Vietnam FMCG sales growth second fastest in Southeast Asia

By Dat Nguyen May 30, 2019 | 05:37 am PT

FMCG sales in convenience store in Vietnam grew 5.2 percent last year from 2017. Photo by Shutterstock/Icosha

Vietnam reported the second fastest growth in sales of fast-moving consumer goods (FMCG) in Southeast Asia last year, market research firm Nielsen says.

At 5.2 percent it was behind only the Philippines (8.7 percent), and the global average was only 3.4 percent.

Nielsen said Vietnam’s retail landscape is undergoing a change because of rising consumer demand for frequent shopping trips for everyday needs.

"We’ve been seeing solid growth in the convenience and mini-market channels across Southeast Asia for some time now, but over the past year or so that growth has really hit fever pitch," Vaughan Ryan, Nielsen’s managing director, Southeast Asia, said.

Data released by Nielsen showed that Vietnamese shoppers made 4.5 trips a month to convenience stores last year, three times the number in 2010.

"Consumers throughout the region are living increasingly fast-paced lives, and this lifestyle shift is driving increasing demand for on-the-go offerings," Ryan added.

Local retailers are seeking to take advantage of the trend. Conglomerate Vingroup last week launched the first virtual store chain in the country, which allows users to buy a product by scanning its QR code printed on large banners in public areas.

Its VinCommerce is the country’s largest retailer in terms of number of stores with over 1,800 VinMart+ convenience stores and VinMart supermarkets.

Vietnam is forecast to be the fastest-growing convenience store market in Asia by 2021 with a growth rate of 37.4 percent, followed by the Philippines and Indonesia, according to market research firm IGD.