Vietnamese Consumer Market: On the Front-line of Growth

Executive Summary

Vietnam has consistently been one of the fastest growing economies in the world in recent years. In 2018, the country boasted its strongest growth so far with 7.08% GDP growth, under the 4% inflation target and record-high trade balance. On the back of the domestic political stability, investor-friendly government policies, young demographic, rising domestic consumption and high urbanization rate, the economy is projected to continue growing at an average rate of 6.5%-7% per year for the next three years.

Along with the economic growth, expansion of middle class and rising income also pose opportunities for both consumers and retail sector. This is even more promising considering the fact that private consumption accounts for nearly 70% of Vietnam’s GDP, which makes it an important driver of the economy. Overall, a range of positive societal and economic features have cemented Vietnam’s clout as the second largest retail market in the region, with a further room for upside with a competent rate of e-commerce penetration.

 

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