Vietnam Consumer Report 2019

Vietnam consumer trend 2019
Q&Me is online market research provided by Asia Plus Inc. Asia Plus Inc.
Foreword
Vietnam is one of the world’s top economic
performers when registering a 7% annual GDP
growth rate in 2018.
With the country’s macroeconomic stability, fast
growing domestic consumer demand, competitive
labor cost together with strengthening external
trades, Vietnam will remain an attractive
destination for businesses.
This report explores Vietnam’s latest consumer
trends in important sectors which will continue to
be a driving force of Vietnam moving forward. It
will also highlight some business opportunities and
challenges companies might face when doing
business in Vietnam.
Table of contents
1. Economic landscape P.4

2. Retail market overview P.15
3. Vietnamese online shopping trend P.25
4. Popular media and information source P.34
5. Investment in education P.48
6. Increasing demand of travelling P.60
7. Key technology adoption in Vietnam P.66
Economic landscape
Population
Vietnam population over the years
100 (million)
1.0%
1.6%
1.1%
Area: 1.1%
310.060 km2 95
Population:
97.9 million (May 2019) 90
Urban citizens
34.6 million - 36%
97 97.9
(2018)
Employed population: 85 94.4 95.4
93.4
53.9 million (2018)
80
75
2015 2016 2017 2018 2019 (May)
Vietnam population reaches 97.9 million in May 2019, making it the 14th most
populated country in the world.
Sources: General Statistics Office of Vietnam
Aging population
2019 (April) 2029F
Population: 97,270,778 Population: 104,648,343
Vietnam population is aging. In 2019, the ratio of elderly people (65+) is

estimated to reach 12%.
Sources: Populationpyramid.net / General Statistics Office of Vietnam
Labor force & employment
Laborers aged 15 and above Unemployment rate
(2010-2019)
(Thousand persons) 7.0%
55,324 55,431
54,824
54,445 6.0%
53,984
53,748
53,246 5.0%
4.3%
52,348
4.0% 3.4% 3.4%
51,398 3.2% 3.2% 3.1%
2.9%
3.0%
50,393 2.3% 2.3% 2.2% 2.2%
2.1%
2.3%
2.0%
1.8% 1.8% 1.8% 1.7%
1.5%
1.0%
0.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2014 2015 2016 2017 2019 (1st
(1st quarter)
quarter)
Total Urban Rural
Vietnamese labor force continues to rise. In the first quarter of 2019, there’re
over 55 million labors with the unemployment rate of 3.1%.
GDP growth
Vietnam GDP growth rate (2009-2018) GDP per capita (2009-2017)
(USD/person/year)
7.1%
6.9% 6.8% 2,546
7.0%
6.4% 2,385
6.2% 6.2% 2,215
6.0%
2,052 2,109
6.0%
1,907
5.4% 5.3% 5.4% 1,748
1,517
5.0%
1,273
1,064
4.0%
3.0%
2.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Vietnam’s GDP growth rate hit 7.1% in 2018, a 3 years of increase in a row.
GDP per capita is on steady growth since 2009, reaching over $2,300 in 2017.
Vietnam in Asia (1) - GDP growth
2018
7.3%
7.1% 7.1%
6.8% 6.9% 6.8% 2017
6.6% 6.7%
6.2% 6.2%
5.9%
5.2% 5.1%
4.8%
3.9%
3.7%
2.7% 2.6%
Cambodia Vietnam Laos Philippines Myanmar Indonesia Malaysia Thailand Singapore
Vietnam boasts of one of the highest GDP growth rates in SEA.

Sources: World Bank
Vietnam in Asia (2) - GDP per capita
(USD)
61,767
33,233
11,237
6,992
4,052 3,095 2,706 2,546 1,499 1,338
Singapore Brunei Malaysia Thailand Indonesia Philippines Laos Vietnam Cambodia Myanmar
In 2018, Vietnam recorded a GDP per capita of $2,546.

Sources: World Bank
GDP contribution
Contribution to GDP (2017) Top export sectors (2017)
Top export sectors USD Billion %

10% 15%
Telephones & spare parts 45.3 20.7%
Textiles & garments 26.0 11.9%
Computers, electronics & spare parts 25.9 11.8%

41% 33%
Foot ware 14.7 6.7%
Machinery & spare parts 12.8 5.8%
Seafood 8.3 3.8%

Agriculture, Forestry and Fishing
Wood & wooden products 7.7 3.5%
Industry and Construction
Services Means of transports & equipment 7.0 3.2%
Tax less subsidies on production
Services sector contributes the most to Vietnam’s GDP, accounting for 41% in 2017.

Foreign direct investment
Registered FDI (2013-2017) Key FDI sectors (2017)
35.9
(Billion USD)
17%
Processing and production
7% 44% Utilities
24.4 9% Real estate
22.8 Retail and wholesale
21.6
20.2 23% Others
Sources of FDI (2017)
30% 25% Japan

South Korea
Singapore
6% China
2013 2014 2015 2016 2017 24% Others
15%
Vietnam has received investments from foreign partners, mostly Japan and
South Korea to key sectors like processing/ production, utilities & real estate.
Sources: Ministry of Planning
Inflation & Minimum wages
Inflation (2009-2017) Minimum wages in 2018 and 2019
4,180,000
18.6% 3,980,000
4,000,000 3,710,000
3,530,000
3,250,000
3,090,000 2,920,000
3,000,000
2,760,000
2,000,000
9.2% 9.2%
6.9% 6.6%
1,000,000
4.1%
3.5%
2.7%
0
0.6% Region I Region II Region III Region IV
2018 2019
2009 2010 2011 2012 2013 2014 2015 2016 2017 (*Details in the Decree 157/2018-ND-CP & Decree 141/2017/ND-CP)
Inflation had been curved down, staying at 3.5% in 2017. Minimum wage in
region I cities is 4,180,000 VND in 2019.
Sources: General Statistics Office of Vietnam (2019, 2018); Ministry of Labor, War Invalids, & Social Affairs
Acceleration of middle class
2018 2026 (est.)
13% 26%
Middle and affluent class (MAC) is expected to

increase in share from 13% to 26% in 2026.
Sources: World Bank (2019)
Retail market in Vietnam
Key takeaways
Continuing growth HCMC & Hanoi leading the growth Strong MT increase in second cities
(billion USD) 18 Retail revenues by region Growth rate of 2019 over 2018
142 0
HCM/
22% Other cities
HCMC Hanoi
Supermarket 10% 23%

11% Hanoi
67% Department
Other cities 11% 34%
Store
2018 2020
Retail market is expected to reach $180 HCMC and Hanoi alone account for 1/3 of MT stores are growing faster in other cities
billion in revenues in 2020. total retail revenues. than in HCMC and Hanoi.
Vingroup is expanding fast in MT CVS in the increase Booming E-commerce

Vingroup shares CAGR of CVS retail sales Online retailing B2C revenue
for 2017-2021 period (2014-2020)
30% 37.4%
49% 24.2% (billion USD)
67% 10
15.8%
10.5% 10.3% 7.1% 6.6%
5.5% 6.2
70% 4.07 5
51% 2.97
33%
Supermarket CVS Department store 2014 2015 2016 2017 2020 (est.)
Vingroup is expanding fast, taking up 70% CVS number will continue to grow. CVS sales Online B2C retailing is to reach $10 billion in
shares in department stores. are projected to grow 37.4% CAGR until 2021. 2020. Spending per online shopper is rising.
Retail market growth in Vietnam
Vietnam’s retail revenue and growth rates
(2013-2018, billion USD)
142
126
115
103
94
85
2013 2014 2015 2016 2017 2018
Retail revenue reached $142 billion in 2018 - the

highest ever recorded and expected to reach $180
billion in 2020.
HCMC & HN leading the growth
Retail revenues by region
22%
57% 11%
4%
4%
2%
HCMC Hanoi Dong Nai

Binh Duong Hai Phong Other cities/ provinces
HCMC and Hanoi alone account for 1/3 of total

revenue sales (HCMC’s is double that of Hanoi).
Sources:
Deloitte (2019)
Retail trend 1 - MT increase in 2nd cities
Modern trade increase in Vietnam

Supermarket Department store
161 55
131
41
108
22
136 150
121 37 37 41
2017 2018 2019 2017 2018 2019

HCM / HN Other cities HCM / HN Other cities
The modern trade increases more outstanding in

second cities.
Retail trend 2 - Dominance of Vingroup
Supermarket Convenience store Department store
30%
33%
49%
51%
67% 70%
Vingroup share in Vingroup share in

Vingroup share in CVS
supermarket department store
Others Others Others
Vingroup leads modern trade increase, with dominant

share in department, CVS and supermarket.
CVS = Vingroup + Shop&Go
Retail trend 3 - CVS on the increase
CAGR of CVS retail sales Target stores of main convenience store brands
for 2017-2021 period
37.4% Brand Target Current
store #
7-eleven 1,000 stores in 2027 27

24.2%
B's mart 3,000 stores in 2027 125

15.8%
10.5% 10.3% Familymart 1,000 stores in 2020 151

7.1% 6.6% 5.5%
GS25 2,500 stores in 2028 32
Ministop 800 stores in 2018 115
Vinmart+ 4,000 stores in 2020 1,465
Vietnam is expected to outgrow its neighbors in CVS retail sales.

Sources: IGD Research
Retail trend 4 - Severe competition and market exit
Despite of the strong MT increase, the competition is getting more severe.
Several M&A as well as exits from the market
Once under the group of Aeon, now Fivimart Shop&Go operations are taken over by
was acquired by Vingroup Vingroup in 2019
Vien Thong A, electric chain established in Despite of market entry in 2015, decided to
1997, was acquired by VinGroup in 2018 sell 18 stores in 2019 to exit from the market
Motivations to use MT / GT
MT channel GT channel
No.1 Product quality Competitive price

56% 69%
No.2 Transparent country origin Easy to order/buy

54% 68%
No.3 Diverse products Diverse products

52% 58%
No.4 Store's credibility Store's credibility

49% 35%
No.5 Competitive price Product quality

49% 35%
MT channel is chosen for product quality while competitive

price is the biggest motivation for shopping at GT stores.
Source: Q&Me
Retail 4.0 activities in Vietnam
Scan and Go at Vinmart
Download VinID app Scan QR codes of products Pay Receive products
Vinmart virtual store Vinmart’s virtual shopping catalogue
Technology has been employed in retail to provide

customers with new shopping experiences. Vingroup
is the most active.
Vietnamese online shopping trend
Key takeaways
Online shopping popularity Popular products Popular EC sites for online shopping
20%
No.1 75%
No.2 70%
80%
Fashion IT Cosmetics
78% 50% 44% No.3 58%
Up to 80% have shopped online.
Online shopping frequency Monthly spending for online shopping Payment methods in online shopping
21% <=300,000 20%

17% 30% 18% 35% 30% Cash on
300,001-700,000 delivery
10% 700,001-1,000,000 Others
Weekly and more
>1,000,000
Once - A few times / month
Once / several months 80%
39%
Never / Rarely
17% shop weekly, 30% buy monthly. Nearly 70% spend less than 700K Cash is still dominant method.
Online shopping market in Vietnam
Online retailing B2C revenue Average annual spending of one online shopper
(Billion USD)
(2014-2020) (2014-2018)
12 9.0%
5.0%
10 8.0%
10
7.0% 3.6%
$350
8
6.2 6.0%
3.0%
2.8%
6
5 5.0%
$186
4.07
5.0% $170
4
$160
2.97 3.6% 4.0%
3.0%
2 2.8%
3.0%
2.1%
0 2.0%
2014 2015 2016 2017 2020 (est.) 2015 2016 2017 2018
B2C revenue % of total retail sales
E-commerce’s growth is projected to continue in the following years. Between

2015-2018, annual spending of one online shopper almost doubled.
Sources: Vietnam eCommerce and Digital Economy Agency
Online shopping usage
20%
80%
Yes No
80% said to have shopped online before.

Source: Q&Me (2018)
Reasons for online shopping
Easy to ask PG/ call center 21%
WOM 29%
Flexible return policy 32%
Good customer service 33%
Diversified payment methods 38%
Store's credibility 42%
Product quality 43%
Fast delivery speed 44%
Diversified products 48%
Easy for ordering/ booking 50%
Attractive promotions/ discounts 55%
Competitive price 55%
Pricing / promotions are the key factors, as well as the convenience
Source: Q&Me (2019)

Popular online shopping items
1.88%
Fashion (73%)69% 30% phones
2. IT/Mobile 68%
(36%) 73%
3. 19%
Cosmetics (33%)
50% 35% 52% 31% 44% 28%
Source: Q&Me (2018)

Popular EC sites for shopping
75%
70%
58%
54%
44%
35%
25%
22% 22% 21%
20% 18%
17%
14%
5%
2% 1% 2% 1%
Shopee Lazada Tiki Facebook Sendo A day roi The gioi di Cho Tot HotDeal Zalo
dong
Have used Use most
Shopee, Lazada and Tiki are the 3 most popular EC sites. Facebook comes at 4th.
Q. Q&Me (2018)
Online shopping frequency & Spending
Online shopping frequency Average monthly spending for online
shopping
17% 21%
30%
35%
10%
30%
18% 39%
Weekly and more Once - A few times / month
Once / several months Never / Rarely <=300,000 300,001-700,000 700,001-1,000,000 >1,000,000
17% shop weekly, 30% buy monthly. Nearly 70% spend less than 700K a month for
online shopping.
Q. Q&Me (2018)
Payment in online shopping
20%
80%
Cash on delivery Others
COD is still the dominant method.

Source: Q&Me (2018)
Popular medias and information sources
Key takeaways (1)
Increased time spent on Internet Smartphone used most to access Family & friends are trusted most
Internet
Media consumption of 92%
Vietnamese No.1 Family 65%
66%
79%
114 Other media 40% 37%
147
Internet Mobile 9% 6% 2%
103 166
Internet PC
No.2 Friends 63%
134 118 Smartphone Note PC Desktop PC Tablet
Used devices Device used most
2016 2019
No.3 TV programs 39%
Time spent on Internet increased significantly, Almost 80% access Internet most often
especially on mobile. through their smartphone(s).
Facebook is the most used SNS Social media motivations Popular contents
49%
No.1 95% 44% 44%
40%
34%
No.1 No.2
No.2 91% Catch up with friends/ family Get news
Contents Contents Contents Contents Contents
with video with with Game with Q&A with
celebrity infographics
No.3 90% No.3 Videos are the most liked content to follow on
No.4
Read entertainment news Meet new friends social media, followed by celebrity contents.
Key takeaways (2)
Internet ads effectiveness Popular ad posts
Ad clicking in last 7 days Made purchase after clicking ads
36%
51% 49% 1. Attractive promotions (58%) 2. Products match my interest (58%)
64%
64% have clicked on ads in last 7 days and 49% have made
3. Impressive (57%) 4. Fun (51%)
purchases after clicking on ads
Popular ad channels
53%
42%
20% 20% 19%
Facebook Youtube On mobile applications Internet sites Social media other than
Facebook
Facebook and YouTube are the channels where people are most likely to click on ads
Changes in daily media consumption (by minute)
2016 2019
Others, 33
Others, 56 TV, 81
TV, 91
Total Total
Internet Internet
(Mobile), 384 mins (Mobile),
398 mins
103 166 Internet
Internet (PC), 118
(PC), 134
People spend much more time for Internet, especially on mobile phone, in 2019 compare
to 2016.
Source: Q&Me (2019)
Changes in access devices
2016 2019
92%
77%
79%
64%
66%
50%
33% 40%
37%
26%
13%
8% 6% 9% 6%
2%
Smartphone Note PC Desktop PC Tablet Smartphone Note PC Desktop PC Tablet
Used devices Device used most Used devices Device used most
92% used smartphone to access internet in 2019 compare with 77% of 2016.
Source: Q&Me (2019)

Trusted information sources
Family 65% Friends 63% TV Program 39%
TVCF 40% Youtube 25% Internet Ad 21%
Source: Q&Me (2019)

Social network - Popular services
95%
91% 90%
39%
35%
32%
26%
21%
15% 14% 14%
11%
Facebook Facebook Zalo Instagram Skype Zing Me Viber Twitter Line LinkedIn WhatsApp SnapChat
Messenger
Facebook (including Messenger) and Zalo are two most popular messaging
apps.
Source: Q&Me (2019)
Social network - Motivations to use
Others 1%
Co-ordinate events 3%
Provide reviews or opinions 7%
Find dates 7%
Follow celebrities 9%
Follow brands or business 11%
Play games 13%
Share photos and videos 26%
Meet new friends 30%
Read entertainment news 39%
Get news and information about events 48%
Catch up with family and friends 76%
Social network services works as the information hub to communicate with friends /
families, as well as receiving information / news.
Source: Q&Me (2019)
Social network – Popular contents
2016 2019
10% 9% 7% 11% 9% 12%
15% 15% 19%
27% 10% 11%
13% 12%
21% 15%
18% 20%
21%
32% 37%
22% 32% 38%
29% 39%
31% 27%
26%
30% 30%
19% 19% 27% 28%
20% 17% 26%
24%
12%
17% 21% 20% 17% 19% 17% 16% 14%
9% 10%
Contents with Contents with Contents with Contents with Contents with Contents with Contents with Contents with Contents with Contents with
video celebrity Game Q&A infographics video celebrity Game Q&A infographics
Like it very much Like it So so Dislike Dislike very much Like it very much Like it So so Dislike Dislike very much
People tend to like video contents on Facebook a lot more in 2019. On the other hand,
they are also attracted by contents with celebrities in 2016.
Source: Q&Me (2019)
Most-followed celebrities on Facebook
Tran Thanh Tran Khoi My Vo Hoai Linh Son Tung MTP Ho Quang Hieu
10 993 053 followers 10 574 324 followers 10 130 668 followers 10 008 782 followers 8 434 729 followers
MC/Comedian Singer/Actress Comedian/Actor Singer/Actor Singer
Dong Nhi Chi Pu Minh Hang Hariwon Kelvin Khánh

Singer/Musician Model/Singer Singer/Actress Singer/Actress Singer
Source: https://www.socialbakers.com (May 2019)

Popular celebrities on Facebook
Ly Hai Minh Ha Bao Thy Thuy Tien Nhat Kim Anh Nabi Nha Phuong
Singer/Actor Singer Singer Singer Actress
Ngan Khanh Ho Ngoc Ha Le Thi Huyen Anh Tuan Hung Khac Viet Singer
Singer Singer Model Singer Singer/Musician
Source: https://www.socialbakers.com (May 2019)

Social network - Ad effectiveness
36%
51%
64%
49%
Those who clicks ad (in last 7 days) Those who have purchased
products from ads
64% have clicked on ads in the last 7 days. 49%

have made a purchase at least once before.
Source: Q&Me (2019)
Social network - Popular ad posts
7% 7% 7% 8% 11% 9% 10% 12%
8% 7% 18%
9% 10% 24%
11% 12% 34%
15%
16%
25% 25% 28% 21%
31% 20%
34% 35%
38% 21%
43%
32% 33% 32% 36%
33%
31%
26% 27% 29%
21%
19%
16% 18%
26% 26% 25% 11%
20% 18% 17% 16%
10% 7% 7% 5%
Good Products / Impressive Fun Ads with good Ads of the Ads with Ads with big Ads that I had Video ads Ads that are
promotions / services sound famous brand celebrities previously repeated
discounts match my looked / often
interest browsed at
other sites
Highly likely to click Likely to click So so Unlikely to click Very unlikely to click
Attractive ads have either ‘Good promotions’; ‘Products match audiences’ interest’ or
‘Impressiveness’.
Source: Q&Me (2019)
Social network - Popular ad channels
2016
53%
2019
49%
42%
31%
20% 20%
18% 19% 18% 18%
17% 16% 15%
11% 11%
4%
1%
Facebook Youtube On mobile Internet sites Social media Video sites other Facebook Others Do not click on
applications other than than YouTube Messenger any ads
Facebook
Ads on Facebook and YouTube are most likely to be clicked/viewed. The likeliness to
click the ads of YouTube in 2019 is higher than 2016.
Source: Q&Me (2019)
Investment in educations
Key takeaways
Rising demand of studying abroad Top destination countries Studying abroad funding sources
Number of Vietnamese students
studying abroad (2012-2017)
10%
82,159 82,160
68,046 Have
55,980 59,468 22,172 students (2017) 19,152 students (2017)
53,835 scholarships
Self-financed
90%
2012 2013 2014 2015 2016 2017 15,298 students (2017) 4,400 students (2017)
The number of students studying abroad has The U.S is the most popular countries for Only 10% have scholarships, the others are
been on increase. overseas students, followed by Japan. self-financed students.
Increasing demand of private courses E-learning usage

Workers Students Workers Students
Languages (60%) Languages (64%) Online

10%
11% Both online &
40% 43%
Sports Sports offline courses
(28%) (31%)
Offline
17% 79% (physical
Life/ soft skills Sciences class)
(27%) (22%)
More than half workers take online courses
while only 21% students do so.
Introduction of Vietnam education system (1)
University Education College Education
(Duration: 4-6 years) (Duration: 3 years)
(18 – 22 years old and over) (18 – 21 years old and over)
High School/Upper Secondary Professional Secondary Vocational Training

(Duration: 3 years) (Duration: 3-4 years) (Duration 1-3 years)
(15 – 18 years old) (15 years old and over) (15 years old and over)
Junior High/Lower Secondary

(Duration: 4 years)
(11 – 15 years old)
Elementary School
(Duration: 5 years)
(6 – 11 years old)
Pre-schooling Education
(Duration:3 years)
(3 – 6 years old)
Education from Grade 1 of Elementary to Grade 9 of Junior High is compulsory.

High school education and above is optional.
Introduction of Vietnam education system (2)
Number of schools Number of students
(School year 2017-2018)
(School year 2017-2018)
113 159,697
2,594
52
60,597
975,295
14,939 7,882,145
12,662
10,887 195,249
5,312,715
4,331,241 267,530
441
2,313,315
2,393 65 1,439,495
170
Kindergarten Elementary Junior High University Kindergarten Elementary Junior High University
High/Lower school/Upper High/Lower school/Upper
Secondary Secondary Secondary Secondary
Public Private Public Private
Vietnam’s education system is largely and mostly made up of public schools.

Source: Ministry of Education and Training
Investment in education of Vietnamese
Hours parents spent helping children Vietnam consumer spending for
with studies in some countries (2018) education (2018)
(Hours/week)
14.0
12.0 8%
12.0
10.2
10.0
8.7
8.0 7.5 7.2
6.2
6.0 5.4 5.0
4.4 4.1
4.0
2.0
-
92%
Traditionally, Vietnam has placed high value on education. In 2018, Vietnamese

spent 8% of their income for education.
Sources: Varkey Foundation/ BMI
Vietnamese aims at international study
Number of Vietnamese students studying
abroad (2012-2017)
90,000
82,159 82,160
80,000
68,046
70,000
59,468
60,000 55,980
53,835
50,000
40,000
30,000
20,000
10,000
-
2012 2013 2014 2015 2016 2017
The number of Vietnamese students studying

abroad is increasing over time.
Sources: UNESCO
- Top destination countries
22,172
19,152
15,298
4,400 3,979
3,432
United States Japan Australia France United Kingdom Korea, Rep.
The U.S and Japan are the most popular destinations.
Sources: UNESCO (2017)

- Funding source
Have
scholarships,
10%
Self-financed,
90%
The majority of people studying abroad self-

finance.
Sources: Ministry of Education and Traning (2016)
Increasing demand of private classes
Top private courses for workers Top private courses for students
Languages (60%) Sports (28%) Languages (64%) Sports (31%)
Soft/ life skills (27%) Business (21%) Sciences (22%) Drawing (20%)
IT (20%) Accounting (17%) Music lessons (20%) Martial arts (13%)
Sources: Q&Me (2019)

Reasons to take private courses
60% 60%
54%
35%
20%
17%
8%
To broaden To develop To improve To find a To have a To entertain To go abroad

knowledge in career one's self good job good health
People take private courses to broaden knowledge/

improve themselves or to develop their career.
Increasing demand of private classes: Online demand
Types of classes - Workers Types of classes - Students
10%
11%
40%
43%
79%
17%
Online Both online & offline courses Offline (physical class) Online Both online & offline courses Offline (physical class)
Up to 60% workers and 21% students take online courses.

Increasing demand of private classes : Top E-learning websites
Top E – learning website for workers Top E – learning website for students
Unica.vn Hocmai.vn Moon.vn

Edumall.vn Real shop preference
Web access: 2,076,000 Web access: 5,159,000 Web access: 2,076,000
Web access: 5,159,000 Fee: 100,000 - 600,000
Fee: 200,000 - 2,000,000 Fee: 300,000 - 1,000,000
Fee: 500,000 - 5,000,000 Teaching subjects at the
Provide various courses for Teaching all subject at the
Teaching various courses, school for students
worker, university students school for students
especially for worker
Kyna.vn Topica.edu.vn Kyna.vn

Web access: 1,651,000 Web access: 1,459,000 Tienganh123.com
Web access: 1,651,000
Fee: 200,000 - 5,000,000 Fee: 2,000,000-10,000,000 Web access: 1,651,000
Fee: 200,000 - 5,000,000
Teaching all subjects that English, business course Fee: 200,000 - 5,000,000
Teaching all subjects that
are suitable for any level for workers and university Teaching English for
are suitable for any level
from students to officers students. children and adults
from students to officers
Increasing demand of travelling
Increasing demand of travelling
72%
53%
48% 48% 47% 46%
41%
48% intend to spend their spare cash on

holidays.
Sources: Nielsen (2018)
Domestic and outbound travel demand
Domestic travelers International trips by Vietnamese
80,000
73,200
travelers
8,600
62,000 7,500
57,000
6,500
6,000
38,500
35,000
32,500
28,000 30,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2015 2016 2017 2018 (est.)
(Thousands of departures)
The number of domestic travelers increase by every year.

Sources:
vietnamtourism.gov.vn/ ASEAN Travel
Domestic travel - New attractions/ services
Golden Bridge (Da Nang) Hon Thom Cable Car (Phu Quoc)
The Landmark 81 (HCMC)
A scenic overlook of a 150-metre-long Honored by the World Guinness as the
The tallest building in Vietnam
pedestrian bridge in Bà Nà Hills resort “World’s longest cable car system”
Van Don International Airport

Hon Gai International Harbour
(Quang Ninh) Bamboo Airway
(Quang Ninh)
Located on the coast of Quang Ninh,
The harbor can receive the world’s A low-cost airline, opened in Jan 2019
the airport covers an area of 325 ha
largest cruise vessels
and contains one single runway
Outbound travel - Countries Vietnamese wish to visit
Japan 24%
Korea 20%
Thailand 12%
Singapore 11%
America 7%
China 5%
France 5%
Australia 3%
England 3%
Japan and Korea are 2 countries that Vietnamese wish to visit most.

Outbound travel - Travel motivations
Good scenery and culture are biggest reason for selecting a
country, although distance, cost and food also have high
impact.
Good scenery 38%
Interesting culture 36%
Near distance 26%
Good cost 25%
Good food 25%
Good for shopping 20%
Good entertainment 19%
Good beach 10%
My family / friends took me there 9%
Learning new things 9%

Key technology adoption in Vietnam
Key takeaways
Smartphone penetration Ride hailing app usage Online food delivery service usage
33% 34%
42% Yes, I have used
Smartphone Yes, I have used
Feature phone No, I haven't 58% No, I haven't

67%
66%
67% of mobile phone users own a 58% of food delivery service users have used
66% have used ride hailing apps.
smartphone(s). the online food delivery portals.
QR code usage QR code & Mobile payment Increasing usage of E-wallet

Value of fintech market Top E-wallets
14% 23% 7% 38% 18%
No.1 85%
38% Yes, I have used
Use it regularly
$11.1
Have used it before 62% No, I haven't billion
Never used (but know how to use it) (2020F) No.2 36%
Never used and do not know how to use it
I do not know
Only 38% QR code users use QR code for No.3 21%

37% have used QR code before. mobile payment.
High Internet and smartphone penetration
Internet users of some SEA countries Mobile phone usage
Smartphone ownership
(millions)
(2019)
(2019)
250
2%
215 1%
200
33%
150
97%
100 92 93
82
59 67%
55
44
50 38
28
22
5 6
0
Thailand Indonesia Vietnam Philippines Malaysia Singapore Own Smartphone
Share
2015 2020F Do not use Feature phone
Vietnam is forecasted to have 82 million Internet users by 2020. Among people

who own mobile phones, 67% have smartphones.
Source: World Bank/ Pew Research Center (2019)
Smartphone brand recognition
98% 97% 94%

88% 87% 86%
73% 72% 71%
Samsung Apple Oppo Sony Nokia HTC Asus Xiaomi Huawei
Source: Q&Me (2018)

Popular apps in Vietnam
No. Free Paid
1 Messenger Pocket Quarium
2 Zalo WiFi Master Pro – WiFi.com
3 Facebook The Greedy Cave
4 Youtube Analog Paris
5 PUBG Mobile VN Kirakira+
6 Sendo NewBorder
7 Ulike Forest – Stay focused
8 Tiktok Gudak Cam
9 Zing MP3 TouchRetouch
10 Shopee @picn2k camera
Source: Appannie.com
Rising trend (1) - Ride hailing app
Those who have used ride sharing app
34%
66%
Among people who use ride sharing services,

Grab is dominantly used, then Go Viet.
Source: Q&Me (2018)
Rising trend (1) - Ride hailing app key players
Grab is launched in Vietnam in Feb, 2014. After merged with Uber in 2018, Grab becomes No.1 Ride
hailing app in Vietnam market.
Go-Viet is a partner of Go-Jek – Technology start up in Indonesia. Go-Viet started Go-Bike service in
Ho Chi Minh City on June and Ha Noi in September, 2018.
Be ride hailing service launched in December, 2018. This is a Vietnamese company.
VATO is invested by Phuong Trang transport company in April 2018. With VATO, customers can
bargain with drivers in peak time.
FASTGO is developed by Vietnamese and provide service in Ha Noi in June and Ho Chi Minh City in
August, 2018.
XELO is developed by Skysoft – a technology company and launched in May 2018. Xelo combine
between E-booking bike/ car and traditional booking taxi.
ABER – Local brand – is launched on June 2018. Aber aimed to recruit old Uber, Grab drivers with
well-paid and bring good experience to customers.
Rising trend (1) - Ride hailing app popularity
Ride sharing app popularities Grab vs Go-Viet: Reasons to choose
98% Grab
Go-Viet
60% 60%
52%
48%
37% 39%
36%35% 36%
33%
29% 26%
6% 6% 4% 4%
1%
Convenience Transparent Good price App is easy Short waiting Attractive
Grab Go-Viet VATO Aber Fast Go Xelo pricing to use time promotion
Among people who use ride sharing services, Grab is dominantly used, then Go
Viet. Primary reason to choose Grab is convenience when Go-Viet’s is price.
Source: Q&Me (2018)
Rising trend (2) -
Online delivery service popularity
Food delivery service users Food delivery app users
34%
42%
66%
58%
66% use the food delivery services. Among

food delivery service users, 58% have used
food delivery apps.
Source: Q&Me (2018)
Source: Q&Me (2018)
Rising trend (2) -
Popular food delivery apps
57%
50%
35%
14%
7%
2%
Foody Delivery Now Grab Food Vietnammm Chonmon Others
For online food delivery services, Now and

Grad Foob are the most popular portals.
Q. How do
Source: you (2018)
Q&Me normally make your order?
Rising trend (2) - Food delivery service - Reasons to use
Motivations to use delivery services Delivery locations
Bad weather 54%

My home 72%
Want to eat quick 53%
Office 66%
Too busy to cook 45%
Want to enjoy the meal from the

41% Location that I hang out with my
delivery store 30%
friend
Unwell/sick 39%
Family gathering places 25%

Don't want to cook 31%
‘Bad weather’ is most common occasion to use food delivery services. People
often order their food to be shipped to their home or office.
Source: Q&Me (2018)
Rising trend (3) - QR code popularity
QR code recognition QR code usage
18% 18% 14%
39%
82% 37% 23%

22%
38%
7%
21%
I know it Use it regularly

I know it (after seeing the visual) Have used it before
Never used (but know how to use it)
I have seen it (after seeing the visual) Never used and do not know how to use it
I do not know I do not know
No more than 37% have used QR code before including 14% of regular users.
Source: Q&Me (2019)

Rising trend (3) - QR code usage
Purpose to use QR code Popular apps where QR code is used
Zalo 83%
Momo 22%
43%
62% 62% 63% Facebook 18%
Zalo Pay 15%
Bankplus 9%
Viettel Pay 7%
57%
Samsung Pay 4%
38% 38% 37%
Ngan Luong 2%
Payoo 2%
Add new friends Access website Mobile payment Show QR code
in SNS / facebook / to be added in Others 15%
campaign SNS
Only 38% of QR code users use it for payment purpose. The most common app to use
QR code is not mobile payment apps but Zalo.
Source: Q&Me (2019)
Rising trend (4) - Fintech overview
Number of non-cash transactions per Digital payment revenues in Vietnam
169.1 capita (million USD) 11.1
6.4
89.0 2018 2022
Digital payment contribution (2018) Licensed payment services

59.7
2.4%
25.9%
7.6 4.9 4.4 74.1%

97.6%
Singapore Malaysia Thailand Indonesia Vietnam Philippines E-Commerce Others E-wallets Others
Fintech penetration in Vietnam is still very low. Nevertheless, this sector is

growing fast, expected to reach $11M in 2022.
Source: World Bank/ Statista/ State Bank of Vietnam
Rising trend (4) - Fintech / E-wallet popularity
E-Wallet penetration trend among Popular e-wallet services
mobile internet users 85%
CAGR 2013-2015
11%
Indonesia 130%
10%
17%
Philippines -18%
11%
36%
16%
Vietnam 16%
12% 21%
17% 16% 16% 15% 14%
8%
Thailand 25% 6% 6%
11%
23%
Singapore 6%
4%
2015 2013
E-wallet users in Vietnam is on the increase. Momo is the most popular service, followed
by ZaloPay.
Source: Q&Me (2019)
Rising trend (4) - E-wallet usage
Hotel booking 12%
Buy transportation ticket 13%
Pay for Grab, taxi 23%
Pay for food order 27%
Buying cinema ticket 40%
Pay when shopping online 41%
Pay bills 43%
Transfer/receive money 44%
Buy mobile cards 63%
Top up mobile account 67%
Source: Q&Me (2019)

Rising trend (4) - E-wallet satisfaction
Customer satisfaction Satisfaction Dissatisfaction
Fast payment process Payment risk/error

1%
14%
Easy payment process Need the Internet
Not many promotions (as I

Many promotions/ discounts
want)
Not many places accept this

Low transaction cost
yet
85%
No need to carry lots of cash Security concerns
Satisfied Average Dissatisfied
Most are quite content with E-wallet services they’re using.

Source: Q&Me (2019)
Q&Me – About Online Market Research Services
Our Solution
We provide both of online / offline research service depending on the objectives
Online market research Face-Face market research

Quickest research with good quality Manual data collection with
assurance, via data-oriented analysis technology. High level data control
with GPS, images and audio.
Our advantage: Direct Panel Management
Our strength is 16-39 years old and urban areas. This is where most biz
customers would like to research. 500,000 members as of May, 2019
Age Gender City
31%
22% 19%
18%
44% 47%
14%
56% 18%
7%
6%
3% 3%
1% 1%
0% 3% 3% 4%
Male Female HCM Hanoi Can Tho Da Nang
Hai Phong Dong Nhai Others
Our advantage – Quick with quality
Online is considered to be “cheap and bad” in general. Q&Me provides
several methods providing data with quality
Our quality score by SSI
QUALITY CHECK SURVEY SPECIFICATION
N (Sample size) 300
IR (Incident rate) 100%
97% 91%
LOI (Lenght of Interview) 10 minutes
Success Criteria Overral score of 80% or higher

FACT CONSISTENCY SCORE THOUGHT
CONSISTENCY SCORE
THE RESULTS
89% 97% Overal score 93.5%
Average score 73%

in the industry
STRAIGHT-LINER/ FLAT- SPEEDERS SCORE
LINER SCORE
(*) QC scores are generated by Survey Sampling International (SSI), the Worldwide Leader in Survey Sampling and Data Collection
Solutions. Asia Plus (Q&Me) is the preferred partner of SSI in Vietnam.
Our customers
Food & Beverage Manufacturing Agency / Consulting
FMCG Technology Others

Contact Us
URL: http://www.qandme.net
Contact: info@qandme.net
Q&Me is operated by Asia Plus Inc.
Asia Plus Inc.

Floor 1 25/7A Nguyen Binh Khiem str., Ben Nghe ward, District 1, HCMC,
Vietnam
Tel. +84 839 100 043

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Vietnam consumer trend 2019

1. Economic landscape P.4

Vietnam population is aging. In 2019, the ratio of elderly people (65+) is

Cambodia Vietnam Laos Philippines Myanmar Indonesia Malaysia Thailand Singapore

Vietnam boasts of one of the highest GDP growth rates in SEA.

In 2018, Vietnam recorded a GDP per capita of $2,546.

Top export sectors USD Billion %

Textiles & garments 26.0 11.9%

Computers, electronics & spare parts 25.9 11.8%

Machinery & spare parts 12.8 5.8%

Seafood 8.3 3.8%

Sources: General Statistics Office of Vietnam

Sources of FDI (2017)

30% 25% Japan

Middle and affluent class (MAC) is expected to

Supermarket 10% 23%

Vingroup is expanding fast in MT CVS in the increase Booming E-commerce

2013 2014 2015 2016 2017 2018

Retail revenue reached $142 billion in 2018 - the

HCMC Hanoi Dong Nai

HCMC and Hanoi alone account for 1/3 of total

Modern trade increase in Vietnam

2017 2018 2019 2017 2018 2019

The modern trade increases more outstanding in

Supermarket Convenience store Department store

Vingroup share in Vingroup share in

Vingroup leads modern trade increase, with dominant

7-eleven 1,000 stores in 2027 27

B's mart 3,000 stores in 2027 125

10.5% 10.3% Familymart 1,000 stores in 2020 151

Ministop 800 stores in 2018 115

Vinmart+ 4,000 stores in 2020 1,465

Vietnam is expected to outgrow its neighbors in CVS retail sales.

No.1 Product quality Competitive price

No.2 Transparent country origin Easy to order/buy

No.3 Diverse products Diverse products

No.4 Store's credibility Store's credibility

No.5 Competitive price Product quality

MT channel is chosen for product quality while competitive

Download VinID app Scan QR codes of products Pay Receive products

Vinmart virtual store Vinmart’s virtual shopping catalogue

Technology has been employed in retail to provide

21% <=300,000 20%

B2C revenue % of total retail sales

E-commerce’s growth is projected to continue in the following years. Between

80% said to have shopped online before.

Pricing / promotions are the key factors, as well as the convenience

Source: Q&Me (2019)

50% 35% 52% 31% 44% 28%

Source: Q&Me (2018)

Have used Use most

Weekly and more Once - A few times / month

Once / several months Never / Rarely <=300,000 300,001-700,000 700,001-1,000,000 >1,000,000

Cash on delivery Others

COD is still the dominant method.

20% 20% 19%

Smartphone Note PC Desktop PC Tablet Smartphone Note PC Desktop PC Tablet

Source: Q&Me (2019)

Family 65% Friends 63% TV Program 39%

TVCF 40% Youtube 25% Internet Ad 21%

Source: Q&Me (2019)

Dong Nhi Chi Pu Minh Hang Hariwon Kelvin Khánh

Source: https://www.socialbakers.com (May 2019)

Source: https://www.socialbakers.com (May 2019)