consumer lifestyles in vietnam

consumer lifestyles in vietnam

CONSUMER LIFESTYLES IN VIETNAM

Euromonitor International

November 2012

LIST OF CONTENTS AND TABLES

Consumer Habits in Context 1

Current Behaviour Within the Broader Economic Climate 1

Consumer Confidence 2

Misery Index 2

Chart 1 Misery Index 2006-2011 3

Learning 4

School Life 4

University Life 6

Adult Learning 7

Chart 2 Number of Students in Higher Education and Consumer Expenditure on Education 2006-2011 7

Chart 3 Regional Ranking of Number of University Students 2011 8

Working Habits 8

Working Conditions 9

Women in the Workplace 9

Commuting 10

Alternative Work Options 11

Retirement 11

Chart 4 Employed and Unemployed Population and Labour Force Participation Rate 2006-2011 12

Chart 5 Population Aged 15-64 Compared with Old-Age Dependency Ratio 2000-2020 12

Chart 6 Regional Ranking of Female Employment Rate 2011 13

Eating Habits 13

Dining in 14

Dining Out 14

Café Culture 15

Snacking Habits 16

Attitudes Towards Food Trends 16

Chart 7 Per Capita Expenditure on Consumer Foodservice by Chained and Independent 2011 16

Chart 8 Regional Ranking of Average Supply of Food Calories per Day 2011 17

Drinking Habits 17

Attitudes Towards Drinking 17

Drinking Inside the Home 18

Drinking Outside the Home 19

Chart 9 Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category 2011 20

Chart 10 Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs On-trade 2011 20

Grooming Habits 21

Attitudes Towards Personal Care 21

Attitudes Towards Beauty 22

Male Grooming 23

Use of Hair Care Salons, Spas, Nail and Beauty Parlours 23

Chart 11 Value Sales of Beauty and Personal Care Key Categories 2006-2011 24

Chart 12 Regional Ranking of Per Capita Sales of Men's Grooming Products 2011 24

Fashion Habits 25

Attitudes Towards Clothing 25

Attitudes Towards Footwear 26

Attitudes Towards Personal Adornment 26

Attitudes Towards Accessories/luxury Goods 27

Chart 13 Consumer Expenditure on Clothing and Footwear 2006-2011 28

Chart 14 Regional Ranking of Consumer Expenditure on Clothing and Footwear as a Proportion of Total Consumer Expenditure 2011 28

Health and Wellness Habits 29

Public Versus Private Healthcare 29

Attitudes To Health and Well-being 30

Over-the-counter Versus Prescription-only Medicines (otc Vs Pom) 30

Sport and Fitness 31

Obesity 31

Chart 15 Growth in OTC Expenditure on Pharmaceuticals Compared with Healthy Life Expectancy at Birth 2006-2011 32

Chart 16 Regional Ranking of Obese and Overweight Population 2011 32

Smoking Habits 33

Smoking Prevalence 33

Attitudes To Smoking 33

Chart 17 Smoking Prevalence amongst Men and Women 2006-2011 34

Chart 18 Regional Ranking of Smoking Prevalence 2011 34

Shopping Habits 35

Attitudes To Shopping 35

Main Household Food and Non-food Consumables Shop 36

Top-up Food Shopping 36

Shopping for Big-ticket Items 37

Personal Shopping 38

E-commerce and M-commerce 38

Chart 19 Importance of Hypermarkets, Supermarkets and Discounters within Grocery Retailing 2011 39

Chart 20 Regional Ranking of Internet Users 2011 40

Leisure Habits 41

Staying in 41

Going Out 42

Public Holidays, Celebrations and Gift-giving 42

Culture 43

Chart 21 Regional Ranking of Consumer Expenditure on Leisure and Recreation as a Proportion of Total Consumer Expenditure 2011 44

DIY and Gardening Habits 44

Attitudes To DIY 44

Attitudes To Gardening 45

Chart 22 Number of Home Owners 2006-2011 45

Chart 23 Regional Ranking of Home Owners as a Proportion of Total

Households 2011 46

Pet Ownership Habits 46

Attitudes To Pet Ownership 46

Chart 24 Pet Population and Sales of Pet Food 2006-2011 47

Chart 25 Chart 25: Regional Ranking of Pet Ownership 2011 48

Travel Habits 49

Getting Around 49

Use of Public Transport 50

Air Travel 51

Chart 26 Kilometres Travelled by Rail and Air Compared with Road Network, Number of Scheduled Airline Passengers Carried and Consumer Expenditure on Transport Services 2006-2011 51

Chart 27 Regional Ranking of Passenger Cars in Use 2011 52

Vacation Habits 53

Attitudes To Taking Holidays 53

Main Holiday-taking Trends 54

Domestic Versus Foreign Holidays 55

Preferred Travel Methods 56

Chart 28 Domestic and Outgoing Tourist Expenditure by Sector 2006-2011 56

Chart 29 Regional Ranking of Holiday Departures 2011 57

Financial Habits 58

Attitudes Toward Payment Methods 58

Savings 59

Loans and Mortgages 60

Chart 30 Consumer Lending Compared with Savings and Savings Ratio 2006-2011 61

Chart 31 Regional Ranking of Financial Cards in Circulation 2011 62

CONSUMER LIFESTYLES IN VIETNAM

CONSUMER HABITS IN CONTEXT

Current Behaviour Within the Broader Economic Climate

Over the past 20 years, Vietnam has made the transition, in the words of the World Bank,

―from a centrally planned economy to a market economy and from an extremely poor country to

a lower-middle-income country‖ Indeed, this significant shift has been reflected in recent

statistics measuring the country‘s continued (albeit recently slow) economic growth In 2011,

GDP in Vietnam reached VND2.54 trillion, up from VND2.39 trillion in 2010 and VND2.24 trillion

in 2009 However, this growth has masked a wide range of fundamental issues that, if not

addressed soon, could stall the country‘s continued growth Again according to the latest review

by the World Bank, ―The country has experienced bouts of macroeconomic turbulence in recent

years—double-digit inflation, depreciating currency, capital flight, and loss of international

reserves—eroding investor confidence Rapid growth has revealed new structural problems

The quality and sustainability of growth remain a source of concern, given the

resource-intensive pattern of growth, high levels of environmental degradation, lack of diversification and

value addition in exports, and the declining contribution of productivity to growth Vietnam‘s

competitiveness is under threat because power generation has not kept pace with demand,

logistical costs and real estate prices have climbed, and skill shortages are becoming more

widespread‖

At the same time, the country‘s housing and property bubble has burst, leaving a trail of

unfinished apartment buildings and other development projects as well as a large number of

construction workers looking for jobs As well, the growing number of bankruptcies—49,000 in

2011 and an estimated 106,000 in 2012, according to the General Statistics Office—has added

to the growing pessimism Clearly, the government‘s stated goal of achieving an industrialised

and modern economy by 2020 has been derailed, at least for a time, and much work needs to

be done to get the economic train back on track

The recent fluctuations seen in the country‘s economy have been reflected in consumers‘

income and expenditure levels and have had a significant impact on their attitudes towards

spending In 2011, annual disposable income per capita reached VND18,996,268, up slightly

from VND18,421,117 in 2010 Similarly, consumer spending increased but only slightly, going

from VND17,122,309 in 2010 to VND17,687,065 in 2011 In addition to struggling with slow

growth, consumers have also had to struggle with volatile inflation rates In 2008, the average

inflation rate stood at more than 22% before dropping to 7% in 2009 and then before increasing

slightly to 9.2% in 2010 By 2011, however, the inflation rate had jumped to a worrying average

of 18.6% For the most part, this roller-coaster ride has rattled consumers and dampened their

willingness to spend on anything more than those items they deem as necessary

Many observers have pointed to controls exercised by the government and the powerful

Communist Party (state enterprises reportedly account for two-fifths of the country‘s output) as

the primary reason the country now finds itself in a precarious economic position A recent

article in the New York Times noted ―The awkward marriage between a secretive Communist

Party leadership and a capitalist economy is clouding recovery prospects for the country of 91

million people Investors are sceptical of the government‘s economic management and question

the reliability of statistics The country‘s central bank says borrowers have stopped paying back

one out of every 10 loans in the banking system The government has battled the country‘s

problems with classic macroeconomic tools: tightening the supply of money to choke off

double-digit inflation and then slashing interest rates [in 2012] to energize the economy Yet banks

remain very cautious, partly because of the growing number of customers unable to pay back

their loans‖

The latest analysis from the World Bank presented in its Vietnam Development Report 2012

agreed, noting that state-owned enterprises in Vietnam own too much of the country‘s fixed

capital and that they are less efficient at using this capital than private enterprises, a situation

that the Bank believes requires fundamental restructuring as soon as possible if Vietnam is to

get back on its growth track As well, the report said, current central planning has led to

―Vietnam allocating its public resources in a way that is creating a suboptimal and fragmented

infrastructure at the local level that does not always contribute to building an effective

infrastructure system at the national level Finally, the Report finds that the amount and quality

of fiscal, financial, and economic information that the Government of Vietnam currently collects

and releases to the market is inadequate for the smooth functioning of a middle-income

country‖ Addressing these and other fundamental issues would assuage the concerns of

foreign investors, boost levels of investment and fuel the country‘s long-term economic growth

In turn, continued economic growth would boost the development of a modern market economy

throughout the country and help convince Vietnamese consumers that it was prudent and safe

to increase their personal spending, fuelling even further growth

Consumer Confidence

Since the heady days after the country joined the World Trade Organisation in 2007,

consumers in Vietnam have now come under great pressure as a result of the country's recent

economic slowdown, high inflation rates, growing number of bankruptcies and depreciating

currency Adding to the gloom has been the bursting of the property bubble and the high levels

of unemployment, particularly among young Vietnamese Significantly, most consumers have

now lost faith in the government‘s ability to guide the nation‘s economy and to resolve the

fundamental financial problems it faces In this climate, consumer confidence has been shaken

and a growing number of Vietnamese believe their personal standards of living are eroding In

response, cautious households have turned to saving rather than spending In particular,

spending on discretionary products and services and

big-ticket items such as consumer electronics, appliances and cars has been significantly

curtailed

A recent report from the Ministry of Planning and Investment summed up the attitudes of

consumers: ―Vietnamese consumers, who have been amongst the most optimistic bunch

globally for many, many years are feeling the decline of the once-roaring Tiger called Vietnam‖,

adding that ―From abandoned construction sites and apartments, to the state-owned

enterprises‘ incredible bad debts and the recent run on certain banking stocks, the average

Vietnamese consumer has taken note and consumer sentiment is plummeting‖ The report

added that slumping consumer confidence is reminiscent of what happened in 2009 as a result

of the global economic downturn, but that in this case ―the culprit is not the global financial

system but rather the poor performance of Vietnam‘s economy‖

As a result of declining confidence many consumers, according to the Ministry, are turning to

‗DIY‘ (―Instead of going out for lunch, many urban Vietnamese are now making lunch and

bringing it with them Thus, Vietnamese are saving money by increasing their own time doing

many of the services they would otherwise have someone else do‖) and ‗trading down‘ to less

expensive products

Misery Index

In 2011, the average reading on the Misery Index (calculated by adding the inflation rate to

the unemployment rate) reached 20%, up significantly from the 10.7% recorded in 2010 and the

8.7% recorded in 2009 The steep increase was the result of a staggering rise in inflation, which

averaged 18.6% in 2011 after rates of 9.2% in 2010 and 7% in 2009 Over the same period, the

unemployment rate declined, albeit slightly, falling from 1.7% in 2009 to 1.5% in 2010 before

reaching 1.4% in 2011

In response to rising inflation in 2011, the government hiked interest rates several times in an

attempt to keep the economy from overheating, as a result holding down prices but introducing

factors that could slow economic growth Indeed, the government reversed course its course in

2012, cutting rates five times to spur flagging growth and, as the year went on, inflation had

again become a formidable foe Indeed, according to Bloomberg News, ―Vietnam faces ‗high

risks‘ that inflation will accelerate toward the end of [2012] as the government strives to spur

lending and help businesses, according to a central bank official ‗The central bank will manage

its monetary policies in a manner that can bring down lending interest rates to help businesses,‘

Do Thi Nhung, deputy head of the monetary policy department at the central bank, told a

conference in Hanoi‖

Compared to other countries in the region, unemployment rates in Vietnam have remained

relatively low But the recent domestic economic downturn has led to many companies going out

of business or going bankrupt and this has driven growth in joblessness, a trend that is expected

to last through at least in the short term A recent article in Thanh Nien News noted

―Unemployment in Vietnam is rising rapidly due to the stagnant economy, which has caused

more firms to shut down or decrease production Le Quang Trung, deputy director of the

Ministry of Labour, War Invalids and Social Affairs Employment Department, said more

businesses have been closing down or cutting back on operations, especially in construction,

real estate and food processing‖ Trung also added that Vietnam‘s labour market is experiencing

―a paradox‖ of rising unemployment combined with many firms, particularly small and

medium-sized businesses, finding it difficult to recruit workers ―Many firms with large demands for labour

are not able to employ enough workers because the salaries and perks they offer are too low,‖

said Trung ―Many firms have announced that they are recruiting large numbers of labourers

However, it is not for production expansion, but for the labour shortage, as many workers may

quit their jobs,‖ he said ―The labour market is now in a difficult stage, so it is not easy for

labourers to find decent jobs.‖ The rising number of benefit claims by out-of-work Vietnamese

has confirmed the concerns of many observers of the country‘s job market The Saigon Times

recently reported that between January and August 2012 the government had already paid out

unemployment insurance of VND1.41 trillion, more than the total of VND1.07 trillion paid out for

all of 2011

Chart 1 Misery Index 2006-2011

Source: Euromonitor International

Note: Calculated by adding the country‘s unemployment rate to its inflation rate

LEARNING

School Life

The education system in Vietnam consists of early childhood education (nurseries for infants

from the age of three months up to three years and kindergarten for children aged three to six),

principle education (including primary school – age six to 11; secondary school – age 11 to 15;

high school – age 15 to 18) and tertiary education (colleges or universities, where

undergraduate courses usually lasts four years) Additionally, there are professional secondary

schools and vocational schools that offer professional training for children from age 13 Courses

in these schools usually last from a few months to two years Educational establishments can be

public (established, funded and monitored by the State), people-founded (established, funded

and monitored by communities) or private (established, funded and run by organizations or

in urban areas and big cities are noted for having higher educational quality than those in rural

areas as they have better facilities and teaching staffs These also carry higher tuition fees and

other fees for extra classes and infrastructure maintenance As such, while the government tries

to make principle education accessible to as many children as possible, those coming from

low-income households cannot afford well-known and well-facilitated schools unless they have

scholarships Disparity between boys and girls in principle education is minor, with female pupils

making up 49% of total pupils in the school year 2010-2011, according to statistics published by

the Ministry of Education and Training in June 2011

Primary, secondary and high schools have two semesters per school year, with two big

breaks for the Tet holiday and for summer holidays The first semester starts in September and

ends in January, and this is followed by the Tet holiday The start and end of Tet varies every

year depending on the Lunar calendar as well as direction from the Ministry of Education and

Training According to an article published in TienPhong Online in January 2012, Tet breaks last

for 14 days After Tet comes the second semester, which usually runs from the beginning of

February to the end of May or beginning of June Summer breaks last for three months from

June to August September 5 is the official start date for the new school year, but many schools

summon their students back to school early, in some cases as early as July This is a common

practice among special schools with heavier and more extended syllabuses Aside from Tet and

the summer break, pupils are entitled to other public holidays such as New Year (January 1),

Hung King Commemorations (10th day of the third lunar month), Liberation Day (April 30),

International Workers‘ Day (May 1) and National Day (September 2)

The main subjects in primary schools are mathematics, Vietnamese, composition, ethics and

science Fourth and fifth grades replace science with history and geography Music, art and

physical education are also on the syllabus Primary school pupils do not have a foreign

language as a compulsory subject, although many schools do provide extra language courses,

mostly English In secondary schools, English become a mandatory subject along with

mathematics, literature, physics, chemistry, biology, history and geography Other subjects

include music, art, physical education and computing Although English is the main foreign

language taught in Vietnam, some schools, such as the Colette secondary school, offer classes

in other foreign languages such as French

According to an article published in Tin Moi in August 2010, the heads of Hanoi Department of

Education and Training instructed that primary pupils who go to school for a full day should not

be given any homework Regardless, teachers and even parents think pupils should do

homework, even just a little, to revise what they have been taught According to an article

published on the Hanoi Department of Education and Training website in November 2009, the

average pupil spends three hours a day doing homework

A typical day for school children starts around six o‘clock in the morning when they wake up

and dress up for school They have breakfast, either at home or on the way to school, and

parents take them to school or they go by themselves if they are old enough Typical breakfasts

are noodles, sandwiches, broken rice or sticky rice The morning session starts around seven to

seven thirty and ends around eleven There is break time in the middle of session when the

children can relax and refresh themselves with snacks and drinks they bring from home or buy

from the school canteen Children do not usually bring snacks (these they can buy at school),

but they do bring breakfast, usually sandwiches or boxed meals, if they have not had breakfast

yet Most schools provide distilled water for their pupils After the morning session, the children

have a lunch break Some stay at school and some go home The afternoon session starts

around one thirty and ends around four thirty Similar to the morning session, there is break in

the middle of session After school, children go home for dinner, which is a typical Vietnamese

meal consisting of rice, thin soup, a savoury dish and a vegetable dish Some prepare for

evening cramming schools or language classes After getting home from extra classes, children

do their homework and go to sleep

All school students wear uniforms A typical uniform consists of a white shirt and dark blue

bottoms, usually pants for boys and skirts for girls, although some schools, such as Le Van Tam

secondary school in Ho Chi Minh City, have a white shirt and dark blue pants as the uniform for

both boys and girls High-school female students wear ao dai (a tight-fitting silk tunic worn over

pantaloons), as uniform Recently, more and more schools have replaced these with the regular

shirt and pants uniform due to the inconvenience of ao dai, although female students are still

required to wear them once a week or once a month Some schools are beginning to design

their own uniforms Sport shoes are required for physical education and some schools require

students to wear closed shoes (as opposed to sandals) on Monday for saluting the colours

Day boarding schools provide school lunches to pupils, with the cost for one meal being

approximately VND15,000, according to an article published in Phap Luat newspaper in April

2011 While some people take packed lunches to school, they are not a popular option As the

school day starts early and at the same time as the work day for adults, parents generally do not

have time to prepare lunch boxes School lunches are perceived as a more convenient option

However, the quality of school lunches has been controversial since many parents complain that

the meals do not meet food safety standards and do not have enough nutrition for their children

According to an article published in Sai Gon Giai Phong Online in November 2011, lunches at

Trang Tan Khuong primary school in Ho Chi Minh City were not cooked thoroughly, resulting in

the pupils having diarrhoea Sometimes meals just consisted of rice and clear soup without any

meat or fish

The new school year starts on September 5, although many students start coming back to

school earlier The beginning of August is when parents begin preparing for the new school

year According to an article published in Vietnam Plus in August 2011, consumers generally

buy text books, reference books, note books, pens, pencils, backpacks and school bags as part

of their back-to-school shopping Favourite shopping places include stationery stores or book

stores, where consumers can find most of the necessary items Stationery outlets in markets are

another alternative as the prices here are slightly lower compared to prices in bigger stores

Supermarkets and hypermarkets like Big C also carry school stationery with attractive

promotions to meet the rising demands when the new school year is about the start Aside from

school uniforms, consumers might have to purchase sport pants for physical education (some

schools only sell the top of the sport uniform) and footwear, including sport shoes and daily

footwear like sandals

University Life

Upon graduation from high school, students have the choice to start working or continue

studying in universities, colleges or vocational schools University is the most popular choice as

graduating from universities is perceived to ensure a better chance of getting a good job and

decent salary To secure a place in universities, colleges or vocational schools, students have to

attend the annual national exam, which usually takes place in July Test subjects in the national

exam come in different groups, categorised by the Ministry of Education Each group consists of

three subjects, and students choose their group based on the school they select

Funding-wise, there are three types of universities in Vietnam: public, private and

international Public universities are founded and funded by the government Public universities

are the most favoured due to their teaching quality and affordable tuition fees (around

VND40,000 – VND200,000 monthly), although some public universities pose issues such as

rigid studying programmes and obsolescent teaching materials Private universities are

established and operated by private organisations or individuals Their tuition fees are higher

than public schools (around VND500,000 – VND700,000 monthly) but they require a lower

score in the national exam in order to attract more students Teaching quality in private

universities is perceived to be not as good as in public schools, although this perception is

slowly changing as private schools have better facilities and studying programmes are less

constrained than in public schools However, in general, certifications issued by these schools

still are not as highly regarded as those issued by public schools International universities such

as RMIT University Vietnam are operated under international standards Their tuition fees are

much higher than public or private schools (around VND16 million monthly at RMIT Vietnam),

but their degrees are internationally recognised Except in international universities, all students

in universities are required to take mandatory subjects such as History of Vietnamese

Communist Party, Marx-Lenin Philosophy, Ideas of Ho Chi Minh, English, as well as Physical

Education and Military Training Degrees in Commerce, Business, Finance and Information

Technology are some of the most popular among students

Universities in big cities such as Ho Chi Minh City or Hanoi admit a large number of students

from other provinces These students usually live in halls of residence or rented

accommodation Fees at halls of residence of public schools are very cheap (around

VND50,000 – VND80,000 monthly), but spaces are limited and application requirements are

strict Students from the city generally live at home, although they may resort to rented

accommodation if their houses are too far from schools Students, especially those coming from

outside the cities, often work part time to cover part of their tuition fees and daily expenses

Tutoring, working in a shop, waiting tables and flyer distribution are some of the popular choices

of part-time work for students

When they don‘t have classes, the students spend their time working part-time, studying at

home, dating, socialising, partying, online gaming and playing sports Dating is popular among

students and since they do not have much money, couples favourite hang-out locations include

cheap coffee shops and restaurants, open parks and school yards Students also enjoy going

out as groups, usually opting for drinks at coffee shops or karaoke bars Sport is another activity

enjoyed by many students, mostly male They can play basketball or soccer in the school yard

or sport hall Students also attend language schools to improve their English

Adult Learning

According to statistics published by the Ministry of Education and Training in June 2011, in

the school year 2010-2011, there were more than 500,000 people in service training in

universities and colleges Universities and colleges offer a variety of courses tailored for those

who are working Second degrees and master‘s degrees are what most people are after Aside

from academic education, many people seek to learn a new language or improve existing ones,

mostly English, in language schools The main reason for further education is to increase job

opportunities Good English skills have become a necessity in job hunting, whereas proficiency

in less well-known foreign languages such as Japanese, Chinese, Korean and French can

increase opportunities in niche job markets A second degree is essential if people want to

switch to a different type of profession, whereas masters degrees, especially an MBA, are

perceived to give a person stronger bargaining power in job hunting or future entrepreneurship

Chart 2 Number of Students in Higher Education and Consumer Expenditure on

Education 2006-2011

Source: Euromonitor International

Chart 3 Regional Ranking of Number of University Students 2011

Source: Euromonitor International

WORKING HABITS

Working Conditions

According to Vietnamese labour law, working hours cannot exceed 48 hours a week or eight

hours a day Lots of companies, especially foreign-owned ones, have a five-day working week

Labourers generally work six days a week Holiday entitlement includes New Year (January 1),

Tet holiday (four days – the last day before New Year and three days after New Year), Hung

King Commemorations (10th day of the third lunar month), Liberation Day (April 30),

International Workers‘ Day (May 1) and National Day (September 2) as well as 12 to 16 days of

paid leave a year depending on working conditions Employees are also entitled to paid leave in

case of marriage (one day), marriage of children (one day) and death of parents (including

in-laws), spouse or children (three days) A state-owned company‘s typical work day starts at

seven-thirty in the morning and ends at four-thirty in the afternoon with a one-hour lunch break

in between Private companies may start later, at eight or eight-thirty in the morning and end at

five or five-thirty in the afternoon Salary depends on negotiation but cannot be lower than the

minimum wage, which was VND1,050,000 a month in May 2012

Office workers usually go out for lunch, order lunch boxes or eat at the canteen if there is one

in the building Some large companies have a kitchen to serve lunch to their employees, while

others have rooms where people can go to eat A typical lunch brought from home includes rice,

a savoury dish, pan-fried vegetables and fruit for dessert People usually bring whatever is left

over from their last dinner While a traditional Vietnamese dish would include thin soup, most

people do not bring soup to work as it turns cool and spills easily On the other hand, a lunch

box from industrial suppliers consists of rice, a savoury dish (pork, fish or eggs), pan-fried

vegetables, dipping sauce, thin soup and dessert (mostly fruit but occasionally there are other

alternatives such as sweet soups) Such a lunch costs around VND20,000 – VND30,000 For

those who go out to eat, there are a lot of restaurant and coffee shops offering lunch at prices of

around VND30,000 – VND50,000 Fast food restaurants such as KFC or Lotteria are also a

popular choice among office workers who can afford them Lunch out at these places costs

around VND60,000 – VND90,000 Vending machines are not popular in Vietnam and are not

present in workplaces

Dress code in offices generally comprises a shirt and trousers for males and dress or shirt

with pants for females Some working environments such as banks have their employees

dressed in uniforms Ao dai is commonly used as a uniform for female workers In more casual

environments, women can wear jeans with a shirt On the last working day of the week (Friday

or Saturday), people tend to dress more casually, although such a dress-down policy is not

clearly stated in company regulations Formal business attire (suit and tie) is only worn by

high-ranking employees who work extensively with external personnel

Women in the Workplace

The percentage of working women aged 15 to 64 in 2011 was 71%, increasing 1% from 2006

to 2011 This reflects the changing role of women, who are becoming more prominent in the

workforce instead of just staying at home Jobs in education, sales, marketing, real estate and

other back-office areas are popular with women as they do not require extensive travelling and

allow them time for taking care of their families Working in state-owned companies is also a

common choice for married women While the pay in these companies is mediocre, the work

load is light, and overtime or long-distance trips are usually not required By Vietnamese labour

law, women are entitled to certain benefits when entering maternity Female workers can take

four to six months of maternity leave, before and after giving birth If they have social insurance,

they will receive full salary during their leave, plus one more month of salary pension Pregnant

women starting from the seventh month or women with children less than 12 months old are not

to work overtime, work night shifts or go on long-distance business trips Pregnant women, from

the seventh month, working in harsh environments are to be given a lighter workload or have

one hour off a day while still being paid fully Employers are not allowed to release a female

employee because of her marriage, pregnancy or maternity when the child is less than a year

old However, female employees can leave their post due to pregnancy without any further

penalty While these regulations are created to help protect female workers, they make the

employers reluctant to hire female employees, particularly married ones, due to possible

complications In the same job, men and women are entitled to the same salary, as Vietnam‘s

labour laws promote gender equality

Compared to that of men, the dress code for women in the workplace is more flexible Female

office workers usually wear a shirt and pants or a skirt, with or without a coat A dress and ao

dai are other alternatives depending on position In less formal environments, females can even

wear jeans with shirts and trainers

Single women usually go out with friends during their free time Common activities include

shopping, dining and beauty treatments Household errands are usually taken care of during

weekend or after working hours if it is urgent Married women devote most of their free time to

their families, especially when they have children Grocery shopping is usually done during

weekends Single women are flexible about their meals They can eat outside, buy convenience

food or cook for themselves On the other hand, married women, especially those with children,

tend to cook for their families This is more appropriate for their status as family women and

saves money, especially at time when Vietnam experiencing an economic downturn and

escalating prices

Commuting

The motorbike is the most popular means of transport in Vietnam Almost every household

has at least one motorbike, and some may even have one for each member of the family The

majority of workers ride their motorbikes to work Labour workers, on the other hand, tend to

take the bus to work This is due to the fact that the factories where labour workers work are

usually located far from the city centre, so it is more economic for them to use public transport

instead of driving their own vehicles Some cycle to work, especially if the distance between

their home and workplace can be reasonably covered by cycling, but it is not a popular choice

among office workers who do not want to waste time in the morning cycling through the heavy

traffic and arriving at work perspiring Not many people use cars to go to work due to a number

of reasons: the high cost of vehicles (in 2011, there were only 19 cars for every 1,000 people),

limited parking spaces, high fuel costs, parking and maintainenance costs and heavy traffic

Usually only high-ranking employees go to work in cars The vehicles can be their own or

assigned by the company, along with a driver, as part of the perks of the job

The motorbike remains the most convenient means of transport Parking spaces for

motorbikes are found everywhere On average, a person drives 15 to 35 kilometres a day to and

from work As of March 2012, the price of a litre of fuel in Vietnam was approximately

VND23,000, which can last for 40 to 50 kilometres For a person to drive a motorbike to work,

the fuel cost per day is about VND8,600 to VND20,000 (excluding any other uses of the bike)

Bus is the only means of in-city public transport in Vietnam (there is no rapid train system)

The system still uses paper tickets to charge passengers More specifically, one bus ticket costs

VND4,000 to VND5,000 a route, depending on whether the passenger rides half the route

(VND4,000) or more (VND5,000) So, riding the bus to work will cost a worker at least

VND8,000 to VND10,000 a day, or it can be as much as VND16,000 to VND20,000 a day if a

commuter has to take two different buses To save money, passengers can buy ticket books

priced at VND90,000 and VND112,500 per book of 30 tickets (for VND4,000 and VND5,000

ticket respectively) Ticket books are popular among frequent bus riders as they can cut

great However, the bus service in Vietnam is under developed Moreover, lots of buses are

driven too fast, some bus conductors are rude to passengers and the number of buses is not

adequate, resulting in overloading Traffic accidents involving buses and motorbikes are

frequently seen, especially during heavy traffic when bike drivers tend to cut in front of buses

The first metro rapid train in Vietnam is in the pre-construction phase According to an article

published in Dien Dan Doanh Nghiep in July 2010, the metro line will cover District 1, 2, 9, Thu

Duc of Ho Chi Minh City and part of Di An District of Binh Duong Province According to the

plan, the train will be in use in 2015

Alternative Work Options

Besides full-time work, part-time work, freelance work and self-employment are other popular

choices among workers, especially young single people People working in the entertainment

and design industries tend to go freelance and part-time as they usually do not like to be tied

down in one place for too long A typical worker like that is usually well dressed and up to date

with the social world and the latest technologies They work both at home and outside, usually

bringing out their laptops and staying in a coffee shop, enjoying the atmosphere while working

creatively These people tend to go out a lot and travel mostly by motorbike

Working from home is not a popular option for employers in Vietnam as they prefer to

supervise their employees and be able to see them at work

Generally, the attitude towards non full-time work is not positive As an Asian culture with a

philosophy of aiming ―to live and work in peace and contentment‖, Vietnam has older

generations that feel that working part-time, freelance or being self-employed is too risky and

unstable Parents of the young generation would prefer their children to have a stable and

reasonably paid job

Retirement

According to Vietnam‘s labour law, the age of retirement is 60 and 55 for men and women

respectively Workers can receive pensions from the government if they have paid their social

insurance for 20 years According to the General Directorate of Population and Family Planning,

8% of the population is at retirement age However, according to an article published in Tin Bao

Hiem in December 2011, the percentage of people at retirement age receiving retirement

pensions is only 20%, which is 0.16% of the total population The reason for this low number is

because there are not many people participating in social insurance This has resulted in a large

number of senior citizens aged 60 to 80 who do not have insurance or receive any kind of

pension According to an article published in VNExpress in November 2011, members of

parliament have suggested extending the retirement age for women to 60 to take advantage of

the female labour force and promote gender equality

Most people continue to live with their children after retirement There are nursing homes in

Vietnam However, most of them are governed by the Department of Labour, Invalids and

Society and are designated for those with no family or who are beneficiaries of social welfare

There are some private nursing homes, albeit not many as society has a negative view of

children who send their parents to nursing homes So all in all, nursing homes are not popular in

Vietnam and retirees generally live with their children

Grandparents tend to come back to their roles as the caretaker in the house, doing simple

house chores and taking care of the grandchildren They may join some local communities such

as the Elderly People Community or participate in daily exercising activities Travel is

occasional, and more often than not, it will be a family trip with the grown-up children taking care

of the expenses

Chart 4 Employed and Unemployed Population and Labour Force Participation Rate

2006-2011

Source: Euromonitor International

Chart 5 Population Aged 15-64 Compared with Old-Age Dependency Ratio

2000-2020

Source: Euromonitor International

Chart 6 Regional Ranking of Female Employment Rate 2011

Source: Euromonitor International

EATING HABITS

Dining in

Typical Vietnamese daily meals include breakfast, lunch and dinner Since offices and

schools in Vietnam start very early, as early as seven (and often the school children‘s presence

is required at six thirty for morning ceremony and lesson reviews), breakfast is eaten early too

For convenience, people do not make breakfast at home but eat outside In the morning, there

is a variety of food to choose from Soup noodles, pho (Vietnamese traditional noodles), broken

rice with pork ribs, sticky rice and Vietnamese sandwiches are among the most popular Rice

cakes, meat dumplings and meat pies are other less popular alternatives People either stop at

food stalls to have breakfast on their way to work/school or bring the food home for a brief

morning gathering (food vendors are everywhere, and anyone can find something near their

home) Lunch time is around eleven thirty to twelve thirty, when everybody is on lunch break

and children are back from morning class Depending on a household‘s situation, lunch is either

eaten at home or outside Working people usually eat at their workplace and do not come home

for lunch unless their home is nearby People who are at home during lunch time, on the other

hand, have lunch at home The meal is either prepared in the morning by the woman of the

house (if she works too) or during the day by the housewife, home helper or an elderly relative

who stays home after retirement A typical lunch consists of rice, a stir-fried vegetable dish, one

or two main dishes, thin soup and fruit for dessert In Vietnam, Dinner is considered a family

meal when everybody in the household gathers and talks about what happened during the day,

and dinner is therefore most often eaten at home

Buddhism is the most celebrated religion in Vietnam, with the largest number of followers

Buddhism incorporates the custom of eating vegetarian foods on certain days of the month,

usually the 8th, 14th, 15th and 30th day of a lunar month Soya cake is one of the most common

ingredients in a vegetarian dish as it can be cooked in a variety of ways: fried, cooked with brine

or cooked in soup Boiled or stir-fried vegetables are another popular dish, often served with

dipping sauces like soya sauce or soya cheese

Celebratory meals are common on special occasions, most notably on anniversaries

Common dishes for such meals are fried rice, boiled chicken, curry, rice porridge, spring rolls

and Vietnamese salad The menu varies depending on each household‘s tradition, but the thing

that makes these meals different from a normal meal is that cooked rice is not the main staple

dish

Preparing meals from scratch with fresh ingredients bought from markets in the morning is still

common in Vietnam, especially when there is a person at home to cook On the other hand,

frozen items and other pre-prepared ingredients from supermarkets are popular and convenient

for households that do not have a home helper In this case, consumers tend to buy enough

foods for a period of time (usually one week), store them in the freezer and use them when

needed This custom saves both shopping time and time needed to prepare the ingredients

Fully prepared meals that only require cooking when needed are used sometimes, but usually

only in urgent cases where there is not enough time to cook

Dining Out

Vietnamese consumers dine out often The majority of people eat breakfast outside the home

Street food vendors are very popular and can be found everywhere They are very accessible,

and people can easily find something near their home or when out and about Lunching out is

popular with office workers, while eating dinner out is usually for special occasions or when

there is nothing to eat in the house However, with the recent economic downturn, more and

more people are taking lunchboxes to work to save money Typically, lunch for workers is a

simplified version of a normal meal, including rice, a savoury dish (pork, chicken, duck, fish or

egg), stir-fried vegetables (without any meat) and thin soup (mostly liquid with some meat or

vegetable)

Informal family restaurants and street vendors are popular among consumers, partly because

they have long been integrated into people‘s daily lives Informal family restaurants are a

popular option for dining outside as their prices are affordable, the foods are similar to what

people usually have at home and they are widely available Street vendors are convenient and

cheap and can be found anywhere, even in the smallest alleys within the city Carts selling

Vietnamese sandwiches are available at almost every corner in the city

Fast food outlets have been growing strong in recent years, increasing approximately from

250 outlets in 2010 to more than 300 outlets in 2011 They are proving popular among young

people for their convenience and comfort Fast food is more popular with children and young

people than with older people, and fast food restaurants are a favourite hang-out spot for young

people Some fast food chains like KFC and Lotteria even provide birthday packages and

organize birthday parties for small children While fast food restaurants are normally considered

low-end and cheap, in Vietnam they are viewed as a more expensive option due to the high

prices An average meal for one person in a fast food restaurant costs around VND70,000 to

VND100,000 The average annual income of a person in Vietnam in 2011 was around

VND26,000.000, according to an article published in Dan Tri in December 2011 Fast food

outlets are mainly operated by international chains, although recent years have seen the

emergence of domestic brand Vietmac, which sells rice burgers Before the emergence of

Western fast food, the only relevant local option was the Vietnamese sandwich, which is

baguette with such fillings as meat, tuna, pâté, sliced cucumber, sliced chilli and sauce These

are sold mainly in street carts to take-away, although in 2010, a chain of restaurants opened

called My Mom‘s Bread This chain serves Vietnamese sandwiches in-house just like a fast food

restaurant, and as of 2012, it operated eight outlets

Café Culture

In Vietnam, coffee is enjoyable to many people, especially the older generation and men

Coffee is consumed all day but most often in the morning after breakfast Filter coffee is the

most popular type as it is cheap and has been around for a long time Before the appearance of

Western styles of coffee (cappuccino, espresso, latte), there were only two types of coffee in

Vietnam: black coffee and milky coffee (black coffee with condensed milk) These are still sold in

cheap coffee shops and by pavement vendors, whereas the other types of coffee are only found

in more expensive coffee shops

Making coffee at home is not common in Vietnam, unless one is a regular and heavy drinker

Coffee can be bought everywhere As is the case with food, coffee is sold by many street

vendors at a very low price In new town areas such as Phu My Hung in District 7, there are

even coffee sellers who carry the entire coffee making apparatus (pre-made coffee, sugar, milk,

water and ice) on motorbikes, driving around the area all day serving customers For Western

coffee, consumers have to go to a coffee shop

Coffee shops are becoming a popular venue for drinking coffee as well as socialising,

especially for well-off consumers of all ages who are open to a new way of experiencing coffee

and are willing to pay more for a cup of coffee In coffee shops, a cup of coffee is priced from

VND35,000 to VND75,000 whereas the price for a cup of coffee from street vendors is

VND15,000 at most Beside the variety of drinks, air-conditioning, free Wi-Fi and modern decor

make coffee shops popular Notable chains in Vietnam include Angel in US, Gloria Jeans, The

Coffee Bean and Tea Leaf, Highland and Trung Nguyen The first three are foreign brands

whereas the latter two are domestic brands

Morning coffee in Vietnam usually means sitting down and enjoying the drink while watching a

new day start Before the arrival of international branded coffee shops, take-away coffee was

not a popular option Take-away is gaining popularity but will not flourish much because to

Vietnamese people, coffee is for sitting down and relaxing

Snacking Habits

Vietnamese love snacking The fact that street foods and street vendors have been around for

a long time and can be accessed easily provides consumers with unlimited choices for

snacking In term of packaged snacks, crisps are the most popular with both children and adults

due to their addictive savoury flavour and the fact that they are sold everywhere Sweet snacks

like biscuits and confectionery are less popular Packaged snacks are commonly bought at

supermarkets and grocery stores Small and less expensive packages can also be bought from

street vendors Pringles (crisps), Oreo (biscuits) and Choco-pie are popular international brands

Their success in the market has prompted domestic companies to introduce similar products,

such as Slides from Kinh Do, Chocovina from Bicasfun and Lotte Pie from Bibica

Any street food can be consumed as a snack, including sliced fruit (mango, pineapple, or

grapefruit), smoothies, duck eggs, spring rolls, Vietnamese pancake salad, stir-fried corn, fried

rice cake, fried fish balls and sweet soups Pancake salad and stir-fried corn were just

introduced in the last ten years and remain popular among school children and young females

They are sold mainly from street vendors and can be found mostly around school areas Sliced

fruit is popular among female office workers as it is perceived as convenient and healthy

Attitudes Towards Food Trends

The majority of Vietnamese consumers are not familiar with different categories of food and

therefore cannot distinguish between them On the other hand, there is actually no clear control

over the qualification of food types (for example, organic versus non-organic) so consumers rely

mainly on advertising when looking for healthy foods Since healthy foods are not commonly

designated as such in Vietnam, anything that claims to be good for health will easily catch the

attention of consumers, especially the well-off ones On that account, the appearance of

functional foods quickly attracts consumers Although the effects of functional foods remain

debatable, it is clear that consumers can be quickly caught up in health-food trends as their

living standards improve, enabling them to devote time and money to their health

Most Vietnamese cook using grilling, frying, boiling and steaming, as ovens are not used For

this reason most meals are healthier than fried foods The staple foods are rice, either as grain

or flour In the north of the country foods tend to be quite bland, with a strong Chinese influence

Whilst foods cooked in the Hue area have more spices In the south of the country the cuisine is

spicy and hot

Christianity and Buddhism are the two biggest religions in Vietnam, while other religions that

have dietary constraints such as Islam and Hinduism these only account for a minority of

consumers and therefore do not affect overall eating habits in the country

Prices for food have been escalating in conjunction with rising inflation and although there

have been issues regarding food hygiene and safety, consumers are not always able to select

their food based on quality but more on price

Chart 7 Per Capita Expenditure on Consumer Foodservice by Chained and

Independent 2011

Source: Euromonitor International

Chart 8 Regional Ranking of Average Supply of Food Calories per Day 2011

Source: Euromonitor International

DRINKING HABITS

Attitudes Towards Drinking

Drinking alcohol, more specifically rice spirits, has been a tradition for hundred years in

Vietnam As such, drinking alcoholic beverages, in general, is widely acceptable if consumed

controllably and responsibly In fact, men (and to a lesser extent women) are even encouraged

to have a few bottles of beer or one or two glasses of alcohol when celebrating or at a social

gathering to cheer up the atmosphere Drinking too much, however, is generally not welcomed

In the past, the only alcohol available was homemade rice spirit brewed from sticky rice

Nowadays, there are a variety of alcoholic beverages available such as wines, spirits and beers,

and they have gradually replaced rice spirits in Vietnam‘s drinking culture Regardless, this

traditional alcoholic drink remains popular to certain groups of consumers, most especially ones

with low incomes who cannot afford the high price of imported alcoholic beverages Rice spirit is

cheap and can be purchased easily from most grocers shops It is also valued as a local

specialty in certain areas such as Binh Dinh, Long An

Of all types of alcoholic drinks, beer is the greatest in demand due to its ease of consumption,

affordable price and versatility for different occasions Consumers are drinking more spirits and

beers as living standards and incomes increase but not more wine Not many people are

familiar with the way to handle wines correctly and do not think about the right type of food to

accompany the right type of wine As such, drinking wine may be perceived as too

sophisticated Wine only appeals to a certain group of people who are familiar with wine

handling or is used as a gift on special occasions Cocktails are popular in bigger bars where

consumers are familiar with mixed alcoholic drinks but not anywhere else

At home, Vietnamese consumers drink mainly water, either bottled, filtered or boiled Soft

drinks are not consumed on a daily basis, and international brands such as Coca-Cola or Pepsi

are largely favoured over domestic brands People do drink fruit juice but not in the morning

Instead they tend to drink the juice after meals In general, aside from plain water, other types of

drinks (fruit juice, soft drinks and beers) are not consumed daily This is due to the custom of

drinking water when thirsty, and the majority of people cannot afford other types of drinks on a

regular basis

Bottled water is becoming increasingly popular due to its convenience: water suppliers offer

front-door delivery free of charge in exchange for the customer‘s loyalty When a customer

continues ordering from the same supplier, the supplier delivers new bottles and brings back the

empty ones Using bottled water as the daily water supply also saves time and money

compared to boiling the water Outside of the house, bottled water can be bought easily from

street vendors or anywhere else and is available on most drinks menus Diet soft drinks are

available but not widely popular

Consumers generally drink according to their tastes and financial resources Beers are

popular among males of all ages, but more well-off consumers may prefer international brands

over domestic brands Consumers with low incomes usually choose rice spirits as they are

strong and cheap, while those who are better-off can be selective about the spirits they drink

Drinking Inside the Home

It is common for Vietnamese consumers to drink at home occasionally or at social gatherings

Even when imported Western alcoholic beverages were not popular, Vietnamese rice spirits

were consumed during gatherings and social events It is common for two or more people to

gather at home to have a full meal with alcoholic drinks or have some drinks together over finger

food Companionship, food and drink go together in Vietnam As such, while drinking at home

certainly is less costly than going out, consumers do not see it as a way of saving money

because going out to drink and socialise in bars and pubs is not a familiar habit for the majority

of Vietnamese consumers

Beers and spirits, including traditional rice spirits, are usually chosen for home consumption

Beers are generally favoured for their affordable price, low alcoholic content and ease of

consumption (meaning that many people can drink it and drink it casually) On the other hand,

avid drinkers (and possibly older consumers) prefer spirits for their more established strength

person is not a spirits lover, he is still likely to have one or two bottles available for special

gatherings Vietnamese rice spirit is cheap and has a high alcohol content and many consumers

find this drink satisfactory and don‘t concern themselves with buying expensive imported spirits

However, it has become less popular in recent years, with consumers gradually switching to

imported spirits as they become more and more affordable

Consumers usually purchase beer from supermarkets, grocery stores, and specialist retailers

or wholesalers Spirits are usually acquired as gifts or are purchased in supermarkets, big

grocery stores, wines and spirits specialists (established as a stand-alone store or as a separate

section in supermarkets) Rice spirits can be bought easily from cheap grocery stores (almost

every alley in Vietnam has at least one household serving as the area‘s convenience store) or

specialists that sell many types of traditionally brewed spirits

Price influences consumers differently when they purchase for themselves and when they

purchase for a large group of people A common scenario is purchasing a large amount of beer

for a party with many people In this case, consumers tend to choose the most reasonable

priced brands within their budget and that matches the nature of the participants (if it is a family

party, then a cheap brand does not matter much, whereas if it is a social party, consumers

would want to choose something more expensive) It is the same for purchasing spirits for a

party On the other hand, when purchasing drinks for personal consumption, consumers tend to

choose their favourite brands and are less concerned about price

Drinking Outside the Home

Vietnamese consumers commonly combine drinking with dining out Usually they go in

groups, either with acquaintances and friends or with family on special occasions It is noted that

for big gatherings, which usually involve dining and drinking, people are inclined to go out

instead of staying home Vietnamese houses are quite small and do not accommodate a large

number of guests comfortably Also, in Vietnam, usually more than one generation (at least

parents and children, in other cases there are grandparents as well) live together, so home is

not a good choice for a social get-together as it may bother other people in the house People

with broad social relationships, especially adults in their late 20s to 30s, enjoy going out for a

drink compared to other segments of consumers (older adults and consumers in their early 20s)

People choose a drinking venue depending on its affordability As Vietnamese consumers

tend to go out drinking (and dining) in groups instead of alone, the type of participants and

nature of the gathering also affect the choice of venue Young and financially limited people will

choose informal restaurants for their social gatherings due to affordable prices and

accommodating settings More affluent consumers will have their options extended to fine-dining

or formal restaurants, pubs and bars Less well-off consumers (labour workers, for example) will

opt for cheap make-shift eating venues that specialise in serving rice wines and finger-food

Consumption of alcoholic drinks, especially beer, in Vietnam has been rising over the years

According to an article published in eFinance in January 2012, Vietnam was among 25

countries with highest consumption of beer in 2011 Drinking has been a traditional habit in

Vietnam since back when the major alcoholic drink was rice wine As living standards increase,

so does consumption of alcoholic drinks Despite the economic downturn in 2011, consumption

of beer did not slow, and it certainly did not change consumers‘ preference for drinking outside

the home Consumers are shifting from rice wines to Western alcoholic drinks, initially beers,

and then wine and spirits to a lesser extent In recent years, Vietnamese consumers have also

shown demand for imported premium beer brands (commonly brands from German and

Belgium) for their unique and original tastes This trend is in line with the tendency of shifting to

higher-end alcoholic drinks as financial and social conditions permit

By law, drinking establishments (especially bars and pubs) are not allowed to operate from

midnight to 5am, However, since the administration is very loose, lots of places do not follow the

regulation and continue to operate in the early hours Likewise, there are smoking bans in some

public areas, but with no strict enforcement, the ban is not very effective and does not affect

consumers‘ drinking habits

Chart 9 Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category

2011

Source: Euromonitor International

Chart 10 Regional Ranking of Alcoholic Drinks Consumption: Off-trade vs On-trade

2011

Source: Euromonitor International

GROOMING HABITS

Attitudes Towards Personal Care

Vietnamese consumers maintain personal care at a very basic level Essential daily products

that are used by both men and women are limited to soaps or shower gels, shampoos, shavers,

toothbrushes and toothpastes Deodorants and facial washes are somewhat popular but they

are more personal preference than necessity Many consumers (especially those with low

incomes) do not find the need to extend their personal care products beyond those mentioned

above It is not uncommon for consumers, even female ones, to use bar soap for facial washing

Shavers are regularly used by men, although the use of shaving creams is limited as they are

not considered a must to the shaving process

New personal care products are slow to gain popularity For example, compared to 15 years

ago, demand for facial washes and shaving cream has grown However, the products are still

not popular enough to the point of being essential to consumers‘ personal care routine In

2010-2011, with the opening of private online shops that sell imported cosmetic and skin care

products (mostly for females), Vietnamese consumers were introduced to new types of products

such as body scrubs or products made from natural ingredients While there is demand for

these products, it is limited to consumers with moderate incomes who are knowledgeable about

new trends as well as how to buy these products There is still only a limited number of

consumers who really pay attention to personal care products and trends and are willing to

spend on different types of products or better quality products

Teeth-whitening in dental clinics is in rising demand as it becomes more affordable and

people become more concerned about dental care Teeth-whitening products in the general

market, on the other hand, are not much in demand as consumers are either too sceptical about

their results (and would prefer a trip to a dental clinic instead) or deem them unnecessary

Natural products (mostly cosmetics and skin care products) are available, but again, they are

not in demand among the majority of consumers to whom price is the most important factor

People are not educated well about the difference between natural and non-natural products

Well-off and knowledgeable female consumers in their 20s and 30s may prefer natural products

(following the recent appearance of Korean brands that sell products made from natural

ingredients such as The Face Shop, Tony Moly and Skin Food) but the choices are very limited,

and it is more a case of brand preference than a preference for natural ingredients Generally,

consumers are not too interested in ingredients and/or origins of personal care products as long

as the products do not pose any noticeable problems

Vietnam has a hot climate, and the sun can be strong during the summer Some very hot

summers recently did not trigger any remarkable demand for skin products The only noticeable

sun care product that consumers are aware of is sunscreen, which has been around for a long

time (more than 15 years) However, sunscreen is largely used only at the beach or swimming

pools where the body is directly and largely exposed to the sun It is not used on a daily basis

In everyday life, Vietnamese consumers protect themselves from the sun by covering

themselves from top to toes with sunglasses, face masks, long-sleeved jackets, gloves and

socks Health issues regarding sun exposure are not well known or of concern to consumers

They protect themselves in order not to get burned or tanned

Attitudes Towards Beauty

Attractiveness in men and women is judged by a combination of traditional values and cultural

influence For example, traditionally women are viewed as beautiful when they have long dark

hair, an oval face, big eyes, a slim figure and fair skin On the other hand, men are viewed

attractive if they are tall, have a square face, thick eyebrows and brown skin From 2005, with

the influence of Korean drama and pop music as well as exposure to Western and international

culture via media, internet and travelling aboard, people‘s view on beauty has become more

diverse, especially among those working in the design and art industry For example, shorter

curly dyed hair has become normal among women, whereas men with feminine features (fair

skin, slim figure and soft face) are becoming more popular (especially to those familiar with

Korean culture) However, it must be noted that while people are now more open to different

types of beauty, the traditional view of beauty remains, especially in men‘s views towards

women While they may be okay with a modern female look of short brown hair and tanned skin,

they still prefer the traditional feminine look

The largest ethnic group in Vietnam is Kinh, which makes up more than 85% of the

population Other noteworthy minority groups include Tay, Thai, Muong, Khmer, Hoa, Nung,

Hmong, Dao Giarai, Ede and Cham San Diu, who live in the mountainous regions in the north

Traditionally, they have a different view on beauty compared to the Kinh group For example,

females of the Mong, Dao and Tay groups have the habit of covering their teeth with gold or

silver, while the people of the Ede and H‘mong groups grind down some of their teeth, as they

consider this to be beautiful However, due to urbanisation as well as the development of

television and communications, people of minority groups are now more exposed to other

cultures As such, their view on beauty is shifting to match that of the Kinh majority

In 2010 – 2012, with the opening of online shops selling imported beauty products by brands

that have yet to make official appearance in Vietnam, female consumers are exposed to a

variety of beauty products, especially those that cannot be bought via official channels Some

women are eager to try new types of make-up products such as mouse blushes, cream

shadows or long-lasting lip colour, but overall they stick with conventional options: powder eye

great demand since 2010 due to collagen‘s alleged effect on anti-aging This trend may be

levelling off now though

In the past few years, Vietnam has been exposed to different cultures via television, movies,

international news, and the internet (most notably Korean pop culture) in which cosmetic

surgery is widely acceptable Cosmetic surgery has been around for a long time, but it was not

until recently that it has become viewed more openly However, to the majority of people, it is

not that well received, but it is also not a big deal anymore Common treatments are breast

enhancements, Botox injections, chin reduction, eyelid surgery and nose surgery These are all

popular among people working in the media, whereas ordinary people tend to choose only the

last two treatments due to their minor scale and affordable price

Male Grooming

The majority of males undertake grooming at a very basic level (washing and shaving), but

there is a small group that is very sophisticated regarding personal care The emergence of this

group is the result of exposure to foreign culture over the last five years It is common to find

that among this group is a large number of people working in the design, art, and entertainment

industries, where personal appearance is not only important but is also considered a reflection

of character The second type of male in this group is those who carry high-ranking positions in

work and society, where their appearance is just as important as their position Last are those

people who simply desire proper grooming as part of personal preference

Shampoos, soap/body wash and razors are considered essential in male grooming To a

lesser extent, deodorants and hair styling agents are also used, but they are not considered a

daily necessity

In 2011 and 2012, the most popular hair style was a long thick fringe extending below the

eyebrows with a short cut behind The look is probably a regional trend influenced by characters

from Korean and Chinese TV dramas Not many Vietnamese males wear a beard, so beard

styles are rarely seen, but those that exist are usually a moustache, a chin strip or a

combination of both In term of hair colourant, brown continued to be the dominant choice in

2012 as it is easy to wear and compliments the Vietnamese skin tone and natural black hair

colour

There are no particular international or local male celebrities driving men‘s grooming trends in

Vietnam in 2012 Unlike female consumers, male consumers usually do follow any specific

celebrity or idol, preferring to follow new trends via the internet, magazines or television shows

Use of Hair Care Salons, Spas, Nail and Beauty Parlours

Female consumers have been going to hair salons and nail parlours for a long time When the

economy had yet to develop, the salons were in poor condition and could not really be called

salons or parlours as shop owners operated within their own houses As the economy improved

and living standards increased, these shops have become better-equipped and more

professional, though ill-equipped parlours still exist to serve low-income customers Spas and

beauty parlours became popular around 2000 and have been flourishing ever since As of 2012,

hair salons, spas and nail beauty parlours are popular among female consumers (and male

consumers to a lesser extent) especially those living in big cities where incomes are high and

services are diversified Depending on their needs, consumers may visit beauty salons as

frequently as once a week (weekly beauty treatments includes hair washing, nail trimming and

polishing and/or body massage) or more commonly once or twice a month as a reward for a

hard-working month There is also a group of people who go to beauty salons for stress relief

whenever they feel stressed instead of visiting on a scheduled basis In 2010 – 2011, as spas

continue to spread both in terms of coverage and diversification, it is not uncommon to find spas

near office buildings that offer suitable packages during a lunch break Some office workers

choose to have a massage to recover energy for afternoon work Female office workers also

choose to visit nail salons during their lunch break to have their nails freshened up while

relaxing and chatting with companions It is common for female consumers to visit beauty

parlours in pairs or groups as they love to have somebody to chat to while enjoying a relaxing

treatment Since beauty parlours are not a necessity, when money is tight or prices rise,

consumers visit salons less Depending on personal preference and financial situation, frequent

visitors may cut down the number of monthly visits, while less frequent visitors may only go

when there they have the disposable income or on special occasions

Most common treatments provided in beauty parlours/spas are facial and body treatments for

females and massages and steam baths for males Female consumers visit beauty parlours for

beauty treatments rather than to relax The situation is reversed for men As such, massages

are more popular among men than women

Consumers do not try to undergo treatments at home even during a period of economic crisis

First of all, the people who make a habit of visiting beauty salons are those with decent

incomes They are not affected strongly by the financial situation and can still afford the visits

On the other hand, Vietnamese consumers when visiting salons are not only seeking treatment

but also good service and atmosphere Undergoing treatments at home is not as satisfying as

visiting the salons

Chart 11 Value Sales of Beauty and Personal Care Key Categories 2006-2011

Source: Euromonitor International

Chart 12 Regional Ranking of Per Capita Sales of Men's Grooming Products 2011

Source: Euromonitor International

FASHION HABITS

Attitudes Towards Clothing

With the development of media, communication and the internet, it is now easy for

Vietnamese consumers to keep pace with the international fashion world In general, fashion

trends in Vietnam take two different directions: what is worn by those who follow current trends

and what is worn by the average people, who account for a much larger portion of the

population For example, in 2011, one of the observable trends was colour block, which was

worn by almost every celebrity and fashionista Yet on a wider scale, the trend did not make it to

street level Another notable trend was vintage-inspired, mixing items with colours and shapes

alluding to the 60s and 70s in the West Again, this trend was only popular among a small group

of people Trends among the average people did not change much in the past few years, with

jeans, Western pants, shirts and t-shirts continuing to be the most used items due to their

versatility Some trends that were popular among common people in recent years such as

cropped pants/jeans and leggings faded in 2010 and almost disappeared in 2011 Current

trends being made popular by fashionistas and celebrities are peter pan collars, sheer shirts,

maxi skirts and mullet skirts In Vietnam, there are no notable style icons, although there are

some celebrities (model-turned-singer Ho Ngoc Ha and model Thanh Hang) that catch on

earlier to international trends and help introduce new trends to fashion followers

Common wear for certain occasions is very basic For formal events, it is acceptable for men

to wear Western pants with shirts (preferably long-sleeved) Unless the events are highly

important, a vest is rarely worn Women usually wear dresses, suits (women wear suits far more

than men) or ao dai (Vietnamese traditional dress) When going out, jeans with a shirt or t-shirt

is common among both men and women Dresses are another popular choice among women

when going out Working dress code varies from company to company Most dress in a similar

fashion to a formal event, although in small and non-corporate companies employees may be

allowed to wear jeans During leisure periods, people usually wear something that is relaxing

and comfortable, usually shirts with shorts

Ao dai is the Vietnamese traditional costume (now most common for women) that consists of

a silk tunic similar to the Chinese cheongsam (but with long sleeves and slightly higher-cut )

worn over slacks Ao dai can be worn on different occasions (except those that require

excessive body movements): at school, at work and at parties Ao dai is a required uniform at

many companies and is also worn during a wedding ceremony by both the bride and the bride‘s

mothers Ao dai is a timeless costume that has gone through many variations over the years

and has reached its limit In the past few years, there has been no notable trend with ao dai

Thrift shopping is not really present in Vietnam, although second-hand shopping has been

around for a long time Second-hand clothes can be easily found throughout the country, from

big cities like Hanoi and Ho Chi Minh City to rural areas The clothes originate from everywhere

- Vietnam, China, Asian countries, and the US – and they come in all shapes and sizes, prices

and styles Flea markets began to appear in 2011, organised by young people who want to

introduce this new model to Vietnam As yet, they are on a small scale, and the items sold

belong to people who want some extra pocket money or are branded items that are out of

season

Attitudes Towards Footwear

In recent years, as fashion has started to interest many people, shoes have become important

to complete a fashionable look Fashionistas, especially female ones, usually have a large

collection of shoes of different styles to match different outfits To the majority of people, who

invest much less in fashion, most of the time they only need the shoes to go appropriately with

the outfit Women certainly spend more on shoes and own more pairs of shoes than men do

They also shop for shoes more often, especially when there is an upcoming event or they want

a new type of shoe The majority of shoes in Vietnam are either nameless brands or brands by

domestic small-scale shoemakers Price and style are much more important than brand in the

purchase decision

In 2012, flats continue to be popular among women due to their affordability, diverse designs,

comfort and versatility Cheap prices mean that consumers have less qualms about buying new

shoes when they get tired of the old ones These are largely brand-less Chinese products with

mediocre quality and a price tag ranging from VND130,000 to VND180,000

Since Vietnam has a hot climate, comfort is a concern when it comes to footwear People do

not prefer closed shoes as they can be hot and are not convenient to put on and take off

(Vietnamese people remove their shoes when entering a house) Informal footwear such as

sandals, flip-flops and flats are preferred for most occasions Formal footwear is usually worn at

work, wedding parties and other formal occasions For recreation, people wear trainers or sports

shoes if the activity involves excessive movement Otherwise, they just wear whatever they

normally wear and in some cases, even go bare foot

Male fashionistas are into footwear just as much as are female consumers, which means that

different outfits need to go with matching shoes However, the vast majority of men view

footwear more for their function For example, they only need one pair for home wear, one pair

for everyday wear, one for formal occasions and one for sports They do not feel the need to

have the same shoe types with different styles or to purchase a certain pair of shoes to go with

a new outfit

Attitudes Towards Personal Adornment

Personal adornment, particularly jewellery, has been changing over the years In the past,

men hardly wore earrings and women hardly wore any accessory but a pair of earrings Now, it

is not uncommon for men to wear earrings and for both sexes to wear more than one pair or

only one piece on their ear There is a common practice for baby girls to their ears pierced

before they are a year old Toddlers usually wear silver or gold earrings (girls only) and

bracelets (both girls and boys) as the parents believe gold and silver will keep their babies

healthy Bracelets and earrings are often gifted to new born babies by family and friends These

usually have a plain design

Jewellery plays an important role in weddings, as it is part of the dowry By tradition, the bride

will receive a jewellery set that comprises a pair of earrings, a necklace, a bracelet and

sometimes a ring Normally, the jewellery is made of gold, but as more types of precious metals

appear on the market and the price of gold rises, the set can be silver, platinum or white gold, as

long as it is agreed upon by both families Wedding rings in the past were just plain round gold

rings meant as a keepsake for the newlyweds rather than as jewellery However, in recent

years, consumers have become interested in more extravagant designs for wedding rings,

which can now be made of gold, silver, platinum or white gold Some designs are topped with

one or more pieces of diamond or other gemstones and crystals Gold rings with small

diamonds are favoured due to the valuable status of gold and diamonds and an affordable price

tag (an adequate pair can cost less than VND10 million, although of course more sophisticated

ones are more expensive) According to an article on the wedding specialist website

Noitoambatdau.com, more young couples in 2012 prefer white gold to other materials, as it is

quite affordable and the white colour looks younger and more modern than the traditional yellow

colour of gold

Sunglasses are worn widely as a mean to protect eyes from the intense sun It is part of the

typical protection set, especially for women, that also includes a facial mask, gloves and jacket

Most people only need a pair to protect their eyes and do not spend much money on them,

whereas some others (especially fashionistas) are willing to invest more in expensive branded

sunglasses

These days as almost everybody owns a mobile phone, people no longer feel the need to

wear a watch because they can now tell time from their phones Watches are now more of an

accessory to reflect a person‘s style

Piercings and tattoos, despite their growing popularity among the youth in recent years, are

still frowned upon by many people, especially the elderly People are prejudiced against those

wearing piercing and tattoos, perceiving them as irresponsible, uneducated and unacceptable

While the attitude is less hostile than before, piercings and tattoos are yet to be seen as a norm

Tattoos and piercings are only common among some young people

Attitudes Towards Accessories/luxury Goods

As living standards improve and consumers are exposed to the world of fashion, more and

more people are becoming interested in luxury goods Consumers are attracted to these

products regardless of whether they can afford them or not Luxury goods such as designer

clothing and electronic gadgets are purchased largely by affluent consumers, most notably

celebrities who view using luxury goods as one of the ways to express themselves However, it

is not uncommon for middle-income consumers to treat themselves to one or two pieces of

luxury goods once in a while The most common luxury goods are branded clothes and

electronic gadgets, with iPhone, iPad and other Apple products being the most prominent

example Consumers are so enthralled by these products that even poor consumers try to get a

hold of an iPhone or iPad When iPhones first appeared in 2007, they were highly sought after

by enthusiasts who were willing to pay a much higher price than the official price tag to possess

the item as soon as possible This continues to be the case, although not as much as before

since the phones are more widespread

Brand-named clothes and handbags are always attractive to female consumers, regardless of

their financial situation Less affluent consumers seek luxury goods via retailers that sell

imported products These are generally cheaper than the equivalent item sold in an official shop,

although it is not uncommon for consumers to unknowingly purchase counterfeit products

Scarves, ties and gloves are less popular among middle-income consumers as they are not

suitable for daily dress Cars are also not highly sought after as a normal Vietnamese house is

not built to accommodate the parking of a car Small roads, lack of parking space, high

maintenance fees, rising fuel costs and rumoured additional traffic fees for cars and motorbikes

(under debate in 2012) all contribute to the lack of interest in cars among middle-income

consumers

Chart 13 Consumer Expenditure on Clothing and Footwear 2006-2011

Source: Euromonitor International

Chart 14 Regional Ranking of Consumer Expenditure on Clothing and Footwear as a

Proportion of Total Consumer Expenditure 2011

Source: Euromonitor International

HEALTH AND WELLNESS HABITS

Public Versus Private Healthcare

As of 2012, the Vietnamese healthcare system is still underdeveloped According to an article

published in VFA in February 2012, there were 200,000 healthcare personnel in 2011 and more

than 13,500 health establishments in the public sector There were 21.1 hospital beds for every

10,000 people According to an article published in Khamchuabenh.com in May 2010, there

were 1,100 public hospitals with 180,860 beds and 103 private hospitals with 6,274 beds

Generally, there are two types of healthcare access in Vietnam: public and on-demand

Private hospitals and health establishments are fully on-demand, whereas their public

counterparts offer both public and on-demand access Public access is less expensive as it is

supported partly by the government, but service is slow and quality is not very good due to

overcrowding On-demand access requires higher fees, but the service and healthcare quality is

better People with health insurance from the government are entitled to free healthcare in

registered establishments However, healthcare quality under government health insurance has

a bad reputation Patients are not treated well by staff due to the free entitlement This makes

the government health insurance system largely ineffective as well-off people are not interested

in the insurance and choose on-demand service for its better quality On the other hand, people

with low incomes cannot afford health insurance The rest does not want to pay in advance for

treatments they may not need and a service that is reputably bad Most of those who currently

have government health insurance got it as part of their employment benefits package

As living standards increase, demand for private healthcare is rising since people want and

can afford better healthcare However, there is a paradox in the public/on-demand service

While private health establishments provide better healthcare with better facilities and staff,

expertise is generally not as good as in public establishments Due to the overcrowding in public

hospitals, doctors and staff there have the chance to practise their skills endlessly and are used

to facing obscure situations, something that does not happen often at private hospitals