Changed Consumption and Growing Domestic Market (Part 4)

Vietnam's consumer market has undergone a significant transformation, with consumption patterns differing greatly between generations. The generation born after the 1975 war and those born in the late 1990s and 2000s exhibit vastly different spending habits. Recently, Vietnam's premium market has experienced rapid growth, fueled by the return of affluent individuals who studied abroad after the pandemic. The rise of the MZ generation is further expanding and refining Vietnam's consumer market. Furthermore, Vietnam boasts the largest digital market among the top 6 ASEAN countries, largely due to the lack of well-developed offline shopping malls. The absence of significant Chinese influence in the economy, coupled with the government's control over economic resources after the war, hindered the growth of offline shopping malls. The emergence of e-commerce in 2012 dramatically reshaped the Vietnamese consumer landscape. E-commerce has also contributed to Vietnam's tax revenue. Vietnam's well-developed and affordable telecommunications infrastructure has fostered a thriving mobile e-commerce sector.

Vietnam's consumption patterns have completely changed over the past two decades. The generation born after the 1975 war and those born in the late 1990s and 2000s have very different consumption patterns. This reflects a 10-year generational gap in Vietnam, similar to the 30-year gap in South Korea.

Recently, Vietnam's premium market has experienced rapid growth. This acceleration is due in part to the return of affluent Vietnamese who studied abroad after the pandemic. These individuals are now seeking and purchasing high-end products in Vietnam, driving the growth of the premium market.

Vietnam boasts the largest digital market among the top 6 ASEAN countries. Paradoxically, this is due to the lack of well-developed offline shopping malls. While other ASEAN countries are often influenced by Chinese economic interests, Vietnam's government control over economic resources after the war hindered the growth of offline shopping malls.