See More on Facebook

Business, Economics

Vietnam to be among world’s most dynamic markets by 2030

The country has reached amazing levels of progress in the last two decades.


Written by

Updated: June 13, 2019

With an emerging market economy and continued strong growth, Vietnam is set to become one of the most dynamic markets in the world by 2030, according to Euromonitor International, a global market research company.

An Hodgson, Euromonitor International’s income and expenditure research manager, said the company’s research database showed that urbanisation, with the associated concentration of income, wealth and population, would propel Việt Nam’s commercial success by 2030.

Published last month, the research database has found that Vietnam will be the third biggest urban market by consumer numbers and fifth biggest by total spending in Southeast Asia.

By 2030, the country’s urban consumer market will expand to 46 million consumers and $169 billion worth of spending.

GDP growth is expected to reach 91.4 per cent in the 2019-2030 period and disposable income to $9,740 per household by 2030.

There will be 17 million middle class households in 2030, according to the company’s research.

The burgeoning middle class in Việt Nam will drive consumer spending growth as well as give rise to new consumer trends by 2030.

“One in two households will be middle class by 2030,” she said. “The essence of a middle-class consumer is the ability to spend on discretionary items.”

Representing an increase of 34 per cent from 2018, Vietnamese middle-class consumers are “aspirational, brand-aware and price-conscious”.

Rural consumers also remain important. In 2030, rural residents, which number 61 million, are expected to spend a total of $173 billion.

Ageing population 

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.

“Older consumers feel, behave and want to be treated as younger people are. They want branding to focus more on needs, interests and values that include consumer experience, convenience, authenticity and novelty,” Hodgson said.

“Businesses that adopt more universal strategies rather than applying age labels can effectively win ageing consumers, while also appealing to younger consumers,” she added.

In 2030, Việt Nam is expected to be the fifth largest economy in Southeast Asia where 50 per cent of the households will have an annual disposable income of $5,000 to $15,000.

Although the population is price-sensitive, consumers are willing to pay higher prices for branded products deemed to be healthier or better-quality.

In addition, according to Euromonitor, internet retailing is set to double its market size and reach $5 billion by 2023. While online shopping is not yet prevalent in Vietnam, brands and retailers should stay ahead of e-commerce.

The conference also discussed major global consumer trends and their impact in Việt Nam and Southeast Asia.

According to Euromonitor, Vietnam and the Southeast Asia region remain the key focus of global business developments due to healthy economic growth.

The conference provided insights on how companies could tap into the Vietnamese market.

Euromonitor International is the world’s leading provider for global business intelligence and strategic market analysis. During the last 40 years, it has been publishing international market reports, business reference books and online databases on consumer markets.



Enjoyed this story? Share it.


Viet Nam News
About the Author: Viet Nam News is one of the country's top English language daily newspapers, providing coverage of the latest domestic and international developments in a range of areas.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Business, Economics

G20 draft calls for digital economy rules within the year

Digital laws have been proposed before in the past but is gaining traction ahead of the G20s. The leaders’ declaration for this week’s Group of 20 summit will call for creating a framework for drawing up international rules on the digital economy to be called the “Osaka track,” according to a draft obtained by The Yomiuri Shimbun. It will also call for achieving results within the year. The G20 leaders are scheduled to gather in Osaka on Friday and Saturday. In the draft, the section on the digital economy is part of a separate “Osaka statement.” The Osaka statement draft welcomes progress in discussions among about 80 interested World Trade Organization member states on an e-commerce accord. The draft expresses the G20’s support for rule creation and other developments in this area through the Osaka track. It states that the leaders vow to collaborate so people all over the world w


By The Japan News
June 27, 2019

Business, Economics

Korea, Saudi seek closer cooperation

The two sign MOUs, deals worth over $8 billion. President Moon Jae-in and Crown Prince Mohammed bin Salman of Saudi Arabia met in Seoul on Wednesday to discuss ways to strengthen cooperation in a wide range of areas. The crown prince arrived in Seoul earlier in the day and was met by Prime Minister Lee Nak-yon before moving on to Cheong Wa Dae for a welcoming ceremony followed by a meeting with Moon and his top aides. At the meeting, Moon stressed the importance of Korea-Saudi relations, highlighting economic projects between the two countries and Seoul’s involvement in Saudi’s Vision 2030 program. The Vision 2030 program is aimed at reducing the country’s economic dependence on oil and developing its public service sectors. “Korea is a strategic partner in Vision 2030, and the two countries are expanding the horizon of cooperation beyond construction and energy to ICT, smart infr


By The Korea Herald
June 27, 2019

Business, Economics

FedEx sues US Commerce Department over crackdown on Huawei

US courier delivery company FedEx on Monday sued the US Department of Commerce over a request that the package giant enforce restrictions on Chinese telecom equipment provider Huawei. In the lawsuit filed in the US District Court in the District of Columbia, FedEx claimed that department’s latest measures to restrict the business activities of US companies with Huawei “place an unreasonable burden on FedEx to police the millions of shipments that transit our network every day.” “FedEx is a transportation company, not a law enforcement agency,” FedEx said in a statement. The department in May added Huawei and its affiliates to an “entity list,” a move that under Export Administration Regulations (EAR) barred US companies from supplying the Chinese company with parts such as electronic chips or providing other technologies without US government approval. Th


By China Daily
June 27, 2019

Business, Economics

Vietnam, EU to sign free trade agreement

The agreement will be signed in Hanoi on June 30. The European Council announced on Tuesday that it has approved the European Union – Vietnam Free Trade Agreement (EVFTA) and the EU – Vietnam Investment Protection Agreement (EVIPA), and assigned the EU to sign the deals with Vietnam on June 30 in Hanoi The EVFTA and EVIPA are the most ambitious agreements concluded between the EU and a developing country. Once the EVFTA takes effect, over 99 per cent of tariff on goods from both sides will be lifted. Vietnam will remove 65 per cent of import tariff on goods from the EU. Remaining tariffs will be removed in the next decade. Besides offering significant economic opportunities, the trade agreement ensures that trade, investment and sustainable development go hand in hand, by setting the highest standards of labour, safety, environmental and consumer protection. Meanwhile, the EVITA will h


By Viet Nam News
June 26, 2019

Business, Economics

US, China must compromise to reach deal: Chinese official

Both sides must come together in good faith for any progress to be made. Both China and the United States must be willing to compromise if they are to reach a deal when presidents Xi Jinping and Donald Trump meet at the G-20 Summit this week, a Chinese trade official has said. Vice-Minister for Commerce Wang Shouwen said at a news briefing yesterday that trade teams from both sides are in talks. He did not elaborate, but stressed that China negotiates on the basis of mutual respect, equality and mutual benefit. “An agreement reached has to be beneficial for both sides, and meeting each other halfway means both sides must be willing to compromise – not just one side giving way,” said Mr Wang, who is part of China’s negotiating team.


By The Straits Times
June 26, 2019

Business, Economics

Pakistan to get $3bn in deposits, direct investments from Qatar

Pakistan has recently received loans from the World Bank and investments from the Saudis. Qatar is making $3 billion dollars worth of new investments in Pakistan, in the form of deposits and direct investments, said Special Assistant to Prime Minister on Information and Broadcasting Dr Firdous Ashiq Awan on Monday. The economic partnership between Qatar and Pakistan will reach $9 billion, Qatar News Agency quoted foreign minister Sheikh Mohammed bin Abdulrahman Al Thani as saying. “The Qatari-Pakistani economic partnership will amount to $9 billion. Qatar affirms


By Dawn
June 25, 2019