vietnam consumer trend 2019 -...

Q&Me is online market research provided by Asia Plus Inc.

Vietnam consumer trend 2019 Asia Plus Inc.

Foreword

Vietnam is one of the world’s top economic

performers when registering a 7% annual GDP

growth rate in 2018.

With the country’s macroeconomic stability, fast

growing domestic consumer demand, competitive

labor cost together with strengthening external

trades, Vietnam will remain an attractive

destination for businesses.

This report explores Vietnam’s latest consumer

trends in important sectors which will continue to

be a driving force of Vietnam moving forward. It

will also highlight some business opportunities and

challenges companies might face when doing

business in Vietnam.

Table of contents

1. Economic landscape

2. Retail market overview

3. Vietnamese online shopping trend

4. Popular media and information source

5. Investment in education

6. Increasing demand of travelling

7. Key technology adoption in Vietnam

P.4

P.15

P.25

P.34

P.48

P.60

P.66

Economic landscape

93.4 94.4 95.497 97.9

75

80

85

90

95

100

2015 2016 2017 2018 2019 (May)

Vietnam population over the years

Population

Vietnam population reaches 97.9 million in May 2019, making it the 14th most

populated country in the world. Sources: General Statistics Office of Vietnam

(million)

Area:

310.060 km2

Urban citizens

34.6 million - 36%

(2018)

Population:

97.9 million (May 2019)

Employed population:

53.9 million (2018)

1.1%1.1%

1.6%1.0%

Vietnam population is aging. In 2019, the ratio of elderly people (65+) is

estimated to reach 12%.

Aging population2019 (April)

Population: 97,270,778

2029F

Population: 104,648,343

Sources: Populationpyramid.net / General Statistics Office of Vietnam

Labor force & employment

Vietnamese labor force continues to rise. In the first quarter of 2019, there’re

over 55 million labors with the unemployment rate of 3.1%.

50,393

51,398

52,348

53,246

53,748 53,984

54,445 54,824

55,324 55,431

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(1st

quarter)

Laborers aged 15 and above(2010-2019)

2.9%

2.1%2.3% 2.3% 2.2% 2.2%

4.3%

3.4% 3.4% 3.2% 3.2% 3.1%

2.3%

1.5%1.8% 1.8% 1.8% 1.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2010 2014 2015 2016 2017 2019 (1stquarter)

Unemployment rate

Total Urban Rural

(Thousand persons)

Sources: General Statistics Office of Vietnam

5.4%

6.4%6.2%

5.3% 5.4%

6.0%

6.9%

6.2%

6.8%

7.1%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Vietnam GDP growth rate (2009-2018)

GDP growth

Vietnam’s GDP growth rate hit 7.1% in 2018, a 3 years of increase in a row.

GDP per capita is on steady growth since 2009, reaching over $2,300 in 2017.


1,064

1,273

1,517

1,748

1,907

2,052 2,109

2,215

2,385

2,546

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

GDP per capita (2009-2017)(USD/person/year)

7.3%7.1%

6.6%6.2% 6.2%

5.2%4.8%

3.7%

2.7%

7.1%6.8% 6.9%

6.7% 6.8%

5.1%

5.9%

3.9%

2.6%

Cambodia Vietnam Laos Philippines Myanmar Indonesia Malaysia Thailand Singapore

2018

2017

Vietnam in Asia (1) - GDP growth

Vietnam boasts of one of the highest GDP growth rates in SEA.

Sources: World Bank

Vietnam in Asia (2) - GDP per capita

In 2018, Vietnam recorded a GDP per capita of $2,546.

Sources: World Bank

61,767

33,233

11,237

6,992 4,052 3,095 2,706 2,546 1,499 1,338

Singapore Brunei Malaysia Thailand Indonesia Philippines Laos Vietnam Cambodia Myanmar

(USD)

GDP contribution

Services sector contributes the most to Vietnam’s GDP, accounting for 41% in 2017.

15%

33%41%

10%

Contribution to GDP (2017)

Agriculture, Forestry and Fishing

Industry and Construction

Services

Tax less subsidies on production

Top export sectors USD Billion %

Telephones & spare parts 45.3 20.7%

Textiles & garments 26.0 11.9%

Computers, electronics & spare parts 25.9 11.8%

Foot ware 14.7 6.7%

Machinery & spare parts 12.8 5.8%

Seafood 8.3 3.8%

Wood & wooden products 7.7 3.5%

Means of transports & equipment 7.0 3.2%

Top export sectors (2017)


Foreign direct investment

Vietnam has received investments from foreign partners, mostly Japan and

South Korea to key sectors like processing/ production, utilities & real estate.

21.6 20.2

22.8 24.4

35.9

2013 2014 2015 2016 2017

Registered FDI (2013-2017)

(Billion USD)

44%

23%

9%

7%

17%

Key FDI sectors (2017)

Processing and production

Utilities

Real estate

Retail and wholesale

Others

25%

24%15%

6%

30%

Sources of FDI (2017)

Japan

South Korea

Singapore

China

Others

Sources: Ministry of Planning

Inflation & Minimum wages

Inflation had been curved down, staying at 3.5% in 2017. Minimum wage in

region I cities is 4,180,000 VND in 2019.

3,980,000

3,530,000

3,090,000

2,760,000

4,180,000

3,710,000

3,250,000

2,920,000

0

1,000,000

2,000,000

3,000,000

4,000,000

Region I Region II Region III Region IV

Minimum wages in 2018 and 2019

2018 2019

Sources: General Statistics Office of Vietnam (2019, 2018); Ministry of Labor, War Invalids, & Social Affairs

6.9%

9.2%

18.6%

9.2%

6.6%

4.1%

0.6%

2.7%3.5%

2009 2010 2011 2012 2013 2014 2015 2016 2017

Inflation (2009-2017)

(*Details in the Decree 157/2018-ND-CP & Decree 141/2017/ND-CP)

Acceleration of middle class

Middle and affluent class (MAC) is expected to

increase in share from 13% to 26% in 2026.

13%

2018

26%

2026 (est.)

Sources: World Bank (2019)

Retail market in Vietnam

Key takeaways

142

2018

180

2020

Continuing growth

Retail market is expected to reach $180

billion in revenues in 2020.

(billion USD)

HCMC & Hanoi leading the growth

HCMC and Hanoi alone account for 1/3 of

total retail revenues.

22%

11%

67%

Retail revenues by region

HCMC

Hanoi

Other cities

Strong MT increase in second cities

MT stores are growing faster in other cities

than in HCMC and Hanoi.

HCM/

HanoiOther cities

Supermarket 10% 23%

Department

Store11% 34%

Growth rate of 2019 over 2018

33%51%

70%

67%49%

30%

Supermarket CVS Department store

Vingroup shares

Vingroup is expanding fast in MT

Vingroup is expanding fast, taking up 70%

shares in department stores.

37.4%

24.2%15.8%

10.5% 10.3% 7.1% 6.6% 5.5%

CAGR of CVS retail sales for 2017-2021 period

CVS in the increase

CVS number will continue to grow. CVS sales

are projected to grow 37.4% CAGR until 2021.

2.974.07 5

6.2

10

2014 2015 2016 2017 2020 (est.)

Online retailing B2C revenue (2014-2020)

Booming E-commerce

Online B2C retailing is to reach $10 billion in

2020. Spending per online shopper is rising.

(billion USD)

8594

103115

126

142

2013 2014 2015 2016 2017 2018

Retail market growth in Vietnam


Retail revenue reached $142 billion in 2018 - the

highest ever recorded and expected to reach $180

billion in 2020.

Vietnam’s retail revenue and growth rates

(2013-2018, billion USD)

HCMC & HN leading the growth

HCMC and Hanoi alone account for 1/3 of total

revenue sales (HCMC’s is double that of Hanoi). Sources: General Statistics Office of Vietnam

22%

11%

4%

4%

2%

57%

Retail revenues by region

HCMC Hanoi Dong Nai

Binh Duong Hai Phong Other cities/ provinces

Sources: Deloitte (2019)

Retail trend 1 - MT increase in 2nd cities

The modern trade increases more outstanding in

second cities.

121 136 150

108

131

161

2017 2018 2019

Supermarket

HCM / HN Other cities

37 37 41

22

41

55

2017 2018 2019

Department store

HCM / HN Other cities

Modern trade increase in Vietnam

Vingroup leads modern trade increase, with dominant

share in department, CVS and supermarket.

Supermarket

51%

49%

Vingroup share in CVS

Others

Convenience store Department store

CVS = Vingroup + Shop&Go

33%

67%

Vingroup share insupermarketOthers

70%

30%

Vingroup share indepartment storeOthers

Retail trend 2 - Dominance of Vingroup

Target stores of main convenience store brands

Retail trend 3 - CVS on the increase

Vietnam is expected to outgrow its neighbors in CVS retail sales.

37.4%

24.2%

15.8%

10.5% 10.3%

7.1% 6.6% 5.5%

CAGR of CVS retail sales for 2017-2021 period

Brand Target Current

store #

7-eleven 1,000 stores in 2027 27

B's mart 3,000 stores in 2027 125

Familymart 1,000 stores in 2020 151

GS25 2,500 stores in 2028 32

Ministop 800 stores in 2018 115

Vinmart+ 4,000 stores in 2020 1,465

Sources: IGD Research

Retail trend 4 - Severe competition and market exitDespite of the strong MT increase, the competition is getting more severe.

Several M&A as well as exits from the market

Despite of market entry in 2015, decided to

sell 18 stores in 2019 to exit from the market

Once under the group of Aeon, now Fivimart

was acquired by VingroupShop&Go operations are taken over by

Vingroup in 2019

Vien Thong A, electric chain established in

1997, was acquired by VinGroup in 2018

Motivations to use MT / GT

Product quality

56%

Competitive price

69%

Transparent country origin

54%

Easy to order/buy

68%

Diverse products

52%

Diverse products

58%

Store's credibility

49%

Store's credibility

35%

Competitive price

49%

Product quality

35%

GT channel

No.1

No.2

No.3

No.4

No.5

MT channel

MT channel is chosen for product quality while competitive

price is the biggest motivation for shopping at GT stores.

Source: Q&Me

Retail 4.0 activities in VietnamScan and Go at Vinmart

Vinmart virtual store Vinmart’s virtual shopping catalogue

Download VinID app Scan QR codes of products Pay Receive products

Technology has been employed in retail to provide

customers with new shopping experiences. Vingroup

is the most active.

Vietnamese online shopping trend

Key takeawaysOnline shopping popularity

Up to 80% have shopped online.

Popular products Popular EC sites for online shopping

80%

20%

Fashion

78%

IT

50%Cosmetics

44%

70%

58%

75%No.1

No.2

No.3

Online shopping frequency

17% 30% 18% 35%

Weekly and moreOnce - A few times / monthOnce / several monthsNever / Rarely

17% shop weekly, 30% buy monthly.

30%

39%

10%

21% <=300,000

300,001-700,000

700,001-1,000,000

>1,000,000

Monthly spending for online shopping

Nearly 70% spend less than 700K

Payment methods in online shopping

80%

20%

Cash ondelivery

Others

Cash is still dominant method.

2.97

4.07

5

6.2

10

2.1%

2.8%3.0%

3.6%

5.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

0

2

4

6

8

10

12

2014 2015 2016 2017 2020 (est.)

Online retailing B2C revenue (2014-2020)

B2C revenue % of total retail sales

2.8%3.0%

3.6%

5.0%

2015 2016 2017 2018

Online shopping market in Vietnam

Average annual spending of one online shopper

(2014-2018)

$160

E-commerce’s growth is projected to continue in the following years. Between

2015-2018, annual spending of one online shopper almost doubled.

$170$186

$350

Sources: Vietnam eCommerce and Digital Economy Agency

(Billion USD)

Online shopping usage

80% said to have shopped online before.

80%

20%

Yes No

Source: Q&Me (2018)

Reasons for online shopping

Pricing / promotions are the key factors, as well as the convenience

Source: Q&Me (2019)

55%

55%

50%

48%

44%

43%

42%

38%

33%

32%

29%

21%

Competitive price

Attractive promotions/ discounts

Easy for ordering/ booking

Diversified products

Fast delivery speed

Product quality

Store's credibility

Diversified payment methods

Good customer service

Flexible return policy

WOM

Easy to ask PG/ call center

1. Fashion (73%) 2. IT/Mobile phones (36%) 3. Cosmetics (33%)69%88% 68%30% 19%73%

35%50% 31%52% 28%44%

Popular online shopping items

Source: Q&Me (2018)

Popular EC sites for shopping

Shopee, Lazada and Tiki are the 3 most popular EC sites. Facebook comes at 4th.

75%70%

58%54%

44%

25%22% 22% 21%

18%

35%

20%17%

14%

5%2% 1% 2% 1%

Shopee Lazada Tiki Facebook Sendo A day roi The gioi didong

Cho Tot HotDeal Zalo

Have used Use most

Q. Q&Me (2018)

Online shopping frequency & Spending

17% shop weekly, 30% buy monthly. Nearly 70% spend less than 700K a month for

online shopping.

17%

30%

18%

35%

Online shopping frequency

Weekly and more Once - A few times / month

Once / several months Never / Rarely

30%

39%

10%

21%

Average monthly spending for online shopping

<=300,000 300,001-700,000 700,001-1,000,000 >1,000,000

Q. Q&Me (2018)

Payment in online shopping

COD is still the dominant method.

80%

20%

Cash on delivery Others

Source: Q&Me (2018)

Popular medias and information sources

Key takeaways (1)Increased time spent on Internet

Time spent on Internet increased significantly,

especially on mobile.

Smartphone used most to access

InternetFamily & friends are trusted most

Facebook is the most used SNS Social media motivations Popular contents

Videos are the most liked content to follow on

social media, followed by celebrity contents.

134 118

103 166

147114

2016 2019

Media consumption of Vietnamese

Other media

Internet Mobile

Internet PC

92%

66%

40% 37%

79%

9% 6% 2%

Smartphone Note PC Desktop PC Tablet

Used devices Device used most

Almost 80% access Internet most often

through their smartphone(s).

Friends 63%

No.1

TV programs 39%

91%

90%

95%No.1

No.2

No.3

No.1

Catch up with friends/ familyNo.2

Get news

No.3

Read entertainment newsNo.4

Meet new friends

49%

44% 44%

40%

34%

Contentswith video

Contentswith

celebrity

Contentswith Game

Contentswith Q&A

Contentswith

infographics

Family 65%

No.2

No.3

Key takeaways (2)

64%

36%

Ad clicking in last 7 days

49%51%

Made purchase after clicking ads

Internet ads effectiveness

64% have clicked on ads in last 7 days and 49% have made

purchases after clicking on ads

Popular ad posts

1. Attractive promotions (58%) 2. Products match my interest (58%)

3. Impressive (57%) 4. Fun (51%)

53%42%

20% 20% 19%

Facebook Youtube On mobile applications Internet sites Social media other than

Facebook

Popular ad channels

Facebook and YouTube are the channels where people are most likely to click on ads

Changes in daily media consumption (by minute)

People spend much more time for Internet, especially on mobile phone, in 2019 compare

to 2016.

Source: Q&Me (2019)

TV, 91

Internet (PC), 134

Internet (Mobile),

103

Others, 56

2016

Total

384 mins

TV, 81

Internet (PC), 118

Internet (Mobile),

166

Others, 33

2019

Total

398 mins

Changes in access devices

92% used smartphone to access internet in 2019 compare with 77% of 2016.

77%

50%

33%

26%

64%

13%8% 6%


2016


92%

66%

40%37%

79%

9%6%

2%


2019


Source: Q&Me (2019)

Trusted information sources

Friends 63% TV Program 39% Family 65%

Internet Ad 21% Youtube 25%TVCF 40%

Source: Q&Me (2019)

Social network - Popular services

Facebook (including Messenger) and Zalo are two most popular messaging

apps. Source: Q&Me (2019)

95%91% 90%

39%35%

32%

26%

21%

15% 14% 14%11%

Facebook FacebookMessenger

Zalo Instagram Skype Zing Me Viber Twitter Line LinkedIn WhatsApp SnapChat

Social network - Motivations to use

Social network services works as the information hub to communicate with friends /

families, as well as receiving information / news.

76%

48%

39%

30%

26%

13%

11%

9%

7%

7%

3%

1%

Catch up with family and friends

Get news and information about events

Read entertainment news

Meet new friends

Share photos and videos

Play games

Follow brands or business

Follow celebrities

Find dates

Provide reviews or opinions

Co-ordinate events

Others

Source: Q&Me (2019)

17% 21% 20% 17%9%

20%19% 19%

17%

12%

31%29%

27%26%

30%

18%21%

20%21%

22%

15%10%

15% 19%27%

Contents withvideo

Contents withcelebrity

Contents withGame

Contents withQ&A

Contents withinfographics

2016

Like it very much Like it So so Dislike Dislike very much

Social network – Popular contents

People tend to like video contents on Facebook a lot more in 2019. On the other hand,

they are also attracted by contents with celebrities in 2016.

19% 17% 16% 14% 10%

30%27% 28%

26%24%

32% 37%32% 38%

39%

10% 11%13%

12%15%

9% 7% 11% 9% 12%

Contents withvideo

Contents withcelebrity

Contents withGame

Contents withQ&A

Contents withinfographics

2019

Like it very much Like it So so Dislike Dislike very much

Source: Q&Me (2019)

Most-followed celebrities on Facebook

Tran Thanh10 993 053 followers

MC/Comedian

Tran Khoi My10 574 324 followers

Singer/Actress

Dong Nhi8 225 922 followers

Singer/Musician

Son Tung MTP10 008 782 followers

Singer/Actor

Ho Quang Hieu8 434 729 followers

Singer

Kelvin Khanh6 103 529 followers

Singer

Chi Pu8 023 573 followers

Model/Singer

Minh Hang7 731 162 followers

Singer/Actress

Hariwon6 290 486 followers

Singer/Actress

Vo Hoai Linh10 130 668 followers

Comedian/Actor

Source: https://www.socialbakers.com (May 2019)

Popular celebrities on Facebook

Ly Hai Minh Ha5 838 763 followers

Singer/Actor

Bao Thy5 544 473 followers

Singer

Ngan Khanh4 587 229 followers

Singer

Nhat Kim Anh5 212 951 followers

Singer

Nabi Nha Phuong5 037 965 followers

Actress

Khac Viet Singer3 649 705 followers

Singer/Musician

Ho Ngoc Ha4 427 913 followers

Singer

Le Thi Huyen Anh4 216 594 followers

Model

Tuan Hung4 143 640 followers

Singer

Thuy Tien5 457 607 followers

Singer

Source: https://www.socialbakers.com (May 2019)

64%

49%

36%

51%

Those who clicks ad (in last 7 days) Those who have purchased

products from ads

Social network - Ad effectiveness

64% have clicked on ads in the last 7 days. 49%

have made a purchase at least once before.

Source: Q&Me (2019)

Social network - Popular ad posts

Attractive ads have either ‘Good promotions’; ‘Products match audiences’ interest’ or

‘Impressiveness’.

26% 26% 25%20% 18% 17% 16%

10% 7% 7% 5%

32% 33% 32%

31%26% 27%

21%

19%16% 18%

11%

25% 25% 28%31%

34% 35%38%

43%

33%36%

29%

9% 8% 7%10%

11% 12%15%

16%

20%21%

21%

7% 7% 7% 8% 11% 9% 10% 12%

24%18%

34%

Goodpromotions /

discounts

Products /services

match myinterest

Impressive Fun Ads with goodsound

Ads of thefamous brand

Ads withcelebrities

Ads with big Ads that I hadpreviouslylooked /

browsed atother sites

Video ads Ads that arerepeated

often

Highly likely to click Likely to click So so Unlikely to click Very unlikely to click

Source: Q&Me (2019)

Social network - Popular ad channels

49%

31%

17% 18%16%

18%

4%

11%

53%

42%

20% 20% 19% 18%

15%

1%

11%

Facebook Youtube On mobile

applications

Internet sites Social media

other than

Facebook

Video sites other

than YouTube

Facebook

Messenger

Others Do not click on

any ads

2016

2019

Ads on Facebook and YouTube are most likely to be clicked/viewed. The likeliness to

click the ads of YouTube in 2019 is higher than 2016.

Source: Q&Me (2019)

Investment in educations

Key takeawaysRising demand of studying abroad

The number of students studying abroad has

been on increase.

Top destination countries Studying abroad funding sources

Increasing demand of private courses E-learning usage

More than half workers take online courses

while only 21% students do so.

The U.S is the most popular countries for

overseas students, followed by Japan.

53,835 55,980 59,468 68,046

82,159 82,160

2012 2013 2014 2015 2016 2017

Number of Vietnamese students studying abroad (2012-2017)

22,172 students (2017) 19,152 students (2017)

15,298 students (2017) 4,400 students (2017)

Only 10% have scholarships, the others are

self-financed students.

Languages (64%)

Sports

(31%)

Sciences

(22%)

Languages (60%)

Sports

(28%)

Life/ soft skills

(27%)

Workers Students

10%

11%

79%

Students

Online

Both online &offline courses

Offline(physicalclass)

43%

17%

40%

Workers

10%

90%

Havescholarships

Self-financed

University Education

(Duration: 4-6 years)

(18 – 22 years old and over)

College Education

(Duration: 3 years)

(18 – 21 years old and over)

High School/Upper Secondary

(Duration: 3 years)

(15 – 18 years old)

Junior High/Lower Secondary

(Duration: 4 years)


Elementary School

(Duration: 5 years)


Professional Secondary

(Duration: 3-4 years)

(15 years old and over)

Pre-schooling Education

(Duration:3 years)

(3 – 6 years old)

Vocational Training

(Duration 1-3 years)

(15 years old and over)

Introduction of Vietnam education system (1)

Education from Grade 1 of Elementary to Grade 9 of Junior High is compulsory.

High school education and above is optional.

Introduction of Vietnam education system (2)

Vietnam’s education system is largely and mostly made up of public schools.

Source: Ministry of Education and Training

12,662 14,939

10,887

2,393

170

2,594

113

52

441

65

Kindergarten Elementary JuniorHigh/LowerSecondary

Highschool/Upper

Secondary

University

Number of schools (School year 2017-2018)

Public Private

4,331,241

7,882,145

5,312,715

2,313,315 1,439,495

975,295

159,697

60,597

195,249

267,530

Kindergarten Elementary JuniorHigh/LowerSecondary

Highschool/UpperSecondary

University

Number of students(School year 2017-2018)

Public Private

Investment in education of Vietnamese

Traditionally, Vietnam has placed high value on education. In 2018, Vietnamese

spent 8% of their income for education. Sources: Varkey Foundation/ BMI

12.0

10.2

8.7

7.5 7.2 6.2

5.4 5.0 4.4 4.1

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Hours parents spent helping children with studies in some countries (2018)

(Hours/week)

8%

92%

Vietnam consumer spending for education (2018)

Vietnamese aims at international study

The number of Vietnamese students studying

abroad is increasing over time.

53,835 55,980

59,468

68,046

82,159 82,160

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2012 2013 2014 2015 2016 2017

Number of Vietnamese students studying abroad (2012-2017)

Sources: UNESCO


- Top destination countries

22,172

19,152

15,298

4,400 3,979 3,432

United States Japan Australia France United Kingdom Korea, Rep.

The U.S and Japan are the most popular destinations.

Sources: UNESCO (2017)


- Funding source

The majority of people studying abroad self-

finance.

Have scholarships,

10%

Self-financed, 90%

Sources: Ministry of Education and Traning (2016)

Increasing demand of private classes

Top private courses for workers

Languages (60%) Sports (28%)

Soft/ life skills (27%) Business (21%)

IT (20%) Accounting (17%)

Top private courses for students

Languages (64%) Sports (31%)

Sciences (22%) Drawing (20%)

Music lessons (20%) Martial arts (13%)

Sources: Q&Me (2019)

Reasons to take private courses

People take private courses to broaden knowledge/

improve themselves or to develop their career.

60% 60%

54%

35%

20%17%

8%

To broadenknowledge

To developin career

To improveone's self

To find agood job

To have agood health

To entertain To go abroad


Increasing demand of private classes: Online demand

Up to 60% workers and 21% students take online courses.

43%

17%

40%

Types of classes - Workers

Online Both online & offline courses Offline (physical class)

10%

11%

79%

Types of classes - Students

Online Both online & offline courses Offline (physical class)


Increasing demand of private classes : Top E-learning websites

Real shop preference

Top E – learning website for workers

Topica.edu.vn

Web access: 1,459,000

Fee: 2,000,000-10,000,000

English, business course

for workers and university

students.

Kyna.vn


Fee: 200,000 - 5,000,000

Teaching all subjects that

are suitable for any level

from students to officers

Edumall.vn


Fee: 500,000 - 5,000,000

Teaching various courses,

especially for worker

Unica.vn


Fee: 200,000 - 2,000,000

Provide various courses for

worker, university students

Top E – learning website for students

Tienganh123.com


Fee: 200,000 - 5,000,000

Teaching English for

children and adults

Kyna.vn


Fee: 200,000 - 5,000,000

Teaching all subjects that

are suitable for any level

from students to officers

Hocmai.vn


Fee: 300,000 - 1,000,000

Teaching all subject at the

school for students

Moon.vn


Fee: 100,000 - 600,000

Teaching subjects at the

school for students

Increasing demand of travelling

Increasing demand of travelling

48% intend to spend their spare cash on

holidays.

72%

53%48% 48% 47% 46%

41%

Sources: Nielsen (2018)

Domestic and outbound travel demand

The number of domestic travelers increase by every year.

Sources: Q&Me (2019)Sources: vietnamtourism.gov.vn/ ASEAN Travel

28,000 30,000

32,500 35,000

38,500

57,000

62,000

73,200

80,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Domestic travelers

6,000 6,500

7,500

8,600

2015 2016 2017 2018 (est.)

International trips by Vietnamese travelers

(Thousands of departures)

The Landmark 81 (HCMC)The tallest building in Vietnam

Domestic travel - New attractions/ services

Golden Bridge (Da Nang)A scenic overlook of a 150-metre-long

pedestrian bridge in Bà Nà Hills resort

Hon Thom Cable Car (Phu Quoc)

Honored by the World Guinness as the

“World’s longest cable car system”

Van Don International Airport

(Quang Ninh)Located on the coast of Quang Ninh,

the airport covers an area of 325 ha

and contains one single runway

Hon Gai International Harbour

(Quang Ninh)The harbor can receive the world’s

largest cruise vessels

Bamboo AirwayA low-cost airline, opened in Jan 2019

Outbound travel - Countries Vietnamese wish to visit

Japan and Korea are 2 countries that Vietnamese wish to visit most.

3%

3%

5%

5%

7%

11%

12%

20%

24%

England

Australia

France

China

America

Singapore

Thailand

Korea

Japan


Outbound travel - Travel motivations

9%

9%

10%

19%

20%

25%

25%

26%

36%

38%

Learning new things

My family / friends took me there

Good beach

Good entertainment

Good for shopping

Good food

Good cost

Near distance

Interesting culture

Good scenery

Good scenery and culture are biggest reason for selecting a

country, although distance, cost and food also have high

impact.

Key technology adoption in Vietnam

38%

62%

Yes, I have used

No, I haven't

Key takeawaysSmartphone penetration

67% of mobile phone users own a

smartphone(s).

Ride hailing app usage

QR code & Mobile payment Increasing usage of E-wallet

Online food delivery service usage

66% have used ride hailing apps.

67%

33%

Smartphone

Feature phone66%

34%

Yes, I have used

No, I haven't

14% 23% 7% 38% 18%

Use it regularly

Have used it before

Never used (but know how to use it)

Never used and do not know how to use it

I do not know

QR code usage

37% have used QR code before. Only 38% QR code users use QR code for

mobile payment.

$11.1

billion

(2020F)

Value of fintech market Top E-wallets

No.1

No.2

No.3

85%

36%

21%

58%

42% Yes, I have used

No, I haven't

58% of food delivery service users have used

the online food delivery portals.

High Internet and smartphone penetration

Vietnam is forecasted to have 82 million Internet users by 2020. Among people

who own mobile phones, 67% have smartphones.

97%

1%2%

Mobile phone usage (2019)

Own

Share

Do not use

Source: World Bank/ Pew Research Center (2019)

67%

33%

Smartphone

Feature phone

Smartphone ownership

(2019)

38

92

4455

22

5

59

215

8293

28

6

0

50

100

150

200

250

Thailand Indonesia Vietnam Philippines Malaysia Singapore

Internet users of some SEA countries

2015 2020F

(millions)

Smartphone brand recognition

Source: Q&Me (2018)

98% 97% 94%88% 87% 86%

73% 72% 71%

Samsung Apple Oppo Sony Nokia HTC Asus Xiaomi Huawei

Popular apps in Vietnam

No. Free Paid

1 Messenger Pocket Quarium

2 Zalo WiFi Master Pro – WiFi.com

3 Facebook The Greedy Cave

4 Youtube Analog Paris

5 PUBG Mobile VN Kirakira+

6 Sendo NewBorder

7 Ulike Forest – Stay focused

8 Tiktok Gudak Cam

9 Zing MP3 TouchRetouch

10 Shopee @picn2k camera

Source: Appannie.com

Rising trend (1) - Ride hailing app

Among people who use ride sharing services,

Grab is dominantly used, then Go Viet.

Source: Q&Me (2018)

66%

34%

Those who have used ride sharing app

Grab is launched in Vietnam in Feb, 2014. After merged with Uber in 2018, Grab becomes No.1 Ride

hailing app in Vietnam market.

Go-Viet is a partner of Go-Jek – Technology start up in Indonesia. Go-Viet started Go-Bike service in

Ho Chi Minh City on June and Ha Noi in September, 2018.

VATO is invested by Phuong Trang transport company in April 2018. With VATO, customers can

bargain with drivers in peak time.

FASTGO is developed by Vietnamese and provide service in Ha Noi in June and Ho Chi Minh City in

August, 2018.

XELO is developed by Skysoft – a technology company and launched in May 2018. Xelo combine

between E-booking bike/ car and traditional booking taxi.

ABER – Local brand – is launched on June 2018. Aber aimed to recruit old Uber, Grab drivers with

well-paid and bring good experience to customers.

Be ride hailing service launched in December, 2018. This is a Vietnamese company.

Rising trend (1) - Ride hailing app key players

Rising trend (1) - Ride hailing app popularity

Among people who use ride sharing services, Grab is dominantly used, then Go

Viet. Primary reason to choose Grab is convenience when Go-Viet’s is price. Source: Q&Me (2018)

98%

29%

6% 6% 4%1%

Grab Go-Viet VATO Aber Fast Go Xelo

Ride sharing app popularities

60% 60%

37% 36% 36%33%

52%

26%

48%

35%

4%

39%

Convenience Transparentpricing

Good price App is easyto use

Short waitingtime

Attractivepromotion

Grab vs Go-Viet: Reasons to choose

Grab

Go-Viet

Rising trend (2) -

Online delivery service popularity

66% use the food delivery services. Among

food delivery service users, 58% have used

food delivery apps.

Source: Q&Me (2018)

66%

34%

58%

42%

Source: Q&Me (2018)

Food delivery service users Food delivery app users

Rising trend (2) -Popular food delivery apps

57%

50%

35%

14%

7%

2%

Foody Delivery Now Grab Food Vietnammm Chonmon Others

For online food delivery services, Now and

Grad Foob are the most popular portals.

Q. How do you normally make your order?Source: Q&Me (2018)

Rising trend (2) - Food delivery service - Reasons to use

‘Bad weather’ is most common occasion to use food delivery services. People

often order their food to be shipped to their home or office.

25%

30%

66%

72%

Family gathering places

Location that I hang out with myfriend

Office

My home

Delivery locations

31%

39%

41%

45%

53%

54%

Don't want to cook

Unwell/sick

Want to enjoy the meal from thedelivery store

Too busy to cook

Want to eat quick

Bad weather

Motivations to use delivery services

Source: Q&Me (2018)

Rising trend (3) - QR code popularity

No more than 37% have used QR code before including 14% of regular users.

39%

21%

22%

18%

QR code recognition

I know it

I know it (after seeing the visual)

I have seen it (after seeing the visual)

I do not know

14%

23%

7%38%

18%

QR code usage

Use it regularlyHave used it beforeNever used (but know how to use it)Never used and do not know how to use itI do not know

82% 37%

Source: Q&Me (2019)

Rising trend (3) - QR code usage

Only 38% of QR code users use it for payment purpose. The most common app to use

QR code is not mobile payment apps but Zalo.

57%

38% 38% 37%

43%

62% 62% 63%

Add new friendsin SNS

Access website/ facebook /campaign

Mobile payment Show QR codeto be added in

SNS

Purpose to use QR code

15%

2%

2%

4%

7%

9%

15%

18%

22%

83%

Others

Payoo

Ngan Luong

Samsung Pay

Viettel Pay

Bankplus

Zalo Pay

Facebook

Momo

Zalo

Popular apps where QR code is used

Source: Q&Me (2019)

6.4

2018

Rising trend (4) - Fintech overview

Fintech penetration in Vietnam is still very low. Nevertheless, this sector is

growing fast, expected to reach $11M in 2022.

97.6%

2.4%

E-Commerce Others

Digital payment contribution (2018)

Digital payment revenues in Vietnam

(million USD)169.1

89.0

59.7

7.6 4.9 4.4

Singapore Malaysia Thailand Indonesia Vietnam Philippines

Number of non-cash transactions per capita 11.1

2022

74.1%

25.9%

E-wallets Others

Licensed payment services

Source: World Bank/ Statista/ State Bank of Vietnam

Rising trend (4) - Fintech / E-wallet popularity

E-wallet users in Vietnam is on the increase. Momo is the most popular service, followed

by ZaloPay.

4%

11%

12%

11%

10%

23%

8%

16%

17%

11%

Singapore

Thailand

Vietnam

Philippines

Indonesia

E-Wallet penetration trend among mobile internet users

2015 2013

CAGR 2013-2015

130%

-18%

16%

25%

6%

85%

36%

21%17% 16% 16% 15% 14%

6% 6%

Popular e-wallet services

Source: Q&Me (2019)

67%

63%

44%

43%

41%

40%

27%

23%

13%

12%

Top up mobile account

Buy mobile cards

Transfer/receive money

Pay bills

Pay when shopping online

Buying cinema ticket

Pay for food order

Pay for Grab, taxi

Buy transportation ticket

Hotel booking

Source: Q&Me (2019)

Rising trend (4) - E-wallet usage

Rising trend (4) - E-wallet satisfaction

Most are quite content with E-wallet services they’re using.

85%

14%1%

Customer satisfaction

Satisfied Average Dissatisfied

Satisfaction Dissatisfaction

Fast payment process

Easy payment process

Many promotions/ discounts

Low transaction cost

No need to carry lots of cash

Payment risk/error

Need the Internet

Not many promotions (as I

want)

Not many places accept this

yet

Security concerns

Source: Q&Me (2019)

Q&Me – About Online Market Research Services

Our Solution

We provide both of online / offline research service depending on the objectives

Online market research Face-Face market research

Quickest research with good quality

assurance, via data-oriented analysis

Manual data collection with

technology. High level data control

with GPS, images and audio.

Our advantage: Direct Panel Management

Our strength is 16-39 years old and urban areas. This is where most biz

customers would like to research. 500,000 members as of May, 2019

0%1%

18%

31%

22%

14%

7%

3% 3%1%

Age

19%

18%

6%

4%3%3%

47%

HCM Hanoi Can Tho Da Nang

Hai Phong Dong Nhai Others

56%

44%

Male Female

Gender City

Our advantage – Quick with quality

Online is considered to be “cheap and bad” in general. Q&Me provides

several methods providing data with quality

Our quality score by SSI

FACT CONSISTENCY SCORE

97%

THOUGHT

CONSISTENCY SCORE

91%

STRAIGHT-LINER/ FLAT-

LINER SCORE

89%

SPEEDERS SCORE

97%

QUALITY CHECK SURVEY SPECIFICATION

N (Sample size) 300

IR (Incident rate) 100%

LOI (Lenght of Interview) 10 minutes

Success Criteria Overral score of 80% or higher

THE RESULTS

Overal score 93.5%

Average score

in the industry73%

(*) QC scores are generated by Survey Sampling International (SSI), the Worldwide Leader in Survey Sampling and Data Collection

Solutions. Asia Plus (Q&Me) is the preferred partner of SSI in Vietnam.

Our customers

Food & Beverage

FMCG

Manufacturing

Technology

Agency / Consulting

Others

Contact Us

URL: http://www.qandme.net

Contact: [email protected]

Q&Me is operated by Asia Plus Inc.

Asia Plus Inc.

Floor 1 25/7A Nguyen Binh Khiem str., Ben Nghe ward, District 1, HCMC,

Vietnam

Tel. +84 839 100 043

http://www.qandme.net

mailto:[email protected]

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