Consumer Profile – Vietnam

Key demographic indicators

Vietnam recorded a population of 97.5 million in 2021, the population is expected to increase every year from then on to a population of 105.9 million in 2040. The GDP of Vietnam in 2022 was US$408.9 billion, ranked the 40th among all countries (source: International Monetary Fund GDP data in April 2022).

The growth rate for all age groups from 2015 to 2040 ranges from a −1.0% CAGR (ages 15 to 19) to a 29.9% CAGR (ages 75 to 79). The 75 to 79 age group is recording the fastest growth among all age groups in Vietnam and will represent 3.2% of the total population in 2040. Population growth in 2020-2040 will be driven by the 60+ age group. Among population between age 0 to 39 groups, there are eight groups which all grew negatively from −1.0% to −4.8% in terms of CAGR.

Despite population decline in middle age and younger, Vietnam is expected to become a more attractive consumer market, as a result of income increases.

Vietnam's vital statistics

In Vietnam, the fertility rate was 2.0 children per female in 2020, below the replacement rate of 2.1. It will continue to fluctuate around 1.9 children per female up to 2040. Women giving birth to children later in life, from age 28.6 in 2020, and is forecast to increase to age 32.3 in 2040. Infant death declines from 22.8 thousand in 2015 to 9.8 thousand in 2040. Birth rate per '000 population also decreased from 16.8 per '000 population in 2015 to 11.7 per '000 population in 2040. Live birth decreased too from 1,547.6 thousand in 2015 to 1,234.6 thousand in 2040. However both death rates per '000 population and deaths increased from 2015 to 2040.

Household structure in Vietnam

The average Vietnamese household in 2021 is home to 3.5 people. The biggest households contain 4 children, followed by 3 children households and 2 children households.

The primary household type was couples with children. Single person, couples without children and single-parent family are the three fastest growing house types, 2.6%, 1.7 and 1.4% CAGR respectively from 2016 to 2021.

Vietnam's urban population versus rural population

Vietnam is predominantly rural, with 63.2% of the population residing in rural areas in 2020. However, the urban population share is expected to expand rapidly to 48.4% by 2040, while the rural population is expected to decrease to 54,636 thousand people in 2040 from 61,084.1 thousand in 2020. The rural population share fell from 66.4% in 2015 to 63.2% in 2020 and is forecast to decrease to 51.6% by 2040. This shows the strong urbanization in Vietnam.

Business environment and dynamics

Solid economic growth, developing manufacturing industry and rising investments are set to lead to boosting consumer income and expenditure levels and expanding middle class over the forecast period in Vietnam (Euromonitor 2022).

Age 40-44 is the group that earned the most, US$3,795.1 in 2021 while age 15-19 was the group that earned the least, US$1,480.1. Age 60 to 64 still worked and earned more than age 20 to 24 group and age 25 to 29 earned. Even what age 65+ earned is more than that age 20 to 24 earned and close to what age 25 to 29 earned, indicating positive trends for the senior-orientated goods and services market. All the age group earnings grew at a CAGR of 5.5% to 6.5% between 2016 and 2022 and is expected to grow at a CAGR of 8.9% to 9.2% between 2021 and 2026.

By 2030, Vietnam is projected to rank 49th out of 84 countries in Euromonitor International's Wealth Index (Euromonitor 2022)

The highest population 18,730,000 earned US$1,501-2,500 in 2021, followed by 11,610,000 who earned US$1,001 to US$1,500 and 11,299,000 who earned US$2,501 to US$3,501. The smallest population 21,100 earned US$125,001 to US$150,000 in 2021. People who earned US$10,001 to US$15,000 grew the fatest at CAGR of 12.1% between 2016 and 2021, followed by people who earned US$15,001 to US$20,000 at a CAGR of 12.0% between 20216 and 2021.

Food and beverage preferences and expenditures

In 2021, Vietnamese total consumer expenditure on food and non-alcoholic was US$54.9 billion, of which US$52.9 billion was spent on food. Expenditure on meat was the largest category, with expenditure of US$18.4 billion in 2021, followed by bread and cereals at US$9.6 billion in 2021 and fish and sea food at US$7.1 billion in 2021.

Consumer expenditure is expected to grow by a CAGR of 9.3% from 2021 to 2026. Vegetables, sugar and confectionery are forecast to grow the fastest at a CAGR of 10.0% and 9.8% respectively, reaching US$6.4 billion and US$10.7 billion respectively between 2021 and 2026. All subcategories are expected to grow steadily at a CAGR of above 8.3% to 9.6% between 2021 and 2026.

Per capita consumer expenditure on food grew from 2016-2021, rising at a CAGR of 4.2%. All subcategories grew up at CAGR from 1.5% to 6.4% from 2016 to 2021. Sugar and confectionery grew the most at a CAGR of 6.4%, reaching US$68.7 in 2021, followed by mineral waters, soft drinks, fruit and vegetable juices, 5.9%, US$6.4 in 2021 and fruit, 5.3%. US$39.4 in 2021.

From 2021-2026, growth in per capita expenditure on food is expected to rise to a CAGR of 8.6%, with all subcategories seeing similar growth rates, along with alcoholic and non-alcoholic bevrages.

In 2021, total consumer expenditure per capita was US$563.2, out of which US$543.8 was spent on food and US$38.0 was spent on alcoholic drinks, and US$19.4 on non-alcoholic beverage.

Consumer trends

Food and beverages

Pho is the most popular food in Vietnam. It is served both at restaurants and in families, eaten for breakfast, lunch or dinner. This famous dish is basically rice noodle soup but the broth is seasoned in a very unique way that appeals to almost everyone.

There are seventeen popular Vietnamese dishes:

1. Phở - Pho
2. Cá Kho Tộ - Caramelized and Braised Catfish
3. Bánh Xèo - Vietnamese Crepe
4. Bánh Khọt - Mini Vietnamese Crispy Pancakes
5. Gỏi Sứa - Jellyfish Salad
6. Cao Lầu - Cao Lau Noodles
7. Bánh Mì - Vietnamese Baguette
8. Phở Cuốn - Vietnamese Rolled Noodles or Rolled Pho
9. Bột Chiên - Fried Rice Flour Cake with Eggs
10. Cơm Tấm - Vietnamese Broken Rice
11. Xôi Xiêm (sầu riêng) - Durian Sticky Rice
12. Gỏi Cá Mai - Vietnamese Raw Fish Roll
13. Bánh Căn - Mini Pancakes
14. Mì Quảng - Quang-Style Noodles
15. Cà Phê Trứng - Vietnamese Egg Coffee
16. Chè Sâm Bổ Lượng - Chinese Ching Po Leung
17. Chè Thái - Thailand Fruit Cocktail

(Source: Vietnamese Food: 17 Popular and Traditional Dishes You Need to Try)

Increased interest in health and wellness

The pandemic has significantly increased consumer interest in health and wellbeing, and consumers are becoming more likely to choose foods perceived as having health benefits.

Fortified functional foods is currently the largest category of Vietnamese health and wellness food, It grew at CAGR of 6.7% between 2016 and 2021, reaching US$4.6 billion. It is also expected to be growing at a CAGR of 9.7% from 2021-2026, reaching US$6.6 billion in 2026.

Naturally healthy products were valued at US$600.5 million in 2021, and are expected to reach US$955.4 million by 2026. Sales of free from (as in "free from gluten", for example) products grow at a CAGR of 5.9% from 2016-2021, reaching US$360.4 million in 2021 and is expected to grow at a CAGR of 11.3% from 2021 to 2026, reaching US$501.3 million.

Free from meat was expected to be amongst the fastest-growing areas of health and wellness packaged food in 2021. In Vietnam, free from meat is comprised almost entirely of tofu and derivatives (Euromonitor 2022). Vegetarian and vegan diets are becoming popular in the Vietnamese market.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Find a Trade Commissioner

More agri-food market intelligence:

International agri-food market intelligence
Discover global agriculture and food opportunities, the complete library of Global Analysis reports, market trends and forecasts, and information on Canada's free trade agreements.

Agri-food market intelligence service
Canadian agri-food and seafood businesses can take advantage of a customized service of reports and analysis, and join our email subscription service to have the latest reports delivered directly to their inbox.

More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

For additional information on upcoming trade shows, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and agri-food Canada
ben.berry@agr.gc.ca

Resources

• Euromonitor, 2022
• Euromonitor International. Income and Expenditure: Vietnam (September, 2022)
• Euromonitor International. Free from in Vietnam (February, 2022)
• International Monetary Fund GDP data in April 2022
• Normad Paradise, Vietnamese Food: 17 Popular and Traditional Dishes You Need to Try? (July, 2022). Accessed on October 5, 2022

Consumer Profile – Vietnam
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2023).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright His Majesty the King in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Rd, Tower 5, 3rd floor
Ottawa ON  K1A 0C5
Canada
Email: aafc.mas-sam.aac@agr.gc.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of agriculture and agri-food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.