Title 2024 - Kantar_Vietnam FMCG Outlook.pdf ✅

Click here or press enter for the accessibility optimised version Vietnam FMCG Outlook 2024 Winning New Age Consumers in Shifting Times
Click here or press enter for the accessibility optimised version Vietnam in Shifting Gears: A Macro Outlook Decoding Vietnam's macro shifts: Economic, demographic, and consumer trends
Vietnam’s economic outlook After a strong post-Covid economic performance in 2022, Vietnam posted a slower GDP growth of 5.05% in 2023 due to various external headwinds and internal constraints. A slower- than-expected recovery in demands for exports from the country's key trade partners such as the US, EU and China put in a dent on its manufacturing and export sectors. This resulted in persistent waves layoffs, job losses and subsequently uncertainties in the public about their financial situation and future. Retail sales continued to improve by 9.6%, a large part thanks to the boost of inbound tourism. Inflation in the whole year was kept well kept under the government’s target of 4.5% and Consumer Price Index (CPI) increase was capped at 3.25% year on year. Despite this, the challenges of rising costs remain visible amidst economic uncertainty, particular for the financially struggling consumer groups.
Vietnam on course for growth despite short term challenges Though this year's GDP growth is below the Vietnamese government’s target of 6.5%, the country remains among the fastest growing economies in the region. In a favourable outlook, the Asian Development Bank (ADB) projects a strong GDP growth rate of 6% for 2024. This positions Vietnam as one of Southeast Asia's fastest-growing economies. Moreover, the Centre for Economics and Business Research (CEBR) predicts a substantial increase in Vietnam's economic size between 2023 and 2038. By 2024, Vietnam is expected to move up to the 33rd place in global economic rankings, and by 2038 could reach the 21st place. This impressive trajectory highlights Vietnam's significant long-term potential as both an economic power and a growing consumer market. While 2023 presented obstacles and 2024 poses short term headwinds, Vietnam's long term economic trajectory remains robust, reflecting the country’s resilience and stability. Navigating global uncertainties and capitalising on future opportunities will be crucial as Vietnam charts its course toward a prosperous and influential future on the global stage.