Vietnam\u2019s economy maintained its strong momentum
\nover the course of the second quarter of 2025, with GDP growth supported by solid
\nindustrial and service sector gains. The country recorded its highest first-half
\ngrowth in 15 years, at 7.52 per cent, revealing resilience despite myriad global
\ntrade uncertainties. Consumer prices rose 3.31 per cent year-on-year in the
\nsecond quarter, according to the National Statistics Office at the Ministry of Finance.
\nWhile inflation remains within targets, rising food and foodstuff costs are increasingly
\nstraining household budgets, posing challenges and opportunities for the fast-moving
\nconsumer goods (FMCG) segment.<\/p>\n
Mixed performance<\/b><\/p>\n
According to the FMCG Monitor Q2 2025 report from
\nWorldpanel by Numerator, Vietnam\u2019s FMCG market showed mixed performance across categories
\nin the quarter, reflecting cautious consumer spending in both urban and rural areas.
\nIn the four key urban cities, overall FMCG spending grew 2 per cent, driven largely
\nby modest price increases of 2 per cent despite a 3 per cent fall in volume. Beverages
\nexperienced the steepest contraction, with a 9 per cent dip in volume and a 6 per
\ncent decline in spending, even as average prices rose 4 per cent. Packaged Foods
\nalso saw reduced volume, of 1 per cent, but maintained slight spending growth, also
\nof 1 per cent, due to higher prices. Dairy, Personal Care, and Home Care were relatively
\nmore resilient, with stable or slightly positive spending trends.<\/p>\n
In rural areas, the downturn was more pronounced
\nin volume terms, especially for Beverages (-10 per cent) and Packaged Foods (-6
\nper cent), though price hikes cushioned some of the spending declines. Overall FMCG
\nspending in rural areas fell 3 per cent, with volumes down 6 per cent.<\/p>\n
The data underlines a clear shift in consumer priorities
\ntowards essential needs and value-seeking behavior. The sharp contraction in Beverages
\nand Packaged Foods, traditionally discretionary or celebratory categories, suggests
\nhouseholds are cutting back on non-essential indulgences amid economic uncertainty.
\nThe relatively stable performance in Dairy, Personal Care, and Home Care points
\nto a focus on basic nutrition and hygiene.<\/p>\n
Ms. Tran Dieu Huong from the Domestic Market Management
\nand Development Agency at the Ministry of Industry and Trade said FMCG remain a
\ncornerstone of Vietnam\u2019s socio-economic life. \u201cFrom 2021 to 2024, total retail sales
\nin the FMCG sector grew by an average of 10 per cent annually, against the backdrop
\nof GDP growth reaching 7.09 per cent in 2024 and projected at 8 per cent in 2025,\u201d
\nshe noted. \u201cThe market is undergoing a strong shift towards greener, cleaner, and
\nhealthier consumption, with greater emphasis on product origin and production processes.\u201d\n<\/p>\n
Lower confidence<\/b><\/p>\n
Despite positive GDP figures, consumer confidence
\nin Vietnam has fallen to its lowest level since the major Covid-19 wave in 2021.
\nThis decline stems from a combination of factors: the unpredictable global trade
\nenvironment, which fuels economic uncertainty, and, more recently, a surge of news
\non the government\u2019s intensified crackdown on counterfeit goods and substandard food
\nproducts. The resulting concern over product authenticity is expected to significantly
\nreshape shopper behavior.<\/p>\n
The Worldpanel by Numerator report shows that consumer
\nconfidence in Vietnam\u2019s four key urban cities fell sharply in the second
\nquarter, hitting its lowest point since Covid-19 in 2021. Only 62 per cent of households
\nbelieve the economic situation will improve or at least remain stable over the next
\n12 months, down from 70 per cent in the first quarter and well below the recent
\npeak of 80 per cent in the second quarter of 2024. This decline is attributed to
\na mix of negative economic and trade news, coupled with the government\u2019s intensified
\ncrackdown on counterfeit goods, which has weighed on both market sentiment and retail
\nactivity. The trend reflects growing consumer caution, marking a clear shift from
\nthe more optimistic outlook in early 2024.<\/p>\n
This sharp drop in sentiment signals a potential
\ncooling period for discretionary spending in the coming quarters, particularly in
\nnon-essential categories. While essential goods like FMCG products are likely to
\nremain resilient, retailers and brands may face greater pressure to deliver value-driven
\npropositions, targeted promotions, and innovative engagement strategies to sustain
\nconsumer interest. <\/p>\n
Brands can expect heightened scrutiny from shoppers,
\nwho will be more selective in their purchases, actively seeking trusted brands and
\nverified sources. Value-consciousness will increasingly extend beyond price to include
\nquality, safety, and brand reliability. With living costs rising, consumers are
\nlikely to prioritize essential goods over discretionary items, leading to more deliberate
\nspending decisions.<\/p>\n
The FMCG sector plays a vital role in daily life,
\nproviding high-turnover products such as food and beverages (F&B) and household
\nhygiene items. Amid rapid digital transformation and the rise of multi-channel retail,
\nthe entire value chain, from production to consumption, is being reshaped. This
\nshift demands that businesses rethink their strategies, embrace technology, and
\nenhance operational efficiency to remain competitive.<\/p>\n
At the same time, the growing emphasis on green,
\nsafe, and transparently-sourced products is becoming a decisive factor in purchasing
\nbehavior. Vietnamese FMCG companies that can leverage domestic raw materials, invest
\nin innovation, and build green, sustainable brands will gain a significant edge
\nin both domestic and international markets.<\/p>\n
Transformation for adaptation<\/b><\/p>\n
The report highlighted that online platforms and
\nminimarkets continue to lead as the fastest-growing retail channels, underscoring
\na clear trend towards modernization and a more convenient shopping experience. This
\npresents significant opportunities for brands to adapt, expand their shopper base,
\nand increase basket sizes within these key channels.<\/p>\n
At the same time, the modern retail distribution
\nnetwork and FMCG e-commerce are also seeing robust growth. \u201cIn 2024, e-commerce
\ngrew by over 22 per cent and is expected to account for 10 per cent of total retail
\nsales in 2025,\u201d Ms. Huong noted.<\/p>\n
However, small and medium-sized enterprises (SMEs)
\nstill face challenges in capital, technology, and digital talent. Comprehensive
\nsupport policies are being rolled out, from investments in logistics infrastructure
\nand credit and tax incentives to workforce training and improved legal frameworks
\nfor livestream commerce, with the goal of making FMCG a sustainable driver of domestic
\ngrowth.<\/p>\n
According to Ms. Huong, major e-commerce platforms
\nsuch as Shopee, Lazada, and Tiki have become familiar shopping destinations for
\nurban consumers. Surveys reveal that 73 per cent of these consumers search for information
\nonline before making a purchase. Businesses in the FMCG sector are actively adopting
\nmulti-channel retail models and integrating cashless payment solutions to enhance
\nthe shopping experience.<\/p>\n
Ms. Doan Trang Ha Thanh, Chief Operating Officer
\nat Lazada Vietnam, emphasized that digital transformation in operations and distribution
\nhas become a key factor for food and FMCG businesses to optimize performance. \u201cEnterprises
\nare encouraged to invest in sustainable operations on digital platforms, accelerate
\nlogistics digitalization, and boost livestream sales activities,\u201d she stressed.
\n\u201cDigitalizing distribution not only shortens processing time and reduces operating
\ncosts but also enhances market reach, especially for products requiring careful
\npreservation, such as fresh food, thereby enabling scale expansion and strengthening
\ncompetitiveness in digital commerce channels.\u201d<\/p>\n
In an era where consumer preferences are evolving
\ntowards convenience, sustainability, and digital engagement, Vietnam\u2019s FMCG sector
\nstands at a pivotal juncture. The convergence of modern retail, e-commerce, and
\nadvanced logistics is opening unprecedented opportunities for brands to innovate
\nand expand. <\/p>\n
With strong policy support, strategic digital transformation,
\nand a customer-centric approach, the FMCG industry is poised not only to sustain
\ngrowth but also to become a powerful engine driving Vietnam\u2019s domestic economy forward.<\/p>\n","protected":false},"excerpt":{"rendered":"Vietnam\u2019s economy maintained its strong momentum over the course of the second quarter of 2025, with GDP growth…\n","protected":false},"author":2,"featured_media":131638,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[9,79,11715,13782,11441,18,35567,2644,78968,78969,78970,19,41586,70265,40506,3442,17,188,5,790,19363,78966,78967],"class_list":{"0":"post-131637","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-breaking-news","9":"tag-business","10":"tag-commodity","11":"tag-corporate","12":"tag-economic-news","13":"tag-eire","14":"tag-equity-markets","15":"tag-finances","16":"tag-financial-market-news","17":"tag-foreign-exchange-news","18":"tag-fund-markets","19":"tag-ie","20":"tag-industrial-news","21":"tag-initial-public-offerings","22":"tag-international-relations","23":"tag-investing","24":"tag-ireland","25":"tag-markets","26":"tag-news","27":"tag-politics","28":"tag-securities","29":"tag-vet-exclusive","30":"tag-vietnam-economic-times"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/131637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=131637"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/131637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/131638"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=131637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=131637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=131637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}