An integrated

update of the Vietnam

FMCG market
Full year 2021

M
Urban 4 Key Cities & Rural Vietnam
By Worldpanel Division, Kantar
 Executive summary

Sugar achieved
Vietnam’s economy FMCG growth slowed consistent growth, Convenient retail
down compared to driven by an channels such as Watch out for the
in 2021 sustained a
last year’s peak as increase in price Online and Minimarket key trends in
positive performance,
there was limited which occurred in remain consumers’ consumer shopping
thanks to the fast
change in volume many FMCG preference amid the behaviors during
economic recovery in
consumption. categories. social distancing 2022
Q4 coupled with the
low CPI. periods.

Macro economy Spotlight

FMCG overview Retail landscape
Hot category
 COVID-19 situation
updates
Thanks to government Wave 4 of COVID-19: 27 Apr to now
efforts since the second
3,000 Cumulative Confirmed COVID 19 Cases in Vietnam (000 cases) 50
half of 2021, around
80% of Vietnam Daily COVID-19 Infected Cases in Vietnam (000 cases)
45
population is now fully 2,500
vaccinated. Vaccination situation in Vietnam 40

However, COVID-19 82%

35
2,000 79%
infections in Vietnam
30
continue to rise after
lockdown. This poses 1,500 38% 25
considerable challenges
for economic growth, 20

business operations 1,000

15
and consumers’ lives in Vaccinated Fully 3rd dose
rate vaccinated rate
the first half of 2022. (1st dose) rate (2nd dose)
10
500

0 0

Source: Wikipedia & VNExpress 3

 Consumers’ top
concerns
Currently what do you consider to be the biggest concerns you and your
Given the uncertain household are likely to face? (% households across 4 key cities)
COVID-19 situation in
Vietnam; health and 70
safety remain the
biggest concerns among 60
Q4 2020
Vietnamese households
in 4 key Urban cities. 50 Q3 2021
Meanwhile fewer people Q4 2021
worry about income and 40
job security as society
reopens. 30

20

10

Source: Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities | Q4'21 | Field work from 27th December – 7th January 4
 Vietnam’s macro economy
Despite the impact of COVID-19’s Delta variant, Vietnam’s economy sustains a positive performance during 2021 thanks to the fast
economic recovery in Q4 coupled with the low CPI. However, 2022 may bring fresh challenges with the return of inflation due to rising
oil prices, unemployment and suspended operations.

% Change vs the same period last year Other key economic indicators (2021 vs 2020)

FDI -1.2%

Suspended
operations +18%

GDP CPI
7.0 Unemployment 3.2%
rate (2.5% in
2020)
6.6 2.7 2.5
3.2
4.5 4.5
2.9 2.6 3.2 1.9
2.8 1.4 1.9 Export turnover
2.6 5.2
of goods +19%
1.8
0.3

Import turnover
2019 2020 2021 -6.2 of goods +27%
2019 2020 2021

Source: GSO 5
 Consumer perspective
Consumer confidence in both economic outlook and purchasing power sees an improvement in Q4 2021. This is
largely thanks to the high vaccination rate and lifting of social distancing measures, however it is still yet to return to
pre-pandemic levels.

The economic situation will be better or the same as today In the upcoming 12 months, do you think that the financial
in the next 12 months (% households agree in Urban 4 key cities) situation in your house… (% households agree in Urban 4 key cities)
1st COVID Wave 4 of
impact COVID
84 4 7 8 3 8
80 81 9 13 Will get much
76 16
74 Wave 4 of 18 worse
COVID
1st COVID 62 65 43 43
60 45 43 43 Will get worse
impact 41 46
44 31
42 Will remain the
same
44 42 45
41 40 38 39 39 Will slightly
33 improve

9 7 7 7 7 9 7 9 7 Will strongly
improve

Source: Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities | MAT Q4'21 | Field work from 27th December – 7th January 6
 FMCG
overview Urban 4 key cities
% Change vs YA
Rural
FMCG growth slows
10%
compared to last 9% 10%
year’s peak, with little 7% 5%
4% Value
change in volume Full year 2019
consumption. Full year 2020
Category 1 Category
7% 1
Full year 2021 7%
6%
In the short term, 4%
consumer spending 0%
Volume
1%
on FMCG posted a
higher growth in Q4 Category 1 Category 1
2021 compared to the 20
COVID-19’s
1st wave
COVID-19’s
20 1st wave
same period last year. 13.7
15.6
15.0
This was mainly
15
COVID-19’s 15 COVID-19’s
4th wave Quarterly 10.7 4th wave
driven by an increase 10 8.2 trends 10 8.7
in prices – with the 5
5.8
5
7.5
highest prices over 2.5 1.2
the past 4 years. 0 0

-5 -5

Value Avg. price paid* Volume**

*: To calculate FMCG price paid change, we calculate how much price contributes to the value change for each category, sum up these contributions and relate to value YA
**: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up these contributions and relate to value YA (this results in an average category change in volume)

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 52 weeks ending 02/01/2022 7
 Sector
performance % Value change vs YA
4 key Urban cities Rurally
In the second year of
the pandemic,
Packaged Foods and FMCG 10 10
Dairy continue to drive 4 Full year 2020 5
market growth in both Full year 2021
key urban cities and 9 13
Dairy
rural areas. 5 11

Meanwhile, Beverages
Beverages 3 1
suffer the negative -2 -8
impact if the wave 4 of
the pandemic,
Packaged 22 14
especially in rurally.
Foods 14 12

Personal 12 17
Care -2 7

Home 5 11
Care -2 2

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 52 weeks ending 02/01/2022 8
 Hot
category
The increase in average Sugar performance in 2021 vs Year Ago – Urban 4 key cities
prices occurs in many
FMCG products,
particularly in Sugar. Value growth Volume growth Price per volume

In 2021, Sugar achieved a

+30% +5% +24%
consistent growth driven
mainly by the double-digit
increase in price. % Buyers Trips/ year Volume per buyer

94% 11 18 (kg/year)

1) What are the reasons behind this?

• Consumers are buying higher price-tier and branded products?
• Manufacturer/retailer increase in unit price due to increasing costs and
supply shortages?
2) How about your product categories?

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities Vietnam | Total FMCG excluding Gift | 52 weeks ending 02/01/2021 9
 Retail
landscape Urban 4 key cities

Convenient retail % Value change vs YA

channels such as
Online and FY 2020 FY 2021
Minimarket keep
winning consumer
preference amid the
60 60
social distancing
periods.
30 27
Together with an
impressive growth, 13 13
these channels are 10
4 6 5
gaining in importance
in today’s retail -2
-6
landscape in Urban
areas. -16
-24
All retailers Online Minimarkets Street Shops Specialty Stores Hyper & Super Wet Market

% Value share 6% 8% 53% 6% 12% 6%

in 2021
Increase vs YA

Source: Worldpanel Division | Households Panel | Vietnam Urban 4 Key Cities | Total FMCG excluding Gift | 52 weeks ending 02/01/2022 10
 Retail
landscape Rural

There is also a % Value change vs YA

similar picture
Rural areas with FY 2020 FY 2021
the growth of
emerging channels
like Online and
Minimarkets. 169

122

40 42
31
18
10 5 9 9 6

-9 -8
-28
All retailers Online Minimarkets Street Shops Specialty Stores Wet Market Hyper & Super

% Value share 2% 1% 77% 3% 12% 2%

in 2021
Increase vs YA

Source: Worldpanel Division | Households Panel | Rural Vietnam | Total FMCG excluding Gift | 52 weeks ending 02/01/2022 11
Spotlight:
Key Trends in Consumer Shopping Behavior in 2022

Consumers will
continue to rationalize
their spend
Understand the role of
categories and its ability to
command pricing.
Home life remains Toward a more Embrace the Rethink: Well-
important digitalized life offering growth of being &
new experiences convenience- sustainable living
driven retail
More categories try to New services and new Focus on both physical
Leverage growing channels:
communicate and ways to interact with and mental health &
minimarket, online and
shift toward in-home brands. doing good deeds
delivery service are not only
occasions. today.
in big cities but also sub-
urban and rural areas.

Temporary On going

Source: Worldpanel Division 12

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Contact us

Nguyen Thi Nhu Ngoc – Senior Marketing Manager

Worldpanel Division, Vietnam

E: NhuNgoc.NguyenThi@kantar.com
Ơ

M: +84 988 445 401

58 Vo Van Tan St., Dist. 3, Ho Chi Minh City, Vietnam