Report: Positive outlook for Vietnam’s FMCG sector

The report pointed out that the FMCG market showed improvement in four large cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho) and in rural areas in the fourth quarter of last year.

For all of 2017, the urban market strengthened its performance while the rural market picked up but is not stable just yet.

Positive growth has been seen across the personal care category, with facial moisturiser and make-up items being the most outstanding categories, gaining consumer spending in urban and rural markets.

The growth of facial moisturisers was largely attributed to more consumers starting to focus on beauty care in rural areas.

The snack market is now the main source of growth for packaged foods in both urban and rural markets. More innovations and the increase in convenient indulgence in food consumption are driving the growth of snack foods. Brands can leverage this trend by creating and capturing additional snacking occasions.

According to the report, in the short term, the beverage sector remains the growth driver of the urban market. Personal care continues developing very well in both urban and rural markets as consumers increasingly adopt a diverse repertoire of products.

Regarding the retail landscape, wet markets continue to lose share to other channels while minimarket/convenience stores accelerate their expansion in urban key cities.

Modern trade increased 15 percent in the last quarter, outpacing traditional channels. The retail market is expected to heat up further in 2018 with new entrants and new retail models.