In Vietnam, FMCG sector has steadily increased. Specifically, in the first quarter in 2017, FMCG has increased by 7.3%, due to the timing coincidenced with the lunar new year. For the two recent quarters, the growing trend is slowing down with 5.5% for Quarter II and 4.3% for Quarter III, but are still higher than the global average growth of 4%. In the third Quarter, most of sectors witnessed a slow down in growth, such as food & beverage of 7.8%, household goods up 8.2%; individual goods up 3.9% and cigarettes up 5.1%. 

In reality, theses products under the FMCG which is considered to have high risks and not safe for customers are reducing in revenue, meanwhile products deemed good for customers’ health and environmental friendly are becoming favorite products. This is the trend which needs more attention from enterprises in FMCG sector. 

Besides, there are more potential for development in rural areas with 60% of population and an increasing income level. Customers in rural areas are willing to pay more for high quality products. 

According to the report of Kantar Worldpanel market research company, from now on until the end of 2017, FMCG sector is expected to continue growing. As such, Vietnam’s economy has shown positive signs, thanks to increase demands of local customers, strong recovery from agricultural production, while export, foreign direct investment (FDI) and retail sectors all witnessed a strong growth. Vietnam’s economy is expected to achieve the growth rate of 6.5% by the end of 2017, resulting in the growth of many other sectors, including FMCG.

The FMCG market will expand in most of the cities and also in rural areas. Almost all of consumer goods such as tissues, laundry detergent and liquid hand soap have been increasing in demand thanks to its convenience and the focus in hygene of customers both in urban and rural area. The food & beverage sector has also experienced significant growht, which is faciliated by the strong growth for demands of alcohol drinks and soft drinks. 

According to Nielsen, there are many ways for FMCG sector to increase revenue and profit. In particular, in the current context of digital economy, it is time for enterprsises in FMCG sector to focus their operation through e-commerce. According to statistics from the Ministry of Industry & Trade, revenue through e-commerce in Vietnam has just reached 4 billion USD, while the country has set target of 10 billion USD in revenue by 2020. Besides, along with an increase in income level and the improving in living standard, customers in Vietnam will have more requirements for products quality.