Income per Household (Constant 2009 Value): 2010-2020 2010 above US$500 above US$1.918 3.331 14.800 2.637 % Growth 16.000 above US$45.151 2008 804 1.6 17.542 5.691 2.000 above US$25. Euromonitor International Table 21 '000 Households by Number of Persons: 2010-2020 2010 1 person 2 persons 3 persons 4 persons 5 persons 6+ persons Total households Source: 2015 895 1.947 6.898 6.126 4.Consumer Lifestyles Vietnam above US$25.7 18.098 12.628 3.812 % Growth 5.743 18.3 6.3 828 1.9 245.000 above US$150.789 19.000 above US$75.000 Source: Notes: 2015 21.090 4.754 5.479 2009 816 1.666 2.9 202.340 4.1 775 1.000 above US$5.797 4.744 2.997 6.009 3.717 2.

It is this tradition of living in one’s own house that has caused a serious shortage of housing supply in the Vietnamese real estate market in recent years. © Euromonitor International Page 24 .151 869 1.725 17. which has seen a flow of migrants from rural to urban areas in search of better job opportunities. This is probably owing to the Vietnamese agricultural tradition: in the past. This increased to 1. were home owners. this negative perception of renting has changed in recent years. accounting for 5.000 households renting in 2005.276 18. It is very hard for migrant workers to afford life in the cities. when the population was not as large and land was abundant. Euromonitor International Home Ownership The Vietnamese do not like to rent property. It is this high demand for housing that has made housing prices in Vietnam some of the highest.000 square metres of housing by 2020. each family had a large area of land of their own. when the inflation rate in Vietnam started to increase sharply. with tight regulations and administrative procedures for purchasing property and land. Economic reform in Vietnam has created unbalanced growth between rural and urban areas.479 845 1. Vietnam currently has a total housing area of more than 1 billion square metres. However. Moreover. There were 990.4% of total households.8 7. According to the Ministry of Construction. accounting for 5. the idea of renting one’s home is unpopular.148 National statistical offices. Since 2007. which equates to around 11 square metres per person. these have attracted an inflow of immigrants from rural areas looking for work. the country would need an additional 97.882 828 1. especially in big cities such as Ho Chi Minh City and Hanoi. Whenever the economy is in peril.1 National statistical offices. It is for this reason that in the last few years the housing market has remained frozen. In 2009 18. The Government has intervened in the housing market. instead preferring to own their own home. As a consequence.0% over the review period.102 19. an increase of 15. house prices have increased significantly. the parents would give part of their land to their children as their heritage.7% of Vietnamese households. and limits on the amount of money that an investor can borrow from banks. When the children grew up and got married. This has meant that factories and other manufacturers have found it increasingly difficult to hire workers in the last few years.e. and demand for rentals has increased. As the cities that have developed the fastest in the country.552 748 962 21.1 million households in 2009. Euromonitor International Table 23 '000 Households by Type: 2010-2015 2010 Single-person Couples without children Couples with children Single-parent family Other Total households Source: 2015 895 1. i. As a result.825 897 1. Therefore. while incomes are ranked among the lowest in the world. to allow for the estimated population. making homes unaffordable for many people. there has been a trend of returning to rural areas for a less expensive lifestyle.459. the Government looks to control the real estate market first of all. with the high cost of renting a home and buying food and clothes on their very low salaries.193 18. with the exception of particularly popular areas such as Ho Chi Minh City and Hanoi.503 916 1.7% of all households. or 92.942 837 1.107 19.8 -13. but housing and land there is limited.037 20.504 15. an increasing number of foreigners have arrived in these cities. in order to maintain this level of space per inhabitant. though.812 -9.4 million.Consumer Lifestyles Vietnam Single-parent family Other Total households Source: 937 1.099 19. as with the recent financial crisis. almost doubling the housing stock.

Although prices of such necessary goods increased many times during the review period. it is highly likely that consumer spending will be impacted even more than the Government has estimated. In order to remedy the situation. these companies usually collect waste only on main roads of cities. Household waste is collected by private companies. which are dealers of gas companies such as Saigon Petrol. dominated by the state-owned Vietnam Electricity (EVN) for years. have increased sharply in recent years. Because foreigners are not allowed to buy houses in Vietnam. with consumer expenditure increasing from 0. EVN increased the electricity price in March 2010. which is twice as high as other Asian countries and five times higher than the world average. while demand for the latter apartments is said to be very high. and inhabitants are obliged to raise the street level of their homes to match the new ground level – an expense that few can afford. for which people have to pay. there have been many more investors focusing on building popular-standard apartments to sell in coming years. Population density in Vietnam is now at 283 people/km2. 5% are luxury.2%.5% on 2005. When Vietnam opened its doors to the world economy. reaching their peak at the end of 2011.000 per month for the waste collection service. restaurants and services akin to their own country. co-operatives and state-owned public service companies. in which they find shops. However.058 per kWh excluding value-added tax (VAT). The Ministry of Industry and Trade has estimated that the new electricity price will increase other prices from between 2. such as a Korean area. Vietnam is one of the countries to have been influenced seriously by climate change. gas retailers offer a small promotion. 45% are of a medium standard and 3% are of a popular standard. while private companies and co-operatives are responsible for waste collection in smaller roads.000 trillion was spent on gas. documents proving income and loan repayment ability. Some banks offer loans of up to 70% of the purchase value. the city authorities have commanded that the ground be raised by around 70cm in areas at risk of flooding. each household currently pays VND3. Impact An increasing number of Vietnamese living overseas are returning to their homeland due to more open government policy.3%. although the real estate market has been stable in recent years due to government regulation.8% and 3. The foreigners tend to inhabit specific areas with respect to nationalities. people have little choice but to spend their money on these. mortgages are available from the bank. For the latter. they have to rent. and are buying homes in Vietnam. residence permit. Running Costs The utilities are another necessity. to VND1. its indirect influence through increases to prices of consumer goods will be evident.2% to 0. Exacerbating the situation. Vietnamese citizens do not have to pay for the service. such as a packet of sugar or a small bottle of washing-up liquid. and so there has been an increasing demand for rentals in recent years. Gas is provided to each household by gas retailers. especially in big cities.Consumer Lifestyles Vietnam For those who want to buy a home but cannot afford to buy outright. Normally. prices are expected to increase sharply in 2010. The electricity market is a monopoly. a Japanese area or a Western area. Although this new price is said to not impact significantly on consumer expenditure. with some cities flooding when it rains. it saw an influx of foreigners coming to live and work there. Currently. and the price of houses has slowed its increase. banks offer several mortgage products.4% on 2005. and a contract for house construction. With over VND8.000 trillion spent on electricity in 2009. The gas price is not stable. Regardless of household income. the drainage system is old and no longer able to carry off the superfluous water in the cities. representing an increase of 6. an increase of 117. Therefore. Vinagas and Gia Dinh Gas.8% on 2009. Almost all Vietnamese households use gas for daily cooking. In 2010 more than VND7. renovation or purchase. fluctuating frequently during the year. so apartments. Therefore. © Euromonitor International Page 25 . loan application documents ask for ID. it is estimated that around 50% of apartments marketed are premium. with differing lengths of loan term (terms of 15-25 years are the most popular). This has resulted in demand outstripping supply with regards to land and housing. However. but on an increasing trend. especially in the major cities. Normally. an increase of 109.

with resultant increases in demand for related goods and services. as well as specialist stores unique to certain areas of the country. traditional markets are still preferred because of the freshness of the produce and the extensive range of choice. Dong Xuan market). to unnamed ones located in small alleys. The majority of Vietnamese prefer these channels as they do not have to worry about product quality and they do not have to bargain. © Euromonitor International Page 26 . as superstores and specialist stores do. such as online. The environmental movement has also impacted on Vietnamese cooking choice. Maximark and Big C. as its price is quite high. but they may offer goods at cheaper prices. Consumers can visit different zones of the store. Unfortunately. There are several convenience stores. for example. selling different products. and increasing demand for gas cookers in the country. Advertisements about sales and special offers always attract attention and shops are always crowded when the sales are on. refrigerators and microwave ovens. accepting smaller profits to attract more customers. of which supermarkets are the most popular. For those. shopping daily for groceries is Vietnamese women’s main task. Soai Kinh Lam market is known for its textiles. with some homes and restaurants now sporting induction hobs. Coopmart is the most successful supermarket chain in Vietnam. In general. some consumers are becoming accustomed to newer retail formats. especially consumers in urban areas. Cities are expected to continue this work in flood-risk areas over coming years. affecting purchasing power in 2010. Thien Hoa. with 44 outlets located from the central part of the country to the south. Cho Lon and WonderBuy. as Vietnam is a hot country there is high demand for electric fans and air conditioning in the summer – precisely the season when drought makes it hard for the hydroelectricity power stations to meet electricity demand.Consumer Lifestyles Vietnam Impact An increase in the price of electricity has had a knock-on effect on the cost of living. from TVs and cameras to washing machines. Vietnamese in main cities and provinces have become more familiar with more modern shopping channels such as supermarkets. Shopping for Household Goods Traditionally. The common shortage of electricity supply has resulted in increasing demand for hiring or buying electricity generators. Vietnamese are looking to prioritise food and utilities and cut expenditure wherever possible. who want a modern kitchen a gas hob is seen as desirable. most women shop at traditional markets. in particular. Traditional markets do not offer large discounts to consumers. Markets sell everything from rice. each big market tends to specialise in one main item and become famous for it. telephone or TV shopping. replacing electricity or coal. fish. Upgrading drainage and raising flood-risk areas in big cities has forced residents to repair their houses. although demand for this kind of cooker is still small. With a smaller range of products. An Dong market. Among a range of products. Impact Although modern shopping channels such as supermarkets give the consumer less concern about product quality and hygiene. hypermarkets and convenience stores. known as ‘wet markets’. such as Shop & Go and Coop Convenience Store. from large markets located on main streets (Ben Thanh market. meat and fruit. Price is always the key driver for Vietnamese consumers. Vietnamese consumers usually want to see and touch the item that they are going to buy. However. and An Dong market for clothes. A preference is also emerging for individual gas hobs. Over the past 10 years or so. thus they tend to go to bricks and mortar shops. such as Nguyen Kim. Smaller specialist stores are usually first or second dealers for certain companies. and hypermarkets Metro and Cash & Carry. mainly located in Ho Chi Minh City and Hanoi. Other supermarkets include Citimart. with a smaller range of products. These markets are found throughout the country in varying sizes. rather than free-standing. these latter stores have not attracted as much business. Currently. traditional gas cookers. shoes and flowers. which will mean a significant increase in construction materials and services. such as construction materials. Consumer durables are usually purchased from specialist superstores. to clothes. Cooking with gas has become increasingly popular in Vietnam.

6% of households with a washing machine.7 sets per 100 households in rural areas. These superstores are no longer just found in the larger cities. This figure was broken down further into 176. and manufacturers are diversifying their product range to provide LCD TVs and other slim-line models. Toshiba. more women now see these domestic goods as essential.9% of Vietnamese households owning one in 2009. However. Local production of refrigerators has had the same effect. DIY and Gardening Do-it-yourself (DIY) as a hobby or pastime is a new concept in Vietnam. The most successful supermarket chain. Vietnamese households rarely have to buy a telephone. rather than Korean ones like LG or Samsung. as the Vietnamese have traditionally undertaken home repairs or craft projects themselves for economic reasons. with some households having more than one telephone.0% of Vietnamese households with a personal computer in 2009. resulting in increasing demand during the review period. with a small percentage difference between rural and urban homes. both by businesses and by students and families. In recent years. With busier lifestyles. local production of washing machines has lowered their prices. Imported brands such as Acer. The Vietnamese favour Japanese brands such as Sony. which provide promotions and special offers in order to attract consumers based on price. The aforementioned GSO survey estimated that there were 92.0% in 2009).Consumer Lifestyles Vietnam while Ho Thi Ky market is known for flowers. the idea of © Euromonitor International Page 27 . the percentage of Vietnamese households with consumer durables has increased over the review period.6%. The telephone is the second most popular consumer durable in Vietnamese households. Possession of Household Durables Owing to increasing disposable income.6% in 2009. The telephone has shown significant growth in recent years. as there is often more than one floor and many rooms. Impact TV’s popularity means that the market for TV sales is crowded. Dell and HP are firmly in the market. With their large-scale sales and strong financial status. as service providers normally give a handset away as a gift when a household subscribes to their network. respectively.6 telephones per 100 households in urban areas. This explains the significant increase in household ownership of these two items.7% and 99. thus multiple telephones on one line has been common for some years. although some markets may have closed or moved. due to big promotions from service providers such as VNPT and Viettel. Coopmart is trying to access the northern market with 100 outlets by 2015. telephones and vacuum cleaners were owned by a significant percentage of households (around 30% in each case).1 TV sets per 100 households in the country. Telephones have become commonly owned for a long time. Most Vietnamese households own a colour TV (86. with 80. Meanwhile. Therefore. with rural areas offering massive potential for PC manufacturers and retailers. computers have become increasingly affordable. as are the domestic Robo.6 TV sets per 100 households in urban areas and 85. With increasing domestic manufacture. Elead and CMS. and 12. with 11. With PC use becoming increasingly popular. Thien Hoa or Best Caring are strongly supported by manufacturers. while refrigerators. The regions with the highest percentage of households with consumer durables were Red River Delta and Mekong River Delta. these markets have existed for a long time and have become a symbol within their area. Choosing specialist stores and superstores for shopping for consumer durables has become increasingly popular in Vietnam.2 per 100 households in 2008. with 29. Personal computers are highly in demand. owing to cheap prices. in 2008. of which 108. both of established imported and developing domestic brands. TV prices have become more affordable in recent years. The GSO estimated the number of telephones at 107. Houses in big cities often have more than one telephone. at 38. Sharp. personal computers are mainly popular in urban areas. however. according to the GSO survey on living standards. with 99. JVC and Panasonic.2 per 100 households in rural areas. specialist superstores such as Nguyen Kim. but also in other provinces.

pet clothes.6 7. However. as well as birds and fish. in particular.281 181 1. have larger gardens. The increasing pet population in Vietnam has created a new market for pet food and pet care products. but these are not “pets” in the Western sense. however. Wealthier inhabitants. but it is evidently full of potential. As vegetables sold in markets are grown using many chemicals. Currently.760 17. such as tools. medicines and other items are mainly sold in veterinary clinics or specialist pet shops. vehicle maintenance and gardening. Dogs. and seeds and other products are still not widely available. www. Vietnamese who want more unusual pets such as Tarantulas. In rural areas. as inhabitants do not need many tools to take care of several flower pots in their houses. they are not deemed healthy. Euromonitor International © Euromonitor International Page 28 .1 15. flying squirrels. Vietnamese households usually have dogs or cats. while other people have just a few flower pots. except perhaps at the weekend. pet shops or veterinary clinics. Urban inhabitants do gardening for leisure or to grow fruit and vegetables.com) to connect with other Vietnamese pet owners and share their experiences on caring for pets.phuonganhpetmart.169 16. Pet food is usually sold in supermarkets.0 6.997 172 990 344 18. can order online. while cats are to catch mice.109 310 19. which have appeared to care for “pets”. porcupines. specialist pet supermarkets.yeuthucung.Consumer Lifestyles Vietnam DIY as a hobby has begun to expand. of course. Impact The lack of popularity of DIY as a hobby means that few products are sold in this area. However. without mortgage Home owner.151 2008 18.061 17. Table 24 '000 2005 Home owner Home owner. centipedes and snakes. gardening is not for leisure but for employment and earning money. urban inhabitants are planting fresh vegetables. Impact Demand for pets has been increasing in recent years. In addition to specialist pet supermarkets and shops that can be easily found in cities. while wealthier city dwellers often hire professional gardeners to take care of their gardens. Busier urban inhabitants tend not to spend time gardening. chickens or numerous different breeds of dog.0 -10. there is one website. while pet care products.diy. Currently.com) has shown an interest in services and products for pets. only one professional veterinary clinic (thuypetpro.063 302 1.503 National statistical offices. It is hard to estimate the value of this growing market. Pet Ownership Pets are another slightly unusual concept in Vietnam.035 328 18. showing market potential for pets and associated products.825 2007 17. from where they can choose cats.365 18. gathering together DIY-ers in different areas. Agricultural labourers work until harvest time. but working animals: dogs are for security. and inhabitants are growing their own organic fruit and vegetables.463 17.139 308 19.547 212 1.812 % Growth 7. cosmetics. These are the most popular animals found in Vietnamese homes. although some supermarkets sell sets of gardening tools. the market for gardening products is small. The Vietnamese can buy pets at www.vn.1 17. an increasing number of Vietnamese households in the big cities own pets. partly for leisure and partly to meet their desire for fresh vegetables. when they are underemployed for several months.com.806 255 1. with mortgage Rented Other Total households Source: Households by Tenure: 2005-2009 2006 17.075 316 19. technology. while pet lovers have created their own website (www.479 2009 18. some via more illegal channels. Few companies offer advice on gardening. So far.3 76. Alongside the more traditional veterinary clinics are the new pet clinics.

Consumer Lifestyles

Vietnam

Table 25 '000

Households by Tenure: 2010-2020

2010 Home owner Home owner, without mortgage Home owner, with mortgage Rented Other Total households
Source:

2015 20,180 19,377 804 1,331 370 21,882

2020 21,615 20,372 1,243 1,551 470 23,637

% Growth 15.8 11.2 260.2 33.0 51.8 17.3

18,672 18,327 345 1,166 310 20,148

National statistical offices, Euromonitor International

Table 26 VND million

Running Costs: 2005-2009

2005 Electricity Gas Liquid fuels Solid fuels Heat energy TOTAL
Source:

2006

2007

2008

2009

3,698,989 4,365,483 5,285,022 7,094,080 8,040,202 3,424,586 3,965,648 4,751,044 6,333,702 7,174,350 355,306 399,870 473,013 627,142 706,550 456,588 513,091 582,156 748,210 818,255 808,721 958,389 1,181,565 1,643,140 1,923,356 8,744,190 10,202,481 12,272,800 16,446,274 18,662,712
National statistical offices, Euromonitor International

Table 27 % of households

Possession of Household Durables: 2005-2009

2005 Colour TV set Dishwasher Freezer Microwave oven Personal computer Refrigerator Telephone Tumble drier Vacuum cleaner Washing machine
Source:

2006 78.2 0.5 8.3 13.1 7.9 22.7 33.5 1.0 25.3 9.3

2007 81.2 0.6 9.5 14.5 9.0 24.8 35.6 1.0 27.1 10.3

2008 83.8 0.8 10.5 16.0 10.0 27.3 37.3 1.1 28.9 11.4

2009 86.0 1.0 11.4 17.1 11.0 29.9 38.6 1.2 30.7 12.6

74.5 0.4 7.0 11.3 6.7 21.0 30.5 0.9 23.8 8.4

National statistical offices, Euromonitor International

Table 28 % of households

Possession of Household Durables: 2010-2020

2010 Colour TV set Dishwasher Freezer Microwave oven Personal computer Refrigerator Telephone Tumble drier Vacuum cleaner 88.1 1.2 12.0 18.5 11.9 32.8 39.5 1.2 32.3

2015 95.2 2.8 13.9 23.9 15.7 47.6 42.1 1.4 39.3

2020 98.0 4.4 14.7 27.1 18.5 55.8 42.8 45.2

© Euromonitor International

Page

29

Consumer Lifestyles

Vietnam

Washing machine
Source: National statistical offices, Euromonitor International

13.8

20.5

25.6

Table 29 '000s of animals

Pet Population: 2005-2009

2005 Pet Population Dog Cat Bird Fish Small Mammal Reptile
Source:

2006 11,420 3,400 2,200 1,250 4,570

2007 12,170 3,650 2,540 1,200 4,780

2008 13,210 3,740 2,750 1,180 5,540

2009 14,477 3,944 2,887 1,275 6,371

% Growth 24.8 23.3 45.8 -38.9 47.1

11,600 3,200 1,980 2,088 4,332

National statistics, UN, Euromonitor International

INCOME
Average Income
Since the country’s economic reform in 1986, Vietnam has developed significantly. National statistics show that Vietnam achieved GDP of VND516,568 billion in 2009 at 1994 constant prices, an increase of 88.7% on 2000. With average inflation of around 7% per year during 2000-2008, Vietnam has been enjoying a good economic performance, which has reduced the unemployment rate in the country. This economic development has created more jobs and business opportunities for the Vietnamese, as a result of which incomes have increased. Data from the GSO show that estimated GDP per capita in 2009 was VND19,278,000 in current prices, an increase of 10.5% from 2008 and 89.3% from 2005. Annual gross income per capita was VND15.7 million and disposable income was VND13.4 million in 2009 in current prices, an increase of 98.4% and 99.7% from 2005, respectively. Since 2007, when the country first had to cope with high inflation rates, the Vietnamese Government has increased the regulated minimum wage several times, most recently to VND730,000 per month from May 2010 (increasing from VND80,000 from May 2009). However, according to the Institute of National Economic Management, the current minimum wage meets only 60%-65% of people’s daily needs and is 20% lower than the real wage paid for simple labour in the labour market. This regulated minimum wage is just a little higher than the poverty line, and does not ensure enough money for people to live, but many companies apply this minimum for unskilled labour, and thus the majority of unskilled labourers face financial difficulties.

Average Income by Age
Obviously, those of working age have higher incomes, with an average gross income for this group of VND21 million to VND23 million a year. Those aged 45-49 earn the highest average income, at VND23.5 million in 2009. In consumer terms, manufacturers view 25-45 year-olds as the most powerful group, as these are wage earners, decision-makers and thus spend the most. This group also decides fashion trends and life style choices that affect all other income/age groups.
Table 30 VND per capita 2005 Annual gross income Disposable income 7,907,330 6,689,701 2006 2007 2008 2009 Annual Gross and Disposable Income (Current Value): 2005-2009

8,993,916 10,653,839 13,985,184 15,684,284 7,580,644 8,980,256 11,885,355 13,360,354

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Consumer Lifestyles

Vietnam

Source:

National statistical offices, Euromonitor International

Table 31 VND per capita

Annual Gross and Disposable Income (Constant 2009 Value): 2005-2009

2005 Annual gross income Disposable income
Source: Notes:

2006

2007

2008

2009

12,109,490 12,824,825 13,954,750 14,964,684 15,684,284 10,244,782 10,809,577 11,762,635 12,717,787 13,360,354

National statistical offices, Euromonitor International Constant value at 2009 prices

Table 32 VND per capita

Annual Gross and Disposable Income (Constant 2009 Value): 2010-2020

2010 Annual gross income Disposable income
Source: Notes:

2015 22,433,779 19,351,852

2020 31,060,778 26,868,550

16,497,387 14,075,349

National statistical offices, Euromonitor International Constant value at 2009 prices

Table 33 VND

Average Annual Gross Income by Age (Current Value): 2005-2009

2005 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs
Source:

2006 11,948,427 12,613,684 12,904,099 13,077,985 13,333,062 13,624,699 13,786,357 13,642,512 13,112,491 12,320,951 11,596,020 10,972,444 10,426,887 10,099,328

2007 13,884,644 14,744,503 15,134,033 15,358,351 15,662,645 16,004,188 16,192,392 16,023,933 15,407,682 14,489,794 13,639,934 12,911,479 12,274,563 11,893,734

2008 17,848,572 19,098,092 19,686,941 20,012,325 20,413,389 20,852,420 21,092,550 20,876,304 20,090,142 18,925,825 17,833,525 16,899,450 16,082,188 15,596,384

2009 19,613,824 21,155,447 21,904,338 22,305,599 22,760,436 23,246,262 23,510,070 23,271,120 22,406,939 21,135,885 19,929,525 18,898,479 17,996,428 17,463,744

10,699,599 11,238,281 11,463,107 11,604,574 11,830,523 12,093,814 12,240,588 12,110,662 11,627,903 10,908,484 10,255,041 9,691,775 9,198,324 8,902,114
National statistical offices, Euromonitor International

Table 34 VND

Average Annual Gross Income by Age (Constant 2009 Value): 2005-2009

2005 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 16,385,643 17,210,596 17,554,900 17,771,546 18,117,570 18,520,781 18,745,554 18,546,583 17,807,273 16,705,535

2006 17,037,793 17,986,414 18,400,529 18,648,481 19,012,206 19,428,064 19,658,580 19,453,464 18,697,685 17,568,993

2007 18,186,565 19,312,836 19,823,055 20,116,874 20,515,449 20,962,813 21,209,329 20,988,676 20,181,490 18,979,210

2008 19,098,658 20,435,692 21,065,783 21,413,957 21,843,110 22,312,891 22,569,839 22,338,447 21,497,224 20,251,359

2009 19,613,824 21,155,447 21,904,338 22,305,599 22,760,436 23,246,262 23,510,070 23,271,120 22,406,939 21,135,885

% Growth 19.7 22.9 24.8 25.5 25.6 25.5 25.4 25.5 25.8 26.5

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Consumer Lifestyles Vietnam 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs Source: Notes: 15. © Euromonitor International Page 32 .4 trillion on food and non-alcoholic drinks.8% going on education. there are Vietnamese who are willing and able to spend large amounts of money.880 16.866. while the amount spent on leisure and recreation. respectively. owing to increasing incomes. has increased since 2005. In addition to homegrown rice.836 14. 1. China and the Philippines. Popular brands include La Vie.646.8 28. while spending on other goods is increasing. Demand for travel has also been increasing in Vietnam in recent years. However. transportation and communications combined were recorded by the survey as the next highest area of expenditure.1% of total consumer expenditure in current values. water provided by the state-owned water corporation has been polluted regularly. Of course.401.996.086. at 13. Vietnamese consume rice from Thailand and Japan.525 18.096 14. and 2. due to its sizeable population.077. Increasing expenditure on non-alcoholic beverages is partly a consequence of increased purchases of bottled water.578.929. from 1. most Vietnamese spend the majority of their money on food and non-alcoholic beverages.082. 27.929 16. Euromonitor International Constant value at 2009 prices CONSUMER EXPENDITURE Living Costs A poor population. Despite the country’s poverty.281 15.704.208.535. In 2009 the Vietnamese spent VND426. Euromonitor figures show that it is transportation.237 14.632. representing a decrease of 1. Premium shopping centres have been built to cater for this wealthy minority.8% on 2005.730 19.3% of total expenditure in 2005. dedicating only a small proportion of total expenditure on these two services.744 26. After food and foodstuff.036 16.2% of expenditure in 2009.8 trillion) in 2009.557 18.688. Impact Although Vietnam is an agricultural country and the third biggest rice exporter in the world. Although health care and medical services and education are necessary.3% on other foodstuff.868. not only domestically. with 13.804 19.463. accounting for 38. it is also a potential market for imported rice and other agricultural products.898.559 16. leisure and recreation in a poor society will only account for a very small section of expenditure – 1. with large increases since 2005 partly owing to increasing fuel prices and number of vehicles. but abroad.552 13.627 15. an increase of 105.8% of expenditure went on food. attractive promotion by tour operators. Joy.163 14. the percentage of income spent on leisure and recreation has not changed over the review period. at 1. This indicates that increasing incomes have meant that the share of expenditure for necessary items is decreasing.911. with only 6. as well as other agricultural products like garlic.083. Health goods and medical services accounted for 7.7 percentage points on 2002. but there are numerous bottled and purified water brands in the market.3 27.1 National statistical offices.9% of expenditure going on transportation and communications in 2008. buying luxury goods and large ticket items such as cars. Vincom and Zen Plaza. communications is not insignificant. it seems that the Vietnamese focus on survival rather than good health or quality of life. resulting in higher demand for purified water. more and more Vietnamese are going on holiday tours.061 17. and has increased from 1. where one can find popular branded products.8% of total expenditure (VND154. that is the major expense of these two categories.842. including Parkson.479 17. The GSO survey on household living standards conducted in 2008 found that 12. The Vietnamese want to relax with their families and friends after periods of hard work.081 17. which includes some of the increasing luxury goods market.428 17.3% in 2009.7% on drinking and smoking.2 and 0.9 27. carrots and fruit from Thailand.4% of total expenditure.9. and combined with active. and other necessary goods. In recent years.3% in 2005. Aquafina and Aquacool.

596 53.438 29. Table 35 VND billion 2005 Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL Source: Consumer Expenditure by Broad Category (Current Value): 2005-2009 2006 239.4 25.569 14.781 15.426 National statistical offices.578 37.901 2007 373. OECD.031 7.688 38.901 % Growth 34.403 47.017 143.0 33.684 90.893 2009 426.451 13.369 26.295 128.156 2007 285.404 52.745 44.745 44.677 82.073 76.548 734. Euromonitor International Table 36 VND billion Consumer Expenditure by Broad Category (Constant 2009 Value): 2005-2009 2005 Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL Source: Notes: 2006 341.467 38.931 17.678 28.346 23.752 36.751 71.569 14.267 84.007 24.919 12.861 21.386 46. Vietnamese students tend to choose to study in Australia.902 9.761 11.721 36.437 29.4 48. Euromonitor International Constant value at 2009 prices Table 37 VND billion Consumer Expenditure by Broad Category (Constant 2009 Value): 2010-2020 2010 2015 2020 % Growth % CAGR © Euromonitor International Page 33 .124 26. Eurostat. OECD. colleges or universities.719 41.590 34.986 529.007 52.3 41.681 81.107 134.792 38.131 29.597 69.465 42.145 17.011 32.600 30.676 83.732 154.257 2008 379.123 84.052 984.2 38.041 13.197 National statistical offices.519 80.238 60.049 68.379 1.282 96.519 80.282 96. educational organizations and companies have been established in Vietnam to offer overseas study in schools.223 15.182 8.Consumer Lifestyles Vietnam There has also been a significant increase in the number of Vietnamese families that choose to send their children to study abroad.363 39.111 54. the USA or France.054 26.1 48. another result of increasing incomes in the country.942 872.773 961.005 24.340 27.221 95.385 39.732 154.140 97.707 65.206 39.055 22.082 35. Eurostat.1 317.236 12.429 14.754 2008 405.528 63.504 76.498 10. To meet this rising demand.221 95.719 41. as well as offering fellowships to study abroad.499 10.282 104.751 68.874 2009 426.237 26.317 61.901 207.8 24.5 50.577 1.855 6.053.550 56.699 612.710 33.051 20.088 63.379 1.1 48.011 43.9 35.781 15.452 11.272 70.544 810.118.5 43.276 51.480 45.011 43.8 37.017 90.144 30.646 70.316 21.863 9.195 74.505 12.119 42.041 42.056 35.236 6.504 76.860 115.575 75.118.

533 1.6 119.448 94.057 229. Employees will be paid at least 1. while some private sector companies work a 44-hour week.4 8. or the funeral of their parents.761 15. The majority of Vietnamese employees work in the inner cities where they live.9 National statistical offices. Equally.097 62. which include one day for new year. one day for International Labour Day and one day for National Day. If a public holiday falls at the weekend. work must not exceed eight hours a day or 48 hours per week. employees earn the right to 12 days of paid leave a year.5 7.099 40. owing to its sheer size.879 1. and two times their wage if they work overtime at a weekend or on public holidays. employees are entitled to paid leave for their own wedding (three days).472 103.6 133.750 129. such as Binh Duong (around 20 km from Ho Chi Minh City) or Bien Hoa (around 50 km) usually travel by company buses. organisations.101 35. Commuting Most Vietnamese get to work by motorcycle. especially among those who are well educated. from Monday to midday on Saturday.3 7.344 137. After working full time for a company for one year.497 84.4 99.676 66. from Monday to Friday.8 117.Consumer Lifestyles Vietnam Food and non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL Source: Notes: 456.072 102.1 8. There are an increasing number of Vietnamese women achieving success and high social status. Based on this. as this is the main means of transportation in Vietnam.3 170.864 84.5 10.200. after which one day of leave will be added for every five years that the employee works for the company.342 54. Eurostat. Those who work in a city in which they do not live.5 8.759 44. employees have all nine public holidays paid.683 252.753. the poor service and increased travel time means that few people choose this method of commute.8 125. There is no discrimination between males and females in the workplace and gender inequality in Vietnam is not considered a big issue. one day for Reunification Day.301 46.2 8.7 125.443 151. one day for King Hung’s Anniversary. thus the distance between their home and workplace is not large.5 times their wages if they work overtime on a week day.143 101.1 81.145 195.050 47. four days for the lunar new year.1 83. OECD.164 30.446 25. spouse or child (three days).293 39.532 154. the public sector and foreign companies usually work a 40-hour week.078 908.063 223. Euromonitor International Constant value at 2009 prices WORK Working Conditions According to the Vietnamese Labour Code.8 8.485 86. their child’s wedding (one day).1 7. and the rest work a 48-hour week from Monday to Saturday. with the exception of in Ho Chi Minh City. Employees must have at least one day or 24 continuous hours off per week.312 99. but that overtime must not exceed four hours per day and 200 hours per year.789 16. employees are compensated with the equivalent number of days off in the following week.0 120.457 23.559.384 2.1 6.9 113. On top of this. © Euromonitor International Page 34 .848 642. Although there is a network of buses in the big cities. The Labour Code says that employers and employees can agree to work overtime.018 67.396 366.617 166.2 8.2 8.1 6.3 126.075 228.

However. etc. and some Vietnamese employ domestic help. and Vietnamese workers are becoming much more familiar with part-time roles. This is particularly the case for those employed in research. Vietnamese women traditionally do the housework and care for the children in addition to working eight-hour days in paid employment. The Vietnamese are said to be too lazy to walk. instructors and researchers. and those on this low income have limited purchasing power. with the country’s economic development. the pension in Vietnam is said to be inadequate for daily needs. as regulated by the Labour Code. especially working freelance. and otherwise employ a number of part-time. run promotions. often females.4% on 2005. and this move is expected to be approved by Government soon. short-term employees. some of which do not require people to work in an office in the traditional way. While these types of jobs are not common in Vietnam as yet. However. Here there are companies that organise events to launch new products. regardless of gender. an increase of 7. Retirement The official retirement age in Vietnam is 55 years old for females and 60 for males. as Vietnamese children traditionally care for their parents as they grow older. although there is a move towards Vietnamese men helping with some of this domestic work. elderly parents are becoming increasingly important. driving to work remains unpopular owing to traffic jams and lack of parking spaces. for their help around the home. © Euromonitor International Page 35 . Vietnam is a country with a young population. many new forms of work have appeared.Consumer Lifestyles Vietnam Although the number of cars in Vietnam has been increasing sharply due to rising incomes. although those who are in good health and are willing to work can often continue until 65 years old. Vietnamese women are entitled to four months of paid maternity leave. As a consequence. These jobs are normally taken by students. To support this move. As life speeds up in the Vietnamese economy and people work longer and harder. positively influencing the consumer goods market. Car owners still tend to use motorbikes to get to work. Invalids and Social Affairs is considering increasing the duration of paid maternity leave to six months. There is no perceived discrimination or difference between males and females in the workplace. the Ministry of Labour. the arts and advertising. the number of working women has been on the increase. Most of the elderly live with their children’s families. Fortunately. if not indispensable. looking after the children. time-saving and convenient than any other method of transport. with job opportunities and remuneration given according to employee capability. with the number of women breastfeeding their babies acknowledged to be the lowest in Asian countries. demand for part-time jobs has been increasing in recent years. they are of immense value to their children in their help with domestic chores. Working Women Vietnamese women have been liberated for a long time and most of them are able to work. even a very short distance. very few choose to continue working. Retirees who have worked for more than 20 years (paying into the social insurance scheme) will usually have a pension. However. however far. thus the share of pensioners of its total population is small. particularly owing to the development of the advertisement industry. most of whom are lecturers. they always use a motorbike. and freelance and contract work. Alternative Work Options Most Vietnamese work full time and there are not many part-time jobs. Although the elderly can no longer earn. However.6 million Vietnamese women working. the Ministry of Health is encouraging mothers to breastfeeding their babies for the first six months. In practice. Motorbikes are seen as more flexible. In 2009 there were 21.

7 8.278 53.3% in 2009.3 © Euromonitor International Page 36 . more elderly people are having the opportunity to travel – not only within Vietnam. was more heavily impacted by the financial crisis than were rural areas.781 450 662 1.6%. the unemployment rate in urban areas in 2009 was 4.8 17. and so they usually do exercises in the early morning. by reducing agricultural land.4 8. in some cases transforming rural areas into urban ones.598 21.535 42.067 41. having fallen from 2. owing to their children’s increasing income.743 20. Urbanization continues in Vietnam.361 44.Consumer Lifestyles Vietnam Retirees’ main concern is their health.1 1.231 % Growth 18. which has lowered the unemployment rate.831 21. Thus the unemployment rate in urban areas is reckoned to be much higher than in rural areas. according to the GSO. The majority of those living in rural areas are agricultural workers. Euromonitor International 2015 26.125 % Growth 8.106 ILO.527 499 732 1.121 2009 23. Urban areas.817 446 660 1.5 16.4 9. the lowest point during the review period. More industrial zones have been built. According to GSO data.0 2. they spend time gardening and doing other domestic chores. Unemployment Successful economic development in Vietnam has created more jobs in recent years.432 23.4 9.8 21.5 7. Thus urbanization.8%. more factories and companies have been opened.246 20. the unemployment rate in 2009 increased to 2.558 45. without the skills to work in factories or industrial zones.7 1. where most people work in industry and the service sector.156 458 667 1. Euromonitor International Table 39 '000 Employed Population: 2010-2020 2010 Employed male population Employed female population Total employed population Male part-time employees Female part-time employees Total part-time employees Source: ILO.308 488 714 1.3%. In recent years.927 43. while that in rural areas was 2.117 2008 23.249 25.5% in 2008 to 2.751 20.467 460 669 1. creates more rural unemployment.627 456 666 1. the unemployment rate in rural areas has increased from 1.0 23. For this reason.636 45. Although they no longer earn money working. However.0%. a period of healthy economic development.671 453 664 1. with the impact of the world financial crisis.202 2020 28.129 Table 40 '000 Unemployed Population: 2005-2009 2005 Unemployed male population 407 2006 405 2007 403 2008 402 2009 571 % Growth 40. Table 38 '000 2005 Employed male population Employed female population Total employed population Male part-time employees Female part-time employees Total part-time employees Source: Employed Population: 2005-2009 2006 22.2% in 2005. and agricultural areas have shrunk.265 21. Unemployment in Vietnam in 2008 was 2.877 50. but also abroad.112 2007 22.

this means that state-owned kindergartens are over-subscribed and over-stretched.0 -28.301 2.0 847 1.8 41. the majority of Vietnamese parents. Euromonitor International 515 922 1. divided into three levels. the fees for such schools are quite high.5 % Growth -28.5 2020 610 771 1.1 3. The academic year is officially from the start of September to May. and high school is from grade 10 to grade 12. Unlike in the past.0 -28.5 2. Whatever the type of nursery. this move is still under consideration. however.0 LEARNING School Life With busier working lives. parents have to pay fees. Although the Government has been considering merging the two exams into one. from grade 1 to grade 5.918 3.7 2.2 Table 41 '000 Unemployed Population: 2010-2020 2010 Unemployed male population Unemployed female population Total unemployed population Male unemployment rate Female unemployment rate Unemployment rate Source: ILO. The majority of Vietnamese children go to stateowned kindergartens. with higher fees for care of younger children.Consumer Lifestyles Vietnam Unemployed female population Total unemployed population Male unemployment rate Female unemployment rate Unemployment rate Source: ILO. The majority of Vietnamese students attend public schools.3 2. Vietnamese students take two important exams.313 2.071 1.4 3. © Euromonitor International Page 37 . and at this level.4 2. however. After finishing high school at grade 12. in order to do well in the difficult national curriculum. as with younger children.0 2. and students are off school from June to August. As a result of increasing demand for an alternative. The primary level is compulsory. have to send their children to nursery. most of which only accept children of one year old upwards. kindergartens now have to teach pupils how to read and write.381 2. However.1 3.0 2.2 513 917 1. The latter can only be taken upon passing the former. as these are the most affordable. and even start teaching them English before they move into primary schools at the age of six. The Vietnamese education system consists of 12 grades. with a curriculum combining the national programme and a school-specific element. although a few accept babies from the age of four months.8 2.7 4. or kindergarten. the national curriculum is criticised as being too difficult academically.3 2. There are many kinds of nursery schools. Almost all children go to kindergarten when they reach three years old. there are state-owned. from state-owned to private and foreign ones.0 508 910 1. at a much younger age.7 2.4 4.8 41.8 2. leaving students little time to relax. private and foreign ones. private schools – both domestic and international – have opened in recent years.1 510 914 1. Euromonitor International 2015 579 734 1. especially in urban areas. The intermediate level is from grade 6 to grade 9 (at which point the majority of students leave school).4 2.0 730 1. many students now have to start school in August. The first is the high school graduation exam and the second is the national university entrance exam. however.

These uniforms are normally provided once a year by schools and they have to be bought before school starts in September.000 per month. Normally students finish university at 22 years old. except for sportswear. which are said to be better and have lower fees than private ones. Demand on sending children to such schools is said to be very high. Owing to a lack of teachers in the provinces and in remote areas. The fees. extra tuition at home. It was estimated that there were around 2. an increase of 69. the Government is encouraging students to study to become teachers by offering free courses. teaching methods and facilities are all in need of an overhaul and update. it was impossible for students to shorten their university period. so few have dormitories/halls of residence for students. programme level. rent rooms as a form of “home stay” with home owners. The Vietnamese education system is said to be backward and in need of change. With these failings. Students and their families tend to favour the public universities and colleges. with several students usually sharing a room to save money. therefore. © Euromonitor International Page 38 . Only the wealthier students can afford to rent a room by themselves. most universities followed a semester system. In the past.000 to VND800. for each pupil in semi-boarding schools is around VND50. It is very hard for public schools to become semi-boarding schools in Vietnam since an area for each school is small. especially in Ho Chi Minh City and Hanoi where most of parents have to work all day and have no time to pick their children up at noon. with private and foreign schools opening at all levels. Besides students’ usual studies. including lunch. Most students. Despite the move by private education into the Vietnamese market in recent years. music or art. which is usually held at the beginning of July. while boys wear green trousers and white shirts. All girls at high school have to wear the traditional ao dai (long dress). to standardise the system with that found more internationally. Economic reform has created high demand in jobs in the economic sector. with students paying fees each semester depending on the number of credits they registered to study. semi-boarding schools have accounted for around 90% at primary level. students can graduate sooner. The majority of Vietnamese universities are located in Ho Chi Minh City and Hanoi. University Life Undergraduates enter university by passing the national university entrance exam.000 per month while private schools ask for fees of around VND300. It is estimated that in the public school system. in which the undergraduate programme was taken over eight semesters or four years. Its curriculum. and the school does not have enough money to invest because the government has regulated fees over the last 10 years. the Ministry of Education and Training requested that all universities move to a credit system. Different schools have different kinds of uniforms with different designs. 63% at intermediate level and there is only one school for high school level in Ho Chi Minh City. All Vietnamese students have to wear uniform when they go to school.4 million higher education students in 2009.9% on 2005. as a result of which the number of students graduating in education is now the highest among all degree programmes. there is no evidence that private and international education is better than that given in public schools. Under the old semester system. Some Vietnamese schools are semi-boarding schools where children can stay from morning to afternoon during the term. they have lots of homework. so subjects involving economics and business are particularly popular. where land is limited. and students are expected by parents to learn skills such as ICT. Students in these grades do not have to buy a specific uniform from their school. however. under the credit system.Consumer Lifestyles Vietnam Public education remains the most common choice in Vietnam. However. the private education sector has become one of the most potentially profitable markets in recent years. despite the fact that the Government has spent around 12% of its budget each year on the education sector. it is very difficult for the Vietnamese education system to reach the international standard. but doubts over the curriculum’s lack of “soft skills”. especially since 2007 when the financial sector and the stock market boomed. The perceived advantage of these alternatives is their application of improved services and the addition of teaching soft skills alongside the national curriculum. with students paying equal fees in each semester. in education centres or at teachers’ houses.

such as business administration. business and law 182. Table 42 As stated 2005 Pre-Primary School ('000) Primary School ('000) Secondary School ('000) Compulsory Education Commencement Age (years) School Leaving Age (years) Source: School Students: 2005-2009 2006 2. Cambodia. Within higher education. All forms of adult learning are paid for by the students and demand for such programmes has been very high in recent years. with popular degree programmes being in economics-related fields.833 59.886 2008 268. The majority of international students in Vietnam come from Laos. The most popular fields are languages. nor Vietnamese students studying abroad. South Korea or Japan.810 9.925 54. when many people were laid off due to the financial crisis. Additionally. in-service training programmes. culture and Vietnamese traditional music.5 71.227 6 14 2008 2. such as English.6 -24.825 6 14 2009 2. UNESCO.689 75. finance and marketing. especially as most students are from other provinces where the living standard is much lower. and to enhance their status in the workplace. especially during 2008-2009. the demand for post-graduate degrees in Vietnam has increased sharply. many adults take evening classes in order to improve their knowledge and skills.113 7.155 2007 242.026 90.774 9.210 2006 210. education and management. Adult Learning After leaving full-time education. Owing to its more relaxed visa requirements and cheaper education fees.235 7. There are several forms of adult learning. principally to study the language.849 8. World Data on Education. Universities usually have a student support centre to provide part-time job information to students.800 66.378 6 14 International Bureau of Education.077 5. waiters or waitresses.095 6.489 62.712 107. There are no official statistics about international students studying in Vietnam.2 53.426 2009 294.2 © Euromonitor International Page 39 . owing to a requirement for higher qualifications to meet the challenges of senior positions in companies.527 83.079 7. finance. or economics subjects.686 78.347 6 14 2007 2. Thus demand among students for part-time jobs is very high.152 9.396 6 14 % Growth -3. the number of Vietnamese students studying abroad has also increased sharply in recent years.5 2.8 20.297 8. post-graduate degree programmes.053 8.154 7. while the USA follows closely owing to its advanced education system. or other higher education programmes. especially in the big cities. Euromonitor International Table 43 number Graduates: 2005-2009 2005 Graduates in all programmes in education in humanities and arts in social sciences. the number of Vietnamese studying in other countries has been increasing. Meanwhile. history. An increasing number of international students of varying nationalities have come to Vietnam. distance learning programmes. accounting and marketing. such as short courses.Consumer Lifestyles Vietnam The cost of living and studying in the big cities is quite high.318 9.051 % Growth 61. Students become home tutors for school students. with the number of Vietnamese students in Canada being three times higher in 2009 than in 2006. work for promotion companies.8 -10. as well as languages. are interviewers for research companies. and these forms of adult learning are normally taught at universities or professional institutes.383 7. such as business administration. Chinese and Japanese. Australia is always the first choice of Vietnamese students.103 6.815 99. or work in fast food outlets.

However.292 15.593 6. However.928 2008 2. universities ('000) Male ('000) Female ('000) Source: 2006 1. Euromonitor International EATING (INCLUDING SOFT DRINKS) Shopping for Food and Drinks Shopping for food is mainly carried out in traditional markets on a daily basis.9 69. as they do not have to bargain and can choose purchases more easily. as long as the private labels are considered to be of good quality. Shopping for food is traditionally a women’s task.2 102.235 58. toilet tissue.357 % Growth 69. some families in urban areas shop for food in either supermarkets or traditional markets once a week.013 69.733 9.666 2007 1.006 5. there is a trend.0 8.973 52. in which Coopmart is the pioneer and has become the strongest loyalty system. as prices are fixed to ensure quality. Shopping for food in supermarkets has become increasingly popular with urban inhabitants.716 5. on Saturday or Sunday.556 6. In the current economic climate. especially as food accounts for almost half of average expenditure.3 EUROSTAT.Consumer Lifestyles Vietnam in engineering. especially in urban areas.463 10.529 54. Consumers are showing no preference for brands over private label versions. lunch and dinner – but they do not buy rice every day.821 11.137 9. the second is for Coopmart members. Coopmart has also introduced a range of private label products.9 1. instead ordering 10kg or 20kg at a time from rice retailers. However. and the third is for VIP customers.131 2009 2. vegetables. OECD and UNESCO. © Euromonitor International Page 40 . Traditional markets.846 8.099 829 1. with their more fluid pricing that can change on a daily basis. The Vietnamese eat rice at every meal – breakfast. along with the housework. Most supermarkets have loyalty schemes for their customers.756 7. rice paper. In these cases.7 96. but allow all customers to feel the increased comfort and convenience over the more traditional market. cooking and childcare. They only go to markets for fresh meat.344 1. are said to more accurately reflect the high inflation in the country and how the real value of money has decreased.051 73. spring rolls of different kinds and frozen fish. Coopmart provides three kinds of loyalty card: the first is a card for regular customers.786 41. manufacturing and construction in agriculture in health and welfare in unspecified programmes Source: Note: 38. Euromonitor International Graduates are those who have successfully completed an educational programme Table 44 As stated Higher Education Students: 2005-2009 2005 Higher education students inc. including rice. even though the range of products in supermarkets tends to be quite limited.544 11. towards men helping their wives with the food shopping. with busier working lives. resulting in supermarkets and markets being crowded at weekends.9 UNESCO. napkins.387 8. supermarkets are not only aimed at men. the Vietnamese are paying even more attention to product prices when they go shopping.215 916 1.130 13.387 791 596 950 716 1. supermarkets are often the men’s choice.770 49. Coopmart’s private label products sell for between 3% and 20% below the equivalent branded products.

fish and seafood costing less as Vietnam is an agricultural country and has a strong fishing industry. which means that it is a big market for such products. so are resorting to packaged and processed foods. as mentioned with regard to gardening. despite the fact that Vietnam is an agricultural country.Consumer Lifestyles Vietnam fish. However. but only packaged products. food producers such as Cholomex and Cau Tre have launched a range of new products to meet increasing demand. There are so many that it is impossible to come up with any official statistics on the number of traditional markets and grocery stores in Vietnam. canned soft drinks and snacks are sold in vending machines in public places such as hospitals. especially at weekends. While supermarkets have to give the origin of produce for sale. The Vietnamese Government’s encouragement of consumers to buy Vietnamese produce and products has resulted in products of Vietnamese origin being introduced in markets and supermarkets. Additionally. Bottled water. The availability of fresh foods has a big influence on the Vietnamese diet. so sales through vending machines are low in value and are unlikely to develop significantly over the forecast period. the prices of domestic products have been increasing over time. via either traditional markets or supermarkets. vending machines. Demand for fresh foods such as vegetables. purified water. While traditional markets usually sell a variety of goods. Although demand for packaged and processed food is not as high as demand for fresh food . meat. However. with inhabitants tending to eat more fresh food than packaged and processed types. fish and seafood in Vietnam is very high. and are everywhere. without any extra fee. using coins to buy via vending machines is inconvenient and unfamiliar for Vietnamese consumers. from traditional markets. These places are always crowded. stews and fish dishes. in offices. Impact Shopping for food is a regular activity for most Vietnamese households. Traditional markets and grocery stores are very popular in Vietnam. however. too. inhabitants have less time to go shopping for fresh food and to cook. especially in urban areas. big cities and remote locations. so bottled water is used there. To take advantage of this. parks and theatres. Dining in © Euromonitor International Page 41 . it has been increasing owing to busier lifestyles. it is impossible to boil water at work. Most vegetables and fruit planted in Vietnam are grown using ordinary fertiliser. seafood or fruit. most Vietnamese households. which has increased demand in this area in recent years. small alleys and main roads. As water provided by the national water companies is sometimes polluted and undrinkable. La vie is the most popular brand. grocery stores. at affordable prices. Aquacool and Joy. drink bottled. and as a result a number of new brands have appeared in the market. There is an increasing trend towards bottled water to replace traditional boiled water. in rural and urban areas. including Coopmart and Sai Gon Tiep Thi magazine. including imitation ones. This has sharply increased demand for bottled water in recent years and the trend is likely to develop in coming years. meat. traditional markets do not. supermarkets. However. convenience stores. seafood or vegetables. Online shopping and TV shopping has become more popular with and familiar to Vietnamese consumers. Food orders are received from consumers via telephone and then delivered to consumers’ houses as required. In urban areas. However. as Vietnam exports a huge amount to other countries. Currently. in addition to sales in grocery stores and supermarkets. Meat is the most expensive item of food. including spring rolls. with rice. coffee shops and canteens. an increasing number of Vietnamese are growing some of their own produce in order to maintain them free of the chemicals used by farmers. followed by Aquafina. some retailers have provided telephone retail services for food. but food is never sold via these channels. thus markets usually sell imported agricultural products from China due to their cheaper prices. grocery stores do not sell fish. It is easy to buy bottled water. fruit. Foods that are not genetically modified (GM) and those that are organic are a new concept in Vietnam and as yet have not become important to consumers.

stews or foreign cuisine such as Thai.6 trillion in 2004. an increase of 65. possibly owing to the fact that there are more Asians coming from South Korea. Korean or Japanese food. help people relax after a long day at work.000-VND40.2 trillion in 2008. demand for eating out and ready meals in Vietnam has been increasing in recent years. It is hard to identify how many people dine out. so workers buy lunch from local shops. At weekends. people can go to street stalls for shellfish or Vietnamese noodles. However. they may not eat rice. although income from the foodservice sector has increased sharply from VND259. all Vietnamese eat local cuisine. which they believe makes meals more delicious and healthier. while demand for eating out is also increasing.000 for white-collar or middleincome workers. Dining Out The busier life is. and general opinion is that families that do not eat together tend to break up more easily. meals typical of other countries are becoming better known in Vietnam. instead going for foreign cuisine. The Vietnamese seem to favour Asian foods rather than Western ones. families on a higher income might invite friends to dinner at home. or go to restaurants for stews and foreign cuisine. Eating out can save time when people are too busy. Family meals are believed to connect family members. and soup. making Vietnamese cuisine quite varied. along with bread or rice.7%. Impact As the lunch break at work is usually only an hour. lunch and dinner at home. the Vietnamese eat breakfast. especially at weekends when people like to go out to eat for leisure. There are many kinds of shops selling lunches. On these occasions. now sell readyprepared meals. get lunch from a shop near the workplace. and so they go out for breakfast. to VND430. The Vietnamese prefer cooking at home to eating out. As for choice for eating out. while coffee shops and restaurants also sell lunches.Consumer Lifestyles Vietnam Traditionally. so they cannot cook. most Vietnamese prefer to use fresh ingredients rather than prepared ones. the more complicated social relationships are.000 for low-income workers and students. © Euromonitor International Page 42 . and their families instead eat out or buy ready meals. and so the influence of these is higher than those coming from Western countries. the higher the demand for eating out. from cheaper ones priced at less than VND10. Increasingly. the Vietnamese have no time in their busy schedule to cook three times a day. Vietnamese meals are further altered with different kinds of sauces. Owing to high demand for lunches. the harder work is. Japan and Thailand. and premium versions. An observation of restaurants. fish or meat. while fast food outlets such as KFC. the higher income is. tastes change between the north and south of the country. In fact. They may eat traditional home-cooked meals or other styles such as barbecues. from small to premium types. Traditional Vietnamese meals normally include rice. but with the inflow of foreigners into Vietnam of many different nationalities. not to mention meet the higher demand for leisure when a person becomes wealthier. However. there is not enough time for people to go home for lunch. fast food and retail outlets at lunch time in the big cities reveals their popularity. many shops have opened. Depending on the region. sometimes they may buy ready-prepared meals to save time when they are busy or at the weekend. however. for breakfast. especially fish sauce or soya sauce. while restaurants are often crowded in the evening. to mid-standard ones at around VND20. Vietnamese noodle soups such as Pho and Banh Canh are popular. Restaurants selling Asian foods such as Korean Noodle Restaurant and Ashima Mushroom Hotpot are attracting more and more Vietnamese who wish to eat out. busier lifestyles are changing these habits and Vietnamese women now sometimes have working dinners. while rice is an essential for lunch and dinner. Of course. and eat dinner at home. especially those who work in big cities at a lengthy commute from their home. Demand for lunch outlets in the major cities is very high and shops are always crowded at noon. When preparing meals. Lotteria and Jollibee are also popular. Many restaurants. help to maintain relationships with friends and business associates. The majority of Vietnamese households cook and eat dinner at home every day.

beer seems to be the beverage of choice.933 33. through the movies). while medium.236 Consumer Expenditure on Food (Current Value): 2005-2009 © Euromonitor International Page 43 . the impact of the French lifestyle when Vietnam was its colony has influenced Vietnamese to drink fresh coffee rather than coffee from a machine or instant coffee. as a result.887 34.812 46.985 34. Most of the smaller shops selling lunches. These coffee shops are usually equipped with wi-fi and are decorated in an attractive style. The increasing number of people eating out in the evening has also affected the beverage industry. Equally. especially in urban areas. Medium.386 2008 33. In addition to fresh coffee. but people also pick up a coffee from street stalls in the morning before work. particularly that of beer.584 39. more expensive than that of street stalls.and premium-level coffee shops are not only a place to drink coffee.139 15. and the quantity of beer being consumed has increased significantly. trying to create unique characteristics. as the Vietnamese do not like coffee from a machine. For instance. There are no coffee machines in public places in Vietnam.366 68. Lower-level coffee shops usually have a TV showing a movie or other free entertainment to attract customers. and this trend seems likely to continue over the forecast period. of course.339 7. CIAO Coffee shops successfully opened a chain of book-store coffee shops. Impact With increasing demand for coffee and the associated desire to relax in leisure time. is expected to increase over the forecast period. Café Culture As Vietnam is a major grower and exporter of coffee. and a cup of coffee in the morning is a regular habit for most Vietnamese men.730 2007 25. Most Vietnamese go to coffee shops to drink coffee.428 13. serving office buildings. places to gather with friends or romantic meeting places for couples. or even small live shows by singers. particularly manufacturing and other industry. rather than being chains. Japanese sushi or Thai stews has risen dramatically. a catering industry has developed to provide. instant coffee may be used instead of fresh coffee. Influenced by the cultures of South Korea.668 2009 37. are owned by individuals. more Vietnamese have started to eat Korean food and the number of outlets for Korean noodles. The Vietnamese do not only go to coffee shops in the morning: coffee shops are usually crowded all day.743 61.487 17.and premium-level coffee shops are.422 8.863 38.528 2006 21. Table 45 VND billion 2005 Bread and cereals Meat Fish and seafood Milk. domestic coffee consumption is understandably high.055 24. it is predicted that instant coffee sales are likely to increase as people look to save time in their busy lives.555 16. even for women. the number of coffee shops opening in Vietnam. from domestic to imported brands. as well as the quantity of coffee consumed. mainly. some coffee shops have become locations for book or album launches. lunches for large companies. if time is limited. The rising demand for foodservice in the evening has resulted in diversity in restaurants and food retail outlets. and there is a wide variety of beers available in Vietnam. in particular. Coffee from coffee shops is. however. Thailand and Japan (the former. In recent years.745 10.Consumer Lifestyles Vietnam Impact As a result of the increasing number of people who buy lunch near to their workplace.350 23. which has spread to Hanoi and other big cities and provinces. cheese and eggs Oils and fats 18.339 30. but are flexible offices.304 19. After a hard day at work.172 20. which created a movement towards book-store coffee shops in Ho Chi Minh City.

514 National statistical offices.624 422.268 60.1 40.440 150.045 27.4 103.729 46.012 53.1 92.040 104.763 4.4 7.297 142 22.460 35.705 541 National statistical offices.1 39.001 92.991 National statistical offices.139 15.144 220.1 43.444 14.2 85. cheese and eggs Oils and fats Fruit Vegetables Sugar and confectionery Other food TOTAL Source: Notes: 2006 30.338 29.527 346.317 395.248 117. OECD.711 30.258 6.317 395.496 116.008 % Growth 78.4 97.5 103.8 8.810 60.6 32.556 7.621 3.131 59.8 6.6 31.121 12.449 2008 430.458 29.970 2008 36.099 35.631 51.791 6.896 31.625 19. Eurostat.Consumer Lifestyles Vietnam Fruit Vegetables Sugar and confectionery Other food TOTAL Source: 16.1 28.964 10.632 6.676 192. Euromonitor International Constant value at 2009 prices Table 47 VND billion Consumer Expenditure on Food (Constant 2009 Value): 2010-2020 2010 Bread and cereals Meat Fish and seafood Milk.366 68.8 93.519 2020 70.891 84. OECD.601 4.744 105.480 3.733 23.138 294. Euromonitor International © Euromonitor International Page 44 .604 30.0 7.471 33.569 73. Eurostat.1 7.411 13.610 149.040 104.150 16.470 110.432 205.954 National statistical offices. Eurostat.6 115.505 5.966 5.924 36.784 25.514 % Growth 29.769 14.415 5.107 65.924 52.920 376.346 200.553 11.448 27.380 351.777 56.919 25.737 3.485 91 17.828 166.863 38.932 37.1 35.467 6.198 32.012 53.4 38.121 23.746 42.248 26.3 104.922 71.657 181.2 30.293 39.347 92.703 39. OECD.732 2007 33.8 34.635 33.657 47.572 2009 37.982 81.236 36.241 2006 346.846 70.0 7.4 6.862 316.202 41.350 56.094 57.773 51.710 89.310 93.537 150.183 259.264 593.513 222.9 26.751 99.671 2007 389.058 344 32. Euromonitor International Table 46 VND billion Consumer Expenditure on Food (Constant 2009 Value): 2005-2009 2005 Bread and cereals Meat Fish and seafood Milk.556 7. cheese and eggs Oils and fats Fruit Vegetables Sugar and confectionery Other food TOTAL Source: Notes: 2015 52.4 8.626 33.4 6.079 156.561 79.640 264.529 25.075 171.985 34.576 14.096 223 27. Euromonitor International Constant value at 2009 prices Table 48 VND billion Consumer Foodservice by Type (Current Value): 2004-2008 2004 Consumer foodservice by type and chained/ independent Cafés/bars Full-service restaurants Fast food Street stalls/kiosks Pizza consumer foodservice Source: 2005 304.8 117.874 50.9 % CAGR 6.154 138.172 84.071 837.808 4.621 7.

1 -6. The amount of alcohol in general consumed is around 4 litres per head per year. Being a traditional Eastern country where men are considered the pillars of family society. it is highly educated Vietnamese who predominate. In terms of quantity of alcoholic drinks. Most Vietnamese have a drink in the evening.471 302 33.851 241. and more than 220 ml of beer with more than 20 ml of alcohol per day for women.158 2006 468. in terms of both quantity and value sales.563 22. consumer expenditure on alcoholic beverages in Vietnam in 2009 amounted to VND17. are set in the habit of drinking after work. bar or restaurant with friends or business associates to have a drink. a strong man is expected to be able to hold his drink – this opinion remains unchanged today. Additionally. regardless of their age. Euromonitor International Constant value at 2008 prices DRINKING Drinking Habits The Vietnamese.5 billion litres. the average growth rate of alcohol consumption is said to be around 8%-10% per year. but instead go out to a pub. and although the number of deaths caused by drinking and drinking-related illness has been increasing significantly.713 145.594 245. in particular. Alcohol consumption in Vietnam has been increasing sharply in recent years.940 234. in constant 2009 values. including long-standing customs.6% was expenditure on spirits.069 168. with the result that the alcoholic beverages market has been increasing significantly in recent years. While the average annual growth rate of gross national product (GNP) per capita in Vietnam is around 5%-6%. and the significant development of the alcohol market. Surprisingly.2 28. or more than 30 ml of alcohol with 30% alcohol per day for men.108 2007 482. according to the Vietnam Beverage Association (VBA). Although all Vietnamese know that drinking is harmful to health and may cause diseases of the heart.198 6. increasing incomes and living standards.6 trillion. the amount of beer consumed per capita is now around 28 litres per year. A person is considered to be abusing alcohol if they drink more than 330 ml of beer with 5% alcohol.909 249.705 541 40. they still drink. The significant increase in alcohol consumption is said to be owing to a number of factors.7% from 2005. for them drinking © Euromonitor International Page 45 . among alcohol abusers. with the total amount of beer consumed in 2009 reaching around 2. According to a survey conducted in 2006 by the Institute of Health Strategy and Policy. an increase of 29. most Vietnamese who drink.916 2008 430.700 4. after work. have a long-standing tradition of drinking.604 5. an increasing number of women are starting to drink. according to a survey conducted in 2006 by the Institute of Health Strategy and Policy.075 171. while some have an alcoholic drink at noon.183 % Growth 5. farmers account for the highest share. while those in the business sector account for 26% and those who work for the public sector account for 17%. More highly educated people account for 77% of drinkers. Vietnamese men. Of this. at 28%.511 427 32. However. meaning that the majority of Vietnamese men drink. 59. after work people do not go home. which means that eating places. pubs and bars are always crowded in the evening. abuse alcohol.2 277.609 186. liver and stomach. Normally.298 193. at this standard.434 5.9 18.144 220.258 6.7 National statistical offices. In terms of value. men in particular.5 407.212 143 25.Consumer Lifestyles Vietnam Table 49 VND billion Consumer Foodservice by Type (Constant 2008 Value): 2004-2008 2004 Consumer foodservice by type and chained/ independent Cafés/bars Full-service restaurants Fast food Street stalls/kiosks Pizza consumer foodservice Source: Notes: 2005 441.633 206 30.

the other is production by Vietnamese households. is weak and needs consideration. Japan and Western or European countries. Vokka Hanoi and Lang Van. Alcoholic drinks such as spirits. with 20 factories with production capacity of more than 20 million litres per year. which. while Vietnamese spirits are popular in rural areas. from supermarkets. special consumption tax of 45% and VAT of 10%. cognac. The majority of drinkers consume local Vietnamese spirits rather than whisky. In 2010 imported beer for business had to pay three kinds of taxes: import duty of 47%. maintain relationships and increase business. 333.Consumer Lifestyles Vietnam being a part of socialising to make business connections. and alcohol beverages in particular. Beer is the most popular drink in urban areas. accounting for almost 80% of total quantity production. although this could contribute to Vietnam’s trade balance deficit.2% higher than the 1. although with their high prices. hospitals and stations.7 billion litres produced in 2006. though. in addition to imported beer. which banned the sale of alcohol to under 18s. According to the VBA. however. regulations introduced to regulate consumption include Decree 40/2008/ND. and some of these spirits have become popular across the country. make friends. at schools. Changes in tax policy have allowed predictions that the beer market will expand faster in coming years. Domestic beer production has increased significantly in recent years. wine and champagne. especially in rural areas. The VBA also reveals that there are around 350 domestic producers of beer. and will be 30% in 2012. With their relatively cheap prices. as a consequence. however. There has not been any move by government to reduce alcohol consumption in the country. Shopping for Alcoholic Beverages It is very easy to buy alcohol in Vietnam. The VBA reveals that production capacity in 2009 was 2. Alcoholic drinks are available widely throughout the country. although it is lower than China. Vietnam has a high drinking rate among South-East Asian countries. although few people buy them in these places. urban inhabitants drink beer on all occasions. and alcohol distribution is regulated through No. Decree 150/2005/ND-CP banned drinking during work hours. Lower incomes and customs mean that those living in rural areas tend to drink local spirits instead. so is a profitable market for the beverages industry in general. Tiger and Saigon. Favourite brands of beer include Heineken. brandy.7 billion litres of beer. are likely to increase in the near future. the growth rate of this market during 2002-2007 was on average 14% per year. One reason is that it is quite difficult to get bottles of spirits and cans of beer home by © Euromonitor International Page 46 . 15 factories with capacity of more than 15 million litres per year. specialist stores. which are imported and thus have a higher price. has fallen from 75% in 2009. on an almost daily basis. pubs and bars. The implementation of these regulations. Among these. It was estimated that in 2010 Vietnam would produce 2. it is easy for those on a low income to buy spirits from this channel. Go Den. wine and beer are sold in supermarkets and hypermarkets. which prevents the sale of alcohol via vending machines. and they may sell one or more than one brand of beer in addition to soft drinks. These imported spirits account for a tiny share of around 4% of the market. Imported spirits and wine are usually bought from specialist stores and supermarkets. to weddings and birthdays. from dinner with the family or eating out with friends. some 41. The majority of Vietnamese spirits are sold by grocery stores. and more than 260 factories with capacity of less than one million litres per year. 10/2008/TT. They are usually cheaper and often deliver to homes free of charge if consumers buy a large quantity.4 billion litres. Domestic production is from two channels: one is industrial production. while Education Law No.38/2005/QH11 banned students from drinking during study time. These specialists are usually the direct or second dealers of beverage producers. grocery stores. specialist outlets are the most popular channel for beer purchases. With higher incomes and living standards. would meet the increasing demand in the country. including Bau Da. Beer imports. only high-income urbanites tend to buy these products. Vietnam is a good market for alcohol in general. even if you are under-age. Impact Vietnam has a long-standing tradition of drinking and a large drinking population. Special consumption tax.

978 24.199 1.3 5.771 9.000 2.998 17.429 2. Euromonitor International Constant value at 2009 prices SMOKING Smoking Habits © Euromonitor International Page 47 .8 6. the coverage of supermarkets and hypermarkets in Vietnam at present is not high.7 28.376 11.092 20.554 11.844 5.165 28.052 7.266 4.055 National statistical offices.862 30.5 81.278 4.349 21.324 1.090 10.579 2007 15.120 1.727 2.543 6. OECD.446 29.462 2.206 2009 17. in order to sell more.1 6.301 National statistical offices. Euromonitor International Table 51 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2009 Value): 2005-2009 VND billion 2005 Alcoholic drinks Spirits Wine Beer Tobacco TOTAL Source: Notes: 2006 14.062 2.263 6.566 10.786 9.1 % CAGR 6.9 5. Additionally. although canned beer is usually more expensive than bottled beer.319 40. Eurostat. Eurostat.011 % Growth 29.543 4.1 6. Euromonitor International Constant value at 2009 prices Table 52 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2009 Value): 2010-2020 VND billion 2010 Alcoholic drinks Spirits Wine Beer Tobacco TOTAL Source: Notes: 2015 24.439 11.3 25.554 11.403 2.4 20. and they are mainly located in big cities.0 31.438 4. OECD.465 9.211 15. so the channel is unpopular simply owing to its rarity.154 1.446 29.385 2008 16.237 2007 12.310 15.011 8. Table 50 VND billion 2005 Alcoholic drinks Spirits Wine Beer Tobacco TOTAL Source: Consumer Expenditure on Alcoholic Beverages and Tobacco (Current Value): 2005-2009 2006 10. The Vietnamese prefer cans for beer and bottles for spirits and wine. as the supermarket will deliver to their home.239 6.777 14.924 3.543 4.144 2008 15.511 23.337 20.2 77.656 6.088 10.864 % Growth 80.668 4.0 81.469 2.8 13.926 3.469 2.056 National statistical offices.545 8. OECD.257 2.041 2009 17.722 8.269 4.Consumer Lifestyles Vietnam foot or on a motorbike.1 18.097 2020 33. Eurostat.4 32.772 11.8 84.600 26.788 9.566 10.527 54.0 75.600 8.121 8. Therefore people who buy alcohol from the supermarket tend to be those who are purchasing a high quantity.085 3.732 3.876 10. usually because producers want to lower production costs and thus prices.435 26. There are some Vietnamese spirits that come in plastic bottles.

It is rare for people to buy cigarettes and tobacco in bulk. Some people even give cigarettes and tobacco as a gift on special occasions such as funerals and weddings. while the highest tax rate on tobacco products in Vietnam is 45%. government regulations and control over illicit trade are ineffective. and illicit trade. Currently.and middle-income Vietnamese prefer 555. it seems to be almost impossible to reduce the number of smokers. instead. Owing to the health risks of tobacco products. smoking is a normal activity for men. with Vietnamese men being expected to both smoke and drink as a sign of strength and maleness. higher living standards and Western influences have contributed to an increase in Vietnamese women smoking. people continue to smoke. The number of smokers in 2009 were estimated to account for around 23% of the total adult population.8% of adult males and 2. and despite knowing the health risks of smoking. so smoking to some extent is acceptable in many places. Anyone of any age can buy cigarettes and tobacco. countries that have effectively controlled smoking have taxes on cigarettes and tobacco of around 65%-80%. as around two-thirds of Vietnamese households have at least one smoker. their share of the total population is declining. rather than supermarkets. even public places. cigarette producers are targeting women with marketing. at just around VND3. fathers often ask their children to go and buy cigarettes for them. and although the Vietnamese Government has issued regulations on advertising. according to the World Health Organization (WHO). The majority of smokers buy cigarettes from kiosks on the street or from grocery stores. though. although owing to lower growth rates.8% of adult females were smokers. warning messages on cigarette packaging. of which 42. on streets across the country. Impact Vietnam is a profitable market for tobacco producers. anyone can buy cigarettes in Vietnam without punishment. helping to make friends and maintain relationships. Vietnamese women and children are impacted by smoking. Third. Research on tobacco conducted by the Ministry of Health in 2010 found that cigarette prices had fallen by 5% from 1996-2006 and had increased little since that time. tuberculosis. making cigarettes and tobacco products affordable for most Vietnamese.3% of females working in the health sector are smokers. This means that the average price of cigarettes is one of the lowest in the world. there are four main players in this market. while the WHO estimates that the number of people who will die in 2020 due to smoking-related diseases will be higher than the total number of those who die from HIV/AIDS. traffic accidents and suicide. Dunhill or Mild Seven. while lower-income consumers smoke Mai and Hoa Binh. but they keep quiet on the subject. in particular for sales of low-tar cigarettes. Some people may dislike smoking. The impact of more open lifestyles. some being illegal. According to the WHO. the authorities have not stopped other types of cigarette marketing. be they legal or illegally imported. More than 40% of males and 1. This seems to be for a number of reasons: the first is that Vietnam has a long-standing custom of smoking. The second reason is the cheap price of tobacco in Vietnam due to low taxes. unless it is being given as a gift. in particular. Decree © Euromonitor International Page 48 . For most Vietnamese. Although Vietnam has been trying to reduce the smoking rate through regulations and tax increases on tobacco. Shopping for Cigarettes and Tobacco Although the Government has regulated cigarette sales to children. In rural areas. Although advertising of cigarettes and tobacco are restricted.500 per packet of 20. smokers tend to buy one pack at a time. from domestic to imported brands. Currently. There are many brands of cigarettes sold in Vietnam. all Vietnamese smokers prefer imported cigarettes to domestic brands. but there are barriers against newcomers to the market.Consumer Lifestyles Vietnam Vietnam has one of the highest smoking rates in the world. In general. few of these regulations are met. Smoking is also seen as a very sociable habit. The number of younger smokers is believed to be increasing.000. High. The Ministry of Health estimates that 43.6% of people aged 17-24 smoke. The Ministry of Health also reveals that the number of people who die each year from smoking-related diseases is around 40. Cigarettes cannot be sold from vending machines. smoking areas.

0 3. As a result. although some growth is expected over the forecast period. This channel is not so popular in Vietnam. Table 53 Smoking Prevalence: 2005-2009 2005 Male (% of male adult population) Female (% of female adult population) TOTAL (% of total adult population) Source: WHO.6 44. Attitudes Towards Hair and Beauty © Euromonitor International Page 49 . on behalf of the Government. instead having to sign contracts with Vinataba or its affiliates to produce cigarettes. The only direct-selling brand for cosmetics in Vietnam is Oriflame. Importers and authorised distributors have also established and increased the number of outlets to sell genuine branded products. British American Tobacco (BAT) is the most popular in Vietnam. However. the number of consumers going to these places to shop for cosmetics has increased sharply. an increasing number of people are buying toiletries from the supermarket channel.8 2. so these are important channels for all products. from low-end to premium brands.1 23. No foreign cigarette producers are allowed to open factories in Vietnam. where inhabitants enjoy higher incomes. Owing to an increasing number of high-income inhabitants.119/2007/ND-CP (issued on 18 July 2007) declared the monopolistic powers of the Government in producing cigarettes and other tobacco products.8 22. In urban areas. and when attending events and special occasions. Among foreign cigarette producers. An increasing number of well-known. in which the Vietnam National Tobacco Corporation (Vinataba). while in supermarkets. both genuine and fake.A.1 23.0 2008 43. with a wide range of products. the quality and origin of these products sold in markets are unreliable. Supermarkets have become one of the most important channels in which to sell toiletries. traditional markets are where they can buy everything they want. has charge of controlling domestic cigarette production and import of foreign brands. but kiosks. most women use cosmetics daily at work. cheap prices mean that consumers continue to buy from this channel.Consumer Lifestyles Vietnam No. Impact Although traditional markets are the most popular channel for Vietnamese women to go shopping for toiletries and cosmetics.9 22. and consumers seem to prefer to buy these products through this channel. Spending on cosmetics per capita in Vietnam remains insignificant.7 2009 42.8 3. In urban areas.0 23. OECD. The price of toiletries is similar in supermarkets.5 3. where imported brands are sold.2 2007 43. however. including toiletries and cosmetics.0 2. cosmetics are considered a luxury in Vietnam. consumers feel that they can select the best product for them. imported cosmetics are being sold in premium shopping centres in urban areas. seldom use cosmetics. While toiletries are necessary. and so must limit their range of products. Euromonitor International 2006 43.and high-income consumers may go to supermarkets and premium shopping centres to buy these products. middle. traditional markets and grocery stores. following by Japan Tobacco International (JTI) and Philip Morris S.3 PERSONAL APPEARANCE Shopping for Toiletries and Cosmetics For most Vietnamese. Women in rural areas. and thus is small in terms of volume sales. markets and grocery stores have the disadvantage of less space.

and there is increasing awareness of other hair care products such as hair cream and hair lotion. cosmetics for men are predicted to develop quickly in coming years.221 312 777 2007 350 242 2. Vietnam is a hot country and the air is very polluted by dust and smoke. of which the younger generation account for a high proportion. especially among the younger generation who. rather than using sun cream. Although Vietnam is a sunny country. most people do not use sun-care products every day.449 378 1. With more than half of the Vietnamese population being male. in particular. this preference has altered. Men’s cosmetics have been increasing significantly in recent years.580 411 1. which has increased for both men and women. natural or Western make-up styles were favoured by most Vietnamese women. Euromonitor International Table 55 Expenditure on Cosmetics and Toiletries (Constant 2009 Value): 2005-2009 © Euromonitor International Page 50 . resulting in a significant rise in demand for this product. the numbers wanting surgery continue to increase and the market is forecast to rise sharply in coming years. in recent years. impacted by modern lifestyles and Korean movies. while others want to appear more attractive to their husbands or boyfriends. Vietnam is a market with significant potential for profit in this area. Some want to be like Korean movie stars. shoes. some men have now started to use moisturising cream. Vietnamese women have started to use make-up in Korean styles to assimilate Korean movie stars. Some feel that their life will change if they alter their face or body.335 346 880 2008 409 280 2. Young men. cleansing foam and lotions. Table 54 VND billion 2005 Colour Cosmetics Fragrances Hair Care Men's Grooming Skin Care Source: Expenditure on Cosmetics and Toiletries (Current Value): 2005-2009 2006 291 214 2. have also been influenced by Korean style and “boy bands”. The increasing number of plastic surgeons and centres has reduced the price of surgery. While traditionally Vietnamese men see no need to use cosmetics. now seen as essential. mask. Only some urban inhabitants use sun-care products. although the market is nowhere near as large as that for women. Vietnamese women prefer long hair for its femininity. gloves and sunglasses to protect their skin from the sun. however. are turning to short hair and sometimes dynamic colouring. and there have been more and more men using grooming products such as hair gel to create hairstyles. however. Make-up has also been changing in Vietnam. so it is not only women who use cleansing foams. Traditionally.003 2009 483 328 2. With a population of more than 80 million. To meet this increasing demand. Despite some negative effects of plastic surgery. In the past. especially in urban areas. usually when they go to the beach.Consumer Lifestyles Vietnam With an improvement in living standards comes increasing concern for beauty products. with so many Korean movies on TV. Impact Shampoo and hair conditioner are considered essential products. from hair to clothes. more centres have opened to provide the requisite services. Many Vietnamese women wanting plastic surgery choose to go to Thailand or South Korea for this. make-up and style. and the market is not yet saturated.156 243 189 2. but men also. Higher incomes have increased the number of Vietnamese women having plastic surgery in order to make themselves more beautiful. also influencing the amount of surgery being undergone. They are more concerned about their appearance.085 278 665 National statistical offices. Vietnamese women tend to wear a hat.

As a result. Thailand (155. Smart clothing is not compulsory in every workplace. with Korean style impacting strongly on Vietnamese fashion trends. but owing to an underdeveloped fashion industry. Levis. as consumers buy new clothes more frequently. As a consequence. In general. © Euromonitor International Page 51 . Older people wear more traditional clothes.105 2009 483 328 2. However. while that of the young may be jeans and T-shirts.4cm for women and 164. Euromonitor International Constant value at 2009 prices FASHION Fashion Trends The fashion industry in Vietnam is underdeveloped and the number of fashion designers is very small. clothes made by these designers are more expensive than mass-produced brands. Consumers no longer buy based on quality. women usually wear ao dai. Vo Viet Chung and Si Hoang. meaning that clear fashion trends in Vietnam are few. Impact Demand for casual wear has risen along with spending power.Consumer Lifestyles Vietnam VND billion 2005 Colour Cosmetics Fragrances Hair Care Men's Grooming Skin Care Source: Notes: 2006 403 296 3. although. the number of clothing manufacturers has increased. some consumers have started to buy clothes designed by well-known Vietnamese designers.156 % Growth 34.1cm for men and 4. with some of these successfully building their brands within the country.9cm. The average height of the Vietnamese has increased by 6. Giordano and Bossini.7 -0. while that of a man is 164. special and traditional occasions.075 2007 447 310 2. while young people are more modern. N&M and MEM. for example. For traditional or national ceremonies. smart clothing is inconvenient and uncomfortable. rainy weather in Vietnam. but on style. The Vietnamese like fashion.697 416 1.3cm. are more and more well known.5cm for men). especially the younger generation. domestic designers are trying to design fashions suitable for Vietnamese.580 411 1. and CK.9 361 281 3. However. of course. The Vietnamese have casual wear for their daily life. they cannot follow and buy the latest fashions. due to the hot. but following international trends.5 16. so simple skirts and trousers with shirts are preferred. Casual wear for the old may be the ao ba ba. Vietnamese people usually dress-up for important. so many people buy well-known domestic brands such as PT 2000. and some require waistcoats.9cm for women over the last 25 years. while men wear suit and tie.0cm for women and 165cm for men) or China (155cm for women and 164cm for men).073 432 1. For parties in the evening. fashion style in Vietnam is a mix of many countries’ influence. skirts or smart trousers with shirts. Ninomaxx. internationally branded clothes are usually unaffordable for most Vietnamese. The average height of the Vietnamese has increased over the last 25 years. While some companies require employees to dress in ao dai. especially those living in rural areas. Equally.984 442 1. The average height of Vietnamese adults is now nearly the same as countries such as Japan (153. such as Minh Hanh. with the average height of a woman now 153. clothes in the shops are changed regularly and young people frequently alter their style to the latest trends.099 413 989 National statistical offices. with significant differences between the old and the young. Vietnamese consumers are increasingly aware of clothing brands since they have been imported into Vietnam.125 2008 451 308 2.0 16.7 -16. while men may dress more simply in just trousers and shirts. women may dress-up in long dresses or fashionable dresses with make-up and hair styled.

department stores and premium shopping centres to buy clothing and footwear. Hong Hanh and Vinagiay. Impact Clothes shops are considered to have mid-range prices. such as Parkson Hung Vuong. Professional tailors with designers tend to be the prime producers of smart work wear. although prices might be quite expensive for many Vietnamese. Shoes and Luxury Goods The combination of higher incomes and cheaper prices have meant that spending on clothing and footwear in Vietnam has increased over time. where many clothes shops gather together.9 trillion on footwear. Vietnamese consumers are increasingly brand conscious. Consumers who require guaranteed high quality products can buy from specialist shops. Shopping for Clothes. visiting a beauty salon is considered a form of relaxation. hats and footwear accounted for 4. For instance. decreasing from 4. in constant values. with consumers having hair and skin treatments. imported goods. particularly for residents of urban areas. while premium clothing and footwear are sold in Diamond Department Stores. footwear.5% in 2005 and 5. Parkson Tan Son Nhat. Equally. As a result. Middle.6% and 26. In 2009 VND 36. as companies look to appear more professional. valuable goods.2% of total expenditure in that year. Online and TV retail in Vietnam are as yet in the early stages of development. According to the household living standards survey conducted by the GSO in 2008. there is also a huge amount of unbranded clothing sold in the market. and the increase in incomes in the country has resulted in more and more consumers shopping in department stores and other premium outlets for clothing. its share of consumer expenditure has been decreasing. In addition to well-known brands from domestic designers and branded imports. Parkson Shopping Centre. The majority of clothing and footwear sold there is unbranded. with the majority of products sold online and on TV being household products and consumer durables rather than clothing. such as Saigon Jewellery Company or Phu Nhuan Jewellery Company. footwear and luxury. Therefore.Consumer Lifestyles Vietnam There is an increasing trend towards smart clothing in the workplace. the share of spending on clothing. new outlets are being opened all the time. especially for luxury. often made in China. Tax Shopping Centre and Zen Plaza. Most clothes sold in these fashion stores are selected and imported from abroad at small volumes. and thus is of a lower price than clothing and footwear bought in shops. fashion stores. selling premium products to Vietnamese shoppers. Although expenditure on clothing and footwear has been increasing significantly in terms of value sales. These occasions also inspire consumers to make drastic alterations to their appearance.and high-income consumers usually go to specialist shops. Big cities such as Ho Chi Minh City and Hanoi have established fashion areas. Vincome Centre and Now Zone. they are seen to offer a degree of originality and value for money. the quality and origin of products sold in traditional markets is not always clear. jewellery or luxury goods will be bought online in the foreseeable future. These clothes tend to be both fashionable and cheap.0% in 2002. or from department stores. compared with low prices in traditional markets and high prices in premium shopping centres. Footwear stores include Dong Hai.8 trillion was spent on clothes and VND 6. and are thus relatively unique.6% on 2005. such as new hair styles or dying their hair a different colour. and with lots of shops along the streets it is easy for consumers to browse and buy. Nguyen Trai Street or Nguyen Dinh Chieu Street are considered the fashion areas of Ho Chi Minh City. The Vietnamese tend to want to try and see an item before buying it. an increase of 24. they are attracting a lot of frequent. with consumers having professional make-up done for attending parties and weddings. Hong Thanh. respectively. © Euromonitor International Page 52 . Shopping centres also have collections of shops where items such as perfume and watches can be purchased. and with many shops selling these kinds of clothes. Most consumers buy clothing and footwear from traditional markets. footwear or jewellery. so it seems unlikely that clothing. although. Traditional markets are also the key outlet for consumers for jewellery and watches. perfume and accessories. regular customers. as previously mentioned. Beauty salons are usually crowded at weekends.

Consumer Lifestyles Vietnam Table 56 VND billion Consumer Expenditure on Clothing and Footwear (Current Value): 2005-2009 2005 Clothing Clothing materials Garments Other clothing Clothing cleaning.3 38.334 1.790 2.8 5.9 29.308 46. While the country’s total population has increased significantly since the 1980s. an increase of 3.546 1.1 6.363 2009 36.862 National statistical offices. This means that health establishments.296 25. There were 13.450 health establishments in 2009 in the public sector.742 1.886 2. Euromonitor International Constant value at 2009 prices HEALTH AND WELLNESS Healthcare The Vietnamese healthcare system is underdeveloped in comparison with neighbouring countries.099 12.1 79.051 National statistical offices.548 4.0 5.215 39.467 2008 35.232 24.293 805 15. Euromonitor International Constant value at 2009 prices Table 58 VND billion Consumer Expenditure on Clothing and Footwear (Constant 2009 Value): 2010-2020 2010 Clothing Clothing materials Garments Other clothing Clothing cleaning.401 4.287 3. OECD.932 5. while facilities and equipment are said to be out of date.147 1.919 1.830 5.6 -6.6 24.028 6.456 1.4 90.745 19.2 26.216 29.156 30.331 7.120 2009 36.136 27. repair and hire Footwear TOTAL Source: Notes: 2015 52.917 43.828 1.684 84.236 1. © Euromonitor International Page 53 .114 9.886 2.217 6.131 2008 33.769 1.145 6.4 % CAGR 6.378 956 20.226 39. Euromonitor International Table 57 VND billion Consumer Expenditure on Clothing and Footwear (Constant 2009 Value): 2005-2009 2005 Clothing Clothing materials Garments Other clothing Clothing cleaning. OECD.650 42.150 2.764 901 61.355 4.723 1.341 2.1 26. especially hospitals.905 909 17.2 -19.568 22.7 6.524 1. repair and hire Footwear TOTAL Source: Notes: 2006 31.6 75.005 6.100 26.6 6.552 2.319 2.195 3.873 2. OECD.005 2007 25.847 37.773 4.006 2.464 35. repair and hire Footwear TOTAL Source: 2006 21.448 % Growth 85.000 1.676 2020 71.217 6.6 23.067 3.569 2. Eurostat.240 1.469 1.011 National statistical offices.706 62.7% on 1995.620 2. Eurostat.4 -2.6 21.607 2. Eurostat.970 1.252 27.828 1.363 5. are always oversubscribed. the number of health establishments has not increased at the same rate.917 43.016 44.156 30.745 % Growth 24.6 83.569 2.400 2.082 2007 33.118 32.753 30.9 73.

domestic medicine production meets around 50.000 inhabitants. according to the Ministry of Health. In addition to modern medical treatments and medicines. according to the GSO household living standards survey. and their expenditure on healthcare services has increased slightly: 6.4 billion. an increase of 6. With the general rise in living standards. with everyday living. Demand for medicine has been increasing alongside demand for healthcare. Most Vietnamese consumers would prefer to use the on-demand service.Consumer Lifestyles Vietnam In addition to the public healthcare system. In 2008 only an estimated 6. On average. which has resulted in some of them changing career to work for the pharmaceutical companies. but owing to their low incomes. these private hospitals employ some full-time doctors and some part-time ones from public hospitals. there are an estimated 30. As a generalisation. commissions to doctors and dealers. an increase of 25. the Vietnamese use traditional medicines. making medicine consumption per head in Vietnam increase from US$6 in 2001 to US$16.4% on 2007. in some cases. None of the 1. instead. Only children under six years old enjoy 100% free hospital care.8 percentage points higher than in 2002. concerning themselves. they must pay full cost or. Vietnamese consumers are beginning to pay more attention to healthcare. as the national entrance exams for this career are difficult. consumers are familiar with medicines and normally self-treat wherever possible. Health and Well-being The Vietnamese do not worry a great deal about their health. An estimated 30% of patients are treated with traditional medicines annually.1% on the previous year.000 private clinics and 36 private hospitals with 2. and also due to ineffective government control. and 18% on 2005. There are two kinds of healthcare access in Vietnam: one is by public health insurance and one is called ondemand healthcare. due to a lack of doctors. © Euromonitor International Page 54 . as the quality of healthcare under government health insurance is reputably very bad. As pharmaceutical companies have spent a lot of money on advertising. However. they cannot afford it.4% of expenditure went on healthcare. the price of medicines in Vietnam has increased sharply in recent years. GSO figures reveal that there were 60.2% of the country’s demand. In non-registered centres.538 beds. owing to the bad reputation of the government health insurance.2 doctors per 10. The Vietnamese tend to buy and use medicines without prescription. compared with 6. The number of doctors graduating from medical school is not high. there are 7. Moreover.000 inhabitants in 2005.1 doctors per 10. most urban inhabitants prefer modern medicine. under which they pay higher fees but receive better quality service and medicine.002 Vietnamese public hospitals nor the 36 private ones meet the international standard of the Joint Commission International (JCI). of which four are owned by foreign companies. some consumers instead choose the on-demand healthcare service. According to the Ministry of Health.45 in 2008. People who buy health insurance from the Government are entitled to free healthcare in registered hospitals and health centres. As pharmaceutical companies regularly advertise medicines for popular diseases on the mass media. However. This means that there is a serious shortage of doctors in the healthcare service. and predicted to reach US$25 by 2015. private healthcare has been established. Currently.4% of expenditure in 2008 was on healthcare – 0. The WHO ranks Vietnam in 51st position of 191 countries in terms of meeting the country’s health demands. which recognises hospital healthcare quality and the meeting of healthcare demand domestically and internationally. while traditional medicine is preferred in rural areas. Total medicine consumption in 2008 reached US$1.800 doctors in Vietnam in 2009. although demand for the service is extremely high. doctors have to work very hard while their salaries are very low. 70% of fees. with the remainder being satisfied by medicines imported from abroad from pharmaceutical companies.

Government control of the pharmaceutical industry in general and of medicine prices in particular is deemed ineffective. The problem of child obesity has become more serious in Vietnam. With increasing incomes. 16. Around 0. Some 12. as Vietnam has beaches the length of the country. with very high smoking and drinking rates. and 3. The National Traffic Safety Committee has reported that there are more than 35 deaths per day and the mortality rate is more than 15 per 100. heart attacks. Sport and Fitness The younger generations of Vietnamese seem less inclined to do exercise. while drowning and suicide are second and third..000 inhabitants. with an estimated 25% of deaths caused by injuries in 2007. people usually do exercise in the parks or at fitness centres. walking. etc. according to a study by Hanoi School of Public Health.3% of the population aged 15 and above are obese. along with the customary smoking and drinking and increasing time spent in front of a computer have resulted in people becoming sick more easily. the rate of overweight children aged 6-11 years old in Hanoi was 9.500 children drowned in 2001. Sitting for long hours at work. Meanwhile. Others go to the beach to swim in the early morning or the afternoon.4% and the rate of obese children was 2. With more than 26. swimming and fitness. especially in urban areas. cerebral haemorrhages.and drinking-related diseases such as lung cancer. suicide has been ranked as the third leading cause of injury death. according to the WHO. it is said that this number is underestimated.000. yoga and dancing.8 million registered vehicles in December 2008. According to data from Hospital for Children 2 in Ho Chi Minh City. are eating more fast food and processed food and doing less exercise.Consumer Lifestyles Vietnam City dwellers usually do exercises in the park in the early morning. Older consumers like walking and taijiquan.2% in 2005.000 inhabitants in 2007. especially in the larger cities. including children.8% adults aged 25-64 were obese.2%-3.000 inhabitants. smoking. There are no official statistics on the leading causes of death in Vietnam. especially for urban inhabitants. a significant increase from 2% in 1976. injuries and violence have become a leading cause of death in recent years.8%.0% for over 5s. or at school. In Ho Chi Minh City the Institute of Nutrition gave rates of obesity in children of 2. while younger ones prefer rhythmic gymnastics.3% for under 5s. an increasing number of Vietnamese. Despite this. However. the WHO Global Burden of Disease Survey estimated that 36% of deaths among 5-29 year-olds were caused by injuries and violence in 2004. increasing from 0. and the industry’s profits are expected to increase over the forecast period. or at sports and fitness centres.600 Vietnamese households in 64 cities and provinces throughout the country by the Institute of Nutrition in 2006. there are some younger consumers who undertake regular exercise. The WHO has also stated that traffic accidents are a leading cause of injury deaths. traffic accidents are indeed a nightmare for the Vietnamese. with a rate of 15 per 100. In urban areas. consumers’ awareness of their health has been increasing. for students. respectively. are considered major causes of death in Vietnam. © Euromonitor International Page 55 . older Vietnamese do exercise to maintain and improve their health. aerobics and fitness classes. People have also started to join sports dance and belly dance classes. of which two-thirds of overweight and obese people were of 45 years and older. or practise yoga. while few enjoy tennis. and the obesity rate in urban areas was three times higher than in rural areas. at a rate of 5 per 100. Drowning is considered the second leading cause of injury death and the most dangerous for children under 14 years old. 3. and that the true one must be more than 30 per 100. The most popular sports among males are football. However. owing to their lack of free time. Additionally. for adults. which are open all day. more time-consuming lives and the influence of Western lifestyles. In beach cities. Impact The pharmaceutical industry is immensely profitable: medicines are necessary. while demand for healthcare has been increasing due to higher incomes. As a consequence. resulting in rising obesity levels.9%-6. According to the results of a survey on obesity conducted on 7. people usually go to the beach to swim in the early morning and maybe the afternoon. Meanwhile.5% for those in high school.

instead preferring to do rhythmic gymnastics and taijiquan in the park. especially for middle. football. Existing centres such as the Women’s Culture House (Nha Van Hoa Phu Nu Tp. This has created an opportunity for premium food shops and companies offering fresh vegetables. such as books. However. Pharmaceutical companies advertise medicines for common maladies on TV. as they know how to get the right vitamins and minerals from healthy eating – particularly as Vietnam is an agricultural country. especially in urban areas. Impact Higher demand for sports facilities. few companies provide the seeds and other planting materials necessary for vegetable gardens. Impact With health concerns over food. without subscription. so many Vietnamese consumers self-diagnose their ailment and then visit the pharmacy for what they need. However. has been met with new sport and fitness centres opening. The Vietnamese are not big consumers of vitamins. consumers have little choice but to consume and the problem seems to be out of the Government’s control. Families with children do not necessarily have reliable sources of information. At primary schools pupils have to do regulated sport. while small. they pay more attention to the quality and type of food they are eating. Nutrition As incomes increase and consumers have more money to spend on less necessary items. and allow food to be kept for longer by using chemicals. healthy food. Sports is considered an individual subject in the curriculum. sometimes consumers may drink UPSA-C – a vitamin C drink – when they are feeling tired or in the hopes of preventing the onset of a cold. on childhood illnesses. In recent years there has been a rise in stories in the media about food safety and health. Home Medication and Vitamins Vietnamese households do not usually have a medicine cupboard. Vietnam is currently seeing a conflict in the food market. nutritious produce with no chemicals. and some outlets and centres that have opened recently target this consumer group. Some people in urban areas do not like to go to sports and fitness centres. such as swimming. with full nutritional information and details of provenance displayed. Demand for planting vegetables at home in urban areas has been increasing as a consequence of this desire for organic produce. Premium sports and fitness services for the highincome sector. many people choose to shop in the supermarket for foods that are produced or imported by reliable companies. one-off centres are said to be redundant. although they might have common analgesics such as Efferalgan in the home to use for minor ailments. Equally. in particular.HCM) or Californiawow have opened new branches within the cities to attract more people. as it is easy to purchase medication as and when needed. while also maintaining a green area around their home. dance or kung fu. have been identified as potentially profitable. however: while consumers want fresh. At the same time. demand for healthy foods has been increasing significantly in recent years.Consumer Lifestyles Vietnam Sport is compulsory for all Vietnamese students from primary school to university. owing to increasing health awareness. including Branch 2 of Ho Chi Minh City’s Women’s Culture House. People with gardens satisfy their demand for fresh. which opened in district 7 to attract high-income consumers from the Phu My Hung residential area. However. Impact © Euromonitor International Page 56 .and high-income consumers who are willing to pay higher prices to have healthy meals. manufacturers want to make food more desirable by using additives. and the Vietnamese are increasingly concerned about this serious problem. while those at secondary school and university may choose a sport to practise. parents are not likely to take children to a doctor for prescription medicines. as yet. This has created jobs as instructors in these sports.

9 62. These same consumers will favour GPP pharmacies. However.2 63.9 2008 37.3 7. Euromonitor International 2006 32. With the cheaper prices of OTC medicines and easier access of pharmacies.1 0.2 OECD.6 years 62. limited outlets and their requirement for prescriptions have caused GPP pharmacies difficulties in the market.1 2009 40.3 62. Although the Government introduced the GPP (Good Pharmacy Practices) standard in 2010. and the gradual closure of non-GPP pharmacies in the near future. Euromonitor International Healthy life expectancy at birth is the average number of years that a person at birth can expect to live in “full health” by taking into account years lived in less than full health due to disease and/or injury. Vietnamese consumers are increasingly aware of their health.1 59. Euromonitor International 2006 469 88 425 716 2007 516 93 453 782 2008 564 98 478 838 2009 620 103 508 903 428 83 399 658 © Euromonitor International Page 57 . health and medication trends in Vietnam are unlikely to significantly alter in coming years.5 2007 62.7 74.7 61.Consumer Lifestyles Vietnam The tendency for self-diagnosis in Vietnam has made demand for over-the-counter (OTC) medicines very high. few pharmacies meet the requirements. higher prices. Table 61 Obese and Overweight Population: 2005-2009 % of population aged 15+ 2005 Obese population (BMI 30kg/sq m or more) Overweight population (BMI 25-30kg/sq m) Source: 2006 0. however.2 years 1.6 64.8 63.7 years 0.3 National statistics.2 64.7 2008 63. International obesity taskforce.1 60.8 2009 63.0 Growth 1.6 2007 35. Euromonitor International Table 62 VND billion Consumer Expenditure on Health and Wellness (Current Value): 2005-2009 2005 Analgesics Calming and sleeping Cough.3 8.4 67.2 2008 0.9 63.6 2009 0.2 6.5 61.7 2007 0. but that they will benefit later from opportunities to import special medicines. seeking professional advice from doctors and using prescription medicines. Table 59 Health Expenditure: 2005-2009 % of total health expenditure 2005 Public health expenditure Private health expenditure Source: National statistics.3 7.3 Table 60 years Healthy Life Expectancy at Birth: 2005-2009 2005 Healthy life expectancy at birth Males Females Source: Note: 2006 62. The Ministry of Health claims that GPP pharmacies may face obstacles in the early stages. access to finances for advertising.0 62.2 6. cold and allergy (hay fever) remedies Vitamins and dietary supplements Source: National statistics.9 25. especially in rural areas. take more care of themselves.4 63.

Euromonitor International Constant value at 2009 prices LEISURE AND RECREATION Staying in Most Vietnamese stay at home in the evening and at the weekend after work or studies.8 -16. Vietnamese men. might watch TV with their parents. The Government’s attempts to curtail pirated audio/visual goods have as yet come to nothing. After that. cable TV is increasingly affordable for Vietnamese households. In big cities. especially the younger generation. Going Out People in urban areas go out more regularly than those in rural areas. but producers are facing the serious problem of piracy. after finishing their homework. © Euromonitor International Page 58 .6 649 126 605 999 National statistics.Consumer Lifestyles Vietnam Table 63 VND billion Consumer Expenditure on Health and Wellness (Constant 2009 Value): 2005-2009 2005 Analgesics Calming and sleeping Cough. perhaps owing to their heavy studies. pubs and restaurants during their free time. when they may join their family for dinner. with some even having more than one. cable TV is no longer a luxury service for hotels and resorts. shoppers have started to adjust their shopping habit with respect to their income. and more people are “window shopping” rather than buying. some go on the internet and some read. doing the common activities for free time. Almost all Vietnamese families have a TV set. which has attracted new audiences to the theatres that were under threat of closure for many years. with its cheap service price. cold and allergy (hay fever) remedies Vitamins and dietary supplements Source: Notes: 2006 663 124 601 1.015 2008 598 104 507 888 2009 620 103 508 903 % Growth -4. and cable TV has been in high demand in recent years. after work and having drinks or eating out with friends.011 2007 670 121 587 1. Demand for audio and video products in Vietnam is very high. to the theatre. or listening to music. listen to music or read. The demand for dramatic plays in the big cities has been satisfied by more theatres opening. to clubs and discos. consumers go shopping. For most Vietnamese women. Impact Seemingly all Vietnamese watch TV during their free time. and only when the whole family have had dinner and the dishes are washed do they spend their leisure time watching TV or a movie. However. while those living in rural areas go to coffee shops. For Vietnamese households. snack bars or pubs. for the simple reason that there are more places to go in towns and cities. leaving some on the verge of bankruptcy. play games on the computer. especially in the larger cities. fewer children are reading books nowadays. come home late in the evening. bars. During harder economic times. cooking is both their leisure time activity and their household chore.0 -9. Listening to music is one of the most popular leisure time activities for the Vietnamese.5 -17. some watch TV or a movie. Children.

30 December to 3 January (Traditional Lunar New Year). and the number of Vietnamese drinking coffee and spirits is expected to grow even further in the forecast period. Traditionally. while Ho Chi Minh City. though. The image of a woman drinking beer. With settlement in the country for over 4. Well-equipped and comfortable cinemas are currently located in the big cities. Traditionally. wine or spirits has now become relatively familiar to most Vietnamese. 1 May (International Labour Day) and 2 September (National Day). except students as required by their curriculum. These are bought usually from book stores.000 years. Father’s Day. for example that in Thang Long imperial citadel. St Valentine’s Day and for festivals. new homes. This market is said to offer many opportunities for investors. and to celebrate a new home. the country’s increasing demand for dramatic plays has not yet been fully met. but those in other cities and provinces are still backward. young Vietnamese may send an e-card by email. a large number of people still prefer to send a greetings card for birthdays. Impact Despite the new theatres. Coffee shops and pubs are always excellent business opportunities in Vietnam. On public holidays some people may travel with their friends or family. owing to the increase in their income. but the younger generation seldom send cards with their gifts. Mother’s Day and Father’s Day. and give items such as money or flowers for ceremonies. Hanoi. while gifts are given for birthdays. However. Mother’s Day. acknowledged to be faster and easier. Christmas Day. Culture More Vietnamese are travelling to cultural sites in Vietnam. or invite friends round for a meal. 10 March (King Hung’s Anniversary). Museums tend to be considered as sources of information for foreign tourists. even in rural areas. Vietnam has hundreds of cultural sites throughout the country. on International Women’s Day and Teacher’s Day. More traditional Vietnamese send greetings cards. with cinemas showing the latest films. however. influenced by the culture of other countries. however. Others choose to stay at home and relax. wedding days. but changes in the Vietnamese lifestyle have opened pubs to women too. In the past gifts were given to couples on their wedding day. and they are always crowded. The current trend for travel has come about as a consequence of higher incomes and attractive promotions from tour operators. particularly in the evening and at weekends. pubs were only for men. This is owing to investors heavily investing in good cinemas such as Galaxy and Lotte. depending on the length of the holiday and their income. the Vietnamese give presents on special occasions such as birthdays. Some Vietnamese do visit exhibitions of famous collections. demand for cinemas in all locations is increasing. which are well equipped and show the most popular and latest international films. Consumers are hoping that the increasing demand for movies will result in investment in cinema complexes in the smaller cities and provinces. Hue and Ha Long Bay are top destinations for tourism. In recent years. Flowers are given on International Women’s Day. 30 April (Reunification Day). and the small number of theatres have a limited number of actors.Consumer Lifestyles Vietnam The Vietnamese in urban areas have also started to go to cinemas again. some Vietnamese – especially the young – have started to give gifts on St Valentine’s Day. pubs and restaurants are the most popular places for Vietnamese to go out. on domestic trips or tours. The Vietnamese rarely go to museums. Celebrations and Gift-giving Occasions The Vietnamese enjoy public holidays on 1 January (New Year). Public Holidays. On special occasions. © Euromonitor International Page 59 . indeed a profitable market. Coffee shops. wedding anniversaries and graduations. but the more practical and convenient gift of money and gold tends to be given nowadays. Teacher’s Day. and funerals and anniversaries of deaths.

Holidays Increasing incomes combined with promotions by tour operators have resulted in an increasing number of Vietnamese taking package holiday with friends and families. Hong Kong. Beach cities such as Vung Tau. Exhibitions on important holidays such as Flower Nguyen Hue Street and Tao Dan Flower Exhibition in the Lunar New Year also attract many visitors. according to Vietnam National Tourism Administration. according to the Vietnam National Tourism Administration. and the industry’s turnover reached VND70. tour operators focus on international arrivals and ignore domestic and outbound tourists. Currently. Table 64 % of households Household Possession of Cable TV and Satellite TV: 2005-2009 © Euromonitor International Page 60 . an increase of 19% on 2008. Previous to 2009.7% from 2008 and 133. Package holidays are increasing in frequency owing to attractive promotion campaigns by tour operators throughout the year. decreasing 11% from 2008 due to the financial crisis and the influenza A/H1N1. although they are estimated to be much lower than international arrivals. and in 2009 the country attracted 3. travelling by air was a luxury. increasing from VND1. with the most popular tourist destinations at more than 90% and the lesser ones at around 60%-70%.350 billion in 1990 and contributing around 4% of the country’s GDP. however. owing to higher incomes. Quang Dung and My Linh.4% from 2005. Currently. Vietnam is considered a safe and attractive tourist destination for international arrivals.Consumer Lifestyles Vietnam The Vietnamese prefer live music shows. There are.2 billion. China. and were ill prepared with products and services to meet adequately the demand. increasing 13. but with a high population and improving income level. but increasing from 250. In 2009 there were some 25 million domestic trips. There are no data on the number of outbound tourists. Dam Vinh Hung. The favoured destinations for the Vietnamese are Singapore. The proportion of holidaymakers in urban areas is higher than in rural areas. but it has now become more normal with the combination of higher incomes and lower air fares. Thailand. demand for domestic and international travel has much potential. Consumer expenditure on package holidays in 2009 reached VND557.000 international arrivals in 1990. As public holidays in Vietnam are usually short. the trend for Vietnamese going abroad for leisure has significantly increased over the review period. especially in the summer. Vietnamese holidaymakers have to take short trips. The length of trips depends heavily on the occurrence of public holidays and the weekend. thus. exhibitions and plays rather than concerts. averaging around 3-4 days. the fall in international arrivals in 2009 meant that the occupancy rate that year was at a maximum of 80% in the big cities and 50% elsewhere. In the past. international arrivals and domestic tourists kept the occupancy rate of tourist accommodation in Vietnam always high. and in recent years numerous singers have organised live shows in Vietnam. as well as creating more opportunities for Vietnamese travelling abroad.000 billion in 2009. Vietnam’s travel and tourism industry is ranked fifth among the ASEAN countries. Phan Thiet and Nha Trang are favourites in the warm weather. tour operators were perplexed by a sudden increase in domestic tourists in 2009. Impact The travel and tourism market in Vietnam has not yet been fully explored. However. including My Tam. Although the number of Vietnamese travelling abroad has decreased with the tough economic times and resulting higher prices for service in foreign countries.8 million international arrivals. ignored for many years. as a rule. As domestic demand for tourism was. The role of the travel and tourism industry is increasingly important to Vietnam and is showing remarkable development. Low-cost carriers have factored in the recent increase in international arrivals. Malaysia and Cambodia. opportunities for tour operators to improve and explore domestic travel and tourism.

OECD. representing a significant increase from the 0.6% of the total population. Euromonitor International Constant value at 2009 prices Table 68 VND million Consumer Expenditure on Package Holidays (Constant 2009 Value): 2010-2020 2010 Package holidays Source: Notes: 2015 597. OECD.1% of households in 2005.0% of Vietnamese households have a broadband-enabled computer.8 2007 0. by Internet World Stats. for relaxation and enjoyment.560 2007 351. Eurostat.8 million internet users in Vietnam in 2009. The rapid uptake is partly as a consequence of the ease and low price of connection. and an increase of 112.7 2020 1. as Vietnamese with higher incomes want to feel more comfortable with new technology in their homes. Euromonitor International 2015 1.5 0.0 537.2 1. Euromonitor International 2006 0.237 % Growth 52.6 1. accounting for 26.2 0.915 2009 557.405 % Growth 34. Euromonitor International Constant value at 2009 prices CONSUMER TECHNOLOGY In-home Technology An estimated 2.4 0.012 2008 524.4 365. Euromonitor International Table 67 VND million Consumer Expenditure on Package Holidays (Constant 2009 Value): 2005-2009 2005 Package holidays Source: Notes: 2006 407. OECD. Vietnam has been ranked seventh highest among the countries with high internet use in Asia. Eurostat.9 2008 0.9 0.Consumer Lifestyles Vietnam 2005 Cable TV Satellite TV system Source: National statistics. Eurostat. According to the Ministry of Information and Communication.228 2009 557.767 National statistical offices.716 National statistical offices. For number of internet users.338 2020 720.0 1.199 2008 489. In-home technology use has increased significantly during the review period.5 0.3 Table 66 VND million Consumer Expenditure on Package Holidays (Current Value): 2005-2009 2005 Package holidays Source: 2006 285.193 2007 460.6 1.576 National statistical offices.6 Table 65 % of households Household Possession of Cable TV and Satellite TV: 2010-2020 2010 Cable TV Satellite TV system Source: National statistics. there were 22. and © Euromonitor International Page 61 .1 2009 0.7 1.0 % CAGR 3.7% on 2005.237 238.

Thus Vietnam has increasing potential as a market for smart phones. in order to limit this trend for multiple phone use. Of these. Beeline and Vietnammobile. FPT and SaigonPostel.0% on 2009.3% on the previous year. such as Q-Mobile. owing to the competitive offers available. offering attractive promotions. and the obligatory registration of personal details to service providers. but nevertheless increased by 20% on 2008 to reach 12 million mobile devices bought in 2009. Owing to their economies of scale. It is now cheaper to set up a new mobile subscription than to use an existing number. among numerous other devices. these three providers are the market leaders in terms of setting service prices. domestic brands have been successfully marketed during the review period. with account balance. of which Mobifone. Currently. Portable Technology The growth rate of mobile phone users increased significantly in Vietnam during the review period. For the Vietnamese. significantly increasing from 7. Cheap handsets are an important market segmentation for manufacturers and providers. Vinaphone and Viettel are the biggest. although they contribute 25% of turnover. Thus the increasing use of computers.5% in 2005. and a small number of Vietnamese consumers are willing to pay for expensive handsets. has increased rapidly. an increase of 68. having turned to ADSL instead. money transfer and online payment of utility bills. Sfone. This is owing to the convenience and low cost of mobiles. The Vietnamese mobile phone providers are Vinaphone.6 million landline telephone users. wi-fi routers and printers. Suitable for those with an average-to-low income. Viettel. Impact Easy internet connection and broader coverage has made online services in some industries much easier and more convenient.Consumer Lifestyles Vietnam for access to information from around the world.000 landline telephones are turned off each year. and further increases forecast. and few use a dial-up service any more. In contrast with the sharp increase in the number of mobile phone users. which currently account for around 7% of the market. cheap handsets are in high demand.com or eBay. Viettel. the number of landline telephones has remained unchanged. which has contributed to the enormous increase in users. The share of Vietnamese households having a mobile phone reached 27. These service providers have encouraged more people to use the internet by offering attractive promotions such as a free modem. and so in addition to brands such as Nokia and Samsung. there were 135. including VNPT. F-Mobile and MobiStar. and they tend to buy products such as books and technology from Amazon. © Euromonitor International Page 62 . With a sharp increase in internet use. Mobifone. low-cost handsets (valued at below VND2 million) accounted for 60% of market share.5% in 2009. Vietnam is a promising potential market for online retail. or even declined in some areas. The increasing proportion of households with a broadband-enabled computer shows the potential demand for online retail. It is very easy for Vietnamese households to get internet access. especially in urban areas. especially in rural areas and for students.3 million telephone users as of January 2010. Impact Ease of set-up and cheap prices mean that demand for mobile phones increased sharply during the review period. and the premium range (valued at more than VND10 million) accounted for 1% of the market but 10% of turnover. and in Hanoi an estimated 60. and thus bringing the mobile service tariffs down. The Ministry of Information and Communication has had to introduce a maximum of three mobile phone numbers per person. According to the Ministry of Information and Communication. but also a fashion statement and status symbol. there are several broadband internet ADSL providers in Vietnam. Of these.7 million were mobile phone users. mid-range (valued at VND5 million-VND10 million) accounted for 8% of the market but contributed 25% of turnover. mobile phones are no longer just a communications device. The growth rate of mobile services slowed during the economic downturn. An increasing number of banks offer online banking to their customers. some 115. and six times higher than the 19. an increase of 62. The majority of those buying online are well-educated.

and only 35% of e-commerce companies allow online payment at present. but most Vietnamese consumers still only use these websites for reference and comparison. and the number of people accessing online retailers has increased sharply.4 2009 27. However.4 11.9 0.9% asking consumers to be at home to receive products and 12. According to the Ministry of Industry and Trade.1 0.2 2020 14.4% of online retailers having dedicated delivery teams.3 2008 22. this retail format is deemed to have one major obstacle: Vietnamese consumers’ long-standing shopping habits. and e-commerce is expected to develop rapidly. Euromonitor International 2006 12. with a survey conducted by the Ministry of Industry and Trade in 2008 on 1.5 3. Euromonitor International 2015 8.8% delivering products by post. DVD Players and Video Game Consoles: 2005-2009 % of households 2005 Broadband internet -enabled computer CD player DVD player/recorder Video game console Source: National statistics.6 0.2 Table 71 As stated Household Possession of Mobile Telephones: 2005-2009 2005 Mobile telephone (% of households) Source: National statistics.5 1.5 5.0 - 3. 99% of which were connected to the internet.5 3. Table 69 Household Possession of Broadband Internet-Enabled Computers. Euromonitor International 2006 0. There is a perceived high demand for online shopping.2 1.2 1.0 0. Although the number of companies applying e-commerce has increased.1 0.1 2009 2. Both Vietnamese consumers and retailers still favour payment in cash rather than payment online. while 88% of these companies had an intranet and 45% of them had a company website.5 7.1 2007 0. Impact Although the development of e-commerce in Vietnam faces some obstacles.6 16.4 2.4 4. Delivery services are also seen as a disadvantage of online retail at present.9 1. the number of people seeking information on products and manufacturers online is high.1 2008 1. DVD Players and Video Game Consoles: 2010-2020 % of households 2010 Broadband internet-enabled computer CD player DVD player/recorder Video game console Source: National statistics.1 Table 70 Household Possession of Broadband Internet-Enabled Computers.5 6.5 © Euromonitor International Page 63 .Consumer Lifestyles Vietnam E-commerce and M-commerce Computers and internet use are becoming more widespread.0 2007 17. 49. with 55. rather than actually purchasing online.9 0.600 companies showing that 100% were equipped with computers.8 0. Consumers also worry about after-sales service from online retailers.1 1.9 0.0 1. there is a section of consumers buying online. especially with the imminent government support promised by the Prime Minister.1 1. e-commerce in Vietnam is still in the early stages of development.

combined with the Government’s gradual removal of Vietnam Airlines’ monopoly. with only lower-income consumers and students riding them. however. offering only buses.000 inhabitants low in comparison with the 24 cars per 1.7 million passengers travelling by air in 2009.1% of the Vietnamese population had a car in 2009. Vietnamese consumers spent VND50. increasing by 121. As a result. owing to the low cost.3% from the previous year.8 trillion on buses. an increase of 6.6 million registered cars in Vietnam as of June 2010. This is mainly a consequence of the Government’s protection of the emerging automobile industry.0 trillion in 2009. although it is safe and affordable for the majority of Vietnamese consumers.000 inhabitants in South Korea. especially since 2007 when the stock market and real estate booms left some Vietnamese much wealthier.000 inhabitants in China. The establishment of low-cost airlines.8 million passengers in 2005 to 11.2 TRANSPORT Getting Around The Vietnamese automobile market is undergoing an odd trend: the price of cars sold in the country is one of the highest in the world. In value terms. Despite the Government allowing the private sector to invest in and improve the existing railway.000 inhabitants in Thailand. increasing 129. according to the Department of Land Transportation Police. an increase of only 0. Euromonitor International 2015 48.000 inhabitants in the USA. the car is not the main means of transportation for the Vietnamese. Around 1. an increase of 5.9 2020 56. Although the Government has provided subsidies to improve the public transport system. from 12. however. however. have brought the price of air travel down to a more affordable level. who mainly use motorbikes. There were 10.4% on 2005. Motorbikes are a more appropriate option on the average income. There were some 30 million registered motorbikes in June 2010. As previously mentioned. The Vietnamese railway is considered out of date. 228 cars per 1. which come from China. Buses and taxis are mainly used in urban areas rather than rural ones. Motorcycles are gradually disappearing in Vietnam. a small number of those on high incomes have shown themselves willing to pay the high price of buying a car. especially in the larger cities.6% of total consumer expenditure on transport services.1% on 2000. such as for long journeys. With a population of more than 86 million people.Consumer Lifestyles Vietnam Table 72 As stated Household Possession of Mobile Telephones: 2010-2020 2010 Mobile telephone (% of households) Source: National statistics.1 percentage point on 2005. The Vietnamese seldom cycle or walk. and with the crowded population in the cities and narrow roads. Public transport in Vietnam is underdeveloped and inefficient.0 million in 2009. little has changed and only those on the lowest incomes choose to travel by bus.4% on 2005 and accounting for 70. An increasing number of Vietnamese are using electric bikes. consumer expenditure on air travel in 2009 was VND9.6% on 2005 and 282. and 682 cars per 1. the number of cars is indeed tiny. an increase of 64. from VND4.5 32. Where motorbikes are unsuitable.1 trillion in 2005 to VND9. and yet Vietnam is one of the poorest countries. riding their motorbikes even for a short distance. consequently increasing the number of passengers travelling by air. expenditure on rail travel has more than doubled. coaches are the main mode of transport and coach stations are always crowded. 152 cars per 1.6 trillion. there were 1. However. © Euromonitor International Page 64 . This growth rate was the highest among modes of transport. with a rate of eight cars per 1. the GSO has found the number of rail passengers to have fallen.1% on the previous year. coaches and taxis in 2009.

The food courts and shopping areas in the international airports are said to be much smaller than the airports in other ASEAN countries. so the majority now travel by air to go abroad. travelling by sea is a luxury and unaffordable. transfer (BOT) or build. do not have to pay road tax at present. AirAsia and Cebu Pacific adding to consumer choice. As the quickest and most convenient mode of transport. including car owners. Thailand and South Korea have been introduced into the market. the airline industry welcomed Pacific Airlines and VASCO. Euromonitor International Household Possession of Passenger Vehicles: 2005-2009 2006 1.Consumer Lifestyles Vietnam Vehicle owners. changing their motorbikes more regularly than in the past. The Government was previously responsible for the building and upkeep of the road system. such as Thailand. The greatest number of arrivals to Vietnam were from China. and has opened opportunities for potential players in the airline business. Vietnamese travellers are becoming increasingly familiar with toll roads. Simultaneously.0 2008 1. Yamaha. South Korea. Cambodia or Laos. Piaggio and imported motorbikes from China. and domestic airlines now include Indochina. In addition to existing manufacturers such as Honda Vietnam. making Vietnam a profitable market for this kind of car. Vietnam’s main airports are Tan Son Nhat International Airport in Ho Chi Minh City and Noi Bai International Airport in Hanoi. The Vietnamese airline industry has become more competitive since the Government allowed the private sector in. demand for air travel is expected to increase in the forecast period.and short-haul flights by Vietnamese consumers. with the number of premium cars being imported increasing at a surprising rate. either in a build.0 Table 74 Household Possession of Passenger Vehicles: 2010-2020 © Euromonitor International Page 65 . but also as a fashion or status symbol.1 2009 1. Japan and Taiwan in 2009. The growth in car sales has continued despite the economic downturn. also changing its name to Jetstar.1 1. Table 73 % of households 2005 Passenger car Source: National statistics. Suzuki and SYM. the Government is drafting a plan to include a road tax in the price of gasoline in the near future. For most Vietnamese. with foreign low-cost carriers such as Tiger Airways. Impact Cheaper flights from both scheduled and low-cost airlines have resulted in a massive increase in demand for both long. Consumers are. operate.0 2007 1. Pacific Airlines has more recently changed its format from scheduled airline to low-cost carrier. Malaysia and Singapore. Mekong Air and Vietjet Air. Impact Motorbikes are not seen merely as a means of transport. but with a limited budget it is now allowing private-sector investment in the improvement of the infrastructure. There are also some small airports in provinces and cities. transfer (BT) contract. the USA. However. however. As a result. and was previously a monopoly. increasing demand in the market. Air Travel The state-owned Vietnam Airlines is the biggest airline in Vietnam. according to the Vietnam National Tourism Administration. as a consequence. the facilities offered at these airports were greatly improved during the review period. or by land if visiting China. There has been a strong trend for scooters in the review period. the move by the Government to open more airspace to private airlines has resulted in more competition in air travel. With the opening up of the economy. such as Da Nang Airport and Lien Khuong Airport.

Coaches and Taxis Air Travel Other Travel Source: 2006 38.383 10.5 % CAGR 7.616 8.136 6.839 39.412 2007 46. Coaches and Taxis Air Travel Other Travel Source: Notes: 2015 115.564 54.089 22. In the past.1 116.186 2008 67.446 8.961 5.391 1.704 6. Euromonitor International Constant value at 2009 prices MONEY Savings Being a low-income country. Annual savings of around VND780.000 are the norm.262 35.8% of disposable income in 2009.463 4.173 1. In recent years.832 National statistical offices.972 1.7 43.883 22.402 4.130 15. Euromonitor International 2015 1.4 139.014 2007 60. Euromonitor International Table 76 VND billion Consumer Expenditure on Transport Services (Constant 2009 Value): 2005-2009 2005 Transport Services Rail Travel Buses.601 32. the proportion of savings of total incomes is small in comparison with other countries.268 2009 71.919 2. having fallen from 6.740 7.332 2.412 47.174 7.4 1.341 4.456 4.944 4.456 2020 165. Eurostat.8 35.250 National statistical offices.822 2.862 44. due to high inflation.6 49.8 115.373 5.3 2020 1. but better understanding of interest rates has moved consumers to use banks. Coaches and Taxis Air Travel Other Travel Source: Notes: 2006 54.865 2.572 2. the Vietnamese kept their savings at home in the form of gold or paper money. Eurostat.7 113.795 9.Consumer Lifestyles Vietnam % of householders 2010 Passenger car Source: National statistics.933 8. the Vietnamese tend to save at least part of their money.9 8.074 6. however.9 8.770 32.629 115.361 6.656 20.965 50.031 7. OECD.915 National statistical offices. Euromonitor International Constant value at 2009 prices Table 77 VND billion Consumer Expenditure on Transport Services (Constant 2009 Value): 2010-2020 2010 Transport Services Rail Travel Buses. OECD.572 2. Eurostat. as living costs are high.111 9.427 2009 71.741 8. the © Euromonitor International Page 66 .601 % Growth 44.0 7.853 1.285 2.2 44. OECD.0 9.965 50.1 77.669 2008 63.796 27.4% in 2005.783 % Growth 114.8 49.2 Table 75 VND billion Consumer Expenditure on Transport Services (Current Value): 2005-2009 2005 Transport Services Rail Travel Buses.558 43. with an estimated savings rate of 5.846 6.160 14.933 8.234 81.795 9.

especially with the freeze in the real estate market brought about by government regulations. rather than for a real estate purchase. and 125. Meanwhile. Loans and Mortgages Mortgages are not very popular in Vietnam. and the industry cooled towards the end of the review period. This is mainly owing to a fear of banks. especially in rural areas. Card use. including Vietnam Foreign Trade Bank (Vietcombank). especially with the rise in consumer choice. increasing demand for international transactions as a result of a rise in foreign travel has impacted demand for credit and debit cards. The Vietnamese do not make a habit of spending more than they earn.1 million in 2009. the number of Vietnamese using credit and debit cards increased. Vietnamese who wish to buy a house but do not have enough money usually borrow from their parents. This is partly because more companies and organisations pay salaries via bank accounts. However. the underdevelopment of the Vietnamese banking system combined with the rapid growth of the mortgage industry does introduce potential risk for the country. Loans of a maximum 70% of the value of the purchase are offered. although not traditionally popular. where the real estate market has heated up. Those wanting a mortgage or loan usually go to a popular commercial bank. as all banks are trying to encourage consumers to take out mortgages or loans by launching attractive products and making the application procedure simpler. Impact Demand for mortgages and loans in Vietnam has been increasing. as a result of the country’s economic development. Domestic savings are one of the most important sources for future investment. The price of gold in recent years has risen sharply. but the subsequent financial crisis prompted the State Bank of Vietnam and the commercial banks to take more care with mortgage schemes. with attractive products. To date. The development of the banking industry has given mortgages a healthy boost. Meanwhile. Vietnam Import-Export Bank (Eximbank) or Asia Commercial Bank (ACB).4 million in 2009. is becoming more familiar and the concept of an ATM. which meant that the official rate of interest was much lower in real terms. people buying a home or an investment property find it even harder to afford. they might approach a bank for a loan. such as stocks. from 1. increasing demand for gold and gold products as a result. and most people with mortgages do so for the sake of business investment. However. the fall in the savings rate shows that depositing money in a bank is no longer considered the best way of saving. credit or debit card is no longer considered a novelty.000 credit cards in 2005 to 2. times are changing and in urban areas. which consumers then access with ATM cards. However. © Euromonitor International Page 67 . there has been no move by the Government to encourage savings. and consumers are investigating other channels such as gold and foreign currencies. Many more banks opened during the review period. however. Impact The low savings rate suggests that the best part of disposable income is spent on essential goods and services. with no means of improvement in the short term. but low savings mean low investment. The mortgage industry increased sharply in 2007. They rarely take out loans for buying consumer products such as washing machines and refrigerators. so they are turning to banks for a mortgage. the number is certainly increasing rapidly and is expected to continue in that trend over the forecast period. meanwhile more diverse investment channels have seen this trend also improve in numbers. and banks that do not offer an attractive rate of interest are likely to see savings fall. offering opportunities for consumers who want mortgages or loans. relatives or friends rather than from the bank. gold. but for a necessary large purchase. motorcycle or to study overseas.5 million debit cards in 2005 to 15. the Vietnamese now have more investment channels available to them. The banking industry in Vietnam has benefitted as a result.Consumer Lifestyles Vietnam Government set a ceiling for interest rates. Although there are no official data on the number of Vietnamese who have a mortgage or loan. such as a car. in particular. Credit Over the review period. or even real estate.

To increase the number of card users.000 possible card payment points in stores throughout the country at the time of writing. Additionally. As yet. One reason is because they need to keep a significant amount of money deposited in their bank account in order to use a payment card.3 5. ATM card users withdraw money to pay for goods. principally owing to the long-standing habit of paying for purchases with cash. which means that consumers must find their own bank’s machine to withdraw cash. Impact Most premium shopping centres and shops accept and encourage payment cards without asking for any additional fee.7 2007 516.121 1.621. These card users find it convenient when shopping for clothes. the card infrastructure is limited and unreliable.000 ATM machines and 36.458 1. Euromonitor International Table 79 VND billion Consumer Loans.1 6.8 2008 673. Only a small number of consumers use a credit or debit card. Both the banks and the Government are trying to change the traditional cash society by encouragement of payment by card.051 1. stores and other retailers allowing card payment often require card users to pay an additional fee of 3%-5% of the transaction value. ATM machines are also regularly down. Vietnam has massive potential for payment card use. as the banks’ systems in Vietnam are not linked together. the Vietnamese appear indifferent to the technology.522 850 672 2007 2. accessories and electronics. equally. but for everyone on a daily basis.018 1. Table 78 As stated 2005 Annual savings (VND per capita) Savings ratio (% of disposable income) Source: Savings and Savings Ratio: 2005-2009 2006 435.7 2009 780.0 5. credit card users have to pay high interest rates.4 National statistics. Mortgages and Credit (Current Value): 2005-2009 2005 Consumer Lending Mortgages/Housing Consumer Credit Source: National statistics. and although all banks are now encouraging card use.394.811 1. Mortgages and Credit (Constant 2009 Value): 2005-2009 2005 2006 2007 2008 2009 % Growth © Euromonitor International Page 68 . owing to the current low rate of card users and the Government’s encouragement of payment card use. which causes difficulties for users wishing to withdraw cash to make purchases.793 2. the number of ATMs and points of sale allowing card payment are limited: there were only 10. shoes.593 2009 3.003. This is because they know their consumers have high incomes.867. rather than have a debit card to make payments. Meanwhile. creating numerous opportunities for banks and card companies. as payment cards are still uncommon. are comfortable using cards and will thus return to the store. to offset the cost to the retailer of the payment mechanism. the banks are trying to persuade consumers that cards are not only for the wealthy or for those who travel abroad regularly.6 5.058 2008 3.1 5. These habits may begin to change during the forecast period.179 1.Consumer Lifestyles Vietnam The most popular and fastest growing card is the ATM card and at the time of writing more than 22 million ATM cards had been issued. Card users frequently experience difficulties.8 430. Euromonitor International 2006 1.016 700 316 Table 80 VND billion Consumer Loans.460.

869 1.032 3.5 1.075 1.155 522 2.306 1.067 % Growth 928.018 127.700 500 2007 8.677 1. Euromonitor International © Euromonitor International Page 69 .300 840 2008 11.6 National statistics.828 3.811 1.531 2009 15.430 2.493 3.Consumer Lifestyles Vietnam Consumer Lending Mortgages/Housing Consumer Credit Source: Notes: 1.582 1.500 125 National statistics.673 1.793 2.553.2 286.2 55.501 1.6 1.339 1. Euromonitor International Constant value at 2009 prices Table 81 '000 cards Financial Cards in Circulation: 2005-2009 2005 Debit Function Credit Function Source: 2006 2.