Overview of Vietnam Electronics Retail Market

Vietnamese consumer electronics market has been underpinned by the country’s healthy economic growth and its tech-savvy young population. The market’s main products include audio & video electronics, household appliances, mobile phones, digital cameras & other gadgets[1].

During 2014-2018, retail sales of consumer electronics was at 13.8% CAGR, with forecasted sales of VND169.8 trillion (~USD7.5 billion) in 2020[2]. Amid the pandemic period (2019-2020), the CAGR dropped significantly to -0.98%. Nevertheless, this sector still managed to have a slight revenue growth of 0.2% in 2020[3].

The flow of China Plus One has accelerated since the 10s, due to the increasing labor costs and labor shortages in China. According to report of JETRO, The share of export value of electrical equipment has increased to 2019, telephones and parts accounted for 19.5%, and computer electronic products and parts accounted for 13.6%. Export of FDI accounted for 42% of total export value in 2009. It increased by 70% to 2019. Export value of Domestic has also increased by more than two times from 2009.

Vietnam’s healthcare at a glance

In 2018, the country’s healthcare expenditure to GDP was 5.9%, which was higher than some other markets in the region, yet the real value was comparatively low^[1]. Healthcare expenditure per capita is expected to increase 1.7 times from US$150 in 2018 to US$260 in 2025^[2].

Overview

If in the past, when Vietnamese people had demand for checking up their dental health, dental treatment or cosmetics dentistry, it is difficult to find a quality dental clinic, especially in rural regions. Nowadays, the issue above has matter nobody. With amazing growth in the recent ten years, Vietnam gradually makes its name well-known in world dental map.

Overview

Vietnam’s automotive industry takes on the challenge of domestic production

The size of Vietnam automobile market was once considered relatively small and overlooked by many Japanese manufacturers. There existed a strong opinion that the liberalization of trade among ASEAN countries would make the automotive industry become unnecessary in Vietnam. However, the demand for automobile in Vietnam has recently been on the rise. Could it be a potential driving factor for the growth of a manufacturing base?

Overview

In Vietnam some major local governments like Hanoi, HCMC, and Danang have been expanding the networks of automatic vending machines for the recent 5 years. Originally, the spread of vending machines had been delayed in Vietnam . It is said that the first installment of an automatic vending machine is in September 2016. The purpose to set it up was mainly for overseas tourists who had to pay too much money to the local vendors, not for more convenience for the people. As for the locations of automatic vending machines, it has been mainly in industrial parks where security measures and maintenance systems are easier than on-street installations and in residential areas developed by major real estate developers, therefore there are less opportunity to be recognized in daily life. By 2018, the number of automatic vending machines installed in Hanoi was about 160, which were treated as a test operation.

Overview

The Covid-19 outbreak since the end of 2019 has caused far-reaching impacts on all sectors around the world including severe economic crisis. Southeast Asia is no exception. Myanmar is facing a dual crisis because of Covid-19 and political instability. Thailand’s post-Covid economic recovery plan may continue to be delayed in the event of the 3rd Covid-19 outbreak.

Overview

Food processing is one of the sectors that Vietnam is prioritizing to develop by 2025, with a vision to 2035. The food processing industry in Vietnam has grown steadily over the past few years. In the period 2013-2017, the Index of Industrial Production (IIP) of the food processing industry increased by an average of 6.82% annually (VGP, 2018). Despite the impacts of the COVID-19 pandemic, the 2020-IIP of the industry still increased by 5.3% compared with 2019 (GSO, 2020), as well as the quality of the products and number of companies.

Overview

Not until 1920 when the French brought foreign dairy cows to Vietnam that the local people here got to know about cow milk. In 1924, Longevity & Dutch Lady products were first traded in Saigon (later renamed Ho Chi Minh City) and became the first player in the longtime dairy industry. Since then, the Vietnam dairy industry has developed dramatically. According to Euromonitor, the total size of Vietnam’s dairy market in 2019 has reached over USD 5.2 billion and a report from Vietnam Dairy Association also pointed out that the dairy market’s revenue already reached USD 4.7 billion in 2018, an increase of 9% compared to 2017, and made the CAGR of 12.7% over the period of 2010-2018.

Rising Trend of Healthy Drinks among Vietnamese Consumers

Health has been the top concern for Vietnamese consumers based on research by Nielsen from Q3-2019 to Q1-2020. As to lead a healthy lifestyle, it seems that many consumers are interested in healthy drinks. When searching for the keyword “healthy drinks” or “healthy juice recipe” on Facebook, Vietnam’s most popular social media channel, the results display a lot of fan pages, groups, and posts with many engagements. Take a fanpage called “Juicing, Healthy Drinks and Yoga Lovers” as an example, this fanpage attracts more than 37.1 thousand members and has a high posting frequency with about 100 interactions per post. Another group called “1001 Công Thức Nước Ép” (1001 Juice Recipe) has 55.2 thousand members and engagement per post is above 100.