Consumer Lifestyles in Vietnam

CONSUMER LIFESTYLES IN
VIETNAM
Euromonitor International
August 2014
CONSUMER LIFESTYLES IN VIETNAM
LIST OF CONTENTS AND TABLES

Top Five Consumer Trends .......................................................................................................... 1
Rising Middle Class Drives Consumer Spending ..................................................................... 1
Consumers Seek Out Foreign Products ................................................................................... 2
Concerns Over Health and Food Safety Are High .................................................................... 2
Spending on Children Grows Despite the Economic Slowdown ............................................... 3
the Internet Becomes An Integral Part of Life ........................................................................... 4
Consumer Segmentation .............................................................................................................. 5
Babies and Infants .................................................................................................................... 5
Kids........................................................................................................................................... 6
Tweenagers .............................................................................................................................. 8
Teens........................................................................................................................................ 9
Young Adults .......................................................................................................................... 10
Middle Youth ........................................................................................................................... 12
Mid-lifers ................................................................................................................................. 13
Late-lifers ................................................................................................................................ 14
Table 1
Chart 1
Consumer Segmentation and Population Data 2000, 2005, 2011,

2012, 2013, 2016 ....................................................................................... 15
Population Aged 15-64 Compared with Old-Age Dependency Ratio
2000-2020 .................................................................................................. 16
Housing and Households ........................................................................................................... 16

Home Ownership .................................................................................................................... 16
Household Profiles.................................................................................................................. 18
Running Costs ........................................................................................................................ 19
Table 2
Chart 2
Housing and Households Data 2000, 2005, 2011, 2012, 2013, 2016 ........ 20
Number of Households by Disposable Income Bracket 2005, 2010,
2016 ........................................................................................................... 21
Money and Savings .................................................................................................................... 22

Attitudes Toward Payment Methods ....................................................................................... 22
Savings ................................................................................................................................... 23
Loans and Mortgages ............................................................................................................. 24
Table 3
Chart 3
Money and Savings Data 2000, 2005, 2011, 2012, 2013, 2016 ................. 25
Consumer Lending Compared with Savings and Savings Ratio 20002016 ........................................................................................................... 25
Eating and Drinking .................................................................................................................... 26

Eating Habits .......................................................................................................................... 26
Drinking Habits ....................................................................................................................... 27
Table 4
Chart 4
Eating and Drinking Data 2000, 2005, 2011, 2012, 2013, 2016 ................. 29
Real Growth in Consumer Expenditure Compared with Real Growth
in Consumer Expenditure on Food and Alcoholic Drinks 2000-2016 ......... 30
Grooming and Fashion ............................................................................................................... 30

Perceptions of Beauty............................................................................................................. 30
Female Grooming ................................................................................................................... 31
Male Grooming ....................................................................................................................... 32
Fashion Trends ....................................................................................................................... 33
Table 5
Grooming and Fashion Data 2000, 2005, 2011, 2012, 2013, 2016 ............ 35
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Chart 5

in Consumer Expenditure on Clothing, Footwear and Personal Care
2000-2016 .................................................................................................. 36
Health and Wellness .................................................................................................................. 36

Attitudes To Health and Well-being ........................................................................................ 36
Obesity ................................................................................................................................... 37
Attitudes To Smoking.............................................................................................................. 38
Table 6
Chart 6
Health and Wellness Data 2000, 2005, 2011, 2012, 2013, 2016 ............... 40
Real Growth in Public and Private Expenditure on Health Compared
with Healthy Life Expectancy at Birth 2000-2013 ....................................... 41
Shopping Habits ......................................................................................................................... 41

Main Household Shop ............................................................................................................ 41
Shopping for Big-ticket Items .................................................................................................. 42
Personal Shopping ................................................................................................................. 43
Shopping Online ..................................................................................................................... 44
Table 7
Chart 7
Shopping Data 2000, 2005, 2011, 2012, 2013, 2016 ................................. 45

Index of Retail Sales through Hypermarkets and Supermarkets 20002016 ........................................................................................................... 46
Leisure and Recreation .............................................................................................................. 46

Staying in ................................................................................................................................ 46
Going Out ............................................................................................................................... 47
Sport and Fitness.................................................................................................................... 48
Vacations ................................................................................................................................ 49
Public Holidays, Celebrations and Gift-giving ......................................................................... 49
Table 8
Chart 8
Leisure and Recreation Data 2000, 2005, 2011, 2012, 2013, 2016 ........... 50
Percentage of Households in Possession of Cable TV; Satellite TV
System; Internet Enabled Computer; Mobile Telephone; Video
Games Console 2000-2016 ....................................................................... 52
Getting Around ........................................................................................................................... 52

Private Transport .................................................................................................................... 52
Public Transport...................................................................................................................... 53
Commuting ............................................................................................................................. 54
Air Travel ................................................................................................................................ 55
Table 9
Chart 9
Transport Data: 2000, 2005, 2011, 2012, 2013, 2016 ................................ 56

in Consumer Expenditure on Transport Services and Purchase of
Cars, Motorcycles and other Vehicles 2000-2016 ...................................... 57
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II

TOP FIVE CONSUMER TRENDS
Rising Middle Class Drives Consumer Spending
The growth in GDP in the past decade has greatly contributed to the rise of the middle class.
GDP grew at an average of 5.6% a year between 2011 and 2013 and 6.3% a year between
2006 and 2010. Annual GDP per capita has increased significantly, from around US$953 in
2000 to US$1,889 in 2013. The number of middle-class households is expected to soar to 33
million in 2020, from around 12 million in 2012.
Middle-class workers now account for 25% of workers; they include office workers in the
public sector and local and foreign companies and businessmen. These people enjoy financial
stability and are optimistic about the coming years; they perceive that the next generation will
see the return of high economic growth, despite the current short-term slowdown. Thus, they are
willing to spend more on education and household and personal goods.
Generally, middle-class people have the financial capacity to seek high-quality imported
products or high-end local brands. They perceive expensive branded goods to be of better
quality. They are sophisticated given their constant exposure to the internet and social media,
which helps them gather opinions and reviews of products and services. In addition, most of the
people in this group are educated and are not easily fooled. They are spoilt for choice between
imported foreign products and better-quality local ones at mid-range prices. People on low
incomes often spend more than half their income on food and other necessities; people in the
middle class only spend around one-third or less on food. Spending by the middle class is
focused on healthcare, clothing, transportation, and leisure activities.
Each person owns 1.4 phones on average, half of which are in the mid- to high-price range,
according to bizlive.vn in 2014. Most of these phones are bought in urban areas where middleclass families buy smartphones and tablets even for their teenage children.
Middle-class people are health conscious and pay more attention to nutrition and diet. Local
shops selling fresh and organic food products or imported fruits are popular with the middle
class. Many young middle-class adults go to expensive fitness centres, gyms and yoga classes.
Supplements, such as Omega 3, shark cartilage, collagen and seaweed extracts, are popular
because they are believed to help prevent illnesses.
Middle-class consumers have become familiar with international cuisine from Asia, Europe
and Latin America. New restaurants serving foreign cuisine are much appreciated by this
consumer group. Young people adore foreign branded coffee shops and international foodchain restaurants, such as Starbucks, Pizza Hut and McDonalds. To them, these restaurants
are symbols of modern and trendy lifestyles.
Young middle-class people follow the latest trends in fashion and grooming. They are image
conscious and avid consumers of cosmetics and personal care products, like deodorants and
fragrances. Many are internet savvy and order clothing and footwear online from local designer
shops and international fashion websites. Middle-class mid-lifers are big purchasers of skincare
products and despite the recent economic slowdown, many still favour luxury products, such as
designer bags and accessories. Car ownership is also on the rise among middle- and highincome earners. Many consider that cars are a safer mode of transportation for their families.
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Consumers Seek Out Foreign Products

Vietnamese consumers are extremely fond of foreign products. After years of
underdevelopment, consumers still feel that domestically produced items are of lesser quality.
This is partially true as most local producers have yet to upgrade their products to meet
consumer expectations. Their traditional weaknesses are lack of variety and low product quality
control. These factors contribute to consumers lack of interest in domestic brand names, but
perception is also a factor.
Moreover, the number of Vietnamese people travelling internationally for leisure, study or
business is growing quickly. This, together with the internet and social media boom, raises the
awareness of different lifestyles and cultures and the latest technology and consumer trends
across the world. As a result, the demand for foreign products and services has risen.
In addition, consumers are increasingly exposed to foreign movies, music and media and they
greatly admire foreign idols. This strengthens their desire for foreign branded goods. For
instance, teenage girls love Korean musicians and movie stars and, as a result, wish to travel to
Korea and try Korean cuisine, fashion and beauty products. Lifestyles and beauty standards are
highly influenced by international standards. Nowadays, many Vietnamese people wish to look
like Korean or Western stars and are willing to undergo cosmetic procedures to do so.
The fascination with foreign products touches virtually every aspect of consumers lives,
including eating, drinking, entertainment, transportation, healthcare and shopping. For example,
eating and drinking habits have changed considerably, as consumers now show a strong
preference for international cuisine. The long queues at Starbucks or McDonalds on their
opening days are one example. Imported goods, especially hand-carried ones, are greatly
preferred over goods by the same international brand produced domestically. For example,
Pantene shampoo made in Thailand is considered to be better than Pantene made in Vietnam.
This has led to a thriving business, with people selling hand-carried products via social
networking sites.
The preference for foreign products also affects educational services. Overseas experience
and education are highly valued. Possessing overseas experience, especially from the United
States, Europe and other developed nations, is considered desirable for any job hunter.
Overseas degrees are looked upon favourably by employers, who believe that they imply a
good command of foreign languages, maturity, and adaptability. Speaking a second language is
extremely necessary in todays workplaces because the vast majority of companies are
subsidiaries of multinational firms or joint ventures or they have foreign business ties. Therefore,
Vietnamese parents enrol their children in language centres at a young age in order for them to
develop their second-language skills early. Children from better-off families usually go overseas
to study or go to summer school to gain an advantage in the current tough job market.
Concerns Over Health and Food Safety Are High

Vietnamese consumers have become more concerned about their health and food safety
primarily as a result of various food safety scandals that have hit the headlines in recent years.
In 2010, a comment by Deputy Prime Minister Hoang Trung Hai at a conference about food
safety and food hygiene went viral: I am on a diet and should eat more vegetables but the
vegetables sold at wet markets are so contaminated by pesticides that I do not know what to eat
anymore.
Skyrocketing medical and healthcare costs have also affected consumers attitude towards
health and food safety. At the end of 2012, almost all first-tier public hospitals simultaneously
raised their fees. Moreover, hospital charges are scheduled to increase further in 2014. Given
that social welfare and insurance schemes are underdeveloped, medical expenses are mostly
paid by individuals. As a result, people are more health conscious for fear of falling sick and
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having to pay huge hospital bills. For instance, the smoking prevalence has been falling steadily
over the past 14 years, from 24.2% of the population in 2000 to 22% in 2013. Mid-lifers and latelifers, who tend to be more aware of ageing problems, exercise more regularly; many take up
yoga. Younger generations can be seen at gyms or fitness centres.
Most importantly, Vietnamese consumers have become more selective about their food
purchases. Better-off consumers no longer want to purchase food of dubious origin. Taste and
price are no longer the most important criteria for food products. It is reported that the majority of
consumers rank safety and hygiene as their top two criteria for selecting food products
nowadays. Stores selling premium organic fresh vegetables, meat and other food products are
thriving despite the economic downturn. Prices at these certified stores are rather steep. For
example, one kilogram of cabbage at wet markets costs around VND8,000; it costs almost
twice, approximately VND15,000, at certified stores. Despite their steep prices, stores that
specialise in certified organic food attract a high number of customers every day. Lower-income
families usually buy certified food products for their children, but they buy food from wet markets
for adults in order to save money. More people are growing vegetables at home in urban areas,
as they want safe and organic food products at more affordable prices.
Spending on Children Grows Despite the Economic Slowdown

The long-lasting two-child policy has made a clear impact on the birth rate. Family planning
has improved and the society is more open. Modern women nowadays can easily put off
marriage and child bearing to pursue education and employment opportunities. Most families
only have one or two children, and it is easy to understand why the children capture all the
family attention. Particularly in urban areas, small family sizes have been the norm for two
generations. Consequently, each child is taken care of by both his or her maternal and paternal
grandparents and his or her parents at the same time.
Traditional thinking is another main contributor to the high spending on children. In Asia, and
Vietnam in particular, children are families top priority. The well-being and future success of
children is a major source of happiness for parents and grandparents. Moreover, children are
considered an investment since almost 70% of late-lifers live with their children. As a result, it is
not surprising to see Vietnamese families spare no expenses to provide their children with the
best products and services they can afford.
A large proportion of households use their savings for the education of their children. For
Vietnamese parents, this is much more than regular schooling. For example, even babies and
infants take part in edutainment activities, such as baby swimming classes and music listening
classes. Children are enrolled into language centres at an early age. Learning English combined
with games and singing was the hot trend for five-year-olds in the summer 2014. In the tween
segment, summer courses teaching living skills, such as cooking or communication, are
widespread. Education costs can have a knock-on effect on the consumption of other products.
A good swimming course for babies aged 418 months costs US$50 for five days. Language
learning with foreign teachers often costs US$80-US$120 a month, while a summer-long course
on living skills can cost around VND10 million. Most of the parents do not belong to the upper
class, but they are willing to limit their own consumption and use retirement savings for their
children.
Apart from education, parents actively seek high-quality products and services for their
children. Not trusting the free public vaccinations, many have opted for pay-for-yourself
vaccinations at first-tier hospitals. They believe that imported vaccines and private medical
services are better for their infants. Moreover, parents and grandparents are endlessly shopping
for foreign products, such as milk, baby food products, diapers, potties, baby toys, clothing and
baby carriers. The overwhelming flow of advice and advertisements in the media and on online
forums have prompted many people to buy items for their babies before they are born, not
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knowing if the babies will use them all. A couple may spend up to VND30 million on products for
the babys first year, not counting food, according to an article on giadinh.net.vn.
Parents seem to be obsessed with Western, Japanese and Korean milk products and
supplements, such as Russian salmon oil or added vitamins. Some parents do not even trust
imported products; they prefer hand-carried items from specialist shops or friends. Although
importers frequently raise prices, price increases seem to have a marginal impact on most
parents shopping.
Spending on transportation and gadgets for children is also on the rise. Nowadays, many
parents buy electric bicycles for their children in lieu of traditional bicycles, although e-bikes are
much more expensive, costing VND10 millionVND20 million. Parents worry about the health
and wellbeing of their children when they travel back and forth between classes. Owning phones
is becoming extremely common among teenagers something that was not observed just a few
years ago. Moreover, many teens now have an expensive smartphone, together with a tablet
and laptop. Parents also increasingly give more pocket money to their teenage or even youngadult children. Therefore, spending for the customer group aged 13-22 on cosmetics, skincare
and clothing has risen significantly.
the Internet Becomes An Integral Part of Life

The internet has exploded and has become integrated into the lives of many Vietnamese
consumers in recent years. The number of internet users grew significantly between 2000 and
2013; and it is expected to continue to rise at an impressive rate. In 2013, Vietnam had over 38
million internet users, making up 42% of the population. The internet infrastructure has
developed rapidly. By the end of 2012, 2G was available in all the provinces and 3G had spread
to over 70% of provinces. The number of households with internet access is also rising at an
astonishing speed. The number of internet subscribers has risen from 6.7 million in 2008 to 9.9
million in 2013. Still, not everyone has internet access at home, especially in rural areas.
However, internet cafs, public internet access and mobile broadband enable people to go
online without needing the internet at home. Smartphones have become increasingly
widespread. Given the introduction of more affordable smartphones and better wireless
services, the number of smartphone users is expected to continue to rise.
With the rapid penetration of the internet, the social media landscape is evolving quickly.
Vietnamese consumers, especially those under the age of 35, frequently use Facebook, Zing
Me, LinkedIn, Instagram, YouTube and other social networking websites. The largest users are
in the 18-24 age group. It is common to see young Vietnamese people tapping on their
smartphones on the street, at home, in the office, restaurants or coffee shops. These users are
texting, posting comments or sharing experiences on social networks in real time. The main
online activities are reading news, searching for information, chatting and emailing,
communicating via social media, and accessing entertainment. Males, in particular, enjoy online
entertainment, especially playing games and watching movies.
The internet has an increasing influence on consumers opinions. People carry out online
research before buying items, check the latest trends and promotions and share experiences
with other people through online forums and social networks. However, only 57% of internet
users shop online and the amount of money they spend is fairly small because most remain
sceptical of electronic payment methods. This is unlikely to change until internet security and
online banking services improve significantly. Nonetheless, Vietnamese people are keen users
of the internet for searching for product information. Therefore, many small businesses use
social networking sites to reach a large base of customers. Because of customers scepticism of
electronic payments, online sellers usually enable cash payment upon delivery. Whether they
sell home-made food, clothing and beauty products or electronic gadgets, online stores are
popular with many internet users.
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CONSUMER SEGMENTATION
Babies and Infants
The number of babies and infants (aged 0-2) reached 4.23 million in 2013, less than in 2012
(4.29 million). This number is expected to fall to 4 million in 2016. This decline is a result of the
fall in the birth rate, from 17.5 per 1,000 population in 2000 to 15.8 per 1,000 population in 2013,
and this trend is expected to continue.
Many factors affect the decrease in the birth rate. Firstly, the governments two-child policy in
the 1990s and 2000s still has an impact on todays rate, as most parents working in government
bodies - the major employment segment in Vietnam - still continue the practice. Secondly,
Vietnamese women increasingly put off having children to pursue education and employment
opportunities. The dramatic improvements in health and family planning enable women to delay
becoming pregnant. Thirdly, the costs of raising a child are rising. This is an issue, particularly if
the mothers have difficulty returning to work, as can be the case for many female blue-collar
workers. Finally, according to an article published in Dan Tri in 2013, the infertility rate increased
alarmingly in 2013: around 7%-10% of couples, 50% of whom below the age of 30, are unable
to have babies. This has been partly attributed to young peoples unhealthy lifestyles, as well as
pollution and unsafe food.
Women tend to have more children in the northern and central provinces, while the southern
localities experience the lowest rates. The lower birth rate puts heavier pressure on women to
give birth to at least one son, which in turn worsens the gender imbalance at birth. In 2013, the
General Statistics Office estimated that there were 113 male babies for 100 female babies.
Many parents have to turn to unauthorised independent nurseries because places in public
and authorised independent nurseries are scarce, especially for babies under the age of
eighteen months. According to the Ministry of Education & Training, only 24% of babies and
infants under the age of two are sent to public and authorised independent nurseries. The same
source claims that about 5,600 nurseries, or about one-third of independent nurseries, are
unauthorised and operated by people from their homes. These nurseries often operate on a
small to medium scale, have a poor infrastructure and non-professional caregivers. Besides the
lack of places in public and authorised nurseries, some parents prefer unauthorised
independent nurseries because they offer flexible schedules and are conveniently located. Only
40% of parents put quality and the qualifications of the caregivers as the top criteria when
selecting nurseries. However, such an attitude may not last because recent cases of
mistreatment of babies and infants at unauthorised nurseries made the national headlines and
created much public outrage.
Children under the age of two are predominantly cared for by their mothers and, in many
cases, by their grandmothers who live with them. Under the newly-revised labour law, mothers
can take paid maternal leave for up to six months. However, there is still no parental leave for
fathers. Financial support and incentives are extremely limited. Some companies, mostly
multinationals, are setting up nurseries at work as a benefit for employees.
Demand for pay-for-yourself vaccinations is higher than ever
In Vietnam, 11 types of vaccines are provided to all babies and toddlers for free at all public
preventive health centres. The 11 vaccines are supposed to protect against common diseases,
such as measles, polio, pertussis (whooping cough), hepatitis B, diphtheria, and tetanus, among
others. However, in recent years, a few babies died after receiving vaccinations at public
preventive health centres. Cases of infant deaths after getting shots of the Quinvaxem vaccine
(a 5-in-1 vaccine for babies and infants) have also been noted. Although the authorities have
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denied that vaccination was the cause of death, parents have become extremely concerned.
Many parents have been discouraged from having their children vaccinated at public preventive
health centres.
The recent fatal measles outbreak underlines consumers distrust of public preventive health
centres. Measles started to re-emerge in May 2013 and the illness reached its peak in early
2014. Yet, parents still refuse to trust public vaccinations, voicing concerns about safety, quality
and efficacy. Almost all parents choose pay-for-yourself vaccination services from first-tier
hospitals and paediatric clinics, as they believe that imported vaccines and pay-for-yourself
medical services are of superior quality. A simple dose of measles vaccination costs around
VND125,000 and prices for other vaccinations can range between VND400,000 and
VND500,000 depending on their origin. Vaccines made in Belgium and the USA are the most
popular. Even during the height of the recent measles outbreak when pay-for-yourself services
ran out of vaccines, parents were willing to wait for them to re-stock instead of going to public
preventive health centres to get free vaccinations.
Parents demand high-quality products for their babies
Through the media, parents have become very aware of the importance of the first few years
on childrens physical and mental development. Thus, they try to provide their newborns with the
best available products. The perception that foreign products are always of superior quality,
compared to domestic and made-in-China products, is widespread. Consequently, many
parents buy foreign products, such as formula milk, food, diapers, potties, baby toys, clothes,
and baby carriers.
As milk is the main food for babies during their first year, it is at the top of all shopping lists. In
Vietnam, babies start having powdered milk at the age of sixth months or even earlier.
Vietnamese consumers prefer brands whose advertisements contain phrases like with DHA,
increase IQ, make babies smarter or for babies healthy and fast development. Some
parents on high incomes do not even trust foreign branded milk products made in Vietnam.
They prefer hand-carried products from independent distributors because they believe that
hand-carried products are more authentic.
Middle-income parents are willing to cut their spending on other items to be able to spend
more on baby products. Although importers usually take advantage of parents attitude to buy
the best for their children and frequently raise prices, these increases seem to have a marginal
impact on most parents shopping.
Kids
The number of kids (aged 3-8) rose in the past eight years, from 7.9 million in 2005 to 8.5
million in 2013. This moderate increase is due to the continuing fall in the birth rate in the last
decade.
At the age of three, most children in urban areas are expected to have begun kindergarten
education, although working parents are likely to send their kids to kindergarten earlier. The age
of three years is considered by many kindergarten teachers and parents the right age for kids to
integrate into their age group and start learning. At the age of four years, children often move to
pre-schools and stay there until they are six years old.
According to an article in hanoimoi.com.vn in 2014, only 86.5% of children aged four to five
years go to school. The main reason is the lack of affordable public kindergartens or private
ones with guaranteed quality. Many families in rural areas who are financially constrained enlist
the help of grandparents or relatives to look after the kids at home. Others have to send their
kids to small kindergartens run from home, where teachers abilities, educational content and
meals can be of questionable standard. Parents who can afford kindergartens often have a hard
time finding reliable schools in their vicinity. On social forums for parents, such as Webtretho or
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Lamchame, many people try to recommend good kindergartens. In kindergartens, meals are
decided by the school. Some parents may also send milk to the school to add to their kids
menu.
Elementary education is compulsory for all children from the age of six. Nowadays, only
children living in mountainous areas have difficulty in accessing elementary education. Many
urban kids are taken to school by their parents on their motorcycles. School buses are available
in some high-end international schools. Urban kids do not use public buses because parents
believe that kids are too young to travel alone, given the lack of safety and potential crimes on
buses. In contrast, kids in rural areas often walk to school. Although the Ministry of Education
agreed in 2013 that it was not compulsory for kids to wear uniforms, most primary schools still
require their pupils to do so. School uniforms may include summer clothes (black trousers and
T-shirts for boys and skirts and T-shirts for girls) and winter jackets. Kids are often encouraged
to participate in sporting events organised by their schools, such as annual parades or minifootball tournaments. Many elementary schools offer care services after class or schedule
classes in both the morning and the afternoon so that kids can stay at school all day. Kids
usually eat lunch and an afternoon snack provided by the school. Yet, as a result of the
economic downturn, many low-income families have switched from all-day classes to half-day
classes and have cancelled their kids school meals.
The most common items bought by parents are books and school supplies. Owning a
computer, smartphone or tablet is extremely uncommon for kids, although they may be able to
play games on their parents computers and phones. The vast majority of kindergartens and
elementary schools are not equipped with computers, except for some high-end international
schools. Normally, children go out and play with their friends in the school playground during
breaks. Among out-of-school leisure activities, watching television is still a favourite pastime.
Popular television channels for kids are BiBi, the Cartoon Network and the Disney Channel.
Children play with toys or read books if they are old enough. Due to the lack of open spaces and
safe playgrounds in most neighbourhoods, many urban children are not allowed to play outside
while at home.
Parents bring their children to language centres
The introduction of foreign cultures has made English a popular language among urbanites.
Parents nowadays want their children to excel in a foreign language in the hope that they will
have a brighter future and adapt well to the increasingly competitive job market. Moreover,
parents feel the social pressure to have their kids learn English if all the other kids in the school
or neighbourhood have already done so. Many parents send their children to language centres,
mostly for English, at the age of three to seven years, since it is considered the golden period
for learning vocabulary and pronunciation.
Independent language centres have become widespread, particularly after the Ministry of
Education banned extra classes in language learning in kindergartens. In the past, most parents
did not have a clear idea about quality standards for language centres. Nowadays, parents are
often concerned about the centres ability to teach pronunciation and communication. Centres
with foreign teachers are more trusted and charge a premium price. Summer is a good time for
language centres since kids do not have to go to school. Sending children to summer language
centres also frees busy parents from the worry of leaving them alone at home. The fees for kids
English classes are fairly high, at about VND300,000-VND500,000 per month for local teachers
and US$100-US$200 per month for foreign teachers, according to an article in giaoduc.edu.vn.
Premium centres, such as the British Council or Apollo, may charge even higher prices,
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Many kids have access to smartphones and tablets

Nowadays, smartphones and tablets are present in most urban families. Thus, many young
children play games on their parents iPads and smartphones at the age of three to five years.
Some parents use phones and tablets as babysitters so that they have time for themselves.
Popular games for children include Mouse Kingdom (Vuong Quoc Chuot Trui) and Shaolin
Meow. Moreover, parents want their children to use technology early; they think that it will help
to build their intelligence. However, it has been noted that constant use of small screens by
children also leads to near-sightedness or myopia, a prevalent condition amongst Vietnamese
kids.
Tweenagers
The number of tweens (aged 9-12) declined between 2000 and 2005 before stabilising at
around 5.25 million in the last three years, as a result of the declining birth rate. However, a
slight increase in the number of tweens is expected in the next few years, as the population
continues to grow and the two-child policy has been less stringent recently.
At the age of 11, tweens finish the last year of their five-year primary education and sit a
national exam in order to proceed to four-year secondary schools. The quality of education
varies significantly amongst provinces and even in the same provinces or cities. In general,
schools in urban areas are considered to be of better quality and admission to high-quality
schools is competitive. Most tweens also attend tuition classes outside of regular school hours.
These extra classes are usually conducted by their own teachers, who charge a fee of
VND50,000VND100,000 per person per class. Not all parents are financially comfortable
enough to pay these fees, and thus, this practice tends to worsen inequality. In urban areas,
affluent parents who can afford the exorbitant tuition fees prefer to send their tweens to
international schools, which offer better educational services and language opportunities.
According to UNICEF, the primary-school enrolment rate in 2012 was 97.7%. However, the
primary-school completion rate was only 92%. This is as a result of some children dropping out,
mostly tweens from ethnic minority groups and lower-class families in rural areas. Financially
constrained pupils drop out of school either willingly or grudgingly in order to help provide for
their families. There is also still a problem with the employment of child labourers under the age
of 15 in some factories in urban areas. Although this against the law, the system has many
loopholes and in not effectively enforced.
Limited transportation options are available to tweens. It is considered unsafe for tweens to
take public buses on their own due to the high crime rate. Parents are less likely to take their
tweens to school and tuition classes, compared to kids. Children aged 11 and 12 are considered
old enough to take care of their own transportation. Walking is not favoured due to the generally
hot and humid weather and the traffic. Moreover, many students live very far from their schools
and walking is not feasible, so most tweens usually cycle to school.
Most tweens are given a small amount of pocket money. Pocket money can also be taken out
of li xi money given by adults during the Lunar New Year. Li xi monies are put in red
envelopes, which bring good luck. Tweens usually spend money on eating (snacks and
breakfast mostly), manga (Japanese comics), video games and other means of entertainment.
At 11-12, tweens get their first social media accounts. Tween girls become more image
conscious and begin to take an interest in fashion and style icons, mostly Korean stars. A vast
majority of boys love gaming and can be seen playing computer and video games at game
stores. Dota, Age of Empires, Vo Lam Truyen Ky, Tam Quoc and FIFA Manager are best
sellers. Online mobile games with Western themes based on famous movies or television series
are also popular. They include Giac Dau, Thien Than Truyen, Sat Thu Truyen Ky and King
Online 2 (Lien Minh Huyen Bi).
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Classes teaching living skills to tweens are favoured by parents

Nowadays, many parents are worried that their children spend too much time in enclosed
environments and lack the necessary soft skills in life, such as communication and dealing with
accidents. Moreover, parents want to remove the perception that Vietnamese children are shy
and do not possess high confidence when meeting strangers. In addition, during the long school
summer holiday, working parents are unable to look after their children all day. For this reason
enrolling them into summer soft-skill classes is seen as a good choice. For example, children
are sent to farms to learn to live independently for a week. The children have to wash their
clothes, do morning exercises, help staff cook their meals, wash dishes and learn to sing and
dance. Cooking classes is another popular choice, especially for tween girls. Most Vietnamese
people consider good culinary skills a favourable trait for females.
Parents often hope that, through the summer programme, their kids will pick up soft skills that
are not usually taught in schools. These skills are particularly important for 9-12 year olds who
are about to enter adolescence. However, the quality of these classes has not been monitored.
The fees vary considerably, for example a ten-day course to farms can cost around VND7
million.
Tweens spend their pocket money on snacks
Snack carts selling a variety of very affordable snacks and drinks are common at all schools
across the country. Tweens spend the majority of their pocket money there. Snack carts are an
integral part of many tweens school lives. Tweens like to gather around snack carts before or
after school hours to eat and chat. Products are affordable; they fall within most tweens
budgets. Carts are conveniently located on the pavement in front of the schools. Besides food
and beverages, some street vendors sell toys, posters and hand-made bracelets. Yet, some
parents and some tweens have become increasingly worried about food safety. As a result,
tweens are turning to street snacks from trustworthy producers, such as Rodstarz, Buffet Ha Noi
Vat, Buffet Snack or Aiya. However, the number of branded street snack producers is still very
limited, and their operations are only present in a few cities.
Teens
In 2013, Vietnam had 6.8 million teenagers (aged 13-17); their number has been declining
since 2006. The teenage population is expected to continue to fall, to reach 6.5 million by 2016.
A 2008 report by UNESCO listed Vietnam as one of the top countries for its school drop-outs.
At lower-secondary school, teens (aged between 11 and 15) are the most likely to drop out of
school. As teens approach the age of 15, they are more likely to leave school, since 15 is the
legal working age in Vietnam. Teenagers living in rural areas are less likely to attend high school
than their peers in urban areas. The secondary-school drop-out rate for teen boys is higher than
that of teen girls. The inability to follow the progress of the class is often cited as the main
reason for them to leave the educational system. These teens usually come from poorer socioeconomic families, which place less value on education. Another main reason for dropping out
of school is financial difficulty. Since there is no obligatory period of schooling, a sizeable
proportion drops out of school to help support their families financially. Upon graduating from
lower-secondary school, the teenagers who decide to continue studying attend upper-secondary
school, the equivalent of a high school, for three years. At the end of high school, teens are
required to take a national graduation examination. After high school, teenagers can either sit
the university entrance examination to continue to higher education or join the workforce.
However, with limited education, teen workers are considered low skilled and most can only find
poorly-paid labour jobs.
Teens from middle- to upper-class families are now enjoying much higher living standards
than ten years ago. Many ride electric bicycles to school, which are significantly more expensive
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than normal bikes. Many possess scooters or motorbikes, although it is against the law. They
participate in a wide variety of activities outside regular school hours, such as extra tuition
classes, English classes, sports and other extra-curricular activities. However, sports and fitness
facilities at most schools are old and limited. School pools are considered a luxury; they can be
seen only at expensive international schools and at a few top public ones. Better-off teens who
enjoy sports usually go to private health clubs and fitness centres. Many start dating at this age;
thus, they go to the cinema, eat and drink out, and visit attractions more frequently.
Nowadays, teenagers literally grow up with technology. Most teens consume several media at
a time. While teens surf the internet, they also listen to music, chat over the phone and watch
TV. Amongst all online activities, chatting and visiting social networks are the most popular, as
the internet becomes integrated into teenagers social lives. Teenagers are very active on social
networks; they frequently generate and post content on social media. According to
Socialbakers, in 2013, 21.42% of Vietnamese people were Facebook users. Facebook was the
largest social network in Vietnam in 2013 with 19.6 million users, followed by Zing Me (8.6
million). Teens make up the majority of social media users.
Teenage girls are more image conscious than ever
Teenage girls spend a lot of time and money on make-up and fashion. Many have more than
one lipstick, high heels and branded perfumes. Most schools require students to wear massproduced uniforms to school that tend to have a loose fit. Yet, the vast majority of teenage girls
wear tailored, tightly fitting uniforms or wear jeans to school. Many teenage girls wear colourful
nail polish; they love to dye, highlight, curl, or straighten their hair and are often regular
customers at hairdressers. They catch up very quickly with new hair styles and fashion trends,
compared to older females. Urban teenage girls with internet access at home spend a great
deal of time on YouTube to get tips about make-up, skin care and hairstyles. Michelle Phan and
Lindy Tsang (Bubzbeauty) are among the most followed and adored beauty bloggers.
Overseas study is popular for teenagers
Given the economic development over the past 10 years, many parents have become
considerably wealthier and are willing to invest a great deal of money in their childrens
education. Since the educational system in Vietnam is not highly thought of, more parents want
their children to study overseas. Moreover, parents believe that if teenagers study overseas,
later they will easily adapt to new environments. More Vietnamese teenagers are going abroad
to go to high school or take pre-university or summer courses. In most cases, all living costs and
tuition fees are funded privately. Singapore, Australia, the USA and Britain are the main
destinations for these teens.
Affluent parents whose children do poorly in school and cannot pass university entrance
examinations also send their children overseas prior to high school graduation. Many parents,
especially those with a high socio-economic background, consider that having a child who fails
an examination is bad for their image.
Young Adults
The number of young adults (aged 18-29) has been fairly constant over the past three years,
at around 21.2 million. However, it is expected to decline to 20.2 million in 2016. Many young
adults, especially those aged over 24, have witnessed changes in the economic and social
environment, from subsidies in the 1980s to the open market in the 1990s. Young adults are the
largest consumer group; they represented 23.43% of the population in 2013.
Young adults include those who are studying (at university, college, or vocational school),
those who both study and work (mainly in graduate education) and those who have left full-time
education to work. Attending university, or at least college, is the ultimate aim of many 18-year-
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olds. It is partly due to the fact that the Vietnamese generally place great emphasis on having a
good education. Most people believe that, without a higher education, a person cannot secure a
stable job and have a comfortable life. People with higher education are also better respected in
society. Vocational schools are seen as offering low job prospects and are only popular in rural
areas. The number of public and private universities and colleges has been on the rise, from
178 in 2000 to 424 in 2012, according to the General Statistics Office. In 2012, almost 2.2
million people aged above 18 were enrolled in universities and colleges, with a further 562,000
in vocational schools.
The job market in Vietnam favours certification; therefore, most people continue to graduate
school after finishing their undergraduate studies or after having worked for two to three years.
The current higher-education system focuses on social sciences, languages, economics and
trades. In these sectors, the employment prospects are gloomy, especially given the slowdown
in the economy. According to a 2013 article in tuyensinhvn.com, less than half the applicants for
accounting and office administration jobs end up with positions. Nowadays, many foreign
companies require previous internships, as well as soft skills, like communication and
presentation. Many graduates do not meet the requirements because the education system
focuses on knowledge. On the other hand, there is a lack of qualified graduates in engineering,
technology and science. Furthermore, most cities have high unemployment rates while some
rural areas seriously lack workers because students want to stay in urban areas after
graduation.
Most young adults are heavy internet users and active members of social media, such as
Facebook, Zing Me and Yahoo360 Plus. They read news stories, check emails, communicate
on social media and search for information. Social media has become a main channel: people
use it to get information, buy products and ask for opinion or feedback. Football is the dominant
spectator sport for men, who regularly watch international leagues on television, particularly the
English Premier League. Young female adults are image conscious and often follow the latest
trends. Visiting shopping malls and meeting friends at cafs or local food stores are common
leisure activities for young adults. Many earn an income but do not have a family or children yet
and so they are able to spend large amounts of money on themselves. They also tend to go to
other cities or countries on holiday.
Many young adults experience one of the major transitions in life: from being single to having
a family of their own. Many young adults enjoy going out with friends, but, as they get older, they
like to spend time with their family. In 2013, the average age at marriage was 21.7 for women
and 23 for men, but urban women tend to get married later. Most young families concerns
revolve around having children and caring for their babies. Conventionally, Vietnamese people
are encouraged to have their first child early, when their parents are still young and healthy
enough to help take care of the children. Moreover, people are afraid of being infertile,
especially after 30. However, some lower-income families delay having children because of
economic difficulty.
Young adults like to travel with a backpack and a motorcycle
Recently, backpacking has become a favourite mode of travel among young adults. Travel
tours are seen as suited for older people. Moreover, social media paint the picture of
backpackers as independent and free. Young people increasingly see backpacking as a lifestyle
choice and a way to escape normal life, not just as a travelling method. Slogans such as Grab
your backpack and go or Backpacking with a passion are widespread in online forums for
young people and on social media.
Backpacking appeals to the young because it shows an adventurous nature. Moreover, since
there is no fixed schedule, travellers can stay or go as they wish. While young people in other
countries travel by car or train, young Vietnamese people choose a unique mode of
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backpacking: by motorcycle. Motorcycles are economical since almost all Vietnamese young
adults possess a motorcycle. Moreover, two people can share a motorbike, making fuel costs
more affordable. Motorcycles are handy when travelling on dirt roads and trying to reach places
that are inaccessible by other modes of transportation. These places include mountainous and
minority-group areas. Typically, people backpack in groups of four to ten. A group leader is
responsible for finding rest places and leading the way. Existing friends or people who
communicate via online forums and want to visit a specific place go backpacking together.
Normally, people travel during school summer vacations. However, more young people are
choosing Tet, or the Lunar New Year period, to travel, instead of staying at home with the
family.
Middle Youth
The size of the middle youth age group (30-44) is steadily rising. In 2016, it is expected to
become the largest consumer group in Vietnam with 22.2 million people. Most people in this
group value stability in their jobs. They often rely on their social network or relatives to find a
new job if they lose their previous one or decide to get a different one. In 2013, the
unemployment rate for people aged above 25 was 2.55% in urban areas and 0.8% in rural
areas - much lower rates than for the 15-25 age group. However, given the economic slowdown,
people in this group are concerned that their incomes will be insufficient to cover the rising living
costs and the cost of raising children.
Like young adults, people in middle youth use websites such as Facebook or Enbac.
However, their usage often shifts from communication to buying products and goods. They buy
hand-carried imported beauty products, cosmetics and food supplements online. Females in
middle youth are conscious about the approaching mid-life years and the implications on their
beauty and skin and so they seek products that can rejuvenate their looks. Office workers like to
order expensive designer bags from online sellers, which are not available in Vietnam. Fashion
is a hobby for some people in middle youth. People aged 30 and above tend to buy more
mature office wear and professional clothes from local designer shops or high-end fashion
stores. Since they often have more money than young adults, people in middle youth pay more
attention to quality and brand. Yet, middle-youth males are less image conscious than young
adult males. They prefer simple styles that mainly consist of T-shirts and trousers. People in this
age group rarely buy from street vendors. They like to spend time with their family. At night, a
popular activity is to watch Korean dramas on television or to read the news on the internet.
Women who want to go out with friends tend to visit shopping malls and cafs while men will
meet and chat with their friends in beer gardens.
Although couples are getting married at a later age, they are still encouraged to get married
prior to the age of 30 (for women) and 35 (for men). Most women entering middle youth are
already married and have at least one child; therefore, their single major concern is the
wellbeing of their children. Often, children have the top priority, especially in terms of education.
People in middle youth are willing to save money in order for their children to benefit from highquality extra classes or private tuition. They are also prepared to spend large amounts of
money, so that their children can enrol in top elementary and secondary schools. Other
educational expenses include extra-curricular activities, uniforms and school meals. Parents
also spend on childrens clothing and gadgets. The trend is towards high-quality imported
products for children.
Online forums for parents, like Lamchame or Webtretho, are popular with people in middle
youth, who often actively participate in conversations on raising children, food and shopping.
The middle youth segment have often already have purchased their first house through savings
and with financial support from their parents.
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Birth by Caesarean section is on the rise

Normally, giving birth by Caesarean section (C-section) is only carried out if the mother has
complications preventing normal labour. However, in Vietnam, more mothers are opting for Csections. The rate in provincial hospitals is 20% and 40%-50% in central and city hospitals,
according to a 2013 article on tuoitre.vn. Many urban mothers in middle youth do not want to go
through normal labour and since most women in middle youth have their second baby after the
age of 30, they are afraid of complications. Given the varying quality of doctors in many
hospitals, complications may not be handled quickly enough, endangering the life of the mother
and the baby. Some families, especially those that own a business, want the child to be born on
the right day and at the right hour because they believe that certain moments are compatible
with the parents horoscopes and feng shui. Many families are not aware of the proven benefits
of natural birth and are not aware of the issues, such as the higher rate of cardiovascular or lung
conditions, in children born by C-section. Birth by C-section is significantly more expensive than
natural birth. In a typical private hospital, a natural birth costs between VND2 million and
VND4.5 million; a C-section birth can cost up to VND13 million. As a result, only middle-class
people and above can afford to pay for this type of intervention.
Middle youth families increasingly opt for apartments in cities
In urban areas, the rising population density and limited availability of land has led to a rise in
house prices compared to a decade ago. For this reason some middle youth families have to
live in smaller houses increasingly farther from the city centre. In light of the recent economic
slowdown, the high inflation rate, low average wages and employment uncertainty, many
families are unable to afford a piece of land. Consequently, middle youth singles and families
have begun to opt for low-cost apartments, which are much more affordable than houses, with
prices ranging from VND10,000,000/m2 to VND20,000,000/m2. Most of these apartments are
smaller (below 70m2), which is suitable for singles or families with small children. Furthermore,
property companies often provide favourable financing options and attractive loans to apartment
buyers.
Apart from the low-cost segment, middle youth families in premium segments are also
beginning to favour high-quality apartments that offer enhanced security, a children-friendly
environment and green spaces. These apartments are often located in the centre, near main
streets and major schools or hospitals. Thus, compared to houses with similar prices,
apartments prove to be of higher quality. Nearby swimming pools, shopping malls and
supermarkets are also considered added value.
Mid-lifers
There were 15.1 million mid-lifers in 2013, a sharp increase from the 8 million recorded in
2000. As the population is getting older, this age group is expected to expand to 16.3 million, or
17.5% of the population, by 2016. People in this group (aged 45-59) were born during the war
and many men joined the army. They experienced the subsidy period (1980-1990) and its
extreme poverty; therefore, most like to save money and are thrifty.
Mid-lifers have reached the height of their careers and are often the most senior people in
their office. Therefore, they often have more disposable income than other age groups. Most
mid-lifers possess at least one house. Men often make the purchase decisions with regards to
vehicles, home decoration or maintenance and electronic appliances. Mid-lifers usually carry out
major house projects, such as adding more floors to the house or re-decorating. Home
appliances are also upgraded to premium or bigger models. Women are usually responsible for
the familys food and clothing. The family and children are mid-lifers top priorities, as well as
health. Unlike middle-youth women, when choosing clothes, mid-life women do not place a
great deal of emphasis on fashion trends but look at suitability and personal preference. They
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use more skin care products than colour cosmetics, wishing to protect themselves from skin
pigmentation and wrinkles. As their children have grown up, mid-lifers aged 50 and above
usually have more time to take care of their health by doing morning exercises and eating highquality food. On the other hand, mid-lifers with adolescent children are concerned about their
childrens academic performance. Finding good tuition classes and schools is a constant worry
for these people. Many middle- and upper-class families send their children overseas to study.
Most mid-lifers go on vacation with their families or offices; they hardly ever travel alone. Valuing
convenience, they prefer all-inclusive deals with hotel and transportation included.
Mid-lifers savings are often kept in fixed deposits or put in property investments. Mid-lifers,
especially those working in the public sector, normally do not switch jobs and work until
retirement in the same organisation.
Mid-lifers prefer healthy food
Most mid-lifers are no longer indifferent to their nutritional intake. In todays age of
information, mid-lifers constantly have access to doctors advice, nutritionists recommendations
and healthy 50-year-old role models on television and the internet. Mid-lifers seek higher quality
food products with a known origin and try to eat a balanced diet. For example, a typical mid-lifer
eats small portions of animal protein, such as fish, beef, pork or chicken, every day. Mid-lifers
eat much less rice and other starches than people in middle youth. They also eat more
vegetables and fruit than younger people. Mid-lifers try to eat in a way so that they can avoid
common mid-life illnesses or conditions, like gout, diabetes and obesity. In addition, mid-lifers
seek milk and yogurts to provide their body with calcium. They like attributes such as natural,
reduced salt, low fat, no sugar and added vitamins. The origin of the products matters;
mid-lifers prefer imported products from Western countries. They usually purchase food from
known fresh produce local shops and do not trust street vendors. Moreover, they avoid buying
fruits whose origin is uncertain, such as apples or grapes. Grapefruit, oranges and bananas
from the countryside are preferred.
Late-lifers
Late-lifers are an expanding consumer group; their number has increased steadily, from 6.1
million in 2000 to more than 8.4 million in 2013. It is predicted that, by 2016, Vietnam will have
9.8 million people aged above 60. This upward trend is largely due to enhanced living standards
and the quality of medical treatment, allowing a higher life expectancy.
Generally, pensioners receive a fixed income amounting to a maximum of 75% of their pay
over the last five to seven years. This income is partly funded by their social insurance
contributions during their working years (18% from employers and 8% from employees as of
2014). Any deficit is borne by the government. The reduction in income during retirement leads
to a fall in consumption, especially in light of the high inflation rate in recent years. The rising
price of gasoline, cooking gas, electricity and water limits the purchasing power of many
pensioners.
According to a 2013 article in Nhan Dan, 18% of older people are poor and 10% lives in
temporary houses. More alarmingly, around 70% of the elderly, mostly in rural areas, do not
have sufficient savings to be independent, according to the same article. Consequently, many
late-lifers, particularly those with a low pension income, rely on their children to some extent. It
is not generally an issue as Vietnamese traditional thinking values filial piety. About 70% of latelifers live with their children, usually their sons. However, many labourers are moving to large
cities, leaving many older people and children at home in rural areas. Putting elderly parents
into care homes is not approved of and normally, if elderly parents fall sick, their children take
care of them or they hire a maid to care for them at home, depending on their work schedule
and budget.
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Pensioners in middle- and upper-class families usually have fairly comfortable retirement
years thanks to their savings and their ownership of at least one house. They usually have
access to good medical treatment and enjoy quality food and a healthy lifestyle. Many can even
give part of their income to help raise their grandchildren.
The current retirement age is 60 for men and 55 for women. However, the rapidly ageing
population has placed great pressure on the governments social insurance fund. Because of
the expected deficit in the insurance fund in the next 20 years, the retirement age will rise to 62
for men and 60 for women from the beginning of 2016. The minimum social insurance
contribution will increase from 15 years to 20 years in 2020. However, this raises a number of
concerns over most blue-collar workers ability to continue working after the age of 60.
Many office workers, on the other hand, choose to stay longer at work. The sudden change in
lifestyle and the lack of constant communication are often cited as sources of stress for newlyretired people. As a result, many retirees pick up hobbies, such as ballroom dancing, singing
and literature, and participate in neighbourhood clubs. Morning health clubs are also popular;
they enable pensioners to gather and practice Tai Chi or Tai Chi Chuan together. Seniors with
young grandchildren tend to look after them when their parents are at work. Some late-lifers find
other ways to work and earn money. For example, thos with some savings may open a small
restaurant or grocery store. Others use their expertise to do contract teaching or become
security guards.
Table 1
Consumer Segmentation and Population Data 2000, 2005, 2011, 2012, 2013,
2016
Babies/infants (aged 02) ('000)

Kids (aged 3-8) ('000)
Tweens (aged 9-12) ('000)
Teens (aged 13-17) ('000)
Young adults (aged 1829) ('000)
Middle youth (aged 3044) ('000)
Mid-lifers (aged 45-59)
('000)
Later-lifers (aged 60+)
('000)
Population: National
estimates at January
1st ('000)
- Population aged 0-14:
January 1st ('000)
- Population aged 1564: January 1st ('000)
- Population aged 65+:
January 1st ('000)
- Male population:
January 1st ('000)
- Female population:
January 1st ('000)
- Urban population ('000)
- Rural population ('000)
Birth rates (per '000
population)
Death rates (per '000
2000
2005
2011
2012
2013
2016
3,698
4,339
4,344
4,289
4,228
4,025
10,442
7,418
8,878
17,497
7,889
6,846
9,223
19,141
8,332
5,218
7,642
21,199
8,438
5,263
7,163
21,304
8,534
5,309
6,822
21,240
8,627
5,522
6,526
20,208
16,689
18,527
20,161
20,547
20,965
22,233
7,989
10,572
14,249
14,705
15,117
16,309
6,146
6,624
7,649
8,021
8,443
9,843
78,758
83,161
88,792
89,730
90,657
93,293
25,173
22,814
20,614
20,595
20,659
20,815
49,175
55,487
62,822
63,693
64,453
66,300
4,410
4,861
5,356
5,443
5,545
6,177
38,693
40,968
43,906
44,388
44,862
46,211
40,065
42,193
44,886
45,343
45,795
47,082
19,286
59,472
17.5
22,731
60,430
17.2
27,536
61,256
16.4
28,407
61,323
16.1
29,289
61,368
15.8
31,999
61,294
14.7
5.4
5.2
5.2
5.2
5.3
5.3
15
population)
Marriage rates (per
'000 population)
Divorce rates (per '000
population)
Source:
Chart 1
Source:
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7.0
6.1
5.3
5.3
5.2
5.1
0.2
0.2
0.2
0.2
0.2
0.2
National statistics, Euromonitor International
Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020
HOUSING AND HOUSEHOLDS

Home Ownership
The number of people who rent a property and the number of homeowners have both risen in
the last decade due to the growth in the population. There were 23.44 million homeowners in
2013, compared to 15.79 million in 2000. The number of rented properties grew from 832,000 to
1.5 million over the same period. Generally, Vietnamese people prefer to own a house, as
opposed to renting. Almost 93% of householders were homeowners in 2013. Permanent tenants
are rare; most people have bought a house by the time they reach middle age. Traditionally,
buying a house is considered a major achievement in ones life; it must be completed before
settling down and be able to prosper in a profession. Vietnamese people also see a house as a
long-term investment. In addition, the law does not protect the rights of tenants from
unreasonable rental price increases or eviction by landlords. Only 3% of homeowners have a
mortgage because people are generally risk averse and prefer not to have any debts.
Although the majority of households are in rural areas, the percentage of urban households
has increased from 24.16% in 2000 to 33.28% in 2013. The constant flow of labourers into cities
is the main reason for the rise in the demand for urban houses. It has resulted in numerous
neighbourhoods in large cities consisting solely of houses in very limited spaces. Landed
houses are more popular than apartments because owners have more freedom when building
houses. Moreover, land is traditionally considered a good investment to protect against inflation.
About 63.59% of people lived in houses in 2013, as opposed to apartments. In rural areas,
virtually all households live in landed houses due to the availability and low cost of land.
16
In 2013, the property market showed some signs of recovery; the percentage of unsold
houses in large cities declined. However, according to a 2014 article on bannhahanoi24h.com,
average house prices are still 21% lower than in 2008 because short-term speculative property
purchases are less attractive. House prices are expected to gradually stabilise in the near
future. In recent years, many households have held back from purchasing in anticipation of
lower house prices. However, in 2013, experts suggested that the property market may soon
reach its lowest point and so the transaction volume began to increase. According to a 2014
article on tapchitaichinh.vn, the transaction volume rose by 5,700 houses, or 45%, compared to
2012. The VND30,000 billion property loan package from the government for low-income
earners also helped.
Overall, house supply still exceeded demand in 2013. According to dautuchungkhoan.com,
total unsold property value, including apartments, houses and land, reached VND96,805 billion
in November 2013. Many houses and apartments built during the housing bubble in 2008-2010
were left unfinanced and unsold when the bubble burst, while there are new building projects
every year. Many property companies have difficulty finding local buyers in the premium
segment. On the other hand, in the market for middle- and low-income households, the demand
for budget houses exceeds supply. According to a 2013 article in Dantri, current social housing
projects only satisfy around 30% of the demand. In big cities, around 70% of unsold houses are
70 m2 or larger, while most households are only looking for small houses.
Generally, Vietnamese people prefer houses facing South-East, which is considered to bring
good air. Most houses in cities do not have a garden due to the scarcity of land and the
preference to have more space inside the house than outside. On the other hand, houses in the
countryside often have front yards or small gardens. The prevailing architecture is 4mx16m with
4 to 6 floors and balconies.
Urban dwellers grow vegetables at home
Traditionally, consumers buy vegetables at wet markets. However, due to the use of large
quantities of chemical fertilisers by some farmers, the quality and safety of vegetables at wet
markets are now highly questioned. Urban families who cannot afford to buy organic produce
from established producers, or do not trust organic food producers, opt to grow vegetables at
home, on balconies, rooftops and terraces. In 2013, this trend quickly caught up in Hanoi and
Ho Chi Minh City. Some aspiring gardeners in urban areas go online to learn new gardening tips
and share gardening experiences with their peers in online forums.
Vegetable seeds can be bought easily at major retail markets. Popular home garden
vegetables are leafy, semi-head lettuce, lemon grass, herbs, bean sprouts, spinach and other
short-term crops. Recently, urban dwellers have started growing medium-term crops such as
cabbages, tomatoes, and carrots.
Planting equipment is increasingly sophisticated. Besides foam boxes, vegetables are now
planted in hanging baskets. In addition, consumers buy sprayers, organic fertilisers, organic soil,
and gardening books. Some buy indoor garden appliances or self-contained automated growing
equipment, costing around VND2.5 million. Some urban consumers even hire designers to
design planting spaces inside their relatively small houses. Aspiring urban gardeners with little
time to spare hire professionals to help them set up their gardens at home, monitor and take
care of their vegetables. A package that entails the initial set-up and weekly checks until the first
crop costs between VND5 million and VND7 million. However, most families, especially threegeneration ones, prefer to do the gardening themselves.
Feng shui all important when house building
In recent years, building houses according to feng shui, or geomancy, has become a trend.
This applies to various types of dwellings, from mansions and apartments to landed houses in
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small streets. In cities, middle- and upper-class homeowners tend to consult feng shui experts
before building their houses. The house direction and configuration must create good feng shui,
which matches each family members birth element. There are five elements: water, wood, fire,
earth and metal. If the way the house is built is compatible with the owners, it is believed that the
house will bring a good energy flow that will nourish peoples spiritual and physical health.
Household Profiles
In Vietnam, large households are still dominant. The percentage of households with 4 to 5
people increased from 47.48% of households in 2000 to 53.32% in 2013. Three-generation
families are widely observed. It is partly because traditional thinking follows the Confucian idea
that filial piety is one of the highest virtues. Another factor is the increase in longevity and so
elderly parents tend to live with their children for longer. Furthermore, the norm is still for
children to live with their parents after finishing college and starting a job. Married couples often
move in with the husbands family.
The percentage of couples with children has declined from 44.6% of households in 2000 to
40.88% in 2013. This is due to the falling birth rate, especially in large cities and industrial areas,
which is often observed along with the increasing well-being and education of women. In
addition, women are getting married and giving birth to their first child at a later age than in the
past. The percentage of single persons has remained stable, but the proportion of single-parent
families has risen slightly from 9.9% in 2000 to 11% in 2013. The growth in the number of
divorces in recent years is linked to the openness of society to divorce, the increase in womens
education and independence and easy divorce laws. Few people live with their partners before
being married, as society does not tolerate the practice.
The majority of households still have an annual income under US$5,000. However, the
number of households in higher brackets is predicted to increase sharply: about 7.4 million
households will be in the US$5,001- US$15,000 income range in 2016, compared to 5.3 million
in 2010. Also, significantly more households will have an income above US$25,000 in 2016.
Pet ownership has become more popular; the average number of animals per household
grew from 0.5 in 2000 to 0.7 in 2013. In the past, household pets were mainly cats, dogs, fish
and birds of local mixed breeds. Domestic short-haired cats have been a common pet for
hundreds of years and have appeared in many folktales. Householders used to have cats for
catching mice and dogs for guarding the house. They were often not very well looked after.
Moreover, veterinary medicine, particularly for cats, was not widespread. This is still mostly true
in rural areas. In large cities, however, pets are being kept for company and are considered part
of the family by more owners. Many pet owners spend money to pamper their pets and buy new
food types and services. Expensive foreign breeds are increasingly imported to satisfy the
demand. Popular foreign dog breeds include the Berger, Chihuahua, Japanese Spaniel,
Dachshund, Doberman, Bulldog, Rottweiler, Dalmatian, Alaskan Malamute and Poodle.
Pet care services have been flourishing in cities
In urban areas, rising incomes have led to better living conditions for pets. Many cats and
dogs are no longer fed leftovers and do not sleep on the floor. Shops specialising in pet food
and other pet products, such as hygiene, apparel, cushions and toys, have become common.
Many are online shops, aiming to cater to young owners.
Large veterinary hospitals and centres have appeared in recent years. Apart from basic
vaccinations and sterilisation, these hospitals provide complex treatments and surgery.
Furthermore, spas for pets are increasingly popular. In order to enhance the beauty of their
pets, many owners are willing to spend large amounts of money on pet grooming services.
Some spas even offer dental services and massage. Personal pet care services have also
flourished. Fees for these services range from VND300,000 to VND500,000 for two hours.
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Running Costs
The majority of Vietnamese households use electricity as their main source of energy.
Households are paying higher electricity bills every year. According to a 2013 article in Dantri,
between 2007 and 2013, the retail electricity price climbed nine times, from VND842/kWh in
January 2007 to VND1,508.85/kWh in August 2013. By 2015, the electricity price may rise to
VND1,835/kWh as a result of the rise in the cost of coal.
A new electricity price regulation was passed in early 2014; it attempts to discourage people
from using too much electricity. Since the 1st of June 2014, monthly consumption below 100
kWh is priced at 92%-95% of the retail price, while consumption above 100kWh is charged at
154% of the retail price. This worries people in the cities, where consumption may reach 300500 kWh/month during the summer. Although people have to pay a high price, the supply of
electricity during peak periods is not guaranteed. Regular system overloads and occasional
droughts lead to rotational power cuts in many regions. The price of cooking gas has also
increased sharply, to VND490,000 for a 12-kg canister in December 2013. As a result, spending
on electricity, gas and other fuels has more than doubled, from VND1,063,261 per household in
2000 to VND2,375,575 per household in 2013.
Depending on the fuel that is the cheapest, households use gas stoves, coal stoves or electric
cookers. For example, the gas price rise in December 2013 prompted many households,
especially low-income families, to turn to the traditional cooking method, using coal. Workingclass households in the same alley can share one or two gas stoves to reduce consumption.
To cope with higher electricity bills, many households cut their consumption. Dishwashers,
vacuum cleaners and driers are used less, in favour of manual means. Household members
also refrain from using too much electricity during peak hours. If the weather is not extreme,
people save energy by opening windows and turning on fans instead of air conditioners. Water
heaters in the winter are now only turned on around 15 minutes before use, not all day. In
unusually hot days, many people take advantage of shopping malls to escape the heat.
Vietnamese people do not normally recycle. Household waste is often not separated by
households before being collected by environmental companies. In addition, people use many
plastic bags daily. These bags are thrown in the rubbish and are often seen on the streets.
Waste collectors separate tins and other metal products in resalable condition. Many people
rummage through the garbage at landfills to find recyclables that can be sold. The full
classification and recycling of waste is only done in recycling factories.
Vietnamese people often hire external contractors, who are readily available and affordable,
to repair and maintain their houses. The labour inflow from the countryside has provided a
constant supply of workers doing small repairs. The maintenance of electrical appliances is
often provided by the shops or companies that sold them. Many specialists offer house
maintenance or re-painting services. Households only do small tasks, like replacing a light bulb,
by themselves.
Energy-saving home appliances are in demand
In light of rising energy costs, households are actively seeking energy-saving durables to
reduce energy consumption. Smart home appliances, such as air-conditioners that can detect
the level of human activity inside the room and adjust the temperature accordingly, have
become popular. New models of washing machines and refrigerators that can monitor the level
of electricity and water used are also increasingly common. Incandescent light bulbs are
replaced by compact bulbs to increase their life. Moreover, more households use induction
cookers instead of traditional electric or gas ones. Induction cookers can prevent the loss of
residual heat; they are generally safer and more durable. Although these appliances may cost
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20%-50% more than normal appliances, they are still purchased by people who hope to save
10%-70% of their energy use in the long run.
A new type of appliances using solar energy has been introduced. Solar water heaters that
can convert four to five hours of sun exposure into 72 hours of heat are popular. Compared to
other devices, they do not cost anything apart from the initial purchase price and maintenance,
and they can function in the event of power cuts. This type of energy is highly encouraged by
the government. For example, the Ho Chi Minh City authority offered VND1 million in financial
aid to any household using solar devices in 2013.
Mobile phones are replacing landline phones
The percentage of households with fixed telephones has decreased steadily, from 40% in
2005 to 28.5% in 2013. This percentage is expected to further decline to 24.9% in 2016. The
major factor behind the fall is the popularity of mobile phones. According to a 2013 article by
vtctelecom.com.vn, mobile subscriptions represent 93% of all phone subscriptions (landline and
mobile). Many people own more than one mobile phone. In Vietnam, consumers can easily buy
a basic mobile for around VND100,000. This is thought to be affordable to most, including the
low-income segment.
Higher privacy, convenience, mobility, more exciting features and the ability to connect to the
internet are reasons why young people adopt mobile phones. Moreover, mobile phone
companies regularly offer attractive all-in-one deals to persuade customers to use their plans.
Affordable student plans are popular. Mobile calling rates are often lower than landline calling
rates. However, the costs of using a mobile are normally higher than the costs of a landline
phone, due to message and internet charges. According to a 2014 article on fptshop.com.vn, on
average, Vietnamese people spend 168 minutes per day using smartphones, compared to the
global average of 147 minutes per day.
Table 2
Housing and Households Data 2000, 2005, 2011, 2012, 2013, 2016
Total number of
households ('000)
- Urban ('000)
- Rural ('000)
Households by tenure
- Home owner ('000)
-- Home owner without
mortgage ('000)
-- Home owner with
mortgage ('000)
- Rented ('000)
Households by type of
dwelling
- House ('000)
-- Detached ('000)
-- Semi-detached and
terraced ('000)
- Apartment ('000)
Households by number of
persons
- 1 ('000)
- 2 ('000)
- 3 ('000)
- 4 ('000)
- 5 ('000)
2000
2005
2011
2012
2013
2016
17,024
19,601
24,064
24,724
25,349
27,044
4,113
12,911
5,431
14,171
7,688
16,376
8,063
16,661
8,435
16,914
9,537
17,507
15,794
15,732
18,188
18,006
22,292
21,788
22,887
22,264
23,442
22,693
24,901
23,812
62
182
503
623
749
1,089
832
1,048
1,402
1,451
1,503
1,670
11,136
9,267
1,869
12,659
10,442
2,218
15,354
12,556
2,798
15,748
12,862
2,886
16,120
13,150
2,970
17,121
13,921
3,199
5,888
6,942
8,710
8,976
9,230
9,924
749
1,564
2,539
4,661
3,422
820
1,764
2,918
5,967
4,150
987
2,149
3,580
7,613
5,195
1,013
2,207
3,678
7,839
5,344
1,038
2,262
3,770
8,051
5,484
1,105
2,412
4,022
8,616
5,860
20
- 6+ ('000)
Households by number of
rooms
- 1 ('000)
- 2 ('000)
- 3 ('000)
- 4 ('000)
- 5+ ('000)
Households by sex of
head of household
- Male ('000)
- Female ('000)
Households by type
- Single person ('000)
- Couple without
children ('000)
- Couple with children
('000)
- Single-parent family
('000)
- Other ('000)
Pet population (animals
per household)
Ownership of household
durables
by type (% of households)
- Dishwasher
- Freezer
- Microwave oven
- Refrigerator
- Telephone
- Tumble drier
- Vacuum cleaner
- Washing machine
Average household
expenditure
on running costs
(VND000 per
household, at constant
prices)
- Maintenance and
repair of dwellings
- Water and miscellaneous
domestic services
- Electricity, gas and
other fuels
- Hardware and DIY
goods
- Household and
domestic services
Source:
Chart 2
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4,089
3,982
4,540
4,643
4,744
5,029
7,070
5,097
2,445
1,272
1,139
8,178
5,904
2,805
1,471
1,242
10,086
7,289
3,433
1,815
1,442
10,368
7,495
3,525
1,865
1,470
10,637
7,690
3,613
1,914
1,496
11,366
8,221
3,850
2,045
1,563
12,679
4,345
14,107
5,494
16,804
7,261
17,186
7,538
17,543
7,806
18,482
8,562
749
1,928
820
2,510
987
3,292
1,013
3,402
1,038
3,505
1,105
3,786
7,592
8,319
9,873
10,107
10,333
10,946
1,697
2,094
2,659
2,741
2,818
3,027
5,058
0.5
5,857
0.6
7,253
0.7
7,460
0.7
7,656
0.7
8,180
0.8
0.1
1.6
4.4
9.9
11.5
0.7
14.4
2.3
0.4
2.8
11.0
21.0
40.0
0.9
21.5
8.4
1.5
3.6
17.5
46.1
33.6
1.2
26.7
21.1
1.8
3.7
18.3
50.0
30.6
1.3
27.3
22.5
2.1
3.7
19.0
53.9
28.5
1.3
27.9
23.6
3.0
3.9
20.8
64.4
24.9
1.4
29.3
26.3
84,142
127,940
188,323
192,214
198,043
223,238
169,320
252,459
365,122
372,206
383,166
430,308
1,063,261
1,584,870
2,244,691
2,296,578
2,375,575
2,665,784
381,041
641,293
672,328
667,810
677,698
740,785
435,892
775,077
867,365
866,224
882,834
971,960
Number of Households by Disposable Income Bracket 2005, 2010, 2016
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Source:
MONEY AND SAVINGS

Attitudes Toward Payment Methods
Cash continues to be the most prominent payment method because the majority of
restaurants, retail and grocery stores only accept cash payments, especially in the countryside.
Utility bills and petrol are paid in cash. A new regulation by the Central Bank of Vietnam took
effect in March 2014; it prohibits the use of cash for stock market transactions and most
business-to-business transactions. However, it is unlikely to affect consumers attitude towards
cash. Cheques are largely used by companies for business transactions, as consumers are
unfamiliar with them.
Electronic transactions are regulated by the Central Bank of Vietnam. The authority, however,
has yet to develop a comprehensive legal framework to ensure the safety and security of
electronic payments. The poor infrastructure further hinders the development of non-cash-based
payment methods. According to a study by the Central Bank, there are only 120,000 points of
sale (POS) terminals in Vietnam, and the majority is concentrated in urban areas. The study
claims that only 1% of the population has access to POS terminals. Most domestic retail
websites do not have a proper security system to support card payment, as the cost is high
compared to their business size.
Debit and credit cards are mostly used for buying airline tickets and purchasing from overseas
retailers. Credit card usage is growing more slowly than debit card usage. It is partly due to the
high likelihood of credit card fraud, as credit card issuers in Vietnam continue to use old
magnetic technology making the cards more susceptible to identify theft. Many cardholders are
also financially illiterate and unaware of the different fees associated with card usage.
Furthermore, although it is illegal, according to an article in Dantri, several retail operators
continue to charge an additional 2%-3% of total bill value for credit card payments. Except for a
few high-end shopping malls, credit card payment is generally not accepted. Finally, due the
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lack of a strong credit rating system, most banks prefer to issue debit cards over credit cards,
and their advertisements focus on debit cards.
ATM card usage has become more popular. The total number of ATM cards issued has risen
sharply from 0.9 million in 2005 to 61.6 million in 2013. The customer base has expanded
significantly since most companies, including the government and state-owned enterprises, now
pay salaries directly into employees bank accounts. However, ATMs are mostly used for cash
withdrawals. Interbank (telegraphic) transfer continues to be a popular payment method for
online shoppers. Currently PayPal is still not widely used.
Savings
In 2013, the average savings ratio was low, at 3.1% of disposable income. This ratio has
remained relatively stable over the past decade. Because of low wages and high inflation, many
households do not have much to save after purchasing daily necessities.
The elderly usually prefer to keep their savings in the form of gold bars or jewellery. Gold is
favoured because its value tends to rise against the weakening Vietnamese Dong. Most
consumers feel that it is safer to keep gold in the long term. Besides gold, foreign currencies,
especially the US dollar and the euro, are popular. However, since 2011, it is illegal to buy and
sell gold and foreign currencies via unofficial channels, such as goldsmiths stores, in fear of
speculation. Those who break the law risk having their gold or money confiscated and have to
pay a fine. It has become more difficult to buy and sell non-jewellery gold and currencies.
Although black (illegal) markets exist, people are less likely to buy gold and foreign currencies
for savings purposes.
Buying a second property or land continues to be one of the most popular forms of saving and
investing money. Most people believe that land prices, especially in urban areas and near
industrial parks, will rise in the long run, but this belief will likely lead to speculative behaviour.
In recent years, the use of savings accounts has increased, partly because access to banking
services has become easier across the country. In 2013, although the interest paid on savings
accounts declined from its peak in 2011, to around 7% per annum, people still put their money
in savings accounts to earn relatively low-risk returns. The economic slowdown, the recent
decline in property prices and the increasing risk associated with the gold price are major
reasons. However, despite the rising popularity of savings accounts, in 2013, 60% of the
population remained unbanked, mainly low-income earners who are financially illiterate. Given
their low incomes and high inflation, these people can set aside very little money, and, if they do
have savings, they are kept at home in cash.
Foreign insurance giants have tried to introduce life and health insurance policies as a form of
saving money and preparing for childrens future needs. However, these efforts have had limited
impact, as Vietnamese people are generally not financially sophisticated and find it difficult to
understand the future benefits of life insurance as a savings method. A study by the National
University of Vietnam estimates that only 6% of Vietnamese people buy life insurance for
savings purposes. Similarly, other sophisticated forms of savings, such as investments in stocks
and unit trusts, are only used by more financially literate people in urban areas. The recent bear
market has further discouraged highly risk-averse customers from investing in stocks and other
financial products.
Currently, the government does not have an official scheme to incentivise people to save.
However, the banks encourage consumers to open bank accounts, including savings accounts,
by offering attractive promotions and high interest rates, especially in the current tight credit
business environment.
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Loans and Mortgages

Because of increasing living costs, many low-income earners cannot cover their daily
expenses. They may borrow for daily expenses, such as groceries and household products,
especially during the Tet holiday or Lunar New Year. Because bank loan application processes
are complicated, low-income earners usually rely on friends and relatives first. They also go to
pawnshops or loan sharks when they need small, urgent personal loans. A study from the
Central Bank of Vietnam estimates that the black credit market is worth around US$50 billion,
and about 30% of total credit is provided by illegal money lenders.
If people do not have sufficient savings for big-ticket items, such as vehicles or houses, they
prefer to borrow from families and friends. However, with the development of the banking
system and various marketing programmes, more consumers are getting familiar with consumer
loans from banks and other financial institutions. In addition, banks and financial institutions
have started to simplify the application process; therefore, it is predicted that more consumers
will use banks when they need a personal loan in the future.
Mortgages are not popular in Vietnam and are mainly for business purposes. As the price of
property has risen in the last decade, middle- and low-income households find it financially
difficult to buy a house. In 2013, the average price of a two-bedroom flat in cities ranged
between VND800 million and VND1.5 billion. If a young couple had a monthly combined income
of VND15 million and they managed to save VND4 million a month, assuming an abnormally
high savings ratio, it would take them around 30 years to save enough money to buy a house.
Banks offer mortgages for up to 70% of the property price to help customers. However,
interest rates on mortgage loans remain high, ranging from 10% to 12%. While many banks
have loosened their standards, the mortgage application process is still complicated because
there is no reliable or transparent credit rating system. It is expected that the governments
property loan package for low-income earners will help.
Increasing popularity of savings accounts
Since traditional savings methods, such as buying gold, foreign currencies or property, have
become less attractive, more people are putting their money into savings accounts. The
economic slowdown has dampened the local property and gold markets and raised consumers
risk aversion. Also, people who are not financially sophisticated have already lost faith in the
stock market because of recent falls in value and high volatility. As people are concerned about
losing money if they invest in property, stocks or gold, they have started to value the long-term
stability of savings accounts. They believe that, although the interest rate is falling, the interest
earned is still competitive compared to other savings methods, given the low risk. As most
people expect the interest rate to fall further, they are switching from short-term savings
accounts to long-term ones to lock in the higher interest rate. People with a stable source of
income are more willing to put their savings in the banks for a longer period, as their monthly
income can serve as a source of liquidity. The elderly, on the other hand, often prefer shorter
savings periods.
Simpler loan application process attracts more customers
Until recently, banks mostly competed on price; however, this is set to change. The majority of
Vietnamese people have just started to get familiar with banking services, and many remain
financially illiterate. Banks and other financial institutions are simplifying the application
processes for both short-term personal loans and long-term mortgages to attract more
customers. As for mortgage loans, in the past, banks did not issue loans for small flats under
25m2 or old flats with low values. This is no longer the case. Most banks now offer application
support for low-income earners to make it easier for them to apply for mortgages. The
application process for personal loans has already been simplified. The average processing
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time for a personal loan application is two to three days. Yet, in the future, it is expected that
personal loans, especially low-value loans, will have an even simpler application process and
shorter processing time to sway customers away from the black credit market.
Table 3
Money and Savings Data 2000, 2005, 2011, 2012, 2013, 2016
Financial cards in
circulation
- Debit cards (mn cards)
- Credit cards (mn cards)
Financial cards'
transactions
- Debit cards (VND bn,
at constant prices)
- Credit cards (VND bn,
at constant prices)
Cash transactions (VND
bn, at constant prices)
Other paper
transactions (VND bn,
at constant prices)
Annual savings (VND bn,
at constant prices)
Savings ratio (% of
disposable income)
Annual lending rate (%)
Consumer lending
- Consumer credit
(outstanding balance)
(VND bn)
- Mortgages/housing
(outstanding balance)
(VND bn)
Source:
Chart 3
Source:
2000
2005
2011
2012
2013
2016
0.0
0.9
0.1
39.4
1.9
50.5
2.5
61.6
2.9
104.5
4.3
4,104
140,795
185,942
224,858
362,874
132
4,429
53,309
72,190
89,213
147,058
758,254
1,109,473
1,534,927
1,536,462
1,544,144
1,721,962
5,240
10,451
2,239
1,861
1,582
1,140
39,124
60,874
72,613
73,695
75,406
85,960
4.4
4.2
3.3
3.2
3.1
3.0
10.6
11.0
17.0
13.5
10.5
31,263
78,964
283,704
323,555
359,001
495,523
7,037
18,990
122,595
124,979
133,646
183,372
Consumer Lending Compared with Savings and Savings Ratio 2000- 2016
25
EATING AND DRINKING

Eating Habits
Typically, Vietnamese people eat three meals a day: breakfast, lunch and dinner. Breakfast
usually consists of lighter dishes, such as noodles, Vietnamese-style sandwiches, glutinous rice
or porridge. Nowadays, lunch is no longer a family affair as working people usually eat out for
convenience instead of going home. To avoid the heat during the summer and save money,
many people, especially female office workers, bring lunch boxes. Dinner is usually the time for
families to gather, thus it is most often eaten at home. A traditional home-cooked meal consists
of rice, one or two main dishes with meat, soup, and boiled or stir-fried vegetables. Fish sauce is
almost always present in meals. In a typical table setting, each person has a bowl and a pair of
chopsticks; all the dishes are placed on the table to be shared.
Most families prefer to prepare meals with fresh ingredients bought from wet markets.
However, because of busy schedules, some families in urban areas buy convenient pre-made
dishes and ingredients from supermarkets and food stores. Eating out has become more
common as more women have joined the workforce and have less time to cook. Also, eating out
is seen as an opportunity for people to socialise and relax. It is partly due to the fact that, in
Vietnam, social and family gatherings, as well as special celebrations, always include food. The
introduction of international cuisine from France, Italy, Thailand, Korea and Japan has also
played a role in encouraging people to eat out. As many types of cuisines are offered, people
have grown to like to dine out in order to try new dishes.
A popular option is fast food restaurants, especially among the younger generation. Fast food
outlets have gained strength in recent years. While fast food restaurants are normally
considered a casual and cheap dining option in other parts of the world, in Vietnam, their prices
are considered high, especially for people on lower incomes. In 2013, new international food
chains, such as McDonalds and Starbucks, and regional franchises, like Paris Baguette and
Tous les Jours, had grand openings. The economic slowdown did not dampen peoples desire
to try these new outlets as well-known brands quickly attract the attention of the young and
trendy.
Many other affordable options are available for casual dining, thus eating out is common.
Small casual restaurants and street vendors selling local dishes are popular and integrated into
peoples daily lives. Street vendors are convenient and cheap and can be found virtually at
every corner. Besides full meals, street vendors sell street foods and snacks. Fine dining is only
popular with well-off people in urban areas. The demand for fine dining has fallen slightly due to
the economic slowdown.
Organic food and home-made meals are sought after in urban areas
Food safety and hygiene control is still underdeveloped; many hygiene scandals and food
poisoning cases have made the headlines. As a result, people, especially parents with young
children, have become more conscious of the food they consume. Better-off consumers prefer
to buy organic fruits, vegetables and other foods that are consumed raw from established
stores, instead of wet markets. This trend is extending to other types of foods, such as meat
(pork, beef, and chicken), seafood, dry food and local specialties. Some people who have links
with organic farms and other sources of organic foods have started small businesses selling
organic products to relatives, friends and colleagues, then they bring their businesses online, via
social media, to reach a wider customer base.
Consumers are starting to order home-made meals online or by phone from people who cook
as a business. These cooks prepare a wide variety of dishes at home, ranging from main
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courses to desserts, and sell them to busy office workers in large cities. Many claim that they
use family recipes and high-quality ingredients. That option is increasingly favoured by busy
families who want convenient home-cooked food. The dishes are considered hygienic and fresh,
as certified by many consumers who are often friends or relatives of the producers; therefore,
word-of-mouth plays an important role. There is usually a delivery fee depending on the
distance and bill value. It is more expensive than cooking at home, but urban dwellers
appreciate the convenience, freshness and quality offered.
International cuisine gains popularity among the middle class
As more people are going abroad and disposable incomes are rising for the middle class,
more consumers have become familiar with international cuisine from Asia, Europe and Latin
America. New restaurants serving foreign cuisines are appreciated by middle- and upperincome earners. Also, consumers are seeking imported ingredients and cooking equipment to
re-create foreign dishes at home. Some international dishes that are often prepared at home
include kimbap (Korea), pasta, and Western cupcakes because their recipes are simple.
Bakeries and patisseries selling Western-style cakes and desserts are popular with people with
a sweet tooth. Young customers like bakeries and patisseries that offer drinks and have tables
so that they can sit down to eat.
Drinking Habits
Men are expected to drink during social gatherings. For women, modest alcohol consumption
is encouraged as drinking out is seen as an opportunity to socialise. Excessive consumption of
alcohol, however, is still frowned upon, especially for women. Alcoholic drinks are served in
establishments specialising in drinks, like beer gardens, bars and pubs. They are also served as
a complement to food in restaurants. In addition, people can easily buy alcoholic drinks from
supermarkets, specialist stores and small grocery stores to drink at home. By law, people under
the age of 16 are not allowed to consume any type of alcohol, but there is no identity check,
making alcohol available to people of virtually all ages. Despite the economic slowdown,
consumer spending per capita on beverages, except coffee, tea and cocoa, has continued to
rise. Consumer expenditure on coffee, tea and cocoa has dropped slightly because customers
are switching to non-traditional drinks. On average, the consumption of alcohol, especially
imported premium products, has increased significantly as a result of higher incomes. The upper
and middle classes are now switching to imported brands; therefore, premium imported drinks
are now offered in almost all high-end supermarkets and specialist stores. Despite the economic
slowdown, consumers have not reduced their alcohol consumption and are still going out for
drinks. It is partly because many drinking establishments offer drinks at a price that is not much
higher than if drunk at home, given cheap labour and generally low rental fees.
Beer is the most popular alcoholic drink due to its fairly low alcohol content, affordable price,
and the wide variety of beers. It is served on both casual and formal occasions. Total domestic
beer consumption in 2013 was 3.2 billion litres. The vast majority of consumers believe that
bottled beer tastes better than canned beer, although cans are more convenient. A local
favourite is draft beer, which is usually sold with roasted peanuts and other local snacks. Men
enjoy relaxing and drinking draft beer in beer gardens after office hours. Foreign brands,
especially German and Belgian beers, are favoured by the better-off and are common in
restaurants and bars in urban areas. In the north, beer consumption drops significantly during
the colder months.
Traditional wine is made from glutinous rice. Rice wine is cheap and widely available in small
independent neighbourhood grocers. However, with the presence of many imported products,
such as Chilean and Italian wines, traditional rice wine is going out of favour and only remains
popular with people on low incomes and in rural areas. Traditionally, rice wine is used as an
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offering when worshipping ancestors. However, better-off families drink imported wines as well,
since premium and expensive wines are seen as a status symbol. Imported wines are also
regarded as fine gifts for special occasions such as the Lunar New Year and house parties.
People have become more familiar with different types of wines and wine etiquette, like pairing
wine with food and they have become more selective. Similarly, cocktails are becoming more
widespread in cities, especially among the younger generation.
Non-alcoholic drinks are also popular choices when people have a drink out. Low-income
earners can easily buy green tea (hot or iced) in the north and iced ginseng drinks in the south
from street vendors to quench their thirst. Office workers generally prefer coffee shops for the
air-conditioning and more elegant atmosphere. A typical coffee shop sells not only coffee but
also teas, juices, homemade mixed drinks, as well as desserts and finger foods. Young
urbanites like to gather in city centres at night, drinking home-made iced lemon tea and eating
roasted sunflower seeds from street vendors.
Smoking is not banned in most public places. Even where it is banned, the law is not strictly
enforced. Although there is an official closing hour for all bars, pubs and other food and
beverage establishments, it fails to be enforced in most cases. These laws have little impact on
consumers drinking habits.
At home, bottled water and boiled tap water are the primary drinks. Large bottles of purified
water have become increasingly common in households and offices because of the
convenience. Almost all bottled water suppliers offer free delivery regardless of the order size.
Small bottles of mineral water can be easily bought from street vendors and corner stores.
However, they are not popular among families since they are not economical. Canned and
bottled soft drinks are very popular among women and children at family gatherings.
Carbonated drinks from global brands are still in demand, but more consumers are shifting
towards healthier non-carbonated ones. Many of these drinks are produced by local
manufacturers and advertised as containing healthy ingredients, such as green tea extracts.
Bottled fruit juice is another choice for the health conscious, but it is generally not consumed
at breakfast. People drink fruit juice during and after lunch and dinner. Except for plain water,
other types of drinks (fruit juices, soft drinks and beers) are not consumed daily at home. Some
consumers drink coffee daily after breakfast, a habit that originated during the French colonial
period. However, these people usually drink filter coffee while out for breakfast, not at home.
Consumers move from carbonated soft drinks to non-carbonated drinks
Non-carbonated drinks containing natural ingredients are considered healthier than
carbonated soft drinks and used to be dominated by local brands. Yet, recently non-carbonated
drinks from international producers have appeared, enhancing the variety. The move from
carbonated soft drinks towards non-carbonated ones essentially reflects parents preference for
healthier drinks.
Families with young children are the most health conscious. Many parents limit their childrens
consumption of carbonated soft drinks and replace them with non-carbonated ones. Females
tend to be more health conscious than males and favour non-carbonated soft drinks more. In
addition, many consumers believe that carbonated drinks create a false feeling of fullness;
therefore, they are not suitable during meals. Among non-carbonated drinks, drinks with green
tea extracts and herbal extracts are the most popular. It is partly due to the common belief that
green tea and traditional herbs have health benefits. Green tea is a traditional drink; it is very
integrated into peoples lives.
The younger generation prefers modern coffee shops
For the younger generation, modern coffee shops, especially international chains, have
become the favourite place to hang out. Bakeries and patisseries that sell drinks are also
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popular. Young consumers no longer follow the traditional coffee culture of drinking filter coffee
on wooden or plastic chairs at old-school coffee shops. For young consumers, wireless internet,
air-conditioning and interior decoration are gaining importance. These spacious and
contemporary coffee shops are also a location for business meetings, a shelter from the
summer heat and a flexible place of work or study.
Young consumers with Facebook accounts also like to take pictures and selfies and to check
in because being in these coffee shops is considered trendy. It is more about being seen than
drinking in these cases. However, young customers are relatively adventurous and likely to try
new and exotic flavours. Many coffee shops serve coffee and other drinks in take-away plastic
or paper cups as well. Yet, young customers mostly enjoy their drinks in the caf because they
are often the centre of many social interactions.
Table 4
Eating and Drinking Data 2000, 2005, 2011, 2012, 2013, 2016
VND per capita, at constant prices
Food consumer
expenditure
- Bread and cereals
consumer expenditure
- Meat consumer
expenditure
- Fish and seafood
- Milk, cheese and eggs
- Oils and fats
- Fruit consumer
expenditure
- Vegetables consumer
expenditure
- Sugar and confectionery
Coffee, tea and cocoa
Mineral waters, soft
drinks,
fruit and vegetable
juices
Alcoholic drinks
- Beer consumer
expenditure
- Spirits consumer
expenditure
- Wine consumer
expenditure
Catering consumer
expenditure
Availability of fruit
and vegetables (kg per
capita per year)
Source:
2000
2005
2011
2012
2013
2016
4,066,319
5,731,097
7,821,215
7,968,409
8,219,268
9,267,169
1,046,227
1,445,027
1,930,369
1,961,312
2,018,292
2,265,253
583,989
838,336
1,166,719
1,189,562
1,226,278
1,386,314
624,127
912,223
1,284,103
1,312,487
1,356,278
1,538,699
350,004
501,485
698,499
712,905
736,384
832,190
232,820
314,501
414,465
421,218
434,548
486,235
505,294
701,914
944,475
961,132
990,479
1,115,050
393,668
567,822
786,792
802,496
828,478
935,475
190,702
244,466
309,901
314,797
326,158
363,285
190,025
224,622
208,424
201,863
200,449
210,530
132,096
233,408
420,980
439,730
461,621
536,475
55,360
73,333
125,431
128,729
135,816
158,349
49,158
65,420
112,254
115,261
121,639
141,870
3,499
4,096
7,847
8,093
8,574
10,075
2,702
3,817
5,330
5,375
5,603
6,404
662,639
1,136,281
2,528,978
2,657,414
2,802,037
3,295,695
123.2
147.3
144.8
145.4
146.0
147.0
29
Chart 4
Source:
Real Growth in Consumer Expenditure Compared with Real Growth in

Consumer Expenditure on Food and Alcoholic Drinks 2000-2016
GROOMING AND FASHION

Perceptions of Beauty
The Vietnamese concept of female beauty follows closely that of Asia. In general, a goodlooking woman should have fair skin, double eyelids, pleasant facial features and a slender
figure. Healthy, smooth and bright skin is extremely valued by Vietnamese people, who often go
to great lengths to lighten their skin tones and reduce tans or freckles. In the past, only ladies
from rich families had fair skin, while those working in the fields had darker skin because they
spent long periods in the sun. For this reason having white skin is associated with being classy
and well-off. Moreover, it is perceived to be easier for women with lighter skin to wear clothes
with more varied colours. Traditionally, the preference is for long and thick hair, which prevails
among beauty queens and famous celebrities.
Good looks for men often involve a straight and elegant posture. Attractive men have square
faces, thick eyebrows and give the impression of being chivalrous. Baldness is considered an
unfortunate feature, especially in young men. Height is extremely valued; and a man is
considered fairly tall if he is above 175cm. A height below 165cm is generally not desirable.
Most women cite model Binh Minh and singer Quang Dung as representative of Vietnamese
male beauty.
In recent years, the flow of information and images from television, films and magazines has
extended beauty standards for both men and women and so the traditional view has become
more relaxed. Famous celebrities often influence the perceptions of good looks. For example,
the models gracing the pages of fashion magazines have shaped females desire for long and
skinny legs. The 2006 national beauty queen Mai Phuong Thuy symbolises this trend.
Newspapers and television advertisements also promote slimness. People adopt the grooming
and fashion styles of television stars. For instance, curly, straightened or dyed hair has become
extremely common for women. Online magazines often label good-looking teenagers as hot
boys and hot girls. Hot teens can either be stylish and cool or sweet and babyish. Teens like
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to wear contact lenses to make their eyes look bigger; they draw their lips into heart shapes like
Japanese anime characters. Mixed-race men and women (Western mixed with Asian) are also
praised for their exotic looks.
The popularity of Korean dramas among young people has influenced the Vietnamese
modern concept of beauty. Young girls try to copy their Korean idols styles. V-line faces and
straight noses, which Korean celebrities adopt have been trendy. More feminine features for
males are a new Korean beauty trend desired by some young men. Band members, such as
Super Junior, and actors, like Lee Min-ho and Kim Soo-hyun, are widely adored Korean stars.
Different age groups have different standards. Short hair is sometimes considered too boyish
for a woman by mid-lifers, although young people have begun to like the dynamic personality
associated with it. Older people tend to prefer a slightly curvy female body with wide hips while
the young highly value slenderness.
The majority of Vietnamese people belong to the Kinh ethnic group. There are 53 other ethnic
groups, but they only make up around 15% of the population and often live in rural or
mountainous areas. Almost all television channels and magazines cater to and feature men and
women from the Kinh ethnic group. While each group has different beauty standards, they are
only followed within the group.
Female Grooming
Annual expenditure per capita on personal care has increased significantly, from VND114,321
in 2000 to VND348,405 in 2013. Spending on fragrances per capita grew from VND3,300 in
2000 to VND14,300 in 2013, while spending on skin care per capita rose from VND9,700 to
VND43,900 in the same period.
Since Vietnam is a tropical country with high temperatures and humidity, people perspire
easily. Advertisements are raising womens awareness of their appearance; teenagers, young
adults and middle-youth office workers are now using deodorants daily. Products combining
odour resistance and skin brightening are popular. Yet, late-lifers still do not use deodorants.
Mid-lifers do not always see antiperspirants as a necessity. Many mid-lifers do not use them
because they either do not develop the habit or do not trust the chemicals on their skin.
Vietnamese women generally do not place great importance on shaving products. Waxes and
creams for hair-removal purposes are only used by some urban young women and teenagers.
Few product choices are available, and people have to rely on shops selling imported products.
Office workers usually visit professional hair-removal parlours, while teenagers often do it
themselves at home. Recently, more women have sought permanent hair-removal treatments.
The use of dental floss is not popular since most people prefer traditional toothpicks. The
demand for teeth whitening in dental clinics is rising because people are more concerned about
oral care. DIY teeth-whitening products to use at home are not widespread because the teethwhitening services offered by dental clinics are affordable and more convenient.
The temperature in the summer can reach 40oC. Thus, skincare products are extremely
important to urban women who are obsessed with light skin. The most noticeable product is
sunscreen. Lip balms, lipsticks and BB creams with anti-UV characteristics are popular. In
addition, women always wear long-sleeved anti-sunlight T-shirts or overalls, facial masks and
hats to protect their skin while outside. However, the health implications of sun exposure are not
Vietnamese womens main concern. They simply dont want to get tanned or sunburnt.
Teenagers use scar-treatment products as the hot and humid weather often leads to acne.
Young adults and people in middle youth buy products with a brightening effect, while mid-lifers
often purchase anti-wrinkle or anti-pigmentation products. Urban women commonly use two to
three skincare products daily. Japanese and Korean skincare products are widely favoured,
partly due to the influence of television dramas and advertisements featuring Korean actresses
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with flawless skin. DIY skincare treatment using natural ingredients, such as cucumber, honey
and brown sugar, is also practiced at home.
Most urban women use makeup daily. Nowadays, even young girls aged 11-14 wear
cosmetics in school. Young people tend to pay attention to colour cosmetics and often apply
makeup thoroughly daily. Mid-lifers place more emphasis on anti-ageing and other skincare
products to nourish and rejuvenate their skin. Generally, people do not especially care about
chemical ingredients or the origin of products. They often buy skincare products and cosmetics
based on the brand and word-of-mouth from users. Branded products with natural elements are
the new trend among some affluent and knowledgeable women, but they are not popular with
the lower-income segment due to their high prices. Most women do not pay attention to the
lifespan of cosmetics and use them until they are finished.
Visits to hair salons and nail parlours are common among urban females. Different salons
offer varying quality and price levels. Many mid-lifers and young women are comfortable with
small neighbourhood hair shops, while more stylish women prefer professional and expensive
salons. Almost all hair dyeing and styling is done in salons, whereas hair nourishment may be
done at home using natural ingredients. In 2013, ombre or red mahogany hair colour and classic
short hair cuts were trendy. Spas and beauty parlours are popular with working professionals
aged 25-40 and the upper class. More women are visiting parlours for skin-bleaching or skinwhitening treatments. Body massages and eyebrow tattoos are also widespread.
Compared to urbanites, women in rural areas have basic personal care routines. Products are
often limited to soaps, body gels, shampoos, toothbrushes and toothpastes, especially for lowincome earners. The use of facial washes is not prevalent and seen only in more developed
regions. In contrast, urban females have access to a wider variety of products, such as body
scrubs and facial masks, and are willing to pay more for high-quality products.
Male Grooming
The majority of men have basic personal care routines; they simply shower and shave.
However, an increasing number of men have become more sophisticated due to the influence of
television and magazines. It is reflected in the growth in per-capita spending on mens grooming
products, from VND4,400 in 2000 to an expected VND11,500 in 2016. Beauty-aware men
include urban teenagers, young professionals, businessmen and people working in the
entertainment, arts and design industries.
Essential products are soaps or shower gels, shampoos and razors. Many young adults,
males in middle youth and teenagers use deodorants, hair styling gels/waxes and fragrances
regularly. More men are using fragrances and try to choose suitable ones. Personal care
products dedicated to men can now be easily seen in supermarkets and other shops. Anti-acne
products and skin-nourishing creams are also used by some men. Most middle-aged men,
however, stick to basic products, which are often bought by the women in their family. The use
of deodorants is not popular among mid-lifers.
The majority of men appear not to follow any particular style and not to care about world
trends. Due to the hot weather, they often wear simple, short haircuts. However, some young
men and teenagers have been influenced by the internet and television. Many teens try to look
like Korean actors and singers. The cutting and dyeing of mens hair is usually done in barber
shops, although more stylish men may visit hair salons. Many go to parlours to relax; body and
head massage is popular among men. Vietnamese men shave regularly and do not often wear
a beard. Some grow a moustache or chin strap. Long beards are mostly seen among the
elderly. The vast majority of men do not dye their hair. If they do, they often choose a dark
colour, although some more stylish young men may dye their hair red or golden-brown. The use
of natural black colourant to cover grey is popular among mid-lifers.
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Cosmetic surgery is trendier than ever

Inspired by Korean culture and celebrities, who commonly adopt plastic surgery, Vietnamese
people have begun to view this type of surgery more openly. More women have turned to plastic
surgery to look like glamorous celebrities. Some young women also use plastic surgery as a
way to enhance their appearance in the hope to find a good job, especially in marketing, client
service or public relations.
Recently, a large number of beauty salons have started to offer various procedures to cater to
different customer groups. According to a 2013 article on Nguoi Dua Tin, for nose surgery,
students and financially constrained women can have surgery using local equipment costing
around VND5,000,000. Richer customers can opt for Korean technology, costing
VND7,000,000, or American technology, for more than VND9,000,000.
The simplest treatments include double-eyelid and dimple creation procedures. The more
complex ones are breast enhancements, Botox injections and chin and nose alterations. Many
Vietnamese celebrities undergo very complex or multiple treatments, while ordinary women
choose simpler ones. A large number of middle-aged women favour fat-reduction treatments to
achieve a slimmer body.
Among young women, nowadays V-line surgery is popular; the jaw structure is reduced and
cheekbones are shaved to create a V line. This type of surgery is popular because the
Vietnamese praise an oval face with a pointed chin, whereas most women have big or square
jaws and a short chin. It is inspired by Korean celebrities with attractive slender faces who are
often seen in magazines.
Handmade cosmetics and skincare products flourish
The vast majority of teenagers and young adults favour natural cosmetics and skincare
products. However, they are usually financially constrained and branded products of this kind
often have premium prices. Therefore, recently customers have turned to local shops selling
handmade cosmetics and skincare products made from natural ingredients. Popular products
include soaps, dried perfumes, lip balms, cheek blushes, lipsticks, facial and body scrubs, and
anti-wrinkle and blemish-reduction skincare. Since these products are 100% made from natural
ingredients, like coconut oil, cocoa butter, honeybee wax and flower oil, women often see them
as being kind to their sensitive skin. In addition, young adults and teenagers prefer creative
producers who regularly offer new ingredient mixes. Word-of-mouth contributes to this trend.
Prices vary from a few tens of thousands to a few hundreds of thousands of Vietnamese
Dongs, which is affordable to most customers. Moreover, eye-catching customised packaging is
another factor that attracts young consumers. The trend has already started to be followed by
well-off people in middle youth, due to the perception that these handmade products do not
contain chemical preservatives found in industrially produced ones.
Fashion Trends
Style icons from Hollywood, Europe and China, such as Miranda Kerr, Victoria Beckham,
Emma Watson and Fan Bingbing, often grace the fashion sections of online magazines. To a
lesser extent, rising icons from Korea, such as the SNSD girls or G-Dragon, also catch the
attention of Vietnamese newspapers. Fashion trends promoted by these icons are followed by
Vietnamese celebrities. Among local stars, singer Ho Ngoc Ha and model Thanh Hang are
usually praised for quickly following the newest trends. Popular items include crop tops,
monochrome, black and white and retro (especially stripes and red and black checks) garments
and mini-shorts almost completely covered by long shirts. Skinny jeans continue to be favoured.
Outside the world of celebrities and magazines, variations in fashion habits are huge
depending on gender, age, income and location. Urban women generally pay more attention to
the latest trends in magazines and mix and match their clothes accordingly. Most men, on the
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other hand, do not change their styles often. Jeans, Western trousers, shirts and T-shirts are
mens favourite items. Stylish teens, called hot boys or hot girls, are often featured on online
newspapers for teenagers. These teens are mini fashion icons actively promoting new styles.
However, fewer teens follow fashion trends than adults because teenagers are still dependent
on their parents and not all styles are deemed appropriate for adolescents. Moreover, dressed
up teens are still frowned upon by many people who consider them spoilt. The vast majority of
middle-aged people do not follow trends, even in urban areas. Middle-class women prefer
casual wear, while middle-class men favour simple shirts or polo shirts and Western trousers. In
rural areas, people dress significantly more simply and do not tend to follow any trends.
For formal events, men wear Western trousers with long-sleeved shirts and ties. Because of
the hot climate, vests are not usually worn unless the event is quite important or it is a public
appearance. Women may wear a dress with sleeves, a suit or an Ao Dai, the Vietnamese
traditional dress. Dress codes for work vary. White shirts and dark trousers are the norm in
many government bodies. Some companies require workers to wear a uniform at least four days
a week. This may be a shirt with a matching tie for men and a suit or an Ao Dai in the company
colour for women. Other firms allow semi-formal and smart-casual clothes. In most schools,
students need to wear white shirts with the school logo and dark knee-length skirts or trousers.
A white Ao Dai is also a popular choice. Many schools also have a winter uniform.
Simple jeans or shorts with a shirt or T-shirt are common for men when going out. On the
other hand, women often dress up.
The Vietnamese appreciate expensive fashion items. Most people only buy low-cost clothes
because they have limited financial means. People on low incomes go to certain shops and flea
markets. Some popular markets in big cities appeal to students. Yet, the clothes may have an
unknown origin and be of very low quality. Thrift shops sell second-hand clothes and footwear at
low prices. People buy these items because they are affordable or they want unique
discontinued branded garments. However, these shops are limited. Generally consumers still
associate second-hand items with poverty and poor hygiene.
Per capita expenditure on footwear has increased dramatically, from VND87,008 in 2000 to
VND279,638 in 2013. Consumers taste in footwear varies depending on age and location. High
heels are scarce in rural areas where women wear comfortable sandals. In contrast, urban
women adore high heels and begin to wear them when they enter university. On many
occasions, high-school girls are also seen with high heels, although it is often deemed
inappropriate by adults. There is usually no difference between formal/office footwear and
footwear for going out. Young women wear high heels, flats, wedges or sandals as long as they
are trendy or match their clothes. Middle-aged workers prefer low heels and pumps for their
comfort. Flip flops are usually confined to the beach or swimming-pool. In the summer, most
women favour peep-toe shoes. Boots are generally popular during the winter. For recreational
purposes, women wear flats; sport shoes are rarely worn. Sneakers are often worn by
teenagers and some young adults. The majority of men view shoes for their functional, not
fashion, purposes. A typical man may have a pair of formal shoes, a pair of sport shoes, a pair
of sandals and a pair of flip flops for home use only.
The most common accessories among women are bags and clutches. A woman may own
several bags with different designs for different occasions. For men, the most common
accessory is a belt, but typically a man only has one or two belts. Jewellery is an important part
of Vietnamese fashion and tradition. Babies wear necklaces and bracelets made of silver as this
is believed to prevent them from getting cold. Teenagers use metal accessories with diverse
designs to match their style. Young women often favour gold or platinum jewellery, while the
middle aged and the elderly prefer pure gold with precious gems. Many young women
nowadays can be seen with multiple pairs of earrings. Earrings are also spotted occasionally on
teenage boys.
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Local designer shops gain strong popularity

Consumers today often find themselves in a maze of mass-fashion shops selling similar
clothes. They are unsure of the origin of the products and the quality of the materials. Even in
larger shops on popular fashion streets, sometimes consumers buy garments that are badly cut
or stitched together. Items in some local fashion shops and imported goods shops are of higher
quality, but their styles may not be the latest or they are expensive for the majority of young
customers. As a result, local designer shops have been flourishing recently. These shops often
use a social media site, such as Facebook, to communicate with young customers. Compared
to mass-fashion shops, their fabrics are of much higher quality; they are thick and smooth and
their vibrant colours do not fade. Moreover, the cuts and stitches are neat, with no loose
threads. Local designers use their individual creativity that they incorporate into the latest
trends. The designers only produce a limited number of items in each design, which offers a
degree of uniqueness that young and trendy customers appreciate. Furthermore, compared to
foreign websites, these designers offer similar price ranges, and customers can try the clothes
on in the shops. In addition, the clothes can be altered to fit.
The desire for luxury has never faded
Despite the recent economic slowdown, affluent Vietnamese people still like luxury products.
Expensive foreign brands, such as Louis Vuitton and Gucci, are desirable as they convey
status. Celebrities are often featured in magazines wearing expensive clothes and accessories
from prestigious fashion houses. Businessmen also seek designer products to look more
confident and create a good impression. Well-off professional women are usually willing to pay
more than the official price for luxury goods hand carried into Vietnam by specialist shops, if
these goods are rarely sold domestically.
The tendency to favour luxury goods is also seen among middle-class people. Some are
willing to save in order to purchase branded garments and accessories priced far beyond what
their incomes allow. On social media and forums, people often compare with others the price
and uniqueness of their goods as a way to express their status.
Table 5
Grooming and Fashion Data 2000, 2005, 2011, 2012, 2013, 2016
VND per capita, at constant prices
Personal care consumer

expenditure
Colour cosmetics retail
sales
Fragrances retail sales
Hair care retail sales
Oral care retail sales
Men's grooming retail
sales
Skin care retail sales
Sun care retail sales
Clothing consumer
expenditure
- Clothing materials
- Garments consumer
expenditure
- Other clothing
2000
2005
2011
2012
2013
2016
114,320.7
166,148.5
312,259.6
329,651.4
348,404.8
409,492.5
3.5
7.2
11.7
12.7
14.2
18.5
3.3
23.6
33.5
4.4
6.5
35.5
52.8
7.1
12.3
35.4
52.7
7.5
13.2
36.7
55.7
7.9
14.3
39.7
61.4
8.7
18.1
50.0
77.0
11.5
9.7
0.2
428,166.4
19.3
0.5
556,521.9
36.1
0.6
501,915.6
38.7
0.6
481,887.5
43.9
0.6
474,259.9
62.4
0.7
512,460.7
12,272.5
12,404.0
7,866.8
7,285.8
6,962.4
7,150.4
366,861.7
486,465.9
447,806.9
430,763.3
424,730.2
460,177.2
27,625.3
33,514.4
27,981.8
26,684.7
26,121.7
27,973.7
35
- Clothing cleaning,
repair and
hire consumer expenditure
Footwear consumer
expenditure
Source:
Chart 5
Source:
Passport
21,406.9
24,137.6
18,260.2
17,153.7
16,445.6
17,159.5
87,008.3
147,817.4
269,975.6
272,773.9
279,638.3
322,426.1

Consumer Expenditure on Clothing, Footwear and Personal Care 2000-2016
HEALTH AND WELLNESS

Attitudes To Health and Well-being
The healthcare system is underdeveloped and insufficient to meet the demand from the rising
population. Total health expenditure is low, representing 6% of GDP in 2013 and 6.5% in 2012.
The public healthcare system is available to patients with social health insurance and those
without social health insurance. Public hospitals are largely funded by taxes and marginally by
insurance premiums. However, hospital services are of low quality, the waiting times are long
and crucial medical equipment is lacking. The improvements in infrastructure and staffing in
public hospitals have not matched the growth in the number of insured patients. In addition, the
system is ineffective and bureaucratic and the paperwork is complicated. As a result, access to
virtually all public hospitals is an issue. Most of the time, three to four patients have to share a
hospital bed; therefore, only people on low incomes use the social insurance system. Better-off
patients often ignore their social insurance and choose on-demand sections at public hospitals.
These sections allegedly offer higher quality and less waiting, partly because the paperwork is
less complicated. However, the fee is higher. As more people opt for on-demand sections in
public hospitals, they too have become overcrowded. In addition, most patients from the
countryside try to be seen in hospitals in urban areas, believing that city hospitals have more
experienced doctors.
36
The ineffectiveness of public hospitals has given rise to private healthcare. According to a
2014 article in the Cong Ly newspaper, the number of private hospitals has risen from 40 in
2004 to 170 in 2014. Doctors also open private clinics. Compared to public hospitals, private
hospitals and clinics are more technologically advanced and offer better customer service.
Nevertheless, because the costs are significantly higher, the majority of the population cannot
afford private healthcare. Moreover, small private hospitals may not have doctors with long
experience, unlike public hospitals. Therefore, for serious illnesses, people still prefer public
hospitals. In order to overcome this paradox, the Ministry of Health has drafted plans to support
the private segment financially in order to attract more patients. Another plan is to transfer some
patients from public hospitals to private ones without increasing their medical costs.
Private healthcare spending represented 56.9% of total health expenditure in 2013, although
this percentage has steadily declined since 2005. The proportion represented by public
healthcare has increased significantly, from 26.4% to 43.1% in the same period. This is due to
the relaxation of rules on social insurance eligibility and the economic slowdown, which has
made private healthcare unaffordable to many.
Vietnamese people often self-medicate for mild illnesses, such as slight fevers, sore throats,
stomach aches or headaches, especially in children. They think that these illnesses are not
serious and can be treated with common medicines. Moreover, most people do not like the
hassle of going to healthcare establishments as it is generally time consuming. In addition, the
cost of prescriptions is high, at around 60% of total social insurance medical costs, according to
a 2012 article on bacsy.net.vn. Some doctors also tend to prescribe more expensive medicines
than needed. The less financially secure people are, the more likely they are to buy medicines
without having visited a doctor. Most independent pharmacies sell many types of over-thecounter medicines, without a prescription, except for the strongest or highly specialised
medicines. People seek advice from friends, relatives and the internet to self-diagnose. They
also describe their symptoms to pharmacists and ask for recommendations. Painkillers,
antibiotics and anti-fever medicines, such as Decolgen and paracetamol, are often stocked at
home. Traditional treatments are also popular. For example, to treat a cold, people rub the
patients back, neck and forehead with a coin. The use of herbal medicine, known as traditional
medicine, is also widespread.
Obesity
In 2013, only about 0.6% of the population aged 15 and above was obese and 12.2% was
overweight. However, the obesity and overweight rates have steadily increased in the past
decade. The absolute number of overweight people above 15 has grown dramatically, from
around 2.4 million in 2000 to more than 8.5 million in 2013.
There are many reasons for this trend. Living standards have risen and in many cities more
people have access to local quality food products, in good quantity, as well as imported food. As
a result, nutritional intake has increased sharply: the average supply of calories per day per
capita rose from 2,269 calories in 2000 to 2,820.6 calories in 2013, while the average supply of
fats per day per capita almost doubled, from 39.9 grams to 76.6 grams. These intakes are
expected to continue rising. The average calories per person per day in 2013 surpassed the
recommended amount according to a 2013 article on dep.com.vn.
Apart from the consumption of highly caloric food, the lack of regular exercise is another
factor. People do not have the habit of walking or cycling because motorbikes are convenient.
Trips to fitness centres are only popular with some young men and women, while late-lifers and
some mid-lifers do morning exercises in public spaces. Moreover, most people do not actively
monitor their food intake. Since the country has been fighting poverty for more than two
decades, many people believe that the more nutritious the food and the more food consumed,
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the better it is. Also, being overweight is often viewed as having a rich lifestyle. The high
consumption of alcohol among men also contributes to the rise in being overweight.
However, the picture varies across regions. In rural areas, most people are active physically
through their work, such as farming. As help is not readily available, they have to do labourintensive tasks, such as house repairs, themselves. Children often walk or cycle long distances
to school. In rural areas, people also have limited access to industrial or processed food and
consume local produce, which tends to contain less fat. Consequently, being overweight is not a
problem for most of the rural population. In the poorest areas, people have to work hard not to
be underweight. According to 2014 research by the National Institute of Nutrition, 15.3% of
children under the age of five are underweight and some cases are severe. Although the
percentage has been declining from 33.8% in 2000, malnutrition is still a worry, particularly in
mountainous provinces.
In contrast, overweight is a serious concern for urbanites. Office workers who commute to
work by motorbike or car and spend the majority of the day at a desk in air-conditioned offices
tend to be the most overweight. Obesity in urban children is particularly alarming. A 2013 article
on VnExpress claims that the proportion of overweight children under five has increased nine
times in ten years. Children are encouraged to spend more time taking extra classes than doing
outdoor activities. Compared to the countryside, cities seriously lack safe outdoor spaces for
children to play. As a result, free time is often spent watching television or sitting in front of a
computer. Physical education in school is not seen as important, and most schools have not
enough equipment for exercising. Parents and especially grandparents tend to over feed their
children with highly nutritious food, without paying close attention to body indicators. Under
pressure from parents, schools also try to feed children a greater quantity of food, but not quality
food, in order to increase their weight. Furthermore, with the growing popularity of Western fast
food, such as fried chicken, hamburgers, fries and soft drinks, in recent years has greatly
contributed to the trend.
Recently, the media and newspapers have warned about the high obesity rate in urban areas.
Conferences have been organised to increase awareness, especially among parents. However,
people have yet to realise the full health implications of obesity. Overweight children are still
seen by adults as being cute. Many late-lifers and mid-lifers are now eating more healthily and
exercise more regularly; however, it often stems from a concern about staying healthy as they
age, as opposed to a concern about overweight or obesity. Similarly, many people go to fitness
centres because they are concerned about their appearance. More women are going on diets,
such as low-carbohydrate diets, and monitor their daily intake in an effort to lose weight.
Attitudes To Smoking
The smoking prevalence has been declining steadily in the past decade, from 24.2% of the
total population in 2000 to 22% in 2013. It is largely due to efforts by the government and nonprofit organisations warning of the negative effects that smoking has on health. These warnings
are mainly communicated through the media and newspapers. The government is also tightly
monitoring the supply of tobacco. The Ministry of Health has a mission to reduce the smoking
prevalence further over the next eight years. In order to succeed, the government is planning to
increase tobacco taxes almost three times by 2020, to 155%.
In February 2014, a new campaign launched by the Ministry of Health in conjunction with the
World Lung Organization called For a Vietnam without smoke. Its aim is to encourage young
people to be more conscious of the dangers of smoking. After seeing the messages, 80% of
smokers showed genuine concerns over their own health, as well as the health of their family.
More than three quarters expressed a desire to reduce smoking or quit. Furthermore, 90% of
the non-smokers who saw the messages wanted to actively protect themselves from tobacco
smoke by reminding smokers in their proximity about the dangers and nuisance of secondary
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smoking. Currently, according to the Ministry of Health, Vietnam is in the worlds top 15
countries for its high number of smokers. In 2013, the prevalence of smoking among the male
population was 42.3%, against only 2.5% for females. Smoking is considered normal for men,
particularly if they work in the business or construction industry. Women who smoke are often
perceived as poorly educated; their behaviour is seen as unacceptable by society. In addition,
women are generally more health conscious than men.
Tobacco advertisements have been banned on television and in newspapers, but
independent shops and bars still actively advertise tobacco. People who want to buy tobacco
can find it in virtually every shop and grocery store. Smoking is banned in air-conditioned places
and certain public areas, such as schools, offices, hospitals and public transport. Yet, this ban is
not effectively enforced. Hence, although some restaurants have separate smoking areas, in
many restaurants and coffee shops, smokers still sit among non-smokers. Also, people often
smoke at home, in the office (except in enclosed air-conditioned rooms), entertainment places
and open areas. In 2013, according to the Ministry of Health, 73% of adults were secondary
smokers at home and 55% of workers were secondary smokers in offices.
The percentage of smokers among teenagers and young adults is rising while the age at
which people have their first cigarette is declining. According to an article on
radioaustralia.net.au, around 26% of men aged 15-24 are smokers. The same article claims that
the age at which people have their first cigarette is now between 13 and 15. In most cases,
teenagers and young adults start to smoke under the influence of people around them. Teens
also smoke to impress their friends and show off their masculinity. Some young office workers
use tobacco to bond with their business partners or reduce stress. Some teenage girls and
females use cigarettes as a way to diet. In addition, tobacco is widely available and its price is
relatively low. Unlike people in older generations who started smoking before they were aware
of its health effects, many young smokers are fully conscious of the dangers of smoking but
choose to ignore them. Furthermore, casual smokers often think that moderate smoking is
acceptable and less risky.
In rural areas, people tend to smoke more. Unlike urban citizens, they do not regularly have
access to social media campaigns. In rural areas, boys take up smoking at a younger age than
their urban counterparts since they are not monitored by their parents, who even think that
smoking is socially acceptable for children. At family gatherings, tobacco is always present and
children can easily ask for one or two cigarettes.
Alternative method for weight loss takes off
Conventionally, people lose weight by going on a diet or having cosmetic surgery. However,
plastic surgery can have side effects or lead to complications and diets can be very strict. As a
result, many overweight people are increasingly turning to food supplements and weight-loss
medications, which are perceived as convenient as it only takes a minute to take the pills. The
required daily amount of exercise can also be reduced from 30-60 minutes to 10-15 minutes.
Therefore, diet pills are extremely popular with busy office workers, especially females.
Moreover, people do not need to severely limit their nutritional intake or give up their favourite
foods.
Hand-carried foreign supplements and diet pills are popular on social media. However, no
adequate regulations are in place since these pills are not classified as medicines. Consumers
can buy them freely without a prescription, sometimes based solely on advertisements. Many
people are unaware of the dangers if they take too many supplements or diet medications.
More people use electronic cigarettes
Electronic cigarettes (e-cigarettes) became very popular in 2013, especially in Southern
Vietnam. They are widely advertised as a superior affordable method to quit smoking quickly.
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They also do not produce smoke, thus they are thought to be non-hazardous to surrounding
non-smokers. As a result, e-cigarettes are in demand in urban areas. Well-off consumers often
purchase hand-carried products from Germany or America, while people on lower incomes can
easily buy e-cigarettes via online shops or specialist tobacco markets. Hand-carried e-cigarettes
usually have a price tag of a few million Vietnamese Dongs whereas local e-cigarettes cost a
few hundreds of thousands of Vietnamese Dongs, depending on their lifespan. Their sale has
yet to be regulated and the quality of the e-cigarettes sold locally is not clear. Some people turn
to e-cigarettes simply because they want to show off their trendy lifestyle.
Antibiotics resistance becoming a problem
According to VTV.vn, the majority of Vietnamese people - 88% in urban areas and 91% in
rural areas - stock up antibiotics, such as Amoxicillin and Penicillin, at home. They use these
medicines without a prescription to treat all types of common ailments, such as fevers, sore
throats and headaches. In addition, even with a prescription, most people do not follow the
dosage instructions. Parents also often diagnose their childrens illnesses and let them take
these medicines regularly. As a result, the proportion of Vietnamese people who are resistant to
antibiotics has risen alarmingly to be one of the highest in the world.
Table 6
Health and Wellness Data 2000, 2005, 2011, 2012, 2013, 2016
Total health expenditure

(US$ per capita)
Share of total health
expenditure in GDP (%
of total GDP)
- Public health
expenditure's share of
total health expenditure
(% of total health
expenditure)
- Private health
expenditure's share of
total health expenditure
(% of total health
expenditure)
Healthy life expectancy
at birth: total
population (years)
at birth: males (years)
at birth: females (years)
Average supply of food
calories per day
(calories per capita)
Average supply of
protein per day (grams
per capita)
Average supply of fat
per day (grams per
capita)
Obese population (BMI
30 kg/sq m or more) (%
of population aged 15+)
Overweight population
2000
2005
2011
2012
2013
2016
20.9
37.3
94.8
102.9
113.0
5.8
5.9
6.8
6.5
6.0
30.9
26.4
40.4
41.1
43.1
69.1
73.6
59.6
58.9
56.9
58.1
62.1
65.2
65.4
65.6
66.2
55.3
60.3
63.0
63.2
63.4
64.0
60.9
63.9
67.3
67.5
67.7
68.4
2,269.0
2,516.0
2,759.7
2,791.3
2,820.6
2,893.9
56.3
67.1
76.2
76.7
77.0
78.6
39.9
55.1
73.7
75.2
76.6
79.8
0.1
0.2
0.5
0.5
0.6
0.8
4.4
6.6
10.6
11.4
12.2
14.6
40
(BMI 25-30 kg/sq m or

more) (% of population
aged 15+)
Tobacco consumer
expenditure (VND per
capita, at constant
prices)
Smoking prevalence
amongst adult
population (% of total
adult population)
Smoking prevalence
amongst adult male
population (% of male
adult population)
Smoking prevalence
amongst adult female
population (% of female
adult population)
Source:
Chart 6
Source:
Passport
303,122.1
394,180.7
524,398.1
532,941.0
557,557.8
640,104.4
24.2
22.9
22.1
22.0
22.0
21.8
45.5
44.0
42.5
42.4
42.3
42.0
4.5
3.1
2.7
2.6
2.5
2.4
Real Growth in Public and Private Expenditure on Health Compared with

Healthy Life Expectancy at Birth 2000-2013
SHOPPING HABITS
Main Household Shop
In rural areas, there are few supermarkets; the traditional way of shopping still prevails:
people buy food and non-food household products from wet markets, small independent grocers
and corner stores. In urban areas, customers are shifting from shopping for food and non-food
household products at wet markets to supermarkets or hypermarkets, but the shift is moderate.
Although some households have built a habit of going to supermarkets at the weekend and
stock up for the whole week, these cases are the minority. The majority of households only
41
purchase food at supermarkets if it can be stored for a long time or is not commonly seen at wet
markets. For items such as meat and vegetables, most people visit wet markets every morning
in order to ensure the freshness of the products. The main view is that, while some food
products at supermarkets are cheaper than at wet markets, they are not as fresh. Given that
there is usually at least one wet market in every neighbourhood, shopping for food at wet
markets is extremely convenient. For non-food household products, however, many consumers
nowadays prefer supermarkets because of the wide product variety and year-round promotions.
Supermarkets are gaining popularity in urban areas because of their increasing accessibility and
peoples fast-paced lifestyles.
Given the economic slowdown, price is naturally factored in when pondering over
supermarket options. In 2013, the slowdown and the high inflation rate continued to affect
middle- to low-income consumers decisions. Distance is another key factor that influences
decisions. The major mode of transportation in Vietnam is the motorbike; therefore, consumers
often choose the supermarket that is nearer because they do not want to carry bulky shopping
bags for a long distance. Loyalty cards also influence consumers choice of supermarkets.
For wet markets, distance is usually not a problem given that consumers can almost always
find one that is either close to their homes or their offices. Female officer workers tend to drop
by wet markets near their work after office hours to buy food for dinner if they do not have the
time to do so in the morning. Prices at wet markets are generally cheap. Nonetheless, some
middle- to low-income shoppers who are more price sensitive also go to wholesale markets
outside of city centres to find better bargains.
When consumers need to do top-up shopping, they generally go to wet markets, independent
grocers or convenience stores (minimarts), which are within walking distance. A hassle-free
shopping experience is the first and foremost consideration when doing top-up shopping.
Consumers usually do not go to supermarkets for top-up shopping because a trip to the
supermarket can be quite time consuming given the time spent parking and queuing at the
checkout. However, nowadays premium apartment complexes often have a supermarket in the
basement and no independent grocers or wet markets and so it has become more common for
people who live in these complexes to do top-up shopping at supermarkets.
Shopping for Big-ticket Items

Although the recent economic slowdown has had no visible impact on day-to-day spending, it
has affected big-ticket items. Traditionally, the Vietnamese are not spontaneous buyers.
Recently, given their constrained budgets, many people have been even more cautious about
making big investments. They usually research prices and product features before buying bigticket items. Many consumers have become familiar with the internet and carry out their
research online. For households on moderate incomes, an item costing more than a couple of
million Vietnamese Dongs is considered a fairly big investment; therefore, research is necessary
before buying. Consumers browse websites to compare the prices and functions of home
electronic devices and appliances. Owing to the development of the internet and social media,
reading reviews on online forums is becoming more popular. In addition, consumers seek the
opinions of friends and relatives before making purchases. After doing their research,
consumers visit stores to see their short-listed items before making a final decision.
It is difficult to obtain exact prices for cars and motorbikes on the internet or by phone;
therefore, consumers have to go to showrooms to get price information and see the displayed
items before making a decision. Like for other big-ticket items, consumers read online reviews
and seek others opinions before buying. The majority of consumers buy motorbikes and cars
from authorised retailers, who usually have large showrooms and offer add-on services. Used
cars and used motorbikes are also bought from unauthorised retailers and pawnshops by
consumers on a tight budget.
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For furniture, consumers tend to go straight to specialist stores, as there is barely any online
information. Most furniture retailers do not have a website or their websites are not regularly
updated. Because houses in cities are small, the size of the furniture is a key factor, but
information about dimensions is usually not available unless consumers actually go to the store.
Consumers visit stores to compare products and prices before deciding on the one they like the
most. Specialist stores usually offer customisation and different types of woods to choose from.
Most middle-aged consumers prefer wooden furniture made from premium wood, such as
ironwood, mahogany or ebony; younger consumers tend to like modern-looking, Western-style
furniture, which is generally made from cheaper materials.
Although online research is widely conducted, online shopping for big-ticket items remains
rare. The main reason is that, when Vietnamese consumers are about to invest a large amount
of money, they usually want to see the goods before making the purchase.
Size is a critical factor when shopping for a refrigerator, freezer, washing machine or highdefinition television, especially if living in a small house. Other key considerations are quality,
price and brand. Most Vietnamese consumers are not particularly green; features such as
energy saving or environmentally friendly are only taken into account if they do not lead to a
notable difference in price.
Personal Shopping
In recent years, online shopping for personal items, such as clothing, footwear, beauty and
personal care products, has become popular. As social media has developed, more Vietnamese
people have founded online businesses, often selling hand-carried foreign products or
handmade items. Since the sellers do not pay rent or maintenance fees, they tend to offer better
prices than brick-and-mortar stores. Furthermore, many of the products are not distributed in
Vietnam through authorised distributors, but they are very popular among the niche segment
that favours imported goods. Clothing, footwear, accessories, cosmetics and electronic gadgets
are the most common types of products sold by online retailers. Although these online retailers
are unauthorised, many are known as trusted sources of authentic products. Flourishing online
shops usually have a very loyal customer base. The fact that they mainly reach customers via
social media platforms where any bad reviews can easily be seen also contributes to their
credibility.
Consumers tend to shop for toiletries at both supermarkets and independent small retailers.
Supermarkets offer a greater variety, while independent small retailers tend to be more
convenient given their proximity to customers homes. Consumers on low incomes tend to
purchase cosmetics at local shops where they can find products at low prices. Better-off
consumers visit department stores to shop for more expensive branded beauty products.
High-income consumers tend to buy clothing and shoes at high-end shopping malls, which
offer more well-known brands and better customer service. More price-sensitive consumers
choose supermarkets and independent retailers, which sell lower-quality products or less known
brands at affordable prices. Independent clothing retailers are sometimes found together in
clusters in large cities. For example, almost all the stores on a particular street might sell
clothes. It is also common for people, especially the older generation, to buy fabric and take it to
neighbourhood tailor shops. In general, tailored clothes are considered to be of better quality
and more durable that the clothes found in supermarkets and small independent retailers. The
price of tailored clothes is often moderately higher than the price of clothes at independent
retailers or supermarkets. However, they are still much cheaper than branded clothes thanks to
cheap labour. Shopping malls are popular among shopaholics who love hunting for bargains
and promotions. Despite the economic slowdown and high inflation, young consumers are
generally spending more on clothing and footwear, as they are more fashion conscious. For
luxury items, such as jewellery, perfumes and watches, consumers usually visit department
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43
stores and shopping malls where a wide variety of brands is available and they can easily
compare prices and features. Stand-alone stores in city centres also sell premium brands.
Shopping Online
Given that the number of internet users continues to grow, internet retailing is gaining
popularity, mostly among the younger generation. In 2013, the number of internet users reached
38 million, 7.7% more than in 2012. According to an article in Tuoitre, 42% of these users were
aged between 15 and 24. Internet retailing more than doubled between 2011 and 2013.
However, despite its growing popularity, online retailing in Vietnam is still underdeveloped and
fragmented. In 2013, the average amount of money spent by a household on online purchases
remained modest at VND293,000. Compared to conventional sales, online sales are still
insignificant. In fact, online shopping is mostly limited to younger customers who enjoy hunting
for bargains and surfing online. Consumers do not usually buy big-ticket items online; they only
buy small items partly because most consumers continue to be sceptical of online shopping and
payment. Cash remains the prominent payment method when shopping, and it is highly unlikely
to change in the next few years. Most consumers are not familiar or comfortable using debit
cards, credit cards or e-wallets to pay online. They normally pay by card only when shopping
from international e-commerce websites, buying air tickets and from group purchase sites. The
underdeveloped infrastructure and consumers scepticism of online payments remain
considerable barriers to the development of online retailing. In addition, poor internet security is
another issue, and consumers are highly concerned about fraud.
Online shopping options include C2C transactions, local group purchase sites and
international e-commerce sites. There are few local e-commerce sites in Vietnam; companies
websites usually only provide online catalogues or menus and rarely support e-commerce
transactions. Hence, customers visit websites simply to carry out product research. They often
do online research and compare prices before going to brick-and-mortar stores to make actual
purchases.
Consumers use international e-commerce sites, such as Amazon or eBay, to buy books, or
ASOS, for clothes, footwear and accessories. Yet, delivery fees tend to be very high and courier
services unreliable, which discourages consumers from shopping from foreign sites.
The concept of group purchasing was first introduced in 2009. In 2012, the habit caught on
and spread amongst young consumers. According to the Vietnam E-commerce and Information
Technology Agency, in 2012, group purchase sites commanded up to 30% of the internet
retailing market. However, this number dropped to 19% in 2013.
The most popular type of online retailing is C2C, whereby Vietnamese individuals use social
media to reach customers, receive orders and advertise new products. These retailers do not
support online payments using electronic cards. Popular media platforms include Facebook,
123mua.vn and enbac.com. The majority of products sold via these channels are food, clothing,
footwear, electronic gadgets (mostly smartphones and tablets) and cosmetics. Online food
shopping has started to grow, as many consumers with busy schedules like to buy ready-made
dishes and home-cooked meals from online independent retailers. When buying from domestic
online retailers, consumers usually place orders on social platforms or via SMS and then pay by
cash upon delivery. If online retailers require advance payments -usually for cross-province
delivery, customers use interbank or telegraphic transfers. However, bank transfers are
troublesome because they often involve a trip to the nearest bank branch.
The group buying fad has faded away
After its peak in early 2012, the group buying fad faded considerably in 2013. In November
2012, a scandal, involving Nhommua, the largest group purchase website in Vietnam, broke out.
The company discontinued its operations for a few weeks and thousands of store vouchers
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became invalid. This undermined consumers confidence in Nhommua and in group purchase
websites. In addition, customers have become concerned about the quality of the products
bought via group purchasing websites. Furthermore, cases of misleading marketing and
advertisements added to the distrust. Group purchasing websites target customers who enjoy
bargain hunting or are price sensitive by providing seemingly extremely attractive deals at first
glance. However, due to poor product and service quality control and ineffective channel
management, the deals often disappoint consumers. Given the economic slowdown, a large
number of customers will continue to search for online deals, but they will be more careful.
Extravagant spending is no longer observed during the Tet holiday
Tet, or the Lunar New Year, is the most celebrated holiday in Vietnam. Traditionally, it used
to involve lunatic shopping sprees. Common Tet purchases include gifts for parents, relatives
and colleagues, new clothes, different types of foods, delicacies and snacks, wines and
alcoholic drinks, as well as home decorations. Therefore, the Tet holiday is often associated
with extravagant spending. Yet, in recent years, the craze has gradually disappeared. The
economic slowdown has dampened consumers confidence and reduced most employees yearend bonuses. Moreover, the younger generation no longer puts as much emphasis on the Tet
celebrations as the older generation. Traditional customs are sometimes seen as time
consuming and unnecessary and are not fully observed by young households with fast-paced
lifestyles in urban areas. People are now less likely to make traditional purchases, but they are
more willing to spend on travelling during Tet to take advantage of their long holiday leave.
Table 7
Shopping Data 2000, 2005, 2011, 2012, 2013, 2016
VND '000 per household, at constant prices
Grocery retailers'
- Modern grocery
retailers'
-- Convenience stores'
-- Hypermarkets'
-- Supermarkets'
Traditional grocery
retailers'
-- Food/drink/tobacco
specialists'
-- Independent small
grocers'
-- Other grocery
retailers'
Apparel and footwear
specialist retailers'
Electronics and appliance
Health and beauty
Home and garden
Leisure and personal
goods specialist
retailers'
Mixed retailers'
Other non-grocery
retailers'
2000
23,121.5
484.8
2005
29,967.9
902.4
2011
36,022.0
1,504.1
2012
39,836.9
1,624.5
2013
44,901.2
1,790.7
2016
55,660.9
2,271.4
49.6
435.1
22,636.7
2.1
122.4
777.9
29,065.5
35.5
415.5
1,053.0
34,518.0
45.8
444.6
1,134.1
38,212.4
68.1
516.5
1,206.1
43,110.5
124.4
681.9
1,465.2
53,389.5
300.7
548.8
855.4
890.2
923.4
1,069.2
11,574.3
11,896.0
10,562.6
11,213.8
11,962.7
13,582.4
10,761.6
16,620.7
23,100.0
26,108.4
30,224.4
38,737.9
771.4
1,346.1
1,848.4
1,555.7
1,532.7
1,668.6
1,314.9
3,427.1
5,254.8
5,054.6
4,979.2
5,093.2
1,430.5
2,743.5
2,692.6
2,673.9
2,699.2
2,835.2
5,673.7
6,137.2
5,628.5
4,287.9
3,812.9
3,935.0
1,156.5
1,447.9
2,893.4
2,115.9
1,858.2
1,923.5
12.7
5,385.7
56.7
4,756.5
128.0
2,529.1
137.4
2,231.2
159.6
2,147.7
214.6
1,908.7
45
Internet retailing
Source:
137.3
214.4
293.0
Chart 7
Source:
Passport
Index of Retail Sales through Hypermarkets and Supermarkets 2000-2016
LEISURE AND RECREATION

Staying in
Overall, 90.1% of households in Vietnam have televisions. In 2013, 17.1% of the population
had cable and 18.0% had satellite television. Watching television is a popular activity among
people of all ages. It is common to watch the news on television while having dinner. Chinese
and Korean dramas are extremely popular, especially with women. The younger generations
prefer international channels, like HBO, Star Sports and ESPN, while older people watch
Vietnamese channels, such as VTV. Recently, many reality television shows have been
adopted, and they are successfully attracting viewers attention. Football and tennis matches are
among the most watched television programmes among men.
Besides watching television, surfing the internet is a common leisure activity at home.
Consumers use desktops, laptops, tablets and smartphones to surf the internet. Desktops and
laptops are the most popular devices. Many middle-aged smartphone users only use their
phones to make calls and send SMS. According to a study conducted by Ericsson
ConsumerLab in 2012, only 68%, 38% and 35% of Vietnamese smartphone users use their
phones to surf the internet, access social media and use apps, respectively. More Vietnamese
people are using the internet, as evidenced by the considerable hike in the percentage of
households with internet-enabled computers: from 0.2% in 2000 to 17.3% in 2013. However, the
gap between urban and rural areas is significant. According to an article in Nhan Dan, less than
2.6% of people in rural areas have internet access at their residence, against 43% of urban
dwellers. The most visited websites include news and information sites, social networking or
blogging sites, and search engines. The majority of Vietnamese internet users are people under
the age of 35. They usually have a social media presence and are heavy users of Facebook,
Yahoo, Zing Me and YouTube. Vietnamese people are extremely active on social media
525.7
46
networks and like to share opinions in online forums. Older people mostly use the internet to
read online news. The Vietnam Internet Agency estimates that, on average, an internet user in
Vietnam spends 142 minutes online every day. Vietnamese people spend most of their spare
time inside, not outside, when they are at home.
Going Out
Going to the cinema is one of the most widespread leisure activities. International films are
extremely popular. Recently, domestic movies have been more popular. There are stand-alone
cinemas and cinemas located inside shopping malls in big cities where the latest international
and domestic movies enjoy lengthy stays. Art exhibitions are mostly limited to first-tier cities, like
Hanoi and Ho Chi Minh City, and are only popular among a niche segment. Museums are
mainly located in big cities and are only popular with a small number of people.
Across the country, concerts and music performances are frequently held and usually well
attended. Even in small provinces, local artists perform for town dwellers. Concerts that feature
international artists, especially Korean bands, are extremely popular because there are a huge
number of K-pop fans in Vietnam. These events are limited to top-tier cities and are advertised
across all major media channels. Tickets to major performances featuring international artists
always carry a hefty price tag. Yet, they usually sell out quickly. At cafs and clubs, live music
by cover bands is fairly popular, especially among young consumers. High-end tea houses
(phong tra a Vietnamese premium version of pubs) often feature famous singers. People
also like to gather at beer gardens and pubs to watch major international sporting competitions,
mostly football. While they can watch these events on television at home, many prefer to go out
to enjoy the lively atmosphere. Going out late at night is generally not common, particularly in
rural areas. However, in big cities, new nightclubs have become more popular among young
consumers.
People of all ages go out to celebrate birthdays, graduations, or new jobs. Traditionally, they
used to go to restaurants and beer gardens. Recently, people have been going to bars, clubs,
and fast-food restaurants for these occasions. Moreover, people go out together when people
leave their jobs, relocate or have bad luck. Coffee shops are favourites when people want to
socialise. All coffee shops, ranging from high-end to street shops with plastic chairs, are
crowded during hot and humid summer nights.
Families with young children frequently patronise theme parks, water parks, aquariums,
botanic gardens and zoos at the weekend. Newly-opened centres for children in Hanoi and Ho
Chi Minh City, such as Vietopia or VinKC, are appreciated by parents because they provide
more family-friendly options while going out. These centres are often located inside large
shopping malls and offer edutainment activities for young children. Edutainment is a fairly new
concept, but it is quickly catching on because the Vietnamese are usually devoted parents and
always look for the best education and entertainment opportunities for their children. Across the
country, young people go out significantly more often than mid-lifers and the elderly.
Online mobile games are becoming a top leisure activity
The increasing popularity of smartphones has led to a boom in online mobile games. In 2013,
playing online games became so widespread that now people can be seen playing games
everywhere: at work, at school, in public places, at home, in cafs and restaurants. Online
mobile games, such as Candy Crush Saga, Angry Birds, Flappy Bird, or 2048, are played daily
by many young smartphone users. Some users spend most of their time playing games at the
expense of their work or studies. Fans of mobile games like to discuss game tactics and share
their results on social networking sites. Teenagers, young people and female office workers
make up a major part of the mobile games customer base. The number of older people who
play mobile games is on the rise, as they have more exposure to mobile apps and games. Most
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47
people play a particular game following recommendations from colleagues, friends or family
members.
Young adults and teenagers see weekend flea markets as cool and fun
In 2013, flea markets attracted the interest of young adults and teenagers in urban areas,
especially in Ho Chi Minh City, and quickly became top leisure activities for young urbanites at
the weekend. Flea markets take place indoors or outdoors depending on the weather; the
locations are usually not fixed. Common products at flea markets include clothing, vintage
accessories, footwear, house decorations, hand-made souvenirs and beauty products at
discounted prices. Besides regular brick-and-mortar retailers, online entrepreneurs are present
to reach more customers. Some of the stalls or, in some cases, whole markets sell second-hand
items. Some customers favour flea markets in the hope of stumbling upon rare or valuable
items. In addition, some stalls offer snacks, fortune-reading services, or henna tattoos. Famous
markets include the Saigon Flea Market, 2days Sale, and Cho Sale.
Sport and Fitness

The Vietnamese, particularly men, love football (soccer). At the weekend and after work,
friends and colleagues sometimes play football together on public or private football pitches or in
large public spaces. Recently, more city dwellers have been playing tennis at sport centres.
Martial arts, such as Wushu, Taekwondo, Aikido and Karate, are practiced across the country
by both males and females. Practicing martial arts is encouraged because Vietnamese people
believe that it teaches self-control and discipline and improves the health and reflexes. Parents
also want their girls to learn martial arts for self-defence.
Other popular sporting activities are walking and jogging in public parks, around lakes and
along beaches. The sight of joggers running in city parks and on sidewalks and boardwalks is
quite common. Couples and families also frequently walk together along these same paths.
Pensioners often practice Tai Chi in public parks and neighbourhood playgrounds in the early
morning and late afternoon. A popular sporting activity among female mid-lifers is aerobics,
which they enjoy in public parks or sport centres. Many high-school students like basketball and
often play on basketball courts at school. Swimming is another popular activity due to the hot
weather. Swimming pools are crowded at the weekend in the summer. Parents also increasingly
send their children to swimming classes.
People enjoy watching sports live and on television. If watching sports on television, they can
do so at home or in beer gardens, bars and pubs. Football is the undisputed king of sports in
Vietnam, followed by tennis, basketball and car racing. The most popular international sports
broadcast on television are the English Premier League and the Spanish La Liga (football), as
well as the ATP World Tour (tennis). International sporting events, such as the World Cup and
the Olympics, as well as regional events, such as the SEA Games, are very popular. The VLeague (the Vietnamese football league), which usually starts in January and lasts for around
nine months, is popular across all major cities and towns. The Football Association of Vietnam
estimates that, on average, each V-League game has approximately 10,000 spectators.
Going to the gym is a fairly new concept in Vietnam. Gyms are mostly limited to large cities.
Membership fees to health clubs and gymnasiums vary significantly depending on the facilities,
location and branding. On the other hand, public health clubs have existed in all cities and towns
for a long time; they are open to the public, charge minimal fees and are mostly visited by young
people. However, their facilities are basic and not well-maintained, which discourages some
people from visiting.
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48
Vacations
Given their higher disposable incomes, more people are travelling. On average, in 2013,
people spent VND61,173 per capita on packaged holidays, almost six times what they spent in
2000. Domestic tourism expenditure per capita and international tourism expenditure per capita
have risen significantly since 2000. Domestic travelling is more popular as only some
consumers can afford overseas trips.
June and July are major travel periods as they coincide with school breaks and enable people
to take family trips. From the end of May to July or early August, people travel and go on
vacation domestically and internationally. Popular international destinations are Thailand,
Singapore, Hong Kong, Korea, and Europe. Yet, only affluent travellers can afford trips to
Europe and America. The less well-off often favour countries in Southeast Asia. Nearly all travel
in and out of Vietnam is by plane, although some people travel by land to China, Laos or
Cambodia.
Favourite local destinations for vacations are coastline cities. Coastline cities in the South are
preferred by domestic travellers because the beaches are more spectacular and the service is
better. Mountainous areas, such as Sa Pa in the North and Da Lat in the South, are also popular
with holidaymakers who want to avoid the summer heat. Some roads in parts of the country are
in poor condition; it prevents people from travelling extensively domestically. Potential travellers
avoid some of the more rustic local destinations because the flights are infrequent, the costs are
high and the infrastructure is inadequate or non-existent. Many vacationers favour cities and
towns within their own provinces, neighbouring provinces or those that are easy to access by
plane. Plane tickets represent a large component of the total cost of domestic and international
travel for most travellers. Nevertheless, thanks to the introduction of budget airlines, such as
Jetstar and VietJet Air, and year-round promotions from all the airlines, travelling to faraway
destinations by plane has become more affordable and more consumers are travelling during
their holidays.
Another major holiday period is Tet, the Lunar New Year. Depending on the lunar calendar,
this can fall in either January or February. The official paid leave for most employees is one
week. Students also have seven to ten days off. The Tet holiday is mostly an opportunity for
family reunions. People who live and work overseas or in other cities usually come back to their
home towns to celebrate the New Year with their families. Yet, in recent years, more young
Vietnamese people have been travelling instead of staying at home during Tet. Productivity
tends to fall during the first two weeks following the Lunar New Year, especially in Northern
Vietnam, because many people take additional unpaid leave to travel domestically to attend
traditional festivals across the country. These festivals are an important part of Vietnamese
peoples spiritual lives and are immensely popular. Some of the best attended include the Chua
Huong, Chua Thay and Yen Tu festivals.
If a public holiday falls near a weekend, people often take one or two more days of leave to go
travelling. Three- or four-day vacations have become more popular among office workers. Oneday trips to suburban areas are also increasingly popular with city dwellers.
Public Holidays, Celebrations and Gift-giving

Tet is by far the most celebrated holiday; it usually lasts five to seven days, depending on
family members work and study schedules. The main activities include family reunions and
visits to friends and relatives. A few days before Tet people give presents, such as wine,
delicacies or food hampers, to parents, relatives, friends and colleagues to show that they have
appreciated their help and support throughout the year. Preparations for Tet can start a month
before and post-Tet celebrations can last one to two weeks in some parts of Vietnam.
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49
Other major public holidays are the New Year (1st January), the Hung Kings Commemoration
(the tenth day of the third lunar month), Reunification Day (30th April), International Workers
Day (1st May) and National Day (2nd September). If the public holiday falls near a weekend,
many people go on short vacations. Otherwise, people often stay at home, meet up with friends
and relatives or go on one-day trips. Eating out and shopping are popular activities on public
holidays besides visiting attractions.
Many young Vietnamese people exchange gifts and greeting cards on New Years Eve (31st
December) and Christmas (25th December). These holidays are increasingly celebrated in
urban areas, despite the fact that Christmas is not officially recognised as a public holiday.
Valentines Day (14th February) is popular in cities and considered important by most
couples. People usually give gifts, flowers and chocolates to their significant others. On
International Womens Day (8th March), men, and sometimes women, are expected to give
presents to the women around them in order to show their appreciation. The celebrated women
can be their wives, mothers, daughters, sisters, female friends or colleagues. On International
Childrens Day (1st June), children usually get toys, sweets and clothing from their parents and
relatives, and they are taken out. Vietnamese Womens Day falls on the 20th of October.
Although it is not as celebrated as International Womens Day, many people give presents on
that day. Vietnamese Teachers Day on the 20th of November is celebrated across the country,
and traditionally flowers are a must. The Mid-Autumn Festival on the 15th day of the eighth lunar
month is another special occasion; it is mostly reserved for children and family reunions. People
eat mooncakes and buy traditional toys for children, such as five-pointed star lanterns. Most
neighbourhoods and schools hold events for children on or prior to the Mid-Autumn Festival,
featuring Southern Lion Dances and music performances.
Casinos are popular
Currently, casinos in Vietnam are only open to foreign passport holders, as it is illegal for
Vietnamese people to gamble. Traditionally, Vietnamese people can gamble at illegal gambling
places, which often operate on a small scale and are well hidden. Affluent Vietnamese
consumers who want top-class gambling usually go to casinos overseas. Business travellers
and holidaymakers often combine visits to casinos with other purposes when they go overseas.
Macao, Singapore and Hong Kong are popular destinations among the rich. A new favourite
destination is Cambodia, especially during public holidays and weekends. Casinos near the
border between Vietnam and Cambodia attract a large number of Vietnamese people who live
nearby. Visiting Cambodian casinos is easy: there are no passport restrictions and the average
travel cost to Cambodia is usually low compared to other regional gambling hubs. Affluent
Vietnamese people visit Cambodian casinos, but increasingly more Vietnamese farmers and
workers on low incomes also do so.
Gyms gain popularity in the main cities
Recently, gyms in main cities have been thriving. As many people have become increasingly
health conscious, they are doing exercises to keep fit. They like gyms that give access to
professional trainers and have state-of-the-art fitness facilities. Health-conscious parents
encourage their children to practice yoga; they go to the gym with them in order to improve their
health and encourage good habits. In addition, some young adults go to the gym to show off. By
going to gyms, especially premium ones, such as California Fitness & Yoga, the Saigon River
Club or The Gym, they feel that they are trendy and part of the elite. They usually like to check
in on Facebook and take pictures when they are at the gym. A one-year membership can cost
US$300 to US$500 at high-end locations.
Table 8
Leisure and Recreation Data 2000, 2005, 2011, 2012, 2013, 2016
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50
Ownership of household
durables by type
- Colour TV set (% of
households)
- Cable TV (% of
households)
- Satellite TV system
(% of households)
- Internet enabled
computer
(% of households)
- Mobile telephone (%
of households)
- Video games console
(% of households)
Consumer expenditure on
leisure and recreation
(VND
per capita, at constant
prices)
- Audio-Visual,
photographic
and information
processing
equipment
- Other major durables
for recreation and
culture
- Other recreational
items and equipment,
gardens and pets
- Recreational and
cultural services
- Newspapers, magazines,
books and stationery
- Package holidays
Domestic tourism
receipts and expenditure
- Accommodation
- Entertainment
- Excursions
- Food
- Shopping
- Travel within the
country
- Other domestic
tourist expenditure
Outgoing tourism
receipts and expenditure
- Accommodation
- Entertainment
- Excursions
- Food
- Shopping
- Travel within the
country
- Other outgoing
Passport
2000
2005
2011
2012
2013
2016
39.6
74.5
88.6
89.5
90.1
92.3
0.0
0.8
14.5
15.9
17.1
19.5
0.1
5.1
16.5
17.4
18.0
20.1
0.2
1.5
14.0
15.6
17.3
21.1
7.2
30.7
85.0
86.9
88.1
90.7
0.1
0.1
0.1
0.1
0.1
0.1
30,419.8
67,569.8
93,320.7
94,156.1
96,289.6
108,225.2
6,471.5
14,927.0
21,858.2
22,130.6
22,675.6
25,566.7
11,747.4
27,912.0
41,819.2
42,407.3
43,503.3
49,138.7
17,706.9
40,431.3
57,360.1
57,827.8
58,993.8
66,134.2
15,146.7
32,899.9
43,840.0
44,033.4
44,829.0
50,037.1
10,293.6
29,623.5
57,065.6
58,866.7
61,172.9
70,416.9
81,303.9
62,589.9
45,391.9
96,052.0
93,489.2
63,920.7
191,758.9
59,702.8
31,685.6
75,378.4
86,473.4
75,908.7
247,053.7
56,302.5
29,402.8
74,658.7
87,149.1
89,690.8
239,380.2
52,723.6
27,640.2
71,601.8
84,763.5
84,801.1
238,804.7
53,489.6
28,178.6
73,350.6
87,337.2
87,124.2
251,348.6
56,632.5
30,183.6
80,950.1
98,058.6
95,692.2
89,601.1
107,619.8
77,384.3
69,664.8
69,022.0
67,744.6
10,989.6
7,199.2
7,092.4
6,634.5
15,670.4
1,368.6
48,221.3
28,547.0
23,724.9
20,060.1
57,094.0
6,751.0
46,457.3
27,257.2
19,028.6
15,771.5
49,885.8
6,514.3
46,110.3
27,102.9
18,628.2
15,382.5
49,423.0
6,548.2
47,692.9
28,167.3
18,991.0
15,651.7
50,874.7
6,863.6
54,419.8
32,660.5
21,260.6
17,190.2
59,492.4
8,231.5
1,923.2
8,487.0
6,514.3
6,100.2
6,098.3
6,325.5
51
tourist expenditure
Departures by mode of
transport
- Air ('000)
- Land ('000)
- Rail ('000)
- Sea ('000)
Demand factors
- Annual leave
entitlement (days)
Source:
Chart 8
Source:
Passport
130.8
50.6
1.7
38.8
701.9
195.1
9.6
53.4
1,375.8
318.7
14.0
36.8
1,494.5
342.4
15.0
39.0
1,627.9
370.1
15.8
41.8
2,173.1
472.3
17.9
48.7
20
21
21
21
Percentage of Households in Possession of Cable TV; Satellite TV System;

Internet Enabled Computer; Mobile Telephone; Video Games Console 20002016
GETTING AROUND
Private Transport
Vietnam is the land of motorcycles, including scooters. In 2013, 81.8% of households owned
a motorcycle, up from 26.9% in 2000. Motorcycle ownership is expected to rise further to reach
84.1% in 2016. According to an article on VietNamNet, in 2014, the number of motorcycles in
use is approximately 39 million. In urban areas, every citizen has a motorcycle. Many
households have more motorcycles than eligible motorists. The dramatic fall in motorbike prices
and the boom in the second-hand motorcycle market in the past decade have contributed to the
popularity of motorcycles, which are now considered a necessity. Most people learn to ride a
motorbike at the age of 16 to 18. Second to the motorcycle is the bicycle, although ownership of
bicycles has been stagnant since 2005, at 77.4% of households. Bicycles are used mainly by
people on very low incomes, children, teenagers and students. Car ownership is still not
widespread - reaching 1.9% of households on average, although ownership is much higher in
large cities. Owning a car in Vietnam is often associated with being well-off as cars are
52
expensive, they are subject to import taxes and their maintenance costs are high. It is rare for
households to own more than one car, except for the highly affluent. In addition, the road
infrastructure is not ideal for cars, whereas small two-wheelers are considered better suited.
In rural areas, people have to rely on private transportation even more due to the insufficient
public transport. In isolated regions, public transport is virtually non-existent. Motorcycles
continue to be the most flexible, economical and efficient way to carry people and goods on
small pathways running through communes, villages and farms. Bicycles are also popular
among people on lower incomes. Many street vendors cycle long distances from their homes in
rural areas to provincial centres to sell food, meat and vegetables every day. In the countryside,
children normally cycle or walk to school. People use farm tractors to transport bulky goods or
high volumes in villages.
In highly populated cities, heavy traffic, together with the underdeveloped road system, is the
main reason for the daily traffic jams even during off-peak hours. City centres have interlacing,
zigzagging, narrow streets and alleys that were originally designed to accommodate far fewer
vehicles. Many government plans have been drafted to limit the number of private vehicles,
such as tightening motorcycle registrations or banning motorcycles and cars on certain streets.
However, these plans have had little effect. The worse the traffic jams are, the more people
want to use motorcycles since they can ride between lanes or on the pavement. In addition,
many small alleys are only accessible by motorbike. The lack of parking spaces has prompted
many small businesses to use their courtyards or front public pavement as parking areas for
rent. In 2014, the average parking fee for a motorcycle is around VND70,000 per month,
according to Tien Phong; the parking fee for a car can reach VND3 million to VND5 million per
month. The wide difference in parking fees is another good reason for people to favour
motorbikes.
The constant increase in gasoline prices in recent years has not reduced the number of
motorcycles in cities; most people simply seek more gasoline-efficient vehicles. The gasoline
price rise has hit the low-income segment the hardest. Many blue-collar workers and students
have switched back to bicycles or buses.
Public Transport
The most common mode of public transport is the bus. There are no metros or tramlines. The
bus system covers all major roads and streets; the bus is the only means of public
transportation in cities and suburbs. The cost of riding buses is more affordable than owning a
private vehicle, especially in light of rising gasoline prices and maintenance costs. Students, the
elderly, groups and workers in industrial parks have special discounts. As a result, buses are
widely popular with the low-income segment, students and those who are unable to ride
motorbikes. People take buses because they are affordable, not for environmental reasons. The
bus system is still underdeveloped and demand generally exceeds supply, and buses are
overcrowded during peak hours. The quality of the buses and the customer service are also
brought into question regularly. Buses often do not operate according to their schedules and can
skip stops, making them unattractive to working people.
Taxis are a popular choice for the higher-income segment; they are convenient, available,
relatively safe and quick. However, the cost of riding a taxi in inner cities can reach tens or
hundreds of thousands of Vietnamese Dongs. It is expected that the price of taxi rides will
further increase following the rise in gasoline prices. The demand for taxis has been stagnant,
but the number of taxis in cities is still growing, leading to an excess in supply. Customers often
call taxi companies directly instead of flagging down taxis to avoid unregistered or fraudulent
ones. Motorbike taxis are a special type of public transport in Vietnam. In every neighbourhood,
often at least one person offers motor taxi services. This mode of transportation is flexible and
can handle the complicated road system, but passengers usually need to bargain the price.
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53
For travel between regions or provinces, the coach is the main and cheapest means of
transportation. Apart from registered companies coaches, many private coaches offer services.
Although private coaches fares are often cheaper than those of registered companies, their
services can be unreliable as drivers may go around and try to take in more people than
capacity. Expenditure per capita on buses, coaches and taxis has increased significantly, from
VND273,424.50 in 2000 to VND 883,829.50 in 2013.
The rail system is solely used for long-distance travel between regions. Each train usually has
a sleeping section (with or without cushions/air-conditioning), a sitting section (with or without
cushions), cargo compartments and a refreshment compartment. Although the rail system has
not been properly maintained in the past decade and the quality of the trains is deteriorating,
trains are still considered much safer than coaches. Moreover, trains are often less crowded
than coaches, allowing passengers to rest during long journeys. Compared to planes, trains go
directly to city centres. The price of a train ride can be considerably higher than that of a coach
ride, especially during holiday periods. Train prices can be similar to budget airline prices. Per
capita consumer expenditure on rail travel has risen from VND20,615 in 2000 to VND95,569 in
2013. The travelling time is significantly higher by train than by plane, particularly for distant
regions. For example, the travelling time from Hanoi to Da Nang by air is around four hours,
including the time to and from airports, while by train it is approximately 17 hours.
In general, travellers prefer private transport. Most people only use public transport because
they are financially constrained or unable to find a viable private alternative. Until the quality of
public transport improves, the number of private vehicles is expected to continue rising.
Commuting
In cities, congestion has become a chronic problem due to the increasing number of vehicles
and the inadequate road system. Traffic jams can happen everywhere - in inner city areas,
around coach stations, on highways and main roads, significantly lengthening the time it takes
to commute to work or school. Most city congestion problems occur during peak hours (7am9am and 4pm-7pm), although some streets are always crowded. Inter-city congestions are
serious just before and after public holidays and the Lunar New Year period. On average,
people spend 30 minutes to one hour more on the road for inner city travel. Without traffic jams,
the average commuting time in cities is approximately 30-60 minutes by motorcycle and 40-90
minutes by car or bus, according to a 2013 article on kientrucvietnam.org.vn.
Commuting costs usually vary according to the type of vehicle and the fuel consumption.
According to a 2013 poll by the online forum webtretho.com, on average urbanites spend
VND200,000 to VND500,000 on monthly fuel costs for a motorcycle. In contrast, fuel costs for a
car may reach VND2 million to VND4 million per month, according to the same poll. Car owners
also have to take into account parking fees, insurance and maintenance costs; therefore, only a
small number of people can afford a car. Due to the characteristics of the road system, cars are
often suitable for long-distance travel, but motorcycles are still more convenient and quicker for
inner city travel.
Bus prices differ across cities and provinces. In Hanoi, since the 1st of May 2014 the prices
per ride for buses are VND7,000 (below 30km) and VND8,000 (above 30km), while single-line
monthly passes and multiple-line monthly passes are set at VND100,000 and VND200,000,
respectively. These prices are said to be subsidised by the government in order to encourage
the use of public transport. School children, students, the elderly and workers in industrial parks
have special discounts and pay VND50,000 for single-line monthly passes and VND100,000 for
multi-line monthly passes. Group purchases of monthly passes are discounted by 30%.
Meanwhile, in Ho Chi Minh City, bus prices per ride are set at VND5,000 (below 18km) and
VND6,000 (above 18km). Pupils and students with valid student cards pay VND2,000 per ride.
Bus prices in other provinces may be cheaper than in these two cities.
Passport
54
Students often walk or cycle to school, but the roads do not have cycling paths; cyclists ride
on the road with motorcycles, buses and cars, making it quite dangerous. Furthermore, the
pavements are often invaded by parked motorbikes and street vendors. Nowadays, many
parents prefer to take their children to school by motorcycle or car. Buses are popular with
students who do not live far from their school. More high-school students are now riding
motorcycles to school, despite the fact that it is against the law.
The government is taking measures to fight the congestion problems in cities, such as
monitoring bus arrival times, replacing out-dated buses with more modern ones and imposing
fines on bus drivers who skip stops or drive carelessly. A flyover metro system is being built in
Hanoi; partial completion is scheduled for 2015. A high-speed train system connecting Hanoi to
Ho Chi Minh City is tentatively scheduled to be completed by 2020. It is estimated that it will
take around five hours for a one-way trip. Pilots for the hire of public bicycles are taking place in
the five largest cities. However, as long as the road system is not properly revamped, these
projects can only solve some of the congestion problems.
Air Travel
Travel by air has become widely popular in recent years. The number of passengers carried
by scheduled airlines has risen significantly, from approximately 2.9 million in 2000 to 18.8
million in 2013. Nowadays, people not only use planes for international travel but also for
medium-distance travel, such as between cities and regions. New airline routes open every year
to areas that were only accessible by coach or train in the past, such as Dien Bien or Da Lat.
The frequency of flights to popular destinations has grown dramatically. For example, Vietnam
Airlines, the national carrier, operates a flight between Hanoi and Ho Chi Minh City every hour.
Higher living standards, together with lower airline ticket prices, have made air travel accessible
to a larger proportion of the population. Given the internet boom, people find it convenient to
search for flights and book tickets online instead of having to physically visit travel agents. The
improvement in bus and coach services to and from airports has made a trip to the airport less
time consuming than in the past. Finally, Vietnamese customers often consider air travel to be
safer than road transport and more convenient than rail travel. The upper- and middle-classes
usually choose to fly to distant regions instead of taking trains.
In the past, airplanes were used exclusively for international travel. Even then, travel to
neighbouring countries, such as China, Cambodia or Laos, was often carried out by coach or
long-distance train. Only the affluent could afford to travel by air. Today, planes have become a
common mode of transport for many people. Domestic air travel is widespread, as people travel
by air to go on holiday, visit relatives or make business trips. All cities and many large provinces
have at least one commercial airport. Popular destinations include major cities (Hanoi, Ho Chi
Minh City, Da Nang) and tourist attractions (Nha Trang, Da Lat, Hue).
The introduction of budget airlines, such as Jetstar and VietJet Air, has contributed to the rise
in air travel. During public holidays, budget air tickets can cost less than train tickets, and the
travelling time is significantly shorter by air. Budget airlines frequently have promotions to attract
customers, prompting some young adults to regularly hunt for cheap tickets. Low-cost airlines
are very popular among young adults, people in middle youth and office workers on busy
schedules. These customers consider travel by budget airline economical since those airlines
often have routes to major tourist attractions. Unlike middle-aged people, young people do not
really care about the safety implications of low-cost airlines. Although air ticket costs have fallen
significantly in the past decade, they remain fairly high for average income earners, thus air
travel is still limited to urbanites on mid-range incomes or higher.
Passport
55
Passport
More people use electric bicycles

An electric bicycle, or e-bike, is a hybrid between a bicycle and a motorcycle. Riders can
alternate between cycling and using the integrated motor like a mini scooter. Depending on the
type of motor, an e-bike can travel at 30 kilometres per hour without requiring any physical effort
from the rider. Compared to scooters, e-bikes are light and easy to control. Moreover, in
Vietnam e-bikes are legally classified as bicycles, not as scooters; they are not subject to the
more stringent laws governing motorcycles. For example, e-bike riders do not have to obtain a
driving licence or use a helmet, making them popular with teenagers, young adults and middleaged people.
Many parents see e-bikes as necessary for their teenage children, as they enable teenagers
to be more independent. They are also better than bicycles for medium-distance travel of a few
kilometres, significantly reducing the travelling time to school. Teenagers often have to travel
one hour per day to and from school and between extra classes; with e-bikes, the travel time
can be shortened to 10-15 minutes. It is especially important during harsh winter months or the
summer when midday temperature can reach 40oC. Parents believe that e-bikes are safer than
motorcycles due to their lower speed limit. In addition, compared to bicycles, e-bikes come in
various fashionable styles and attract teenagers.
For young adults and middle-aged people, e-bikes are attractive because they do not have to
use increasingly expensive fuel. Moreover, e-bikes are small and light, thus it is easier for riders
to navigate in traffic. In addition, e-bikes are easy to control and are not complicated, unlike
motorbikes; therefore, they are suitable for many middle-aged women. Yet, e-bikes cost much
more than bicycles - VND10 million to VND20 million, depending on the brand and origin.
Record number of imported cars sold
Despite the economic slowdown and the rising gasoline price, car ownership is on the rise
amongst middle- and high-income earners. Well-off Vietnamese consumers like foreign
imported cars. According to a 2014 article on anycar.vn, the number of cars (under nine seats)
imported into Vietnam in the first three months increased by 37% compared to the previous
quarter, while the total value of the cars rose by 80% compared to the previous year. In January
and February alone, 6,000 cars were imported with a total value of US$113 million. Many
middle-class people choose to buy a car, although this may have a major effect on their
finances. This is because many people are trend followers and like to look good as car
ownership enhances social status. Also, in light of the dangers of riding motorbikes and the
rising number of deaths and injuries related to motorcycles, many turn to cars, seen as safer for
transporting their families.
Table 9
Transport Data: 2000, 2005, 2011, 2012, 2013, 2016
VND000 per capita, at constant prices
Consumer expenditure on
transport services
- Consumer expenditure
on rail travel
- Consumer expenditure on
buses, coaches and taxis
on air travel
on other travel
Possession of bicycle
2000
868.5
2005
1,577.9
2011
3,016.8
2012
3,119.6
2013
3,268.6
2016
3,796.2
20.6
412.2
86.9
90.6
95.6
112.1
273.4
464.5
825.0
847.8
883.8
1,017.9
27.8
61.0
138.0
144.5
152.9
180.4
13.2
21.2
34.9
35.7
37.0
42.2
76.9
77.4
77.4
77.4
77.4
77.4
56
(% of households)
Possession of motorcycle
(% of households)
Possession of passenger
car (% of households)
Km travelled by rail
(km per capita)
Km travelled by air (km
per capita)
Passenger cars in use
('000)
Passengers carried by
rail (mn)
Scheduled airlines:
Passengers carried ('000)
Source:
Chart 9
Source:
Passport
26.9
48.5
79.0
80.6
81.8
84.1
0.0
0.1
1.5
1.7
1.9
2.2
40.6
54.9
51.5
52.5
53.8
57.1
110.9
267.3
265.8
282.0
44
722
1,711
1,859
2,014
10
13
12
12
12
2,878
5,454
16,544
17,053
18,845

Consumer Expenditure on Transport Services and Purchase of Cars,
Motorcycles and other Vehicles 2000-2016
57

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CONSUMER LIFESTYLES IN

LIST OF CONTENTS AND TABLES

Consumer Segmentation and Population Data 2000, 2005, 2011,

Housing and Households ........................................................................................................... 16

Money and Savings .................................................................................................................... 22

Eating and Drinking .................................................................................................................... 26

Grooming and Fashion ............................................................................................................... 30

CONSUMER LIFESTYLES IN VIETNAM

Real Growth in Consumer Expenditure Compared with Real Growth

Health and Wellness .................................................................................................................. 36

Shopping Habits ......................................................................................................................... 41

Shopping Data 2000, 2005, 2011, 2012, 2013, 2016 ................................. 45

Leisure and Recreation .............................................................................................................. 46

Getting Around ........................................................................................................................... 52

Transport Data: 2000, 2005, 2011, 2012, 2013, 2016 ................................ 56

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

Consumers Seek Out Foreign Products

Concerns Over Health and Food Safety Are High

CONSUMER LIFESTYLES IN VIETNAM

Spending on Children Grows Despite the Economic Slowdown

CONSUMER LIFESTYLES IN VIETNAM

the Internet Becomes An Integral Part of Life

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

Many kids have access to smartphones and tablets

CONSUMER LIFESTYLES IN VIETNAM

Classes teaching living skills to tweens are favoured by parents

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

Birth by Caesarean section is on the rise

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

Babies/infants (aged 02) ('000)

CONSUMER LIFESTYLES IN VIETNAM

National statistics, Euromonitor International

Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020

HOUSING AND HOUSEHOLDS

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

National statistics, Euromonitor International

Number of Households by Disposable Income Bracket 2005, 2010, 2016

CONSUMER LIFESTYLES IN VIETNAM

MONEY AND SAVINGS

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM

Loans and Mortgages

CONSUMER LIFESTYLES IN VIETNAM

National statistics, Euromonitor International

National statistics, Euromonitor International

CONSUMER LIFESTYLES IN VIETNAM

EATING AND DRINKING

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER LIFESTYLES IN VIETNAM