VIETNAM

IN THE DIGITAL ERA

Evolution, impacts and social considerations

Xavier Depouilly, General Manager

December 5th 2019

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CONTENTS

Vietnam at a glance

The Digital Era

Some impacts on The Vietnamese Society

Digital Evolution of Market Research

VIETNAM AT A GLANCE Key markets
18,201,600 = 19% of the population

Hanoi

96 MIL
Urban: 4,367,100 - 59%
Rural: 3,053,000 - 41%

URBANISATION
35% to 55% Da Nang
TOTAL POPULATION
Urban: 932,400 - 88%
by 2030 Rural: 131,700 - 12%
15th rank Worldwide

$2,518 64% Ho Chi Minh

Urban: 6,825,300 - 81%
GDP PER CAPITA IN 15 - 55 AGE
Rural: 1,619,300 - 19%

Nationwide
Can Tho
$ 6,000 in HCM city GROUP Urban: 853,600 - 67%
Rural: 419,200 - 33%

Source: GSO (2017); McKinsey (2019); Publicis (2019)

HAPPY, OPTIMIST AND HEALTHY POPULATION
SUPPORTING THE COUNTRY DEVELOPMENT

65% 96%
France = 47%

Are Happy or very Happy Declare having a good quality of life

54% 70%
Consider 2020 will be a better year for them Are satisfied with their job

89% 61%
consider themselves HEALTHY Are satisfied with their remuneration

Source: Indochina Research - End of Year Survey – n =500 - WIN and Gallup International
.............................................. ..........................................................................

................................
THE DIGITAL
ERA

........................................................................................
 DIGITAL PENETRATION IN THE REGION
26% 26%
26% 26%
Myanmar
Laos 66% 64%

67% 67%

Thailand 45% 33%

Vietnam
58% 58%
Vietnam ranks 5th
Cambodia
Philippines in the region, both in terms of
Internet penetration and Social
71% 71% Media penetration
86% 84%
Malaysia
82% 77% Brunei

Singapore
INTERNET PENETRATION

SOCIAL MEDIA PENETRATION

51% 46%
33% 31%
Indonesia
Timor-Leste
Source: We are Social (2019) / IRL analytics
DIGITAL PENETRATION | VIETNAM
Digital is growing fast – 66% have access to internet
70
62 64 100%
90%
60

47 50 80%
50 70%
40
40 36 65% 66% 60%
50%
30 53%
50% 40%
44%
39% 30%
20
20%
10
10%
0 0%
2014 2015 2016 2017 2018 2019
Connected population % of total population

+ 30 million users (+15% per year) in 5 years | about 90% penetration among 15-55 yo

Source: WEARESOCIAL 2014-2019

DIGITAL HAS 2ND REACH BUT HIGHEST TIME EXPOSURE
TV & Digital are now the biggest touchpoints in Vietnam

98% 100% 98% 99% 97% 97%

89% 91%
86%

68% 71%
65% 67%
62% 63%
57%
53%
48% 49%
43% 45%
39% 39% 41%
36%
31%33% 31%
27%
21% 20%
17% 16% 13%
8% 10%

Y2014 Y2015 Y2016 Y2017 Y2018 Y 2019

TV Internet OOH Press Cinema Radio

128 Mins 226 Mins 47 Mins 38 Mins

Source: Kantar Media | Media Habit Survey 2019 | Top 4 Cities | 18 to 59 yo
 DIGITAL ACTIVITIES | VIETNAM
Social, Search, Watch, News, Communicate, Buy…
ONLINE ACTIVITIES SOCIAL NETWORK APPS
Have Account
Visited / used a social network 100%
94% 92% Monthly Active
90% 92% 91% 85%
Visited / used a search engine 99% 75% 74%
60%
Watched a video clip or visited a video-sharing site 99% 49%
Visited a news website / app / service 97%

Used a chat or instant messaging service / app 96%

Searched for a product or service you want to buy 88%

Used a map or directions service / app 88%

Visited an online retail site or store such as Amazon 84%

Uploaded / shared a photo 80% VISITED WEBSITES / MONTHLY TRAFFIC (thousands)

Purchased a product online 78% 371700
341600 334100
281200
Used a webmail service to access, read or send emails 75%

Uploaded / shared a video 70% 68300 55800 36400 33200 28600 28100
Used an internet banking service 70%

Visited a travel / vacation website 68%

Checked the weather online 68%

Source: GWI Vietnam Q1 2019 | PP16-64 Total VN & WEARESOCIAL Question 1: On which of the following services do you have an account?
Question 1: In the past month, which of the following things have you done on the internet via any device? Question 2: Which of the following sites / applications have you visited or
Question 2: In the past month, Which of these do you use to access the internet? used in the past month via your PC / Laptop, Mobile or Tablet?
DIGITAL BRINGS MARKET DISRUPTION AND DRIVE DIGITAL
CONSUMPTION WITH KEY GAME CHANGERS

2000 - 2010 2011 - 2017 2018 - 2019

(10 years) (6 years) (1 years)

Transportation
apps

Food delivery
apps

E-wallets/ payment
apps

Money loan
apps
E-COMMERCE, THE NEW CONVENIENCE !
E-commerce : Estimated between 2.5 to 9 Billion USD - About 3% of overall retail but rapidly
increasing and considered to grow to 33 billion by 2025.

34,569.9
E-COMMERCE WEBSITES MONTLY VISIT RATE
30,929.8 29,307.2 27,114.5 24,364.7

10,696.3 8,252.1 6,565.2 6,414.5 5,689.4

E-COMMERCE SPENDS BY CATEGORY – Revenue in USD

$ 3.491 $ 610.0 $ 558.0 $ 399.0 $ 354.0 $ 348.0 $ 75.00 $ 21.00

Bilion Milion Million Milion Milion Milion Million Milion

Source: Iprice Insights (2019), McKinsey Report (2019)

Although time spend is high, digital advertising represent only 22% of total
media spending growing to 370M (+26%) in next 5 years.

Media and Digital Ad spending 2019 - 2023 (in billions)

$1.45
$1.41
$1.36
$1.31
$1.24

5.50%
5%

4%
3.50%
3%

$0.35 $0.37
$0.31 $0.33
$0.28

2019 2020 2021 2022 2023

Total Media Ad Spending Digital Ad Spending % change of media ad spending

Source: eMarket (2019), TNS Infosys+, Total Industry (TV, Print & Radio) All spends are in Gross
 ..........................................................................

SOCIAL
IMPACTS ON THE
..............................................

................................
VIETNAMESE
SOCIETY

"A day without social media

would feel like a century"

........................................................................................
DIGITAL IS HERE FOR GOOD !!

SOURCE OF INFORMATION LIFE NECESSITY

"Social Media is the fastest "A day without social

and most convenient way media would feel like
to get new information and a century"
connect with people"

OMNI PLATE-FORM CORPORATE TOOL

"There are many things to "Technology and
do on social media, from especially social media
talking with friends, has helped business to
relaxing, to doing business, manage people better"
looking for a job and
catching up with the latest
news in the world"

Source: Indochina Research (2019)

CYBER SECURITY AND DIGITAL TRUST
Cyber security issues impacts 40% of the population and should be considered seriously.
The majority of global players are considered to deal with private data quite well.
The GoV is also looking to regulate the sector more an getting its due tax-return from global players..

46 42
concerned about sharing do not like the current privacy
their personal data practices of most data collectors
% information digitally % asking for their personal information

Have you experienced any of the following in

Trust ratio on data privacy practices
the last 2 to 3 years?
1%
None of these 92% 89% 83% 79% 74% 69%
8% 59%
Spammed by companies 48%
10%
Personal details have been leaked
15% 60%
Phishing i.e.

Email hacked
27%
Bank account or credit card
hacked/ used fraudulently

Source: Indochina Research End of Year Survey, 2019

A“post-truth” era …to differentiate your brand value

63% of Hanoians and Saigoneers have been in contact with fake news in the past 3
months (Feb-May/2019)

65% of them faced it at least once a week

Among various contacting channels, people are exposed to fakes news mostly through ONLINE
CHANNEL, including Social Media (45%) and News Website (44%).

Fake news
contact rate
by platform

45% 44% 30% 15% 7%

Source: Indochina Research HotSpots Survey, 2019

 E-Government to ease business process, Social media to
improve transparency and promote integrity.
• E-government services help boost the efficiency of public services by reducing processing
time and costs, and increasing accountability and transparency.
• Social media are also considered as a way for the population to contribute to more integrity
in the society.

Overall satisfaction on
E-Government measures Between 2014 and 2017, Vietnam rose 10 places to rank
88th out of 193 countries and territories on the United
Nations’ E-Government Development Index (EGDI)

“Corruption in police/traffic police decreases in this year

because many corruption cases are recorded and
published on social media (Youtube, Facebook)”
(Vietnam Corruption Barometer, Towards Transparency 2019)
.............................................. ..........................................................................

................................
DIGITAL
EVOLUTION OF
MARKET
RESEARCH
........................................................................................
 Market research digitalization trend

PAPER, MAIL, F2F - DIGITAL DATA REAL TME / PREDICTIVE

ONLINE PANELS
TELEPHONE COLLECTION / ONE2ONE

(2019) 35% 50% 10% <5%

(2029) 10% 20% 50% 20%
Requirements :

- Digital solutions
- Financial Investments
- Qualified HR

Predictions by the author

Key take away
Digital is here for good and largely adopted by a young, dynamic and optimistic
population

Digital services and social networks are bringing more convenience, media reach and
shopping opportunities.

Trust is a growing issue, so brands needs to differentiate by building meaningful

relationships, content for their target audience and customers.

The sector is largely unregulated, but the Government starts to take action to secure
content and get his due tax revenue generated by large global companies in Vietnam.

All sectors are impacted at different level with opportunities to differentiate. Need to
balance the cost – benefit ratio as requiring investment and more qualified Human
resources.

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 THANK YOU !
Xavier Depouilly, General Manager
Mobile: 096 717 3663
xavier@indochinaresearch.com

www.indochina-research.com