Credit from Nielsen
FMCG Consumption In Rutal Vietnam Continues To Accelerate
On the heels of improving consumer confidence in the recent quarter, Vietnam’s GDP grew 5.7% in the first half of 2017, but not as much as some would have hoped. Additionally, while consumer confidence remains at a five-year high, concerns about employment are growing across the region.
Despite the rise in GDP this year, Vietnam’s FMCG market has fluctuated over the past two years. Rural Vietnam, however, remains a high-potential opportunity for many manufacturers, posting growth of 6.5% in the second quarter, compared with 5.1% in urban areas. Additionally, rural markets accounted for almost 58% of total FMCG sales in the recent quarter.
The strength of Vietnam’s rural areas hinges on the fact that they’re home to more than 60% the country’s total population. Despite their outer locations, urbanization, internet access and smartphones are changing the lives of rural consumers, boosting their connectivity, exposure to media and ability to interact with the rest of the world in real time. And not only do rural consumers desire that connectivity, their exposure to a wider variety of products has shown that they’re also willing to pay for higher-quality products.
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An Integrated Update Of Vietnam FMCG Market
Vietnam’s economy saw another strong year with GDP posting the fastest growth rate since 2011, of 7.08%. CPI has been kept under control below +4% for 4 consecutive years. 2019 economic growth is forecasted to up 6.8%.