Vietnamese consumers are increasingly prioritizing sustainability in their purchasing habits.

On November 11, PwC Vietnam launched “Consumer Survey 2024 – Vietnam Report”.

SUSTAINABLE PRODUCTS ARE PRIORITIZED

The survey polled more than 7,000 consumers in the region, including 515 from Vietnam, showing that inflation is the top risk for the vast majority (63%) of Vietnamese consumers in the next 12 months.

Signs of recovery, persistent inflation in Asia Pacific economies remains a major concern, making consumers more concerned about how they spend.

According to PwC’s “Asia Pacific Consumer Survey 2024” in Vietnam, 63% of consumers expect to increase spending on essentials in the next 12 months, followed by clothing (52%) and healthcare products (48%).

However, consumers are only willing to stick with brands they truly trust. Therefore, businesses need to know how to build trust across all aspects and form lasting connections with consumers.

In particular, Vietnamese consumers are increasingly prioritizing sustainability in their consumption habits, with 94% reporting having experienced negative impacts of climate change in their daily lives (compared to 88% in the region).

Notably, 74% of Vietnamese consumers expressed their willingness to pay 20% more than the average price for a product made from recycled/sustainable materials, and up to 85% would consider buying a hybrid or electric vehicle in the next 3 years.

Rakesh Mani, Consumer Markets Leader, PwC Asia Pacific, said that consumers today face a range of pressures, including economic uncertainty, concerns about data privacy, and growing awareness of environmental and social issues.

Companies that stand out will focus on building trusted connections with consumers. That emotional resonance – whether through product innovation, omnichannel flexibility, or sustainability efforts – elevates the connection beyond the transactional and encourages deeper brand loyalty.

VIETNAM HAS THE HIGHEST ONLINE SHOPPING RATE IN THE REGION

Along with the popularity of e-commerce platforms, the survey found that Vietnam has the highest online shopping rate in the region, with 67% via mobile phones and 44% via personal computers, although in-store shopping remains high (63%).

In addition, Vietnamese consumers are also actively embracing and using social media platforms, with the aim of accessing new brands and consulting reviews before making a purchase.

71% said they have shopped through this platform, significantly higher than the regional average of 56%.

However, with negative feedback on online shopping, it seems that consumer confidence has been somewhat undermined when considering the safety and reliability of social networks.

The survey shows that 77% are concerned about privacy and data sharing, similar to Asia Pacific countries (74%).

According to the survey, Vietnamese consumers are quite open to using AI in low-risk activities, but still want to have direct human interaction in complex transactions.

Specifically, 69% of AI can help collect product information, followed by making product recommendations (63%) and customer service support (59%).

With consumers’ increasing expectations when shopping in stores and online, the report recommends that brands and retailers apply a flexible omnichannel strategy.

Mr. Nguyen Luong Hien, Deputy General Director, Consumer and Retail Services Leader, PwC Vietnam, said that in the context of Vietnam’s increasingly competitive and diverse consumer market, business leaders need to make strategic decisions to drive growth.

The 2024 Consumer Survey shows that building trust and meeting consumers’ immediate needs are key factors.

The report emphasizes the importance of delivering superior value beyond price competition, building a retail strategy that aligns with customers’ personal goals and at the same time encourages responsible consumption choices.

Transparency, consistency, and a GenAI application strategy and risk management will be important factors to build trust and attract customers. In addition, practicing sustainable development in a real way by making information about the production process transparent and having third-party certification will contribute significantly to building sustainable business operations for enterprises.

With these actions, business leaders are not only ready to face current challenges but also seize the opportunity to develop strongly in the Vietnamese consumer market, one of the markets predicted to be the most vibrant in the world by 2030.

The event welcomed the special appearance of the wife of General Secretary To Lam – Mrs. Ngo Phuong Ly, the wife of former President Truong Tan Sang – Mrs. Mai Thi Hanh, and diplomats.

With the theme Gastronomy of Unity – Connecting Cuisine, the 2024 International Food Festival gathered more than 130 booths, opening up a colorful culinary cultural space. Diners participated in promotional activities and impressive culinary experiences performed by Vietnamese artisans and professional chefs along with foreign guests such as: giant bread served with Chin-su chili sauce, Northwest banh chung from Thai Hai village, colorful pho rolls 12 meters long…

The special bread show of 3 regions attracts diners to visit and experience.

The 12 meter long colorful pho roll display delighted visitors.

Chin-su booth attracts visitors

As the main sponsor of the 12th International Food Festival, Masan Consumer Joint Stock Company (Masan Consumer) brought its prominent domestic and international brand, Chin-su. This appearance of Chin-su has attracted great attention as the brand has continuously left its mark on the international culinary map over the past time.

Visitors were excited and lined up to visit Chin-su’s booth to experience the activities at the festival.

As a leading consumer goods company in Vietnam, famous products of Masan Consumer Goods Joint Stock Company such as Chin-Su chili sauce, Nam Ngu fish sauce, Vinacafé coffee, Omachi noodles… are available in more than 20 countries and territories around the world. Last November, Chin-su chili sauce made domestic users extremely excited when it appeared on giant advertising billboards on busy streets in Korea and Japan such as Myeongdong (Seoul) and Dotonbori (Osaka). This created a strong effect, attracting many visitors to check-in, the hashtag #Chinsujapan or #Chinsukorea also spread on social networks, affirming the mark on Chin-su’s Go Global – Around the World journey.

The image of Chin-su chili sauce appearing on giant billboards in Korea and Japan once caused a stir.

Foreign guests have many compliments for Chin-su’s spice set.

Present at the event early, Ms. Anna from Türkiye shared: “Thanks to coming here, I have enjoyed many dishes from countries that I have not had the opportunity to visit. In particular, I was extremely excited to come to the Chin-su booth to try Chin-su Sriracha chili sauce. A friend of mine who traveled to Japan said that this product is quite popular with the Japanese. And indeed, the spicy taste of Chin-su Sriracha chili sauce makes every dish more delicious.”

Contributing to promoting Vietnamese cuisine

Masan Consumer’s participation at the International Food Festival not only contributes to honoring the unique flavors of Vietnamese spices but also introduces the image of Vietnamese cuisine to friends around the world. With the strategy “Go Global – Make Vietnamese Foods Global Foods”, Masan Consumer has been constantly making efforts to widely promote products around the world, thereby elevating Vietnamese cuisine in the international market.

Raja, a Pakistani stall owner and owner of the Nan n kabab restaurant chain in Hanoi, shared that after 19 years of living in Vietnam, he has noticed similarities in the way spices are used to prepare Vietnamese dishes and his homeland’s dishes. According to him, the International Food Festival is a great opportunity to connect the culinary cultures of the countries, while helping foreigners like him discover more about the richness of Vietnamese spices and cuisine.

“Vietnamese and Pakistani people both use spices in cooking to create unique flavors for the dishes. I have made Pakistani dishes with Vietnamese spices, even made Vietnamese beefsteak with Pakistani spices and received many compliments. I am happy to be here to learn more about Vietnamese cuisine, as well as have the opportunity to introduce traditional Pakistani dishes and the characteristics of Halal food.”

Diners check-in at Chin-su’s booth to receive special gifts.

The 2024 International Food Festival has become a memorable event with many good impressions. Speaking at the event, Ms. Pauline Tamesis, UN Resident Coordinator in Vietnam shared: “This event has connected people from many different cultures through the common language of cuisine. From the rich flavors of Southeast Asia to the exquisite dishes of Europe, the International Food Festival opens up a rich and diverse journey of experiences.”

With the recent positive export situation for the food industry, Mr. Nguyen Ngoc Bao, Head of Import-Export Department of Binh Tay Food Joint Stock Company, said that the company is expected to focus on export activities in 2025. Therefore, the company will increase its staff to approach partners in more demanding markets.

Unlocking new discerning markets

For example, supplying Halal food products (for Muslims) to the Middle East, through an exchange with VnBusiness, Mr. Bao emphasized that he will expand the market in potential countries in this region. Especially when the company has achieved Halal standard certifications to serve different markets.

Facing the trend of opening up potential Halal markets in ASEAN, Vietnamese food enterprises are increasing contact with large Indonesian buyers.

“Currently, our mid-range and high-end food products are more suitable for foreign markets. The main customer base is international distributors with strengths in covering their GT (traditional distribution channels) and MT (modern distribution channels) channels in each market,” Mr. Bao confided.

In addition to the above promising sharing, at the event connecting trade and introducing food industry products held in Ho Chi Minh City on December 11, Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Foodstuff Association (FFA), said that despite facing many challenges from the global market, new consumer trends such as green food, alternative products, or high requirements for traceability have set a new development path full of potential for the Vietnamese food industry.

For example, according to Ms. Chi, food products of enterprises in Ho Chi Minh City not only serve domestic consumption needs but are also reaching out to the world, conquering demanding international markets such as the EU, the US and Japan. This contributes significantly to the economic development of Ho Chi Minh City, especially when the food industry currently accounts for about 20% of the total industrial production value in the City.

According to Mr. Tran Phu Lu, Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), food enterprises have gradually improved product quality, applied new technologies to production, converted production models to green production, applied digital technology and digital transformation, and used natural resources and energy economically and efficiently. Thereby, gradually meeting the quality standards of demanding markets around the world.

In particular, according to Mr. Lu, in the current trend of opening new markets, food enterprises have made constant efforts to obtain Halal certification, contributing to bringing Vietnamese goods into the markets of Muslim countries.

Recent forecasts show that the compound annual growth rate (CAGR) is expected to reach 10.26% from 2025 to 2029, bringing the total revenue of the food and beverage industry to about 1.5 billion USD by 2029. This figure shows wide-open opportunities for Vietnamese enterprises in the field of food processing and export.

In addition, the Vietnamese food industry has also recorded a rapid digital transformation speed. Enterprises are gradually converting from traditional business models to multi-channel sales models, especially online, to build brands and reach customers more effectively.

In addition, modern technology trends such as Artificial Intelligence (AI), Internet of Things (IoT) and Blockchain are also being applied in the supply chain management and production process of the Vietnamese food industry. This helps businesses increase transparency, optimize costs and improve product quality. In particular, the application of blockchain technology to trace the origin of food is becoming an important trend, helping to ensure food safety and hygiene and increase consumer confidence

Adapting flexibly to new market trends

Looking at the new development roadmap for Vietnamese food enterprises in the coming year 2025, experts say that they will face many opportunities and challenges. In particular, to adapt to new consumption trends, enterprises will have to promote the development of new, sustainable, environmentally friendly and more convenient products, thereby also helping them increase revenue.

For example, with the green consumption trend, according to Mr. Nguyen Van Phuong, Head of Market Research of the Association of High-Quality Vietnamese Goods Enterprises, consumers said that they are willing to pay more to be able to use green products at different levels. In which, the level of additional payment that consumers respond to the most is to pay an additional 5% to 10% compared to regular products to consume green products, especially about 20% of consumers accept to pay an additional 10%.

However, it should be noted that as a fertile field closely linked to the core needs of consumers, the domestic food market is facing fierce competition. Therefore, in order to survive and gain a foothold in the market, food enterprises themselves must constantly strive to innovate, create, and innovate to grasp the development trends of the industry, the main trends of consumers, and create advantages over other competitors.

In terms of the main trends of consumers in 2025, food enterprises should also refer to the Consumer Goods Industry Report 2025 issued by TPS Securities Company in December 2024, according to which Vietnamese consumers tend to prioritize essential and health care products. This is an opportunity for enterprises providing consumer and health care products to build appropriate product strategies.

In addition, according to TPS, sustainability is not only a global trend but also one of the selection criteria of Vietnamese consumers. Moreover, modern Vietnamese consumers not only look for suitable products but also care about products with reputable brands. They are willing to be loyal to brands with sustainable values, providing multi-channel experiences and meeting customer tastes.

In general, looking at the potential new development roadmap for Vietnamese food enterprises in the export and domestic markets, it is important that the enterprises themselves gradually change their operations to flexibly adapt to new market trends and optimize their business operations.

Hopefully, from the practical market trends, they will be able to adapt to new trends, launch new food products and promote “catching the wave” of those trends in the coming year 2025. This comes from the roadmap of innovation, product innovation and promotion method innovation of Vietnamese food enterprises.

There have been significant changes in the mindset and shopping behavior of consumers following the economic hardships. As consumer habits for Tet 2025 evolve rapidly and become increasingly unpredictable, the market for goods will be directly impacted, as noted in a recent seminar.

According to the latest research from Kantar Worldpanel Vietnam, post-COVID-19, the optimism regarding the future economic situation among Vietnamese consumers reached 88% (in Q3 2022). However, this index sharply declined from Q4 2022 through the end of 2023 due to economic weakening, global conflicts, rising prices, and mass layoffs. Although Vietnam’s GDP showed a recovery growth of 7.4% in Q3 2024, leading to a slight increase in optimism at the beginning of 2024, it fell back to 69% by Q3. This indicates that consumer sentiment has become unstable and less optimistic than before.

Consequently, consumers are increasingly inclined to simplify Tet procedures, with Tet gifts becoming more practical, health-oriented, and budget-friendly.

Photo: Report from Kantar.

Mrs. Vu Kim Hanh, Chairwoman of the High-Quality Vietnamese Products Business Association, noted that alongside changing consumer trends, Vietnamese businesses are facing significant pressure to both lower prices and invest heavily in free shipping services to retain customers.

Additionally, they must contend with fierce competition from low-priced Chinese goods. In reality, distinguishing between Vietnamese products and imported goods (especially from China) is not easy. Chinese products have penetrated deeply into all channels to win over Vietnamese consumers.

“For many Vietnamese consumers today, to win them over, low prices remain the primary requirement. Besides the challenge of competition in controlling prices and adjusting sales conditions, businesses must also pay attention to aligning closely with market demands at each stage. At the same time, they need to identify competitive niches and unique product attributes that reflect local characteristics to stay competitive”, she said.

From the business perspective, stakeholders ranging from production, distribution supermarkets to payment support services have already developed plans to welcome Tet 2025. A notable trend today is that customers, especially the younger generation, seek shopping experiences that are paired with entertainment, leading to Tet of fairs, exhibitions, and celebrity meet-and-greet events … prioritized by businesses.

For instance, last weekend, a series of digital payment events combined with a shopping festival took place for the first time at Nguyen Hue Walking Street (in downtown Ho Chi Minh City), attracting over 7,000 visitors and shoppers on its opening day alone. This program also supports the government’s strategy to promote cashless payments, where all shopping and entertainment activities at the event utilized QR code payment methods.

Similarly, continuing from their Christmas and year-end celebration plans, in addition to promotions and decorations to enhance customer experiences …, Fahasa recently collaborated with newly crowned Miss Vietnam Nguyen Cao Ky Duyen for book signing events to attract direct shoppers.

Photo: Miss Nguyen Cao Ky Duyen signing books during the year-end shopping season at Fahasa.

Or with supermarket systems, sharing with us, WinMart representative forecasts a 20% increase in purchasing power from now until Tet, the chain has accordingly increased the supply of goods to meet year-end consumer demand while offering big promotions, many products up to 50%.

“To meet the shopping needs of consumers, especially focusing on fresh products and essential foods, the retail chain has proactively cooperated closely with suppliers, ensuring prices and sources of goods in the system are always stable.

At the same time, this is also the year to evaluate the 10-year development journey, WinCommerce (the unit operating the WinMart supermarket system and WinMart+/WiN stores) will launch the biggest promotion program of the year”, stated the representative.

As for Saigon Co.op, this chain expects Tet At Ty 2025 sales to increase by about 5% over the same period. Not only discounting, capturing recent consumer experience trends, at 800 points of sale of Saigon Co.op including Co.opmart, Co.opXtra, Co.op Food, Co.op Smile, Finelife, Cheers, Sense City, Sense market… the system said to invest in building a traditional Tet space with a 3-region Tet market, OCOP booths of provinces and cities, regional specialties.

“To ensure the quality of food hygiene and safety of Tet goods, Saigon Co.op increases the frequency of checking goods sold in the system by 2-3 times compared to normal days. Saigon Co.op also recruits more than 3,500 seasonal workers in the positions of: sales staff, cashiers, marketers, gift wrappers, security guards, warehouse assistants, home delivery… to serve customers quickly”, a representative of Saigon Co.op shared more.

Consumption of Vietnamese people in rural areas will grow higher than urban areas during Tet 2025. Illustration image.

According to Kantar’s forecast, FMCG growth during Tet 2025 will reach 1 – 3%, with rural areas having a higher growth rate than urban areas. This is a positive signal from economic recovery, although last year there were special events such as Typhoon Yagi and floods in the North causing serious damage. However, the impact on consumer finances is not too large.

According to the General Statistics Office, the Consumer Confidence Index (CCI) increased from 67% in the fourth quarter of 2023 to 78% in the first quarter of 2024. However, consumers are still cautious in spending decisions due to concerns about inflation and economic instability.

Especially in recent years, the proportion of spending on FMCG during Tet has decreased. Specifically, spending on FMCG during Tet 2019 accounted for 21% of total annual spending in major cities, but by Tet 2024, this rate decreased to about 19%. The total value of FMCG consumption in 2024 reached the highest level in the past 5 years, but the growth rate was only 1 – 2% compared to the previous year.

This shows that people are gradually limiting spending on non-essential items and tending to simplify and prioritize products with long-term value.

Consumption trends of FMCG products for Tet 2024 in 4 major cities and rural areas.

Specifically, the most popular product categories in Tet 2025 are predicted to be as follows:

• Nutrition and functional foods (up 45%): Consumers are increasingly concerned about health, prioritizing natural products and nutritional supplements to prepare for an energetic new year.
• Personal care (43%): Tet is an opportunity to renew themselves. Gen Z and Millennials spend especially on beauty care and personal hygiene products, with the need to improve their appearance immediately.
• Fashion and accessories (45%): Fashion is always the focus of Tet shopping. Buying new clothes is not only a tradition but also a wish for good luck in the new year.
• Food and non-alcoholic beverages (42% and 38%): These products are always an indispensable part of Tet parties, contributing to creating a festive atmosphere during the holiday season.

In addition, there are also differences in the timing and level of shopping between rural and urban areas. In rural areas, when many people return from the city to their hometowns for Tet, spending will increase sharply and extend the shopping time, even extending to a week after Tet when people return to the city. Tet shopping time in rural areas can be 2-3 times higher than normal weekly spending.

On the contrary, in big cities, the shopping pace will be faster and more intense, often ending before Tet. Fierce competition in a short time requires brands to have sharp and timely advertising and promotion strategies to attract consumers.

THREE MAIN CHANGES IN TET 2025 CONSUMPTION TRENDS

Based on Kanter Worldpanel’s consumer survey in 4 major cities and rural areas, there are 3 main changes in Vietnamese people’s Tet 2025 consumption trends.

First, consumers during Tet 2025 will continue to prioritize essential and useful products such as household appliances, cooking utensils, personal care products and non-alcoholic food and beverages. This change reflects the simplification in product selection and the shift from crowded gatherings to family and individual activities.

At the same time, strict regulations on driving while using alcoholic beverages will cause products such as alcohol and confectionery to decrease in the Tet basket, although they still account for a large proportion.

Second, there is a clear change in the trend of choosing Tet gifts in 2025 when consumers prioritize practical and affordable gift sets over traditional FMCG products.

Kantar’s survey shows that the number of households receiving Tet gifts from FMCG products is gradually decreasing. This reflects a change in gift-giving habits, with consumers looking for gifts with high usage value and suitable for the family’s actual needs such as cooking oil, spices, and healthy products such as nuts, yogurt, bird’s nest rather than previously popular consumer products such as beer or candy.

Third, the trend of Tet travel is becoming more popular. After years of facing the pandemic and stress at work, consumers tend to seek relaxation through Tet travel.

Data from the General Statistics Office shows that the number of domestic and international trips during Tet 2024 has increased significantly. This shows that tourism is not only a leisure activity but also an important trend in the way people celebrate Tet in modern times. In addition, Tet gifts have also become more diverse, with options such as cash, household products, and fashion instead of traditional FMCG products.

Despite the change in consumption patterns, Tet 2025 is still a special occasion for Vietnamese people. After the complex impacts of the economy and living environment in recent years, consumers tend to celebrate Tet in a more calm and relaxing way. Vietnamese people also reduce large gatherings, simplify Tet preparation activities, and spend more time with family and themselves.

Kantar – a market research company in Vietnam has just released the report “Brand Footprint Vietnam”.

Through analyzing more than 1,000 FMCG brands, the report ranks the most purchased FMCG brands in Vietnam for 2023 across five sectors: food, beverages, dairy and dairy substitutes, health and beauty, and home care.

In the packaged food sector, the top 10 most purchased brands this year continue to affirm the position of “giants” such as Hao Hao, Chinsu, Nam Ngu.

Hao Hao instant noodles secured the leading position in urban areas and place in rural areas, with an impressive double-digit growth in consumer reach point (CRP).

In 2023, the national instant noodle brand Hao Hao attracted an additional 187,000 urban households and over one million rural households, reaching purchase rates of 78.9% and 65.7%, respectively.

This is the highest CRP growth rate and purchase rate among the top 10.

Chinsu and Nam Ngu maintain their top 5 positions in both urban and rural markets.

A series of Vietnamese brands in the fast-moving consumer goods industry were purchased the most in 2023. Photo: TU UYEN

Beverage industry, the top 10 most purchased Vietnamese brands in both urban and rural areas have changed positions, with half of the brands recording double-digit CRP growth.

Coca Cola maintained its leading position, attracting more than 105,000 and 388,000 new households, respectively.

In urban areas, Sting energy drink took second place, right after Coca Cola. For the first time, Aquafina bottled water entered the top 5.

Notably, Saigon beer climbed nine places to enter the top 10, with a rapid CRP growth of 57.5%.

In the dairy and dairy substitutes industry, the top 10 most purchased brands in both urban and rural areas are Vinamilk.

In the urban market, TH held the second position, followed by Ong Tho milk and Ngoi Sao Phuong Nam.

Top 10 most chosen brands in rural markets, Fami ranked second.

Top 5 FMCG brand owners chosen the most in both urban and rural areas. Photo: TU UYEN

The top 5 FMCG brand owners with the most purchases in both urban and rural areas remained the same as last year.

Vinamilk, Unilever, Masan dominated the FMCG market when appearing in both urban and rural markets.

In the rural market, Acecook Vietnam achieved an additional 20 million purchases thanks to the success of the Hao Hao brand.

Mr. Peter Christou, General Director of Kantar Worldpanel Vietnam, assessed that 2023 is a challenging year for the Vietnamese FMCG market. Macro factors caused a wave of financial anxiety in households, causing consumers to change their shopping behavior.

“Vietnam Brand Mark 2024 recognizes FMCG brands that have been successful in attracting shoppers, being present at consumer touchpoints and finding new spaces for development,” said Mr. Peter Christou.

Urgent requirements

Over the past decade, the demand for green production and green consumption has become urgent and has taken on legal significance for many countries around the world.

Many textile and garment enterprises are switching to green production. Illustration image.

Regarding this issue, Associate Professor Dr. Dinh Trong Thinh analyzed that over the past 2 to 3 years, the trend of green production has been seriously embraced and implemented by countries around the world. This is aimed at ensuring safe production activities from the input raw materials to the output products, and even after consumption, the recovery and recycling processes must meet environmental protection requirements.

Therefore, to grow and develop, particularly for a country like Vietnam that relies on exports and imports as a development driver, it is clear that Vietnamese businesses’ shift towards green production and green consumption is a mandatory requirement.

Especially in the years 2021-2022, when many countries worldwide demanded standards for green products, exporting to those markets reached a new level. This means that Vietnamese companies must meet these minimum requirements to export successfully.

“Green economy, green production, and green consumption have become a reality for Vietnamese businesses rather than just a trend. It is a requirement that companies must fulfill,” emphasized Associate Professor Dr. Dinh Trong Thinh.

According to Director of the WTO and Integration Center (VCCI) Nguyen Thi Thu Trang, 98% of Vietnamese enterprises are small and medium-sized. If they are required to change technology to produce green, they are almost incapable due to their weak financial capacity.

Producing leather shoes for export. Photo: Viet Dung

Therefore, it is crucial for regulatory authorities to establish green production standards for each item and product as soon as possible. Companies that conserve raw materials, save energy, reduce costs, and utilize non-renewable resources below the established standards should be recognized as engaging in green production.

Additionally, regulatory bodies should consider the average CO2 emissions per product in each industry. If companies can achieve emissions below that threshold, they should also be classified as practicing green production. This approach would encourage small and medium-sized enterprises in Vietnam to adopt greener practices, leading to greater conservation of raw materials, fuels, and energy.

Need for additional mechanisms and policies to support businesses

Many experts agree that the State needs to facilitate businesses through policies such as tax exemptions, reduced credit interest rates for companies achieving green products. This would enable businesses to access capital sources, innovate technology, improve production and business capacity, thereby accelerating the transition to greener practices.

Assoc. Prof. Dr. Dinh Trong Thinh stated the Ministry of Industry and Trade needs to firstly grasp the requirements of standards that markets around the world set for each product, from which to recommend to businesses so that they can have adaptation plans.

In addition, through trade offices and embassies, the Ministry of Industry and Trade grasps the technological and technical chains in the production of products in each industry to help businesses access the most suitable technology, ensuring savings in raw materials and adapting to the requirements of each market.

Nguyen Thi Thu Trang, Director of the WTO and Integration Center (VCCI), emphasizes that the Ministry of Industry and Trade should first understand the standard requirements set by global markets for each type of product. Based on this understanding, they can provide recommendations to businesses so they can develop suitable adaptation strategies.

In addition, the Ministry of Industry and Trade supports businesses in customs clearance of goods, protecting the interests of businesses when there are trade barriers. Thus, the task of the Ministry of Industry and Trade is directional in nature, accordingly, it not only solves specific tasks in import and export activities in the markets, but at the same time, it is also the one who guides businesses in the use of raw materials, thereby having green products that meet the requirements of the international market.

According to Deputy Director of the Department of Energy Saving and Sustainable Development (Ministry of Industry and Trade) Quach Quang Dong, in order to support businesses, the Government, ministries and branches need to supplement and perfect mechanisms and policies to respond to the new context and situation of the world; at the same time, protect the legitimate interests of businesses, create favorable conditions for businesses to develop and limit risks.

Currently, for small and medium-sized enterprises aiming for green and sustainable development, changing, transitioning, and improving production technology is essential but requires significant investment costs. Therefore, the government needs to assist businesses in maximizing domestic and international resources, including new financial sources such as green finance or carbon markets, to provide additional support for business development.

A recent analysis report released in late November 2024 by the Analysis Department of SSI Securities Company stated that Masan Group Corporation (MSN) – a leading domestic enterprise in the consumer goods industry, is likely to complete this year’s profit plan positively.

“Light entrance” for growth amid high competitive pressure

Accordingly, Masan is estimated to have a profit attributable to the parent company’s shareholders of VND 1.9 trillion for 2024 , driven by better-than-expected business results from its two subsidiaries in the consumer and retail sectors: Masan Consumer Holdings (MCH) and WinCommerce (WCM).

Small and medium-sized enterprises in the consumer goods sector must optimize sales channels to meet the new demands of consumers amid this fierce competition.

Not only that, the parent company’s shareholder profit is forecast to grow by 48% in 2025, thanks to the continued improvement in profits at its subsidiaries in the consumer sector such as Wincommerce or Masan MEATLife (MML).

As assessed by SSI, MSN can be a representative of Vietnam’s long-term consumption and retail growth story. The compound annual growth rate for the parent company is projected to be 33% from 2024-2026.

It should be noted that Masan is building a new fast-moving consumer goods (FMCG) model with a strategy to establish 6 billion-dollar big brands, ensuring consumers feel secure when spending on products.

In addition, as Mr. Truong Cong Thang, CEO of MCH, once shared, the FMCG market size that the company is serving is currently valued at 8 billion USD, while the total market size in Vietnam is up to 32 billion USD.

Similarly, according to an updated report from SSI in late November 2024, Digiworld Corporation (DGW) expects strong growth (25-30% year-on-year for 2024-2025) in its home appliances and FMCG segments as the company continues to add new brands and products to its portfolio.

Analysts predict that DGW’s FMCG segment in the 2024-2028 period will have a compound annual growth rate (CAGR) of 25.4%. In 2024, this segment is expected to officially surpass the revenue milestone of 1 trillion VND. This is primarily driven by factors such as double-digit growth in the FMCG sector; DGW’s market share still has a lot of room to expand and the company’s continuous addition of consumer goods to its portfolio.

In addition to the “light entrance” for growth of the two domestic enterprises mentioned above in the consumer goods industry, at a seminar organized by the Association of High-Quality Vietnamese Goods Enterprises in Ho Chi Minh City on December 2nd to discuss the 2025 Tet shopping trend – how to meet the new needs of consumers, Ms. Nguyen Phuong Nga, Senior Business Development Director of Kantar Vietnam Market Research Company, noted that there is fierce competition in the consumer goods industry in Vietnam from both long-standing and emerging brands, domestic and foreign international.

According to Ms. Nga, this intense competition arises from all directions. There are increasingly more brands and products available in the market that attract consumers. The growth in the number of products on the market comes from large enterprises, small enterprises, or newly established firms, or foreign enterprises entering the Vietnamese market through both formal and informal channels.

“This factor gives consumers more choices, and when they have more choices, they are certainly more likely to switch brands based on factors like better packaging or more competitive pricing …”, Ms. Nga shared.

Keeping up with new demands

This situation places considerable competitive pressure on domestic companies in the consumer goods sector, especially over the past 2-3 years, compounded by recent changes in shopping behavior.

As noted by the Senior Business Development Director of Kantar Vietnam, the continuous launch of new products offers consumers more choices and a richer product portfolio. However, this also leads to a decline in brand loyalty. Notably, top brands are gradually losing market share to emerging smaller brands.

“In the past, it was very difficult for newly established small companies to penetrate distribution channels, but that has changed, especially in rural areas. The market is now highly fragmented, providing more opportunities for smaller businesses to establish their presence”, Ms. Nga added.

Moreover, according to Ms. Nga, Chinese brands have significantly entered this industry with a deep penetration strategy, have stores, representatives, large website stores… And Thai brands are also present. Additionally, businesses also compete with private labels from supermarkets, which saw a 7% increase in 2023 and a projected 17% growth in 2024.

In addition, considering the current shopping trends in the consumer goods industry in Vietnam, it can be seen that the trend of choosing a place to shop increasingly requires a variety of goods, transparency in origin, reasonable prices and added values ​​from incentive programs. Therefore, the new pathway that consumer goods businesses need to pursue is to quickly adapt and innovate strategies to meet these expectations, while enhancing competitiveness in the market.

Moreover, the fierce competition among businesses in the consumer goods industry will accelerate the restructuring process for domestic players. Competitive pressure, the race on costs, technology and customer service compel them to constantly seek new pathways and solutions to reduce costs, optimize operations, improve price and quality competitiveness to attract and retain customers.

Additionally, experts believe that this intense competitive pressure is a decisive factor for domestic companies in the consumer goods sector as they aim to expand their market share. However, this also poses great challenges for small and medium-sized enterprises as they face competition from large corporations with strong financial resources.

In the long run, this competition will contribute to making Vietnam’s consumer goods market more transparent, promoting the development of domestic enterprises with high competitiveness, more effective and flexible business strategies to increase market share and consolidate their position.

In particular, domestic enterprises need to keep up with market conditions and shifts in consumer trends. They should implement priority strategies aimed at repositioning their operations and laying the groundwork for sustainable success.

Among these strategies, enhancing omni-channel sales is something that domestic enterprises in the consumer goods industry should further strengthen. Because in the midst of this race, when consumers desire flexibility in their shopping experiences, it requires enterprises to optimize sales channels to both meet new consumer needs and maintain good growth.

Product quality and usability are top priorities for consumers. Illustration image.

According to the latest report by NielsenIQ (NIQ), consumer sentiment about the economic situation has gradually improved, with 45% agreeing with the statement “Vietnam is not in an economic recession at this time”. Accordingly, consumers’ financial situations are changing positively, and a large majority feel optimistic about their spending capabilities.

CONSUMERS REMAIN CAUTIOUS

The report on new trends that could drive growth in the retail market by 2025 from NIQ indicates that personal financial situations in Vietnam are expected to improve significantly in 2024, although essential cost burdens still persist.

Specifically, 67% of people said that their financial situation is better than the previous year, while only 10% said that their financial situation is worse. However, basic expenses such as healthcare (50%), food and goods (49%), as well as fuel (44%) are still a big burden for consumers.

Ms. Thao Huynh, Vietnam Industry Insights Lead, NIQ Vietnam, said that despite the improvement in the financial situation, consumers still maintain cautious spending and saving habits.

Faced with rising prices, consumers are also cautious in their shopping. Of these, 64% said they would only buy essential items when food prices increase and 63% would reduce their purchases. At the same time, they pay close attention to deals and promotions, with 75% always taking advantage of discount programs to save costs.

“However, the influence of promotions on brand and store selection is still limited, as 42% of consumers said they only buy products when they have a good impression of the brand,” Ms. Thao added.

In addition, Vietnamese consumers are becoming more savvy and conscious in their shopping habits. Accordingly, 85% compare prices before making a purchase, 80% prioritize products that have been chosen by many other consumers and 78% are willing to spend more on high-quality products. “This indicates that product quality is a top priority in purchasing decisions”, Ms. Thao emphasized.

On the other hand, according to a survey by PwC, Vietnamese consumers are increasingly prioritizing sustainability in their consumption habits, with 94% reporting negative impacts of climate change in their daily lives (compared to 88% in the region).

Notably, 74% of Vietnamese consumers expressed their willingness to pay 20% more than the average price for a product made from recycled/sustainable materials, and up to 85% would consider buying a hybrid or electric vehicle in the next 3 years.

Vietnamese consumers are quite open to using artificial intelligence (AI) in low-risk activities, but still prefer direct human interaction for complex transactions. Specifically, 69% believe AI can assist with product information gathering, followed by making product recommendations (63%) and customer service support (59%).

F&B INDUSTRY PROMOTES DIGITAL TRANSFORMATION AND SUSTAINABLE DEVELOPMENT

According to a report from the Ipos Report management system, Vietnam’s F&B industry has achieved a growth rate of 10 – 12% in 2024 compared to 2023. With the 3rd highest revenue in Southeast Asia, Vietnam is currently one of the most potential markets in the region in this field.

F&B quickly responded positively to anticipate recovery in 2024 – Illustration image.

On the other hand, according to transaction data via the Payoo payment platform, the economy shows many positive signals, with consumer purchasing power rising significantly in the first half of 2024, presenting an opportunity for many industries to recover.

In particular, the food and beverage industry – F&B (Food & Beverage) quickly responded positively to anticipated the recovery in 2024. A recent survey of 3,000 F&B businesses by Payoo revealed that about 80% of businesses in Vietnam remain optimistic and have the resources to grow in 2024, with nearly 52% having expansion plans.

Forecasts indicate that this year, the value of the food and beverage market in Vietnam is expected to increase by 10.92% compared to 2023.

Last year, Payoo also focused on the F&B segment and expanded its customer base within this group, recording a high increase in spending. Specifically, the number and value of F&B transactions through the system increased by 38% and 54% respectively. Payment by international cards still dominates but slightly decreased to 65% of transaction volume, followed by QR code payments at 30% and domestic cards at 5%.

In addition to traditional payment solutions at POS counters, Payoo has also introduced a prepayment solution that allows customers to purchase packages in advance and store them within the apps of several major brands for future use.

Responding to the tastes of consumers, especially the younger generation and the consumption trend towards sustainable development goals, many businesses in the F&B industry have improved business processes, applied technology, and digitally transformed their approach to customers.

For example, the Vinamilk brand has invested in technology and green solutions at its farms and factories. Vinamilk stores are gradually transitioning to using recycled plastic bags, contributing to reducing plastic waste.

Similarly, Acecook Vietnam has also replaced plastic packaging for cup noodle products such as Modern and Handy Hao Hao with paper packaging, along with switching to using forks made from bioplastics derived from certified bio-based materials.

Recently, Saigon Beer – Alcohol – Beverage Corporation (SABECO) officially opened the SABECO Beer Research and Development Center (SRC). SABECO representative said that the launch of SRC will create a beer research and development system at an in-depth level to innovate technology, research and apply new materials, new processes to improve and produce, suitable for Vietnamese culinary culture and tastes.

Or recently, Pernod Ricard has also launched an electronic label E-label that can be accessed via QR codes printed on the back labels of Pernod Ricard products. By scanning the QR code with any mobile device, consumers in Vietnam will be directed to a dedicated platform providing detailed information about the beverage product, health risks related to misuse, and guidelines for responsible drinking.

Instant noodles are seen in a supermarket in Hanoi. Photo by VnExpress/Minh Son

Vietnam’s instant noodles will be exempted from increased food safety control in the EU starting from July 2, as they have met related regulations.
The inspection frequency at border gates for the products remains at 20%.

The exemption comes as the EU’s Commission Implementing Regulation 2024/1662 was issued on June 11, amending the Implementing Regulation (EU) 2019/1793 on the temporary increase of official controls and emergency measures governing the entry into the union of certain goods from certain third countries implementing Regulations (EU) 2017/625 and (EC) No 178/2002 of the European Parliament and of the Council.

The EU has also adjusted inspection regulations for other Vietnamese farm produce. For dragon fruit, the inspection frequency at the border has been increased from 20% to 30%.

Chili peppers have been moved from Annex I (50% inspection frequency) to Annex II (50% inspection frequency with food safety certificates and test results for residual pesticide residues in the product).

Okra remains at a 50% inspection frequency with food safety certificates and test results for residual pesticide residues in the product. Meanwhile, the inspection frequency for durian stays at 10%.