Vietnam to be world’s most dynamic market by 2030
Vietnam is set to become world’s largest urban market. It has reached amazing levels of progress in the last two decades.
With an emerging market economy and continued growth, Vietnam will become the world’s most dynamic market by 2030, according to Euromonitor International.
By 2030, the country’s urban consumer market will expand to 46 million consumers at $169 billion worth of spending.
It will be the third largest urban market by consumer numbers and fifth biggest by total spending in Southeast Asia.
GDP growth is expected to reach 91.4 per cent in the 2019-2030 period and disposable income to $9,740 per household.
The burgeoning middle class in Vietnam will drive consumer spending growth besides giving rise to new consumer trends.
Already, Ashton Hawks has seen an increasing real estate sales number in Vietnam. The essence of a growing middle-class has been attractive to overseas investors looking for high rental yields and capital gains.
Wealthy Vietnamese have also increased spendings on properties outside Vietnam.
Other markets, including the luxury retail sector and automobile such as VinFast have seen a propelling business future.
Representing an increase of 34% from 2018, Vietnamese middle-class consumers are “aspirational, brand-aware and price-conscious”.
Rural consumers also remain important. In 2030, rural residents at 61 million, are expected to spend a total of $173 billion.
There are gaps between the products and services that are currently available and those that older consumers actually want and need.
According to Euromonitor, the fastest-growing population segment is 70 to 79 years old.
By 2030, 12.4 per cent of the Vietnamese population will be aged 65 and above, which equates to a market size of 13 million elderly consumers.
The over-65 segment is the third lowest-earning age group, with an average gross income of VNĐ57 million ($2,560) in 2018.
However, their real purchasing power is set to grow the fastest of all age groups up to 2030.
Although the population is price-sensitive, consumers are willing to pay higher prices for branded products deemed to be healthier or better-quality.
While online shopping is not yet prevalent in Vietnam, brands and retailers should stay ahead of e-commerce.
As the upcoming largest urban market, Vietnam and the Southeast Asia region remain the key focus of global business developments due to healthy economic growth.
Source: Viet Nam News