ENABLE YOUR

SUCCESS IN
VIETNAM

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 VIETNAM –
A MARKET OF
OPPORTUNITIES

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

 VIETNAM REMAINS ONE OF THE FASTEST GROWING IN SOUTHEAST ASIA

Vietnam Malaysia Philippine Singapore Indonesia Thailand

GDP Q2’19
growth vs. YA 6.8 6.0
5.1
4.2
3.3
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

1.9

Vietnam Malaysia Philippine Singapore Indonesia Thailand

FMCG MAT Q2’19
growth vs. YA 10.0
8.6 8.1
5.8
9.0

8.0

7.0

2.8
6.0

5.0

0.5
4.0

0.1
3.0

2.0

1.0

0.0

Vietnam Malaysia Philippine Singapore Indonesia Thailand

Consumer 123 130 126
110 105
92
140

Confidence Index 120

100

80

60

40

20

• Source:Vietnam
GSO Vietnam. Economist Intelligence
Malaysia Unit. Nielsen Quarter by number report Q2’19 Singapore Indonesia Thailand
3
 POSITIVE GDP GROWTH IN 1ST HALF OF 2019 DESPITE SLIGHT
SLOW-DOWN
Q2’19 GDP GROWTH LOWER THAN Q2’18, YET
ALL 3 SECTORS PLAY THEIR ROLES
HIGHER THAN Q2 FROM 2011 TILL 2017
GDP % Growth GDP’s Growth YA
7.5 7.6 7.4 7.3
6.8 6.9 6.8 6.7
6.2 Service 6.9
5.1

Industrial & Construction 9.1

2.2
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Agriculture, Forestry & Fishery

0 5 10

KEY HIGHLIGHTS IN 1ST HALF OF 2019

Service Industrial & Construction Agriculture

Wholesale & Retail ▲8.1% Processing ▲11.2%

highest contribution to total GDP incremental Most growing provinces: Tra Fishery reaches 6.45%
Accommodation & Catering Vinh (Solar & Wind electricity growth - Highest growth
Service production), Thanh Hoa (Nghi in the past 9 years
flourishes with 287Mn. in value, Son Oil Refinery),
▲9.8% vs H1’18 Ha Tinh (Formosa)
Source: GSO Vietnam 4
 VERY GOOD GROWTH MOMENTUM OF FMCG WITH NEW
PEAK IN Q2’19
 FCMG Growth – Total Urban (TT Urban + MT Urban)

8.6%

7.3%

6.3%
6.0% 6.1%
5.4% 5.2%
6.4%
5.3% 3.8%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

3.6%
4.7% 4.2%
4.9% 3.0%
4.4%
3.3%
1.8% 4.1%
2.5% 2.4% 2.8%
2.0%
0.8%
2.0% 1.8% 2.2%
1.6% 1.1% 1.1%
1.1% 1.0% 1.0% 0.9% 1.0% 1.0%

MAT YA MAT TY YTD YA YTD TY Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Unit Value Growth Volume Change (Weighted Value) Nominal Value Growth

Source: Nielsen RA data

5
 CONSUMER CONFIDENCE INDEX* TOP VIETNAMESE INCREASING CONCERNS

129 122 129 123

112 114 117 117 117 120
2018-Q2

2018-Q3

2018-Q4

2019-Q1

2019-Q2
Asia Pacific Vietnam 44% 13% 9%
(+2pts vs. Q2’18) (+1pts vs. Q2’18) (+2pts vs. Q2’18)
VIETNAMESE TOP SPENDING AFTER NECESSITY
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

78
75 CHILDREN INCREASING
72 73 72 HEALTH
70 69 EDUCATION BILLS
66
63 Savings

New clothes
55 % Respondents say these are there top 2 biggest concerns
53 53
51 Holidays/vacations
49
46 46 47 47 46
44 48 43 53 47 New technology products
40 50 39
36
44 44
42 46 42
43
49
43 38
48
46
48
39
46
48
39
OOH entertainment ELECTRICITY PRICE INCREASE
37
31
38 38
41 40 Home improvements Electricity price uplifted 8.36%
30

29
in Mar’19 after 2 years of stability
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

% Respondents say they will spend on this item after necessities

Consumer Confidence Index: Perceptions of local job prospects, Perceptions of state of personal finances over the next 12 months, Perceptions of good/bad time for people to buy the things they
want and need over the next 12 months. Source: Nielsen Global Survey Consumer Confidence Section 6
 VIETNAM HAS A YOUNG POPULATION WITH MILLENNIALS DOMINANT &
GEN Z ARE CONSUMERS OF FUTURE
2015 2025
SHARE OF POPULATION
MILLENNIALS
GEN Z (20-49 y.o) BABY BOOMER
(15-19 y.o) (50-64 y.o)

7%
18%
7% 14%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

43%
48%

• Super connected with synergy • Seek for delivery services

between Online & Offline activities
• Care about society issues (social
responsibility, gender equality, LGBTQ)
• Strong POV & KOL influence
• Willing to try Health supplement
• Seek for greater convenience
products
• More going out
• Open to new things
• Go premium but value for money
7
 WITH A POSITIVE ECONOMIC OUTLOOK TILL 2022

98.2 Mil +6.2%

Population in 2022 with GDP growth year on year
yearly growth of 1% till 2022
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

USD $3,329 +4%

GDP per capita in 2022 CPI growth year on year
(~60% growth vs. 2015) till 2022

Source: Statista, Vietnam 2012 - 2022 8

Copyright © 2017 The Nielsen Company. Confidential and proprietary.
 MODERN TRADE IS BOOMING RAPIDLY ACROSS STORE TYPES &
DRIVING THE GROWTH OF FMCG

TRADITIONAL TRADE MODERN TRADE

Value % contribution – Total

87% Vietnam OFF+ON Premises in
MAT Jul’19
13%

5% Growth % vs. YA
19%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Updated: Universe Update H1’18 Updated: Jul’19

~ 1.5 MIL STORES (+0.2% vs. YA) 7,968 STORES (+14% vs Oct’18)

Hyper/ Supermarket* 717

Market Stall 65,248
Minimart & Food Store* 5,301
ON Premise 675,469
Convenience Store 889
OFF Premise 811,032
Modern Drug Store** 434

Mom & Kid Store 627

Source: Nielsen Retail Measurement, Nielsen Universe Update, * including independent stores, ** including Health & Beauty store
MAT : Moving Annual Total, FMCG includes 37 categories without Cigarette 10
 SMALL FORMAT CONTINUES GAINING IN “PENETRATION”, “FREQUENCY”
AND “MOST SPENDING”

Wet Markets Traditional Supermarkets Department Health & Convenience Minimarts

Grocery Store Beauty Stores
Drugstore
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

PENETRATION 86 81 97 14 32 46 51

FREQUENCY 18.7 7.0 2.3 0.7 1.2 4.2 3.7

SPEND MOST AT 36 7 45 0 1 3 2

Base: 2018 (n=1500), 2019 (n=1702)

Ref: Q7a Which of these types of stores have you visited in the past 7 days?
Ref: Q8 On average, how often would you shop at the following type of store?
Ref: Q7d Which of these types of stores would be the one where you normally buy most of your food and grocery items?
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 HIGH INTERNET PENETRATION FUEL THE GROWTH OF
ONLINE PURCHASE IN VIETNAM
INTERNET FREQUENCY OF DAILY
PENETRATION INTERNET USE TIME SPENT

53% 85% 6.5H

DAILY
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

4,021 3,418 6H 33M DAILY TIME

BILLION BILLION SPENT ONLINE
CONNECTED PEOPLE CONNECTED PEOPLE

APAC 51% APAC 86% APAC 7H 34M

Japan 94% Hong Kong 95% Thailand 9H 38M

Highest in APAC
Myanmar 29% Phillippines 58 % South Korea 5H 04M

Vietnam 58% Vietnam 94 % Vietnam 6H 52M Lowest in APAC

Source: Internet Penetration: Demand Institute | Mobile Internet Penetration, Frequency and Daily Time Spent: We Are Social & Hootsuite, Digital in 2018 12
 INFRASTRUCTURE & DEVELOPMENT RATE OF
E-COMMERCE IN VIETNAM TO 2020 REACHING $10 BILLION
MARKET VALUE
10 billion
USD
8.1 billion
USD
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

2018 2020

$250/ 30%/
$350/ 20%/
person year
person year

13
 WHAT PEOPLE BUY ONLINE THESE DAYS - VN & APAC
% of consumers who have purchased the following categories online (penetration)

APAC VIETNAM
69% 70%

55%
53%
51%
49%
47%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

44%
40%

26%

61% 45% 40% 38% 36% 34% 31% 29% 24% 23%

Fashion Beauty & Books & Music IT & Mobile Consumer Household care Packaged Travel Children & Event Tickets
Personal care Electronics grocery food baby products

Source: Nielsen Global Commerce Study 2018

15
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

16
 VIETNAMESE CONSUMERS ARE HEALTH CONSCIOUS & TAKING
ACTIONS TO STAY HEALTHY, YET TRUST ISSUE HAVE TO BE SOLVED
FIRST

I trust health claims on food packages

 % Consumers stating Health as top 2
biggest concerns – Q4’18

43% 22%
Vietnam Global
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

 Most important health attributes when

purchasing one product
Health claims are just a way for
manufacturers to charge more
Dishwashing Liquid 100% natural
54% Added Vitamin/ Unilever ingredients extracted
Minerals/ Nutrients Sunlight Nature with white tea, mineral
46% All natural/ organic
52% Low/ No salt and aloe vera
ingredients
cholesterol
40% No harsh
51% Made from
chemicals
vegetables/ fruits

3.2%
49% All natural Share achieved after
6 months launch
Source: Nielsen Consumer Confidence Report. *APAC figures. Nielsen Global Source: Nielsen Global Ingredient and Dining-out Trends Report. Nielsen
Health Survey. Nielsen The dirt on cleaning report Global Survey We are what we eat

17
 VIETNAMESE OPTIMISTIC FINANCIAL SENTIMENT & SPENDING ABILITY
FUEL THE GROWTH OF PREMIUM PRODUCTS

 Consumers’ financial sentiment &  Key attributes of premium products from

perceptions towards premium products consumers’ perspective

I’m financially better

86% compared to 5 years ago #1 Globally
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

65% 49%
APAC
35% I’m able to spend freely vs.
18%
58% 46%
Feminine Protection Advanced “Menthol”
Buying premium products Global Diana Unicharm technology from Japan
72% makes me feel confident
vs.
51%
55% 38%
Sensi Cool Fresh for refreshing & cooling
feeling
52% 41%
Premium segment – MAT Mar’19

Contribution 38.0%
50% 21%
2.1%
Share achieved after
Growth +6.8% vs 4.6% of FMCG
6 months launch
Source: Nielsen Global Premiumization Study 2018. Retail Audit data Source: Nielsen Global Premiumization Study 2018

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 FAST CHANGING PACE OF MODERN “CASH-RICH TIME-POOR”
LIFESTYLE LEADING TO THE BOOMING OF CONVENIENCE SOLUTIONS

 Vietnam average household size & wage

“Anything that saves me time
5.00 4.59
4.13
3.78 3.60 3.50
300
250
56% is worth paying extra for”
4.00

3.00
200 Household
150 size ('person)
2.00
100
Wage per
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

1.00 50
month ('USD)
0.00 0 MT # of stores – Mar’19
2000

2005

2010

2015

Est. 2020

5,397 | +34% vs YA
Instant Nood All-time-favorite flavors
Top 2 important attributes for shopping Hao Hao available in Cup format
Longer working hours with more pressure in Supermarket/ CVS/ Mini-mart Handy Hao Hao for every time & every
5.1 hours/week ~ 9 hours/day day use

Convenient to get to Convenient to get to

79.6% - Female labor force participation
2.0%
Easy to find what I need Always available in stock Share achieved after
rate. Highest in APAC (average of 50.1%) 6 months launch
Source: EIU. CEICDATA.com. International Labor Organization est. for 2025 Source: Nielsen shopper trend 2017-2018

19
 THANK YOU!
Dzung.Nguyen@Nielsen.com

Copyright © 2017 The Nielsen Company. Confidential and proprietary.