Logo of Phnom Penh Post newspaper Phnom Penh Post - VN to be among the most dynamic markets by 2030

VN to be among the most dynamic markets by 2030

Content image - Phnom Penh Post
A man walks with his bicycle in the Con Market in the central Vietnamese city of Danang. YE AUNG THU/AFP

VN to be among the most dynamic markets by 2030

With an emerging market economy and continued strong growth, Vietnam is set to become one of the most dynamic markets in the world by 2030, according to Euromonitor International, a global market research company.

An Hodgson, Euromonitor International’s income and expenditure research manager, said the company’s research database showed that urbanisation, with the associated concentration of income, wealth and population, would propel Vietnam’s commercial success by 2030.

Published last month, the research database has found that Vietnam will be the third biggest urban market by consumer numbers and fifth biggest by total spending in Southeast Asia.

By 2030, the country’s urban consumer market will expand to 46 million consumers and $169 billion worth of spending.

GDP growth is expected to reach 91.4 per cent in the 2019-2030 period and disposable income to $9,740 per household by 2030.

There will be 17 million middle class households in 2030, according to the company’s research.

The burgeoning middle class in Vietnam will drive consumer spending growth as well as give rise to new consumer trends by 2030.

“One in two households will be middle class by 2030,” she said. “The essence of a middle-class consumer is the ability to spend on discretionary items.”

Representing an increase of 34 per cent from last year, Vietnamese middle-class consumers are “aspirational, brand-aware and price-conscious”.

Rural consumers also remain important. In 2030, rural residents, which number 61 million, are expected to spend a total of $173 billion.

There are gaps between the products and services that are currently available and those that older consumers actually want and need.

According to Euromonitor, the fastest-growing population segment is 70 to 79 years old.

By 2030, 12.4 per cent of the Vietnamese population will be aged 65 and above, which equates to a market size of 13 million elderly consumers.

The over-65 segment is the third lowest-earning age group, with an average gross income of 57 million dong ($2,560) last year.

However, their real purchasing power is set to grow the fastest of all age groups up to 2030.

“Older consumers feel, behave and want to be treated as younger people are. They want branding to focus more on needs, interests and values that include consumer experience, convenience, authenticity and novelty,” Hodgson said.

“Businesses that adopt more universal strategies rather than applying age labels can effectively win ageing consumers, while also appealing to younger consumers,” she added.

In 2030, Vietnam is expected to be the fifth largest economy in Southeast Asia where 50 per cent of the households will have an annual disposable income of $5,000 to $15,000.

Although the population is price-sensitive, consumers are willing to pay higher prices for branded products deemed to be healthier or better-quality.

In addition, according to Euromonitor, internet retailing is set to double its market size and reach $5 billion by 2023. While online shopping is not yet prevalent in Vietnam, brands and retailers should stay ahead of e-commerce.

The conference also discussed major global consumer trends and their impact in Vietnam and Southeast Asia.

According to Euromonitor, Vietnam and the Southeast Asia region remain the key focus of global business developments due to healthy economic growth.

The conference provided insights on how companies could tap into the Vietnamese market.

Euromonitor International is the world’s leading provider for global business intelligence and strategic market analysis. During the last 40 years, it has been publishing international market reports, business reference books and online databases on consumer markets. VIET NAM NEWS/ANN

MOST VIEWED

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.

  • Gov’t says tourism recovers slightly despite pandemic

    The Ministry of Tourism and the Phnom Penh municipal administration have recognised 33 tourism businesses in the capital which have consistently implemented safety measures for tourists and adhered to the code of conduct issued by the ministry. Recently, the ministry announced that tourism businesses had to

  • Mull ASEAN border opening, PM urges

    Prime Minister Hun Sen has requested that ASEAN launch a scenario for gradually reopening cross-border travel and trade between countries in the region. He said ASEAN has had more success combating Covid-19 compared to other regions. The prime minister’s request was made at the

  • Ministry reports 11 new Covid-19 cases, reiterates vigilance

    Minister of Health Mam Bun Heng has urged people to continue practising virus prevention techniques after 11 people tested positive for Covid-19 within two days after arriving in the Kingdom. Speaking on Sunday, Bun Heng stressed the importance of washing hands, wearing masks or scarves when

  • Koh Rong land ‘belongs to firm’

    Preah Sihanouk Provincial Administration spokesperson Kheang Phearum told The Post on Sunday that the 35ha being bulldozed by Royal Group Co Ltd in Koh Rong belongs to it after it was leased to it for 99 years by the government in 2008. Phearum said the land does

  • Nine on Indonesia flight Covid-19 positive

    The Ministry of Health on Saturday confirmed nine more imported cases of Covid-19. The nine ‒ eight Cambodians and one Indonesian, aged 22 to 26 ‒ arrived in Cambodia on Thursday via a direct flight from Indonesia and are receiving treatment at the Khmer-Soviet Friendship Hostipal in Phnom Penh.

  • Kingdom’s financial sector healthy

    Cambodia's financial sector remains on a sustainable growth path despite the Covid-19 pandemic squeezing crucial industries, National Bank of Cambodia (NBC) governor Chea Chanto said. Tourism, garments and footwear have borne the brunt of the Covid-19 impact, he said, whereas the financial and agriculture sectors

  • Vietnam told to remove border tents

    Kandal provincial governor Kong Sophoan has ordered local authorities to prohibit the construction of buildings in areas bordering Cambodia and to report any irregularities immediately. Recently, Vietnamese officials removed another seven tents from the border area with Cambodia. His remarks were made on Wednesday afternoon