Consumer Lifestyles in Vietnam

CONSUMER LIFESTYLES IN VIETNAM Euromonitor International February 2016

CONSUMER LIFESTYLES IN VIETNAM

LIST OF CONTENTS AND TABLES Lifestyles in Vietnam .................................................................................................................... 1 Chart 1

Lifestyles in Vietnam ............................................................................... ..... 1

Top Five Consumer Trends .......................................................... ................................................ 1 Children Remain the Major Driver of Household Spending ................ ...................................... 1 Consumers Increasingly Seeking Local Products ................................................................ ..... 2 Growing Health-consciousness Driving Demand for Healthier Products .................................. 3 Increased Demand for Products and Services Focused o n Speed, Convenience and Comfort 3 Young Consumers Increasingly Seek Products That Express Their Individuality ..................... 4 Consumer Segmentation .............................................................. ................................................ 4 Babies and Infants ............................................................................................................... ..... 4 Chart 2

Babies and Infants in Focus 2000-2020 ....................................................... 5

Kids............................................................. .............................................................. ................ 6 Chart 3

Chart3 Kids i n Focus 2000-2020 2000 -2020 ............................................................. ..... 7

Tweenagers ........................................................ ................................................................. ..... 8 Chart 4

Tweens in Focus 2000-2020 ........................................................ ................ 9

Teens....................................................... ................................................................. .............. 10 Chart 5

Teens in Focus 2000-2020 ........................................................... .............. 11

Young Adults .......................................................................................................................... 11 Young People Opt To Travel During Traditional Tet Holiday .................................................. 13 Chart 6

Young Adults in Focus 2000-2020 .......................................................... ... 13

Middle Youth ....................................................... ................................................................. ... 13 Chart 7

Middle Youth in Focus 2000-2020 ........................................................... ... 14

Mid-lifers ............................................................. ................................................................. ... 15 Chart 8

Mid-Lifers in Focus 2000-2020 ................................................................ ... 16

Late-lifers ............................................................ ................................................................. ... 16 Chart 9

Late-Lifers in Focus 2000-2020 ............................................................... ... 17

Housing and Households ............................................................................................. .............. 18 Home Ownership ........................................................... ......................................................... 18 Chart 10

Home Ownership 2000-2020 ..................................................................... 19

Household Profiles.................................................................................................................. 19 Chart 11

Household Profiles 2000-2020 ................................................................... 20

Running Costs ..................................................................................................................... ... 20 Chart 12

Household Running Costs 2000-2020........................................................ 22

Money and Savings ........................................................... ......................................................... 22 Attitudes Toward Payment Payment Methods .............................................................. ......................... 22 Savings ............................................................... ................................................................. ... 23 Loans and Mortgages ............................................................................................................. 24 Chart 13

Borrowing and Saving 2000 -2019 ........................................................... ... 25

Eating and Drinking ........................................................... ......................................................... 25 Eating Habits .......................................................................................................................... 25

© Euromonitor International

Passport

I


LIST OF CONTENTS AND TABLES Lifestyles in Vietnam .................................................................................................................... 1 Chart 1

Lifestyles in Vietnam ............................................................................... ..... 1

Top Five Consumer Trends .......................................................... ................................................ 1 Children Remain the Major Driver of Household Spending ................ ...................................... 1 Consumers Increasingly Seeking Local Products ................................................................ ..... 2 Growing Health-consciousness Driving Demand for Healthier Products .................................. 3 Increased Demand for Products and Services Focused o n Speed, Convenience and Comfort 3 Young Consumers Increasingly Seek Products That Express Their Individuality ..................... 4 Consumer Segmentation .............................................................. ................................................ 4 Babies and Infants ............................................................................................................... ..... 4 Chart 2

Babies and Infants in Focus 2000-2020 ....................................................... 5

Kids............................................................. .............................................................. ................ 6 Chart 3

Chart3 Kids i n Focus 2000-2020 2000 -2020 ............................................................. ..... 7

Tweenagers ........................................................ ................................................................. ..... 8 Chart 4

Tweens in Focus 2000-2020 ........................................................ ................ 9

Teens....................................................... ................................................................. .............. 10 Chart 5

Teens in Focus 2000-2020 ........................................................... .............. 11

Young Adults .......................................................................................................................... 11 Young People Opt To Travel During Traditional Tet Holiday .................................................. 13 Chart 6

Young Adults in Focus 2000-2020 .......................................................... ... 13

Middle Youth ....................................................... ................................................................. ... 13 Chart 7

Middle Youth in Focus 2000-2020 ........................................................... ... 14

Mid-lifers ............................................................. ................................................................. ... 15 Chart 8

Mid-Lifers in Focus 2000-2020 ................................................................ ... 16

Late-lifers ............................................................ ................................................................. ... 16 Chart 9

Late-Lifers in Focus 2000-2020 ............................................................... ... 17

Housing and Households ............................................................................................. .............. 18 Home Ownership ........................................................... ......................................................... 18 Chart 10

Home Ownership 2000-2020 ..................................................................... 19

Household Profiles.................................................................................................................. 19 Chart 11

Household Profiles 2000-2020 ................................................................... 20

Running Costs ..................................................................................................................... ... 20 Chart 12

Household Running Costs 2000-2020........................................................ 22

Money and Savings ........................................................... ......................................................... 22 Attitudes Toward Payment Payment Methods .............................................................. ......................... 22 Savings ............................................................... ................................................................. ... 23 Loans and Mortgages ............................................................................................................. 24 Chart 13

Borrowing and Saving 2000 -2019 ........................................................... ... 25

Eating and Drinking ........................................................... ......................................................... 25 Eating Habits .......................................................................................................................... 25


Passport

I


Chart 14

Food Expenditure Profile 2000-2020 ....................................................... ... 26

Drinking Habits ....................................................................................................................... 27 Chart 15

Drinks Expenditure Profile 2000-2020 ........................................................ 28

Grooming and Fashion ............................................................................................................ ... 28 Female Grooming and Fashion Trends .................................................................................. 28 Demand for Collagen Treatments Rises ........................................................ ......................... 30 Male Grooming and Fashion Trends ............................................................. ......................... 30 Chart 16

Grooming and Fashion Expenditure 2000-2020 ......................................... 31

Health and Wellness .................................................................................................................. 32 Attitudes To Health and Well-being ............................................................... ......................... 32 Chart 17

Health of the Nation 2000-2020 ................................................... .............. 33

Shopping Habits ..................................................... ................................................................. ... 33 Main Household Shop ............................................................................................................ 33 Shopping for Big-ticket Items and Personal Goods ............................................................. ... 34 Chart 18

Where Households Shop for Essentials 2000-2019 ................................... 35

Leisure and Recreation ..................................................................................... ......................... 36 Leisure Time ....................................................... ................................................................. ... 36 Vacations ............................................................ ................................................................. ... 37 Public Holidays, Celebrations and Gift -giving ........................................................... .............. 37 Chart 19

Possession of Selected Home-Tech and Mobile Phones 2000-2020 ......... 38

Getting Around ............................................................................................................. .............. 39 Private Transport ................................................................................................................. ... 39 Chart 20

Getting Around on Private Transport 2000-2020 ........................................ 39

Public Transport...................................................................................................................... 40 Commuting ......................................................... ................................................................. ... 41 Chart 21

Getting Around on Public Transport 2000-2020 ......................................... 41


Passport

II


CONSUMER LIFESTYLES IN VIETNAM LIFESTYLES IN VIETNAM Chart 1

Source:

Lifestyles in Vietnam

Euromonitor International

TOP FIVE CONSUMER TRENDS

Children Remain the Major Driver of Household Spending Spending The Vietnamese culture emphasises the mutual and lifelong obligation between parents and children. Parents have a duty to raise their children to be successful grown-ups, while children have the responsibility of taking care of their parents in old age and providing them with emotional and financial support. In fact, it is reported that nearly 70% of elderly Vietnamese live with and depend on th eir children to some extent. Thus, for many Vietnamese, investing in their children is an investment in the future.


Passport

1


The two-child policy enforced in the past decades, the increasing costs of raising a child and the higher participation rate of women in the labour force has led to a considerable reduction in family size. As a result, children have become the primary focus of the whole family and, in turn, the household budget. Parents are now eager to spend to ensure their children‟s well -being, with spending ranging from education to healthy foo d to fashion and ent ertainment. Parents tend to spend on their children even if it means spending cuts in other areas. For example, many parents buy electric bicycles for their children rather than traditional bicycles, even though e-bikes are far more expensive with prices ranging from VND7 million to VND15 million. Phone ownership has become common among teenagers and it is not u nusual to find teens who have e xpensive smartphones together with tablets and l aptop. Indeed, according to website thesaigontimes.vn, 60% of those aged 15 to 24 years-old used a mobile phone in 2014. Parents also give pocket money to their children and, as a result, there is great demand for teen magazines, cosmetics and clothing. In general, educational expenses still command the biggest portion o f household spending on kids, and Vietnamese parents usually spare no expense when it comes to finding the best class and school for their children. But parents also tend to spend on kids' entertainment activities. Modern and well-equipped recreational centres for kids are often crowded during weekends, although entrance fees are relatively pricey. More affluent parents also o ften take their children on holiday overseas, visiting famous entertainment parks such as Disneyland, Legoland, and Universal Studios. More importantly, most parents are particularly interested in edutainment activities, i.e., those that provide their children with both educational and entertainment value. For example, in order to raise children's awareness of nature a nd reduce the time th ey spend in front of digital screens, many urban parents rent small portions of land for their children so they may practice farming during weekends. Although tuition fees at public schools are subsidised by the government, children typically attend supplementary and exam preparation classes which often charge VND300,000 to VND500,000 per month. Many urban children attend foreign language centres from the age of 4 or 5 years-old which may cost their parents from VND400,000 to VND3,000,000 per month. For international private schools that adopt a more W esternised curriculum and have better facilities, enrolment fees can be as high as USD1,000 per month. In recent years, the wave of self financing overseas study has spread to middle-class families. According to vietnamnet.com, Vietnamese parents are paying an enormous amount of money for their children‟s overseas experience every year. In 2013, this figure was estimated to be USD1.8 billion, or about 1% of the total GDP.

Consumers Increasingly Seeking Local Products In recent years, there have been several scandals related to the quality and safety of products with unreliable origin. Some products have contained harmful substances that could potentially endanger user‟s well -being: toys sprayed with toxic lead paint; fruits injected with banned preservatives; and accessories contaminated with cadmium. Since the product origin is often unclear, consumers have nowhere to turn. Many of scandals are reported to be linked to China. As a result, a growing number of consumers have switched from cheap Chinese goods to locally manufactured products or those made in Thailand. Affluent consumers tend to show a marked preference for products imported from developed economies, although they must pay premium prices. In the food market, Chinese fruits and vegetables are rapidly falling out of favour. Consumers either choose to buy specialty produce of Vietnam or buy from certified stores carrying imported varieties, mostly from the US, Japan, Europe and Australia. A growing num ber of consumers buy local vegetables from organic shops or trustworthy farms, even at a higher cost. Free -range poultry, fresh seafood and graded meat are highly sought after.


Passport

2


After five years of the government-initiated campaign “Vietnamese people use Vi etnamese goods”, which promotes local goods as having higher quality, domestic products are rising in popularity in the market for children‟s toys and school supplies and many consumers are willing to pay a higher price for domestic wooden toys and stationery. The campaign is also particularly successful in the fashion market. According to vovworld.vn, 80% of consumers indicated a preference for domestically produced clothing and footwear over those manufactured in China. Local designers and Made-in-Vietnam shops are gaining wide acceptance.

Growing Health-consciousness Driving Demand for Healthier Products Thanks to improved living standards, Vietnamese consumers have become more healthconscious. In many instances, they have opted for a healthier lifestyle in order to i ncrease longevity and to create a more relaxing life in their later years. Moreover, as scandals regarding environmental pollution, toxic toys and personal care products and pesticide-contaminated food have made headlines, there has been a heightened sense of concern about personal safety and many have started to take better care of their health. The shifting attitude towards a healthier lifestyle has resulted in increasing interest and participation in sports, exercise regimens and fitness activities, particularly among older Vietnamese. Yoga clubs and gyms are among the most popular fitness venues. According to tuoitre.com.vn, the number of yoga practitioners recorded in Ho Chi Minh City is roughly 10,000. However, the actual number is much higher because many people practice at home without registering for classes. Some health-conscious parents even send their children to “baby yoga” classes from an early age. Gyms are popular amongst young people, thanks to the availability of personal trainers and state-of-the-art facilities. Vietnamese consumers are also taking greater care choosing the food they consume. Food poisoning scandals have been rampant and attempts by local authorities to control food safety and hygiene are generally ineffective. Additionally, media outlets frequently report cases of terminal diseases, particularly cancers, which are associated with l ong-term consumption of unsafe food. Consequently, many have become wary of dining out, since they have no control over the food preparation process. Moreover, fearful of pesticide-contaminated vegetables and fruits in the wet market, an increasing number of urbanites have started to grow and consume their own vegetables or vegetables bought from organic farms.

Increased Demand for Products and Services Focused on Speed, Convenience and Comfort Under the mounting pressure of an increasingly fast-paced lifestyle, many urban consumers have lost patience for activities of the past, such as shopping at the wet market daily for fresh ingredients, cooking their own dinners at home from scratch and spending l ong periods commuting. Time has become a luxury for many and old habits that had been based on a more leisurely pace of life are now being gradually replaced by products and services that promise speed and convenience. The emergence of a tech-savvy generation of consumers has further aided the growing demand for comfort-oriented services. Vietnamese consumers, especially urbanites, have increasingly easy access to smartphones, with 37% of the total population being in possession of at least one. In addition, 42% of the population reported being internet users in 2013. Websites, online payment systems and smartphone applications have provided an opportunity for consumers to achieve convenience from the comfort of their home or office. Sales of ready-to-cook meal kits are on the rise. These meal kits, together with other types of freshly made packaged foods, allow busy working professionals to have authentic meals with their families while saving considerable time and effort on preparation. Similarly, often-complex


Passport

3


traditional dishes that are usually made during festive periods can now be ordered from home cooking services as well. Professional grocery purchasing services and social media vendors are also riding this trend by competing on levels of comfort and convenience. Consumers can have food products and ingredients delivered to their doorsteps with a phone call or a message on a social media platform. The demand for convenience has also affected consumer transport and mobility. Hailing a taxi via mobile app holds great consumers appeal. The level of comfort offered by online taxi booking far surpasses the traditional method of flagging down a passing taxi on the street. Using online taxi booking apps also helps consumers save on waiting time as the apps usually provide an exact arrival time to help customers plan their schedules.

Young Consumers Increasingly Seek Products That Express Their Individuality Traditionally, Vietnamese culture emphasised collectivism with people considering themselves part of a larger community that enforced communal social norms and values. However, in recent years that idea has been challenged by many young people. Instead of blending into the mass, young people are increasingly finding ways to stand out and to establish themselves as unique individuals. In turn, products and services that promote individuality have been embraced by young consumers. There are several reasons for young consumers‟ shift toward individualism. These include the widespread availability of tenets and icons of Western culture, found via international news broadcasts, films and TV and, perhaps most significantly, information provided via the internet. According to a recent article on website quantrimang.com, 74% of internet users in Vietnam are 15 to 34 years-old. Products popular amongst modern young consumers include fashionable clothing and footwear. Teen girls wear make-up and accessories to convey a unique „look‟ and make a personal statement. The young are also infatuated with el ectric bicycles and unicycles, two new types of transportation recently imported into Vietnam, which give them freedom to travel. These bikes offer a chic and slick perception an d serve as status symbols amongst teens. Riding an electric bike is considered cool, while riding a normal bike is not. Of course, smartphones and tablets provide young consumers with easy and nearly constant access to the internet and social media. I n addition to communicating, young users use social media sites to build and present their identities to their peers. Fuelled by a desire to make their voice heard, teens and young adults actively participate in discussions related to various social and entertainment issues. Fifty-eight percent of young Vietnamese aged 16-24 years-old possess at least one smartphone, according to statistics from tuoitre.vn. According to a recent Facebook report, at least 27 million users (out of 30 million) access Facebook mainly through smartphones.

CONSUMER SEGMENTATION

Babies and Infants The number of babies and infants has grown from 4.45 million in 2010 to 4.68 million in 2015. Birth rates were recorded at 17.4 per one thousand in 2010 and they are projected to steadily decline to reach 15.3 per thousand in 2020. The proportion of babies and infants in the overall population is projected to decline from 5% t o 4.6% over the same period. The falling birth rate has been driven in part by the influence of Western culture, particularly amongst the educated consumers. This has led to changes in young people‟s opinions towards


Passport

4


having children. Thanks to improvements in family planning, many urban women can delay having children to pursue higher education and career opportunities. Moreover, the higher living standard has resulted in young parents preferring to have fewer babies so they can better provide for their children both financially and emotionally. Birth rates in the Red River Delta and the Mekong Delta are the lowest, partly due to the presence of large industrial cities such as Hanoi and Ho Chi Minh City. In the central highlands and mountainous provinces, birth rates remain the highest. Most public nurseries and kindergartens only accept toddlers aged 18 months or o lder. Consequently, parents often have difficulty in finding reliable childcare services upon their return to work. The problem is more prominent in u rban areas where a high percentage of young mothers are full-time workers. According to a Thanh Nien article in 2014, less than o ne percent of children aged 6 to 12 months are admitted into public nurseries and kindergartens in Ho Chi Minh City. Private nurseries and kindergartens are more accessible but many a re unauthorized, ill-equipped and operated by unprofessional caregivers. Although local authorities have encouraged public childcare centres to accept babies from the age of 6 months, the situation has not yet improved. If young parents are unable to engage their family members in taking care of the baby, they will have to pay more for trustworthy nurseries and kindergartens. Demand greater for locally produced wooden toys for children Parents‟ choices of infant and baby toys have changed considerably due to a recent number of cases related to harmful substances found in products and other safety issues. Parents have gradually turned their backs on cheap plastic toys, many of which originated from China and contained lead-based paint, and turned to wooden toys.

Wooden toys tend to be more durable than their pl astic counterparts. Moreover, wooden toys are mostly produced locally and are inspected and certified by local government authorities, helping ensure their quality and safety. Another appeal of wooden toy lies in their connection to Vietnamese culture. Indeed, many folk games utilise wooden toys and older people still have memories of playing with wooden toys during their own childhood. In addition, many parents believe that, thanks to their simplicity, wooden toys often spark babies‟ and infants‟ imagina tions as well as improve their hand-and-eye coordination. Japanese weaning method is on the rise Internet-savvy Vietnamese mothers can gain access to tips regarding various methods of feeding and weaning their children. While each method has its own adherents, there is nevertheless a trend amongst many Vietnamese mothers to follow the Japanese method for weaning babies aged five to six months. These mothers believe that this method provides more benefits to the development of the baby. The traditional method for weaning a baby starts when the baby is five months-old using only rice cereal or baby rice with milk o r pork broth. The Japanese style, in contrast, advocates weaning at an earlier age (around 100 days old) in order to help the baby develop two important senses: taste and smell. The Japanese method also promotes feeding the baby with a greater variety of organic food so the baby will be able to absorb sufficient types of nutrition from an early age. Therefore, many Vietnamese mothers now prepare weaning meals with vitamins (found in finely chopped vegetables and fruits), starch and protein. In addition, a growing number of mothers are using organic ingredients to prepare meals for their babies and infants, and some even grow their own vegetables at home to ensure the highest quality. Chart 2

Babies and Infants in Focus 2000-2020


Passport

5


Source:

Euromonitor International from national statistics/UN

Kids The number of Kids (aged 3-8) reached 8.9 million in 2015 and this group is projected to continue to grow, reaching 9.26 million in 2020. There are three types of institutions providing early childhood education in Vietnam: nurseries for infants from three months up to three years-old; kindergartens for children from three to six years-old; and pre-schools incorporating both nursery and kindergarten for children from three months up to six years-old. In general, public institutions are preferred for the maj ority of families due to reliability and, most importantly, their a ffordability. However, the number of enrolment slots in public institutions is very limited. As a result, affluent families often choose to send their kids to international institutions which offer premium services, albeit at a much higher cost. At the same time, financially constrained families may have their kids skip kindergarten and preschool. In such cases, the children stay at home and a re taken care of by their grandparents, neighbours or relatives. Most children enter primary school at the age of six years-old. Education at th is level lasts for five years. Primary education is free and compulsory for all children. However, many children in mountainous areas may prematurely drop out of elementary school due to squeeze on household budgets. In urban areas, children are typically taken to school by family members using private vehicles although school buses are provided by some high -end private institutions. Public transportation is mostly avoided due to safety concerns. In rural a reas, children often walk to school. Primary schools usually require pupils to wear uniforms, which include in summer white T-shirts and dark-coloured pants or skirts and jackets in winter. Some schools also require sports uniforms for extracurricular activities. According to UNESCO, although 98% of Vietnamese children are enrolled in primary schools, only 20% receive a full day o f classes. Indeed, the number of teaching hours is on average only about one-half of that in some other countries. After school hours most children attend extra classes and/or private tuition. Many teachers also organize classes at their homes. This is essentially a childcare service with studying incorporated. Normally, the school year starts in September and ends in May. The school holiday period is a tough for many busy parents, as they fi nd it difficult to find trustworthy childcare centres. Some parents are able to rely on their parents or hire live-in maids to take care of their kids. Less affluent families must often keep their children at home behind locked doors when they are at work. Summer classes and kids‟ camps are, therefore, in high demand.


Passport

6


Many children in urban areas watch television and p lay computer games on smartphones in their spare time because in most parts of Vietnam there are limited entertainment options for children. A growing number of parents are becoming concerned about this because the sedentary nature of these activities. Public park facilities are generally u nsafe and outdated, while museums are not attractive to small children due to their lack of interactive displays and games. Older children in poor neighbourhoods are usually expected to help their parents with household chores and, sometimes, to help out their family by either selling goods on the street or helping in the fields. Private entertainment centres are flourishing Improved living standards have driven demand amongst middle-class parents for private entertainment options for their kids. Moreover, parents often want their children to spend less time playing computer games and more time in outdoors. Since 2013, e ntertainment centres aimed at kids have been opened across the country. Most of them offer mocked-up streets and buildings and a wide range of activities that are favoured by both children and their parents. Many centres offer role-playing games that allow children to act out different professions such as doctor, teacher, astronaut or pilot, thus helping shape their career orientation. In addition, children can participate in interactive games specially designed to stimulate team-working skills and creativity. Other popular activities include baking classes and colouring sessions. These centres also cater to accompanying adults with shops, spas, restaurants and cafes. Related to this, in recent years parents have become more aware of the importance of art and sport in the development of their children. As a result, there has been a noticeable increase in popularity of art classes for kids, including ball et, musical instrument (mostly piano), theatre drama and drawing classes. As for sports, swimming classes are very popular because swimming is considered an essential life skill. Besides swimming, martial arts classes are popular. It is believed that martial arts such as Karatedo and Aikido do not only improve balance, flexibility and duration but also help build characteristics such as competitiveness and patience. Chart 3

Source:

Chart3 Kids in Focus 2000-2020



Passport

7


Tweenagers The number of Tweenagers (aged 9 -12) has been on a declining trend in recent years, going from 7.4 million in 2000 to 5.4 million in 2015. It is projected that there will be a slight rise in the number of Tweenagers by 2020, reaching 5.9 million. Tweenagers complete five-year compulsory primary education at the age of 11. The enrolment rate in middle schools varies across provinces and it is often at its lowest i n less affluent neighbourhoods. This is because tweens in financially constrained families may drop out of school in order to help provide for their families. Public schools are preferred to their private counterparts but in major cities admission into the top public schools is highly competitive. The most desired schools usually organise their own entrance exams, testing mathematics, literature and English. As a result, tweens often spend a l arge portion of their days in extra prep-classes or p rivate tuition. Advanced supplementary exercise books and exam practice books are also in high demand. Well-off families, on the other hand, tend to prefer to send their child to international schools for a more balanced educational experience. Most schools require their students to wear uniforms, usually a white shirt and black kneelength skirt or trousers with the school‟s badge. During the winter in Northern Vietnam, uniforms may be reduced to an overcoat or waived al together out of concerns for students‟ health. Some schools in urban areas offer full -day classes from 9am to 5pm, with meals provided by the school. However, many only hold half-day classes. As a result, at home tweens are often taken care of by their grandparents or domestic helpers while their parents are at work. For families that cannot count on the help of relatives, a parent (usually the mother) will prepare lunch for the tween before leaving for work. Tweens have easier access to the internet and by the age of 12 most have social network accounts and phones. Parents also start giving tweens a small amount of pocket money. Many spend their money on snack food that is widely sold outside school gates. Popular foods include wrapped dried beef, lemon ice cream and noodle salad. They also use money to buy comics, video games and occasional gifts. Tween girls begin to develop an interest in style icons, notably Korean and Vietnamese celebrities. Meanwhile, tween boys are often attracted by video games and online games. In 2014, the 3-D version of po pular games such as Vo Lam Truyen Ky immediately created a buzz among Tweenage gamers. Online mobile g ames based on famous Western movies or television series are also popular, including Giac Dau, Sat Thu Truyen Ky and Lien Minh Huyen Bi. Japanese Manga is also a favourite, with tweens devotedly following famous manga series like Naruto, Detective Conan or One Piece. Learning about the real world City areas usually lack greenery and available open spaces for tweens to play during the summer. Recognizing this issue, many urban parents and schools are trying to bring tweens closer to nature. However, not all families have the advantage of having relatives in the countryside, or have time for extended trips. Through word-of-mouth and recommendations on parent forums, farm visits have become a favourite summer option amongst urban families. According to an article in vietnamnet.com, on weekends prominent farms may welcome up to 200 guests. Families can enjoy a day‟s outing at a suburban farm, being submerged in surroundings that are rarely present in crowded cities. Tweens have a chance to get close to farm animals and they provide space for running and playing. They are also introduced to basic knowledge about agriculture. Further, tweens may participate in a range of farm-related activities, such as feeding rice to chickens, watering cabbage seeds or picking tomatoes.


Passport

8


Products to fight against study-related health issues gain favour Recently many tweens have started using a range of preventive products designed to fight against common study-related health issues. Attention is often paid to al ternative school bags that can help lessen the burden on their shoulders. The roll ing backpack is often favoured by late tweens due to its convenience and stylish image. Early tweens often prefer anti-hunchback backpacks imported from Japan or Germany. This unique type of backpack possesses a number of special features in its supporting straps and a curving back that fits to the kid‟s spine down to their hipbone, as well as being exceptionally light. Being imported, these b ags are usually priced in the higher range, from VND2 million. The backpacks also appeal to tweens because they are frequently seen being carried by their favourite Manga characters. In addition, products preventing myopia are also in demand. The most prominent types are anti-myopia LED study lamps which protect tweens‟ eyes. The price often depends on the origin of the product, with made-in-China lamps being the least expensive, about VND150,000 per lamp. Locally designed products are in the mid -range while imported lamps demand premium prices, more than VND1 million. Locally manufactured school materials receive wider acceptance In recent years, numerous news articles related to harmful substances contained in made -inChina stationeries have affected the behaviour of buyers. Nowadays, tweens and their parents not only examine product quality, material and design but also enquire closely about product origin. Although products from China often possess a stylish appearance that appeals to tweens by using movie images they are still falling rapidly out of favour despite their lower prices. At the same time, premium imported stationery from Europe and Japan are not taking off. According to an article in baodautu.com, affordability is the major reason, as the total cost of buying imported stationeries for a 6th grader may amount to more than VND3 million. As a result, parents and their tweenage children have turned their attention to local products sold in registered bookstore chains. While in the past, Made-in-Vietnam products were often criticised for their monotonous and unattractive design and unimpressive quality, major domestic manufacturers have been making an effort to reposition and improved their products. Many tweens are excited by the current products which feature Vietnam‟s historical heroes like Tran Hung Dao and Ngo Quyen as well as images related to the hotly debated topic of territorial sovereignty. Consumers also appreciate various promotion campaigns and discounts from local manufacturers. According to thegioitre.vn, local stationery now accounts for around 80% of all sales. Chart 4

Tweens in Focus 2000-2020


Passport

9


Source:


Teens In 2015, there were 6.63 million Teens (aged 13-17) which was a significant decline from the 8.2 million in 2010. By 2020, it is projected that there will be a small increase, to 6.8 million. The long hours spent in school, extra classes and at home doing homework usually leave Teens with little time for ente rtainment, sport and other activities. According to Tuoi Tre News, on average a teenager devotes about 10.5 hours per day to studying. As a result, only two to three hours are left for leisure. This time is mainly spent on television and on the internet. During summer holidays, the time spent on television and computers often increases to six hours or more. Only 43% of male students play sports. For girls, this percentage falls to just 29%. Although most schools have student organisations, their role is limited. Instead, teenagers tend to prefer to join common interest groups that they form on social networks. In urban areas, it is common for teens to possess computers, smartphones and other digital devices. These gadgets are usually used for entertainment rather than educational purposes. Mobile subscription companies have realised the huge potential of the teen consumer group and have introduced various plans especially designed for them, including compiled channels with latest trends, games and music as well as online teen beauty competitions. Facebook is the most popular social media site, while teens also make use o f Instagram to post selfies and post images. Teens often play a pivotal role in setting new trends and they are also more likely to be swayed by fads. By this age, most teenage girls and many teenage boys have become imageconscious. Urban young girls begin to use varying degrees of make -up to school, dye their hair and alter their uniform into the skinny-fit style. Popular interests include celebrities, television shows, video and mobile games, movies, fashion and football teams. The last few years have witnessed the unprecedented rise of V-log, a type of blog using video, fuelled by the prevalence of YouTube. As a result, the number of V-loggers has gone up significantly in recent years, such as An Nguy, Huyme Productions and Pho Dac Biet. They enjoy a strong follower base with millions of online followers, mostly made up of teens. Celebrity idolisation is prevalent, attracting numerous debates both online and in school. Korean movie stars and music bands, such as Kim Soo-hyun, SNSD and Big Bang have boasted the highest number of fans. Among Vietnamese stars, Son Tung-MTP, with a series of music hits, has emerged as the hottest phenomenon in 2014. In general, celebrities have great influence on teenagers who are willing to spend their all pocket money on albums, concert tickets and related accessories.


Passport

10


Electric bicycle remains as a hot trend among teenagers Electric bicycles have been present in Vietnam for about 10 years and they are particularly popular amongst teens. Because electric bicycles allow riders to alternate between pedalling and using an integrated motor, both the commuting time as well as the physical effort required from riders are considerably less than those of non -motor bicycles. Moreover, buying an electric bicycle is much less of a hassle compared to buying a motorbike, since registration with the transportation authority is not required. In fact, transportation laws prohibit people under the age of 18 from riding a motorbike, though that is often ignored in places where the laws are not strictly enforced. Nevertheless, parents believe electric bicycles are a safer choice considering their lightness and lower speeds. In addition, electric bicycles have a chic and sleek look which appeals to teenagers. Chart 5

Teens in Focus 2000-2020

Source Euromonitor International from national statistics/UN

Young Adults The number of young adults (aged 18-29) had risen consistently throughout the 2000s and peaked at 20.8 million in 2013. Since then, the size of the group has been slowly declining to reach 20.4 million in 2015 and is expected to continue falling to just over 18.2 million people in 2020. Young adults are the second largest consumer group, representing nearly 22% of the population in 2015. This group can be split roughly between those who are studying at universities, colleges or vocational schools, and those who have left full -time education to work. Being a society heavily influenced by Confucianism, the Vietnamese hold a high regard for degrees and certificates. Parents often consider their children‟s academic successes as a major part of their own life achievement. The growth in average income level has also allowed more families to send their children to universities. The percentage of population aged 15 and above enrolling into higher education has therefore risen consistently, from 5.8% in 2000 to 7.3% in 2014. The number of public and private universities and colleges has also increased from 178 in 2000 to 427 in 2013, according to the Vietnam General Statistics Office. The job market in Vietnam still heavily favours certification. Consequently, most young people will choose to enrol in graduate schools for Master‟s degrees while they are in their 20s to


Passport

11


enhance job promotion prospects. However, a PhD is often considered suitable for men only and women are generally discouraged from obtaining a doctorate since it may reduce their chance of marriage. Coupled with the robust number of openings of new colleges and a slowdown in the economy, about 40% of recent graduates are unable to secure suitable jobs upon graduation, according to a Vietnamenet.vn article in 2015. The competition in the banking and finance sectors is among the fiercest as only a small percentage of candidates meet companies‟ requirements for experience and soft skills. On the other hand, the recent boom of local IT start-ups and freelancing work, as well a s the arrival of multinationals, has created a shortage of qualified manpower in technology. As a result, IT-related courses have become the new favourite among young males. Although there are demands for graduates in sciences and engineering, low salary prospects do not attract the brightest students to enrol. As Vietnamese society still treasures traditional values, marriage is regarded as an important life achievement. According to WHO, the average marriage age is 26.6 for men and 22.8 for women. Urban women often consider getting married only after graduating from university and working for a few years. However, most people still tend to prefer to get married around the age of 25 for women and 27 for men. Generally, young adults are adept at using the internet and they often spend time online to obtain information, be entertained, socialize, find jobs and buy products. Moreover, young adults increasingly use social media as a major channel to express themselves. Reliance on the internet has also led to the overwhelming popularity of smartphones. Football is the predominant spectator sport in Vietnam, with the English Premier League being the most popular league. It is not uncommon for young men to gather and watch important matches together at home. The majority of women hardly follow sport. Rather, they tend to keep up with the latest fashion trends. Korean style is still the favourite among office ladies. Visiting shopping malls and meeting friends at cafés or local food stores, especially after nightfall, are popular leisure activities for young adults. They also enjoy going to the cinema for the latest movie releases. Reality shows such as The Voice, Amazing Race and Daddy, where are we going? are popular TV options. Real-life adventure games gain popularity among young adults Young adults no longer confine th emselves to traditional entertainment choices and are frequently on the lookout for new experiences. Since 2014, urban young people have become attracted to a new group activity called real-life adventure games in which a team of three to ten players are locked together in a room of different themes. The themes are often b orrowed from famous movies like Sherlock Holmes or Saw. Participants are expected to find different clues, solve a series of mind puzzles or conquer physical challenges and escape the room within a time limit. Although this type of game has only recently been established in Vietnam, it was an instant hit. During the first few months, game centres were reported to have as many as 1,000 guests per week. Young people find the game appealing as a way to stand out by successfully solving puzzles and overcoming physical obstacles. The game also satisfies their sense of adventure and challenges themselves to step out of their comfort zone. Moreover, it i s a good team building activity for young office workers. A ticket back to childhood: colouring books for young adults Many young people, particularly office workers, no longer have the energy to hang out frequently at night or during weekends and they have begun seeking for simpler, alternative entertainment options. Consequently, colouring has become an unexpected and popular trend. Colouring books for adults are much like those for children but the level of complexity and detail is significantly higher in adult books. Many young people use the activity as a way to


Passport

12


improve their patience and to take a break from their fast-paced lives. It is also a channel for them to reconnect with their childhood. Young adults a lso like to share their coloured pictures on social media such as Facebook or Instagram. The two most popular books are Animal Kingdom and Secret Garden.

Young People Opt To Travel During Traditional Tet Holiday The conventional concept of the Lunar New Year (“Tet” in Vietnamese) as a time for extended family has lost its appeal among young adults. Considering themselves independent and funseeking, the younger generation, particularly people in their mid-20s, have increasingly turned to travelling to break out from traditional customs. Moreover, Tet is the only occasion during which everyone can forget their work temporarily and they choose travelling as a great way to bond

with friends and partners. Travelling is also a good opportunity to truly relax, as the traditional Tet at home often involves a great deal of food preparation, shopping and house visits. Destinations of choice include famous beaches in the Southern and Central part of Vietnam. In addition, the more affluent young people also choose to visit South East Asian neighbours such as Singapore, the Philippines and Thailand. Single young adults like to backpack on their own or with friends, while young families often opt for all-in tours. Chart 6

Source:

Young Adults in Focus 2000-2020


Middle Youth The size of the Middle Youth cohort (aged 30-44) has been growing rapidly, going from 16.9 million in 2000 to 21.7 million in 2015. In 2020, this segment is projected to reach 23.5 million, a dramatic increase of 38% since 2000. Representing just more than 23% of the population, this was the largest cohort in 2015. Personal hobbies and entertainment, which characterize young adults, are gradually replaced by concerns about family, health and personal development during these years. While Middle Youth have become more health -conscious, they nevertheless enjoy traditional Vietnamese street food like mung-bean cake, fermented sausage and fried carrot cake. On the other hand, men, particularly those below the age of 40, do not proactively monitor their diet. Alcoholic drinks, tobacco and unhealthy snacks are often consumed regularly.


Passport

13


Many young Vietnamese buy their first house at this age , often with financial support from their parents. With rising land prices in major cities, many families have opted for apartments as opposed to houses with land. In addition, cars and expensive smartphones are sought after because they are seen as status symbols. Worries about ageing amongst many women have led to the popularity of skin-care and supplement products aimed at rejuvenating the skin, such as collagen. Since Middle Youth often have more d isposable income than young adults, they are more willing to pay f or branded products. Children are at the centre of Middle Youth households. Parents are willing to provide their kids with the best products and educational choices available. Imported formula milk from Europe or the US, Made-in-Vietnam clothing and branded medicine are among the products in highest demand. Moreover, parents with school-aged children also compelled to spend on school infrastructure fees (including insurance and teachers‟ gifts), extra classes and art classes which cost up to VND5 million per month. According to vietnamnet.vn, in 2015 these costs in some cases drained one-half of the combined salaries of m iddle-class parents. As a result, many families often curb other household spending, including spending on dining out and entertainment. Some find they must take out personal loans to cope. Packaged food preferred by busy Middle Youth The Vietnamese place great emphasis on traditional home meals. It is usually around the dining table where most of the family bonding takes place and where husbands and wives discuss household issues and children update parents about their school day. However, both parents in most urban Middle Youth families are working full-time and, unlike their own parents, they have less time to shop daily for fresh ingredients and prepare dinner at home from scratch. Consequently, many Middle Youth mothers increasingly turn to pre -cooked and packaged food as they juggle between jobs, household chores and time spent with their children. Packaged food enables consumers to choose from a great variety of dishes and enjoy the comfort of a family meal at home while saving considerable preparation time. In addition, as the origin of produce in wet-markets is sometimes dubious many prefer packaged food which is subject to higher quality inspections by local authorities and supermarkets. According to an article in tuoitre.vn in 2014, the total consumption of pre-made and packaged food has been increasing by approximately 500 tonnes per year. Common food types popular amongst consumers are a mix of both traditional and foreign-influenced cuisine, such as Vietnamese sour fish soup, stuffed tofu, stewed beef, braised pork and siu-mai. Beside local brands, products of international food chains from Thailand, the US and Europe are popular. Less-affluent parents rent branded toys for their kids Branded toys with prices ranging from a few to tens of millions of VND are unaffordable to many Middle Youth parents who have just started a family and have to devote spending on bi gticket household items. Coupled with the fact that children outgrow their toys fairly quickly, many parents have turned to renting toys as an alternative. With an average fee of VND50,000 per week or VND150,000 per month, parents can provide their kids with reliable and high -quality toys while keeping household spending in check. The wide variety available is the attraction of renting toys as p arents can switch to new types of toys multiple times per month, therefore keeping their child stimulated and entertained. In addition, renting also frees up storage space in the household, a particular benefit to those living in space-limited apartments. Chart 7

Middle Youth in Focus 2000-2020


Passport

14


Source:


Mid-lifers The number of Mid-Lifers (aged 45-59) has more than doubled in the past 15 years, going from 7.9 million in 2000 to 16.1 million in 2015. This age group is projected to increase to 17.7 million, or 18% of the population in 2020. Many were born during the hardest years of the Vietnam War (1956 - 1970) and spent a large proportion of their youth in the subsequent closedeconomy period when Vietnam severed its ties to most countries. These years of chaos and extreme poverty have shaped their attitudes and made most cautious and thrifty. Many in this cohort got married early and, in turn, their children are already adults and working. In such cases, those aged 50 and above tend to spend time looking after grandchildren. On the other hand, Mid-Lifers with adolescent children are preoccupied with concerns over their children‟s educational prospects. They view degrees as a guarantee for the future of their children. Consequently, many worry about finding good tutors or extra classes for their kids. Affluent Mid-Lifers tend to prefer to send their kids to study overseas in hope of a better education and better job opportunit ies. The majority of Vietnamese Mid-Lifers, particularly those working in the public sector, will work until retirement in the same organization. Members of this age group are usually at the height of their careers and th us have more disposable income than members of other age groups. Most people in this group already possess at l east one house. However, as they often have more than one child, many still save vigorously to ensure their family‟s financial stability. Being cautious and generally lacking sophisticated financial knowledge, Mid-Lifers tend to keep their money in traditional forms of savings such as gold, fixed deposit accounts or real estate. This generation grew up with a strong sense of family and community. Being on one‟s own is considered being sad and lonely rather than being an expression of independence. Hence, they seldom travel on their own for leisure. Most Mid-Lifers go on vacation with their f amily or on company-organized trips. They tend to value convenience and comfort, especially when they are on holiday and they prefer tours and all-inclusive deals with accommodation and transportation provided. Rising demand for self-care medical devices Being more health-conscious, Mid-Lifers not only take up regular exercise and eat healthier food but also start using self -care medical devices to monitor their day-to-day personal health. Many like the fact that these self-care medical devices minimize their need for visits to the


Passport

15


doctor and allow them to take care of their health in the convenience and comfort of their homes. Demand for self-monitoring devices, such as blood pressure monitors, heart rate monitors or sleep apnoea monitors, is on the rise. Although some may seek a doctor‟s consultation, many make their purchase decisions purely based on friends‟ and acquaintances‟ recommendations. Quality is of the utmost priority in the purchasing decision. Chart 8

Source:

Mid-Lifers in Focus 2000-2020


Late-lifers While Vietnam still has an essentially young population, it is evident that the population is ageing. The number of Late-Lifers has grown from 6.9 million in 2000 to 9.6 million in 2015 and it is projected to reach 12.3 million in 2020, 12.5% of the total population. The increase is being driven by longer life expectancy due to higher living standards and more accessible quality medical services. The current retirement age is 60 for men and 55 for women. However, there have been discussions about raising the retirement age to 62 for men and 60 fo r women to reduce the burden of pensions on the government‟s budget. According to an article from Baohiemxahoi.vn, approximately 50% of the total work force has regularly contributed to the government-run social insurance fund for at least 15 years, which entitles them to an allowance upon retirement. In general, pensioners receive a monthly allowance of up to 75% of their last five to seven years‟ monthly salary. This allowance is funded by both their own contributions to social insurance and their employers‟ contributions during working years. Since social insurance in Vietnam is a defined benefit plan, any deficit is borne by the government. Late-Lifers who are not entitled to pension income tend to rely on private savings as well as their children‟s financial support. Income reduction due to retirement, coupled with high inflation, often adversely affects the consumption behaviour of this group. Some find their allowance or savings inadequate to cope up with the increasing costs of energy and daily staple goods. Nhan Dan Newspaper reported that around 70% of the elderly do not have sufficient savings to protect themselves from higher costs of living. Consequently, many elderly citizens, particularly those with low pension incomes, usually have to rely on their children to a certain extent. On the other hand, a small number of pensioners in affluent families usually enjoy more comfortable retirement years given their


Passport

16


savings and their ownership of land or houses. They usually have access to better medical services and live a healthier lifestyle. Some can even contribute a part of their income to help raise their grandchildren. Financial considerations are one of the reasons for late retirement. In addition, many find it difficult to adjust to the post-retirement life. The change in daily routine a nd missing workplace friendships become the sources of stress and depression for newly retired people. Many retirees take up new hobbies and interests such as ballroom dancing, singing and l iterature and participate in neighbourhood social clubs. Morning health clubs in which pensioners gather to practise tai chi are also popular. Seniors with young grandchildren often focus on taking care of the kids when the parents are at work. Some find part-time jobs to support themselves and to keep their minds and bodies active. Taking care of aging parents is common in Vietnamese society. Nearly 70% of the elderly live with their children, usually their sons. However, in rural areas where most labourers migrate to big cities for job opportunities there are often only older people and kids living at home. Homes for the elderly are still not common in Vietnam, mainly because it reflects poorly on those who choose this option. However, in recent years social prejudice against homes for the elderly has shown the first signs of easing, as busy work schedules prevent many people from taking proper care of their parents. Elderly consumers demand products that offer health benefits The growth in annual disposable income levels in the last five years has allowed many middle-class families to take better care of their elderly parents and grandparents. Thanks to recent television programmes and articles in magazines, demand for food products and ingredients that better fit the needs of older consumers has emerged. Indeed, products developed with seniors in mind have seen significant increased demand According to an article in Sai Gon Tiep Thi Magazine in 2015, demand for food supplements for the elderly, such as milk powder and nutrition cereals, has increased steadily. Other popular foods in clude products with high calcium levels, bird‟s nest, black garlic and chicken essence in Chinese medicines. Many older consumers choose imported brands, as local products are perceived to be of lower quality and lacking in variety. Demand for homes for the elderly emerges A decade ago, people whose elderly parents stayed at nursing homes were widely looked down upon in Vietnamese society because traditional values dictated that children live with and take care of their aging parents in order to fulfil their filial duty. Recently, however, the social prejudice against nursing homes has started to ease, and in major cities such as Hanoi and Ho Chi Minh City a number of modern high-end nursing homes have been opened. Customers are usually from affluent families that can afford the relatively high prices of this service. Many cite concerns for health and safety as t he main reasons for choosing nursing homes for their parents. Busy work schedules prevent many working professionals from taking proper care of their parents. Thus, nursing homes have become an inevitable choice for some, especially if their old parents have health problems and require constant care. In addition, a s security levels in most cities decline, the thought of having their old parents staying at home alone for at least eight hours per day can often be unsettling. Some families may choose to hire live-in maids but it is generally difficult to find qualified domestic helpers to take care of the elderly. Consequently, professional healthcare, higher security and the possibility of meeting other people of the same age in nursing homes hold appeal to both the elderly and their children. Chart 9

Late-Lifers in Focus 2000-2020


Passport

17


Source: Note:

Euromonitor International from national statistics/UN Old-Age Dependency Ratio: % of persons older than 65 per persons aged 15-64

HOUSING AND HOUSEHOLDS

Home Ownership In 2015, there were 24.96 million home owners, which made up about 92% of the total number of households. This overwhelming preference for home ownership stems from the prevailing belief that buying a hou se is a major achievement in life. However, in recent years the number of people renting has been on the rise, from just over 1 million in 2005 to 1.65 million in 2015. This has been as a result of the sharp spike in housing prices in major cities following the continuous influx of labour from the countryside. Most people who rent are students, single office workers and low-income families. Permanent renters are rare as most are typically saving to buy a house later. Houses with land are more popular than apartments and they represented 63.5% of the total number of dwellings in 2015, as the traditional notion of wealth places a strong emphasis on land possession. Land is also considered a valuable retirement investment and an effective buffer against inflation. Moreover, new apartment complexes are often situated on the outskirts of cities, far from major conveniences such as quality high schools and hospitals. Houses with land also give home owners more freedom in desi gning their own dwellings and control over construction quality. Nevertheless, the number of people living in apartments has risen from seven million in 2005 to 9 .9 million in 2015 as land has become extremely scarce in urban areas. In general, the h ousing market has shown strong signs of recovery. Throughout 2014 and 2015, both the aggregate supply and demand have increased significantly. According to an article in vnexpress.net, the number of new houses for sale in Ho Chi Minh City in the first quarter of 2015 was double that at the end of 2013. Despite the high volume of offerings, the proportion of successful transactions remained positive: An article from vietnamnet.vn reported that the absorption rate in the first six months of 2015 was equal to that of the whole 2014. The overall positive market outlook has led to growth in housing prices. In major cities such as Ho Chi Minh City, demand has begun to surpass supply for houses below VND2 billion. Most of the demand comes from migrants seeking employment in major cities. Moreover, young generations have increasingly chosen to move out of their parents‟


Passport

18


home and live on their own, creating a high demand for 1- and 2-bedroom apartments. The government‟s VND30,000 billion social loan package has also proved to be effective in helping low-income families finance house purchases. According to an article in crbevietnam.com, about 40,000 workers borrowed and transferred from renting to buying a house in 2015. Interestingly, unlike previous years, the high-end segment (with price above USD1,500/m2) has experienced a high volume of transactions as well. The new Property Law is expected to benefit high -end projects in central locations. Demand in this segment is fuelled by foreigners as well as domestic investors moving their money from other investment channels and thus is fairly balanced with supply. Projects in less convenient locations, on the other h and, are experiencing a shortage in demand. Buyers seem to be wary of scams from property companies in the past, and thus are mostly interested in finished projects only. On average, Vietnamese buy their first home while in their mid-30s after starting a family. However, these first-time buyers usually receive financial help from parents as housing prices often exceed the average income. People like to live in crowded city centres where they can be near to quality schools, hospitals and big markets. Most families choose to renovate their houses and add more floors when their family gets bigger, since buying a larger hou se in city areas is often unaffordable. The Vietnamese prefer houses with open space and na tural light. A garden is also desirable. Houses in the countryside often contain spacious courtyards with fruit trees. However, due to the scarcity of land in city centres most urban households try to maximize indoor space by forgoing a garden. In order to maintain an element of green, almost all houses are built with a balcony which people often decorate with plant pots or vines. Trees are also often placed in living rooms or along corridors. Chart 10

Source:

Home Ownership 2000-2020

Euromonitor International from national statistics

Household Profiles The percentage of households made up of couples with children is gradually declining, from 41.6% in 2005 to 37.6% in 2015. It is projected that his type will further decrease to 35.8% in 2020. On the other hand, the number of households with couples without children in 2020 will almost double from that in 2000.


Passport

19


The percentage of households with single occupants has grown consistently, going from 5.6% in 2005 to 11.2% in 2015. In large part, this is due to more young men and women delaying marriage to pursue higher education or careers. However, most of them still prefer to get married eventually. Staying single beyond a certain age threshold (30 for women and 35 for men) is considered highly undesirable. Similarly, as divorce is still a sensitive issue in Vietnam, the proportion of single parents has remained quite stable, at around 14.5%, in recent years. It is a social norm for grown children to live with their parents if they reside in the same city. This helps parents take care of their kids‟ daily life. It also relieves some of the financial burden off young people‟s shoulders. Many Vietnamese men still choose to live with parents after marriage, although this practice has begun to f all out of favour in urban areas. Few people live with their partners before marriage since society does not tol erate such practices. Young people living away from home, on the other hand, often rent a room or apartment with one to five friends, mostly in serviced apartment complexes. Traditionally, Vietnamese household pets were mainly cats, dogs, fish and birds of local or mixed breeds. Cats and dogs were raised for practical reasons such as house guarding rather than for companionship. Thus, pets usually were fed leftover food and pet care garnered little attention and pet owners were not in the habit of taking their pets to veterinary surgeries for check-ups or vaccinations, particularly in rural a reas. However, in large cities more households have begun to consider pets as a source of emotional support, especially for kids, and thus they are given better care. As a result, shops specialising in pet products and services, such as spas, apparel, cushions and toys, as well as vet clinics, have been flourishing. These services appeal mostly to affluent households since a spa session for a dog can cost up to VND500,000. Affluent households tend to adopt expensive foreign breeds such as poodles, Alaskans and huskies for dogs and English shorthairs for cats. These luxurious breeds can cost VND 7 million to 14 million. Chart 11

Source:

Household Profiles 2000-2020

Euromonitor International from national statistics

Running Costs The cost of electricity, gas and other fuels per household has been rising rapidly, from just over VND1.6 million in 2005 to more than VND2.6 million in 2015, and it is projected to nearly


Passport

20


triple by 2020. According to a 2 015 article in news.zing.vn, energy costs take up to 66% of the average monthly disposable income. Due to severe droughts in major reservoirs during the summer months and the monopoly in Vietnam‟s energy sector, electricity prices are increasing. The latest price revision in April 2015 saw the average charge jump by almost 7.5% to VND1622/kWh, the 10th increase since 2007. This price adjustment severely affected urban dwellers who use air-conditioners extensively to combat the summer heat. Despite the high prices, households still experience rotational power cuts during peak periods such as sunset hours. In response, energy consumers are cutting their electricity consumption to minimum levels. Electrical appliances such as dishwashers and dryers a re seldom used in most households. People also save energy by sleeping in the same room to utilize a single air-conditioner, using bamboo mattresses, planting trees indoors and opening windows and turning on fans when possible. Do-it-yourself cooling methods such as home-made ai r-conditioning from iceboxes are popular among students. On unusually hot days, many people t ake advantage of shopping malls, coffee shops or cinemas to escape the heat. In contrast, gas prices decreased consistently throughout 2015 thanks to the decline in global petroleum costs. Many families who switched to electric cookers a few years ago due to safety concerns have returned to gas cooking to avoid falling into a higher surcharge bracket. Moreover, users of gas stoves do not have to worry about power cuts during peak periods. Financially constrained households, mostly blue-collar workers and students, are increasingly turning to country-style charcoal cookers as a cheaper alternative, although they are aware of the harmful effect of coal smog. Students living in the same serviced apartment complex also share coal cookers with one another to reduce fuel costs. Due to high el ectricity costs, energy-saving appliances are in high demand. Popular smart appliances include air-conditioners using inverter technology and human activity detectors that reduce as much as 40% of energy waste. New models of washing machines can also monitor electricity usage. Households are replacing traditional incandescent bulbs with high -productivity, long-life LED bulbs. According to a 2015 article in itcnews.vn, the number of consumers buying LED bulbs increased by 20% after the electricity price revision. However, renewable energy is still fairly new in Vietnam. Only a small proportion of households use solar energy for heating water although this may change as a result of the government‟s recent public awareness campaign and a VND1 million-per-panel subsidy programme. Unlike members of the older generation who were used to doing household repair jobs themselves, young adults tend to undertake only minor tasks such as fixing drain blockages. Major household maintenance is often carried out by p rofessional contractors. Due to the constant influx of labour from the countryside into urban areas, these workers are readily available. As a result, the a verage maintenance cost per household has been rising steadily, from VND185,133 in 2005 to VND219,968 in 2015. Increasing demand for fire-prevention devices There has been high and growing demand for apartments in urban areas and there have been numerous new projects offering buyers a wide range of choices, from low-cost social apartments to luxury condominiums. However, the safety aspect of those projects, especially in the budget segments, is often of g reat concern to home buyers. According to an article in tieudungplus.vn, of the 779 ongoing projects in Hanoi in the second quarter of 2015, 181 projects had not been certified with regards to fire prevention. As a result, a large number of fires in apartment complexes have made recent headlines and provoked worry among apartment dwellers. The increasing concern regarding safety has prompted a growing number of consumers to buy fire prevention devices. Popular equipment includes oxygen masks that enable wearers to


Passport

21


run through heavy smoke, mini-extinguishers and fire escape ropes and ladders. According to an article in baomoi.com, demand for fire extinguishers increased more than 100% in 2015 compared to prior year. However, the quality and price of products varies greatly depending on their origin. For example, local or Made-in-Asia oxygen masks range from VND160,000 to VND180,000, while the same equipment imported from Europe may cost more than VND600,000. Chart 12

Source: Note:

Household Running Costs 2000-2020

Euromonitor International from national statistics/UN In constant 2015 prices

MONEY AND SAVINGS

Attitudes Toward Payment Methods Cash is the most prominent method of payment in both rural and urban areas a nd it is often the only option available in restaurants, retail outlets and grocery stores. Consumers also use cash to pay for utility bills and gasoline. Use of cheques is l ow due to fraud concerns and long processing times, although this payment method has been available in Vietnam for years. Only a small number of companies use cheques for business transactions. Despite being in a cash-based society, many urbanites do not carry a lot of money around with them because ATMs are widely available. As of 2015, there were about 15,000 ATM machines and eight million ATM cards in circulation. According to an article in Saigontiepthi.vn, 88% of bank cards in Vietnam are ATM cards. Almost all companies, including government and state-owned enterprises, have switched to paying salaries directly into employees‟ bank accounts. By October 2014 there were more than 175,000 Point-of-Sale (POS) machines in Vietnam, mostly in urban areas. The rise of POS machines is attributed to the opening of modern supermarkets and convenience stores around city centres and in high-rise condominiums. Consumers generally use debit cards and credit cards for payment of ai rline tickets and purchases from overseas retailers. The use of credit cards is limited in great p art due to high maintenance fees, low security (which leads to high probability of loss and identify theft) and a general lack of financial knowledge amongst most consumers. According to Dan Tri newspaper,


Passport

22


several retail operators charge an additional 2% to 3% of the total purchase value for credit card payments. Interbank (telegraph) transfers continue to be a popular payment method for online shoppers domestically. Online domestic retail websites do not usually support financial card payments. These small businesses prefer telegraph transfers, bank transfers and/or cash payments. Recently, mobile payments using a digital wallet service has attracted a great deal of attention from Vietnamese consumers, especially young consumers. Among the most popular apps are international brand names such as PayPal, Google Wallet, Apple Pay and local giants such as Momo, VinaPay, VnMart and BaoKim. In the future, with th e increasing number of smartphone users and a better infrastructure, mobile payments are likely to become more popular.

Savings In 2015, the saving ratio in Vietnam was 3.3%, which is considered very low as compared to international standards. This ratio has remained relatively stable over the past decade and is likely to remain much the same by 2020. This l ow saving ratio is mainly due an inability to save due to the high cost of living compared to income level rather than to extravagant spending. In Vietnam, a conventional method of wealth preservation and hedging against adverse financial events has been to buy gold and jewellery. This savings method is favoured by MidLifers and Late-Lifers. Foreign currencies, especially US dollars and euros are also popular investments. Although the Vietnam dong has been on a rising trend recently, Vietnamese consumers in general have low confidence in the stability of the domestic currency. Nevertheless, since 2011 the government has introduced various measures to prohibit buying and selling gold and foreign currencies via unofficial channels (such as goldsmith„s stores) in order to prevent speculation. Those who break the reg ulations have their gold and money confiscated. The resulting difficulty in buying and selling gold and foreign currencies has gradually reduced preference for these savings methods. Real estate remains as one of th e most popular forms of investment among the more affluent. Despite constant fluctuations in the property market, the majority of Vietnamese believe that land prices, especially in urban areas and near industrial parks, will rise in the long run. This belief partially stems from a deeply rooted aspect of the Vietnamese culture: a man‟s wealth is measured by the land he possesses and a man with a house is a respectable man. With access to banking services growing, many have opted to put their money in savings accounts to earn a low-risk return. This is widely attributed to the increasing fluctuation of gold and real estate prices. Vietnamese consumers tend to shy away from the more financially sophisticated forms of savings. Only a minority of consumers use life and health insurance as a form of savings. A study by the National University of Vietnam estimated that only 6% of Vietnamese buy life insurance for savings purposes. This is because most do not understand the rules and conditions of various insurance policies and are afraid that they will not be able to recover the value of their investments due to these restrictive rules and conditions. Similarly, other sophisticated forms of savings, such as buying shares/stock and unit trusts are being used by only a small group of financially savvy investors. There is no government scheme that promotes savings. The retirement plan in Vietnam is the defined benefit type and thus does not encourage extra contributions. Some Vietnamese who are not on their employers‟ retiremen t plans are willing to contribute to voluntary social insurance schemes in order to be eligible for retirement income. This is also considered an alternative savings method.


Passport

23


Loans and Mortgages In Vietnam, the application process for short-term credit loans with banks is usually complex and time-consuming. Therefore, when low-income consumers need u rgent personal loans they tend to try to ei ther borrow from relatives or friends or go to pawnshops or loan sharks. In fact, the Central Bank of Vietnam values the „black credit‟ market at around USD50 billion with about 30% of total credit provided by ill egal moneylenders. However, with the development of the banking system and various marketing programmes, consumers have a better understanding of the application process of consumer loans. In addition, banks have started to simplify the application process in order to make banking services more customer-friendly. As the result, the number of borrowers who are willing to turn to banks for short-term loans has increased in recent years. The housing prices in Vietnam‟s major cities are high in relation to average incomes. Consequently, middle- and low-income consumers often find it difficult to afford to buy houses in major cities. According to an article in Hanoimoi.com, the average price for a landed h ouse in Hanoi in 2015 was VND25.4 million per sqm, while the average income was VND40 million per year. A two-bedroom flat on the outskirts of the city is currently at least VND800 million per apartment, which still largely unaffordable for most families on a budget. Consequently, mortgages have become an option for low-income families who aspire to become homeowners. In 2014 the housing mortgage market in Vietnam was valued at VND158,188 billion, an 11% increase over 2013. However, many still view mortgages with trepidation. One reason is that mortgage interest rates are floating interest rates. Thus, borrowers worry that during periods of high interest rates they will not be able to afford the payments. Moreover, consumers are often confused about the overall application process, which remains complicated and lacks transparency. Nevertheless, banks have started to ease underwriting standards to attract more customers. Young consumers borrow to acquire big-ticket household items Vietnamese consumers in their late twenties and early thirties often purchase multiple bigticket items in a relatively short period of time because many are establishing their own households after marriage. In the past, people of this age were comfortable with living with their parents on a long-term basis after marriage. Now, however, most have started looking for their first house while in their early 30s. But even after saving and securing financial support from their parents, many young couples still find it di fficult to afford to buy needed household items. As a result, they increasingly turn to personal loans to cover purchases of household durables as well as vehicles. They believe that by carefully calculating the amount and timing of repayments, they will be able t o finance such items and still live within their means. This group of consumers are often relatively sophisticated about personal finance. Many banks have recognised the emerging trend and are taking initiatives to simplify the application process for personal loans. Additional privileges tied to bank loans, such as merchandise discounts, are also considerably attractive for younger consumers. Mobile payments still to come of age Though mobile payment options have been available in Vietnam since 2008, it has not been until recently that consumers have become familiar with this payment method. Many have begun to use digital wallet services to pay for phone bills and to make online purchases. In particular, urbanites with increasingly easy access to mobile payments have driven this trend. Nevertheless, consumers still face several obstacles when seeking to use mobile payment methods. One major drawback is the underdevelopment of the e -commerce infrastructure in Vietnam. Because most stores do not offer online presence or online payment support, mobile


Passport

24


payments can usually be used only for online purchases from overseas retailers. Consumers still have to carry cash since day-to-day small transactions such as paying for a meal cannot be done via mobile phones. Consumers also cite concerns over banking security and data privacy as reasons that discourage them from using mobile payment services. Chart 13

Source: Note:

Borrowing and Saving 2000-2019

Euromonitor from trade sources/national statistics Outstanding balance in constant 2015 prices

EATING AND DRINKING

Eating Habits In Vietnam, enjoying a meal together, whether dining out or at home, is an important way of bonding with family members, friends, colleagues and business contacts. Thus, social and family gatherings always feature food. Most Vietnamese do not have any reli gious or social restrictions on what they eat. Therefore, they regard international cuisines with both wonder and curiosity and they are usually open to trying new types of food. Thai, Korean, Japanese and French cuisines are popular because of their wide availability in major cities. Consumers usually dine out in order to enjoy food that cannot be prepared easily at home, for celebrations and to conduct business. Young couples frequently dine out because most of them live with their parents before getting married and dinner dates are often the only private time they can spend together. Families with young children are l ess likely to dine out, as restaurants in Vietnam are usually not child-friendly. However, dining out is not necessarily a formal or expensive affair in Vietnam. There are many affordable options for budget or casual dining. Small family restaurants and street vendors selling local dishes are common and well -integrated into people‟s daily lives. Being a family-oriented culture, family dinners are considered important. Although consumers dine out more often as a result of tight work or study schedules, many families still desire to uphold the tradition of having regular family dinners at home. Some busy families even order home-cooked meals from online vendors while others turn to packaged foods. In terms of cookware, various types of rice cookers are present in almost all kitchens as rice is the staple food of the Vietnamese. Most traditional home-cooked and comfort food in Vietnam


Passport

25


does not involve roasting. Thus, many families do not have an oven. However, many young women recently caught up in „baking fever‟ have installed ovens and they are now essential items for the modern kitchen. Similarly, baking tools such as baking tins, cutters, food mixers, measuring spoons and jugs are often used. Multi -function intelligent rice cookers with baking functions, being more value for money, are also p opular among aspiring bakers. International desserts are hot favourites amongst young consumers Vietnamese cuisine does not feature a wide variety of sweet desserts. Moreover, traditional desserts are often sold by street vendors and presented in a rustic way and they lack the „cool vibe‟ that resonates with young customers. Consequently, young people tend to enjoy exotic and beautifully presented Thai, Korean and Japanese desserts. One favourite is Patbingsu, a dessert originating in Korea, which commonly includes shaved ice, chopped fresh fruit, condensed milk, syrup, jelly and red bean paste. Thai desserts such as coconut ice cream with sweet toppings served on a halved husk, mango glutinous rice, and durian glutinous rice are also popular among young consumers. Consumers use apps and social media to check out restaurants Many Vietnamese consumers have turned to social media and apps when deciding where to dine out. In the past, diners usually relied on more traditional methods, such as word o f mouth recommendations or reviews in magazines and newspapers. However, tech -savvy consumers now prefer apps and websites that specialize in restaurant reviews such as Foursquare, Foody.vn, and Thodia. Many Facebook users also follow pages that are dedicated to food reviews such as Diadiemanuong. These pages are extremely active, posting new posts and new comments continuously. Another reason for the popularity of food apps and social media is the seemingly endless supply of visual „proof‟ as many c onsumers make a habit of taking pictures of everything on the table. Chart 14

Source: Note:

Food Expenditure Profile 2000-2020

Euromonitor International from national statistics/Eurostat/UN/OECD In Constant 2015 prices


Passport

26


Drinking Habits In Vietnam men are expected to drink during social gatherings in order to socialise. But excessive consumption of alcohol is frowned upon. W omen are often encouraged to drink moderately as well, but not to the extent of men. Many men like to collect imported premium wines and liquors as a status symbol. Imported wines make fine gifts for special occasions such as the Lunar New Year. With rising living standards and more disposable income, Vietnamese consumers have become more familiar with different types of wine and wine etiquette, such as how to pair wine with food. Although its popularity has dwindled during the Tet holiday, beer, whether it is craft beer or imported expensive bottled beer, is still widely popular among drinkers of all ages. Annual per capita spending on beer was VND140,384 in 20 15, which was significantly higher than that of wine and spirits. Cocktails or mixed alcoholic drinks have become more widespread in cities, especially popular among younger consumers because they are viewed as being trendy and chic. Alcoholic drinks are mostly served in beer gardens, bars, pubs and most restaurants at affordable prices. Alcoholic beverages can be easily purchased from supermarkets, specialist stores and small grocery stores for home consumption, as well. It is illegal to sell alcohol to anyone under the age of 16. However, because there is usually no identity check at stores alcohol is virtually available to all age groups. Many Vietnamese consumers also order non-alcoholic drinks when going out, including coffee. Some always have a cup of coffee to start the day. This tradition started during the French colonial period. They usually drink filter coffee f rom old-school coffee shops while having breakfast from nearby street vendors. Also, a cup of green or lemon tea in the North and iced herbal drinks in the South are cheap options to quench thirst in the middle of the day. Affluent consumers and younger consumers tend to prefer modern coffee shops. A typical coffee shop offers not only coffee but tea, freshly made juices and mixed non-alcoholic drinks, as well as desserts and light snacks. Young urbanites like to hang out in city centres at night drinking craft beer and iced lemon tea. More consumers are shifting from carbonated soft drinks to non-carbonated ones, since noncarbonated drinks are considered healthier. The Vietnamese drink a lot of bottled water and boiled tap water, as plain water is still the staple drink at home. Green tea is also a popular drink at home and at work. A pot of hot green tea can be shared amongst family members, colleagues or friends at any time of the day. Green tea is b elieved to have numerous health benefits and is deeply integrated in people‟s daily lives. Non-alcoholic beer for a better Tet hol iday season Beer has always played an important part in Vietnamese celebrations. However, in recent years during the Lunar New Year (Tet, th e most important holiday season in Vietnam), traffic laws have been more strictly enforced to prevent drunken driving. Consequently, sales of alcohol during the Tet holiday h ave become sluggish compared to previous years. Amongst all alcoholic drinks, demand for beer has been most affected. Some beer lo vers have switched from regular beer to non-alcoholic beer Some consumers have commented that non-alcoholic beer has less full-bodied flavour. In addition to the more e xpensive imported non-alcoholic beers, consumers can also buy domestically produced non-alcoholic products at most major supermarkets at much more affordable prices. Looking ahead, it h as been suggested that once stricter liquor laws come into effect consumers‟ appetite for alcoholic drinks will be dampened and more will switch to low and non-alcoholic alternatives.


Passport

27


Women favour „detox‟ drinks for health and beauty benefits

In recent years, various media outlets have reported about rising obesity and other health problems due to excessive consumption of sugar and saturated fat. This has significantly raised awareness about improving well-being and prompted many consumers to change their eating and drinking habits, especially women. Indeed, an increasing proportion of women have started to engage in „detoxing,‟ a wellness method that promotes the exclusive consumption of specialized detox drinks to help the body eliminate h armful substances built up in the intestine, liver, blood, kidneys and skin. Recommended drinks include multi-fruit juices, green tea and lemon water, among o thers. Consumers used to consume detox drinks only during detoxing periods lasting from two to 12 days. However, many women continue to consume detox drinks on a daily basis well beyond the detoxing period since they believe these drinks are beneficial to their skin and body. Some have started to switch from regular drinks to detox drinks altogether. Bringing along a bottle of detox drink to work is now a common sight amongst young women. Many people follow this trend to boost their health and beauty, while some others follow because of peer pressure to appear healthy. Practitioners have reported an increase in energy level, more stable blood pressure, brightening skin tone and slimmer body as a result. Chart 15

Source: Note:

Drinks Expenditure Profile 2000-2020


GROOMING AND FASHION

Female Grooming and Fashion Trends Among older and traditional Vietnamese, attractiveness in women was highlighted by ovalshaped faces with dove-like eyes and soft facial features. Ideally, a beautiful woman would also have long, shiny black hair and an hourglass figure. Younger generations, however, have been influenced by foreign standards promoted by numerous magazines and online sources and, as a result, a slender body and long legs are now highly desirable. Young people like either the willowy shapes of Korean singers or the toned and athletic bodies promoted by celebrities. Many teenage girls go on strict diets or fast in order to attain the desired slim body, sometimes


Passport

28


even at a cost of their health. In addition, under the influence of Korean culture and teenage celebrities, many young girls seek plastic surgery to acquire long chins, V -line shaped faces and straight noses, as they perceive these features to be more refined. Cosmetic surgeries such as breast enlargement and wrinkle reduction are also popular. Skin is an important aspect of the Vietnamese beauty standard, and bright and baby-smooth skin is highly desired. This mostly stems from folklore and traditional literature that depict princesses and noble women with fair skin. Moreover, many women believe beautiful skin presents more opportunities when looking for a life partner and job. As a result, Vietnamese women usually take great care in protecting their skin from harmful ultraviolet rays by using extensive amounts of sunscreen, face masks, hats and long-sleeved jackets while outside. During the winter, they use moisturisers to keep their skin hydrated. Most women favour products with whitening effects, inspired by celebrities‟ porcelain skin and spa services focusing on skin bleaching have gained widespread popularity. In addition, older people use a wide range of products to combat signs of ageing. Vietnamese teenagers tend to be prone to acne because of the humid weather, and antiblemish line treatments, from acne-prevention facial wash to topical creams, are widely popular. Influenced by the media, many women follow Korean and J apanese „ten steps of skin care‟ which consist of applying various layers of skincare products such as toner, essence, beauty mask, serum, and sleeping packs. Vietnamese women like to wear make-up, mainly powder, lipstick and, to a lesser extent, mascara and eyeliner. Many teen girls start using cosmetics from around the age of 13 or 14 years-old. A fair number of high school students wear full or even bold make -up to class, although most schools strongly advise against it. They consider make-up to be a symbol of adulthood and a way to express their individuality. According to massogroup.com, 90% of the cosmetics and skincare market in Vietnam belongs to foreign brands (other than Chinese brands). Working professionals often buy products from the most renowned brand names, mostly from the US, Korea, Japan or France. Local brands are scarce, often present in simple product lines and used most often by rural dwellers. However, most women do not actively research product ingredients and solely rely on advertised benefits. Virtually all urban women and teen girls use deodorants and roll-on is preferred over spray. Deodorants with whitening effects are highly favoured. However, as most women do not have excessive body hair, shaving products are not common in Vietnam and can mostly be found in import shops only. Oral care products such as teeth whitening gels, dental floss and breath spray are not widely used. Instead, consumers usually favour tooth-picks and mouthwash (traditional salt solutions or chemical products). Most use a manual toothbrush instead of an electric toothbrush. Women pay close attention to hair care and hair styling. In 2015, subtle curled hair-ends and long bobs, together with brown-purple-red dyes, were favoured. Vietnamese women also like to change their hairstyle frequently, in particular prior to Lunar New Year. Most consumers go to small hairdressers in their neighbourhoods but professional hair salons have also become more popular among affluent customers in recent years. Spas are usually considered a luxury reserved for special occasions. Thanks to the affordability of local hairdressers, women seldom cut or dye their hair at home. Budget spas increasingly popular Until recently, spas and beauty parlours were reserved for the affluent. Simple facial massage treatments in traditional spas would cost around VND400,000, while advanced procedures such as skin bleaching could cost at least VND2,500,000. Although the de sire to have a perfect


Passport

29


porcelain skin is shared by most Vietnamese women, those from less-affluent segments have often found themselves unable to afford expensive spa services. However, in recent years the beauty service market has responded by establishing budget spas catering for financially constrained women. Utilising local or hand -made products from natural ingredients, such as coconut oil and grapefruit extracts instead of expensive imported brand names, these spas are able to cut prices to as low as VND50,000 to VND100,000 per facial treatment, one-tenth to one-twentieth of the price charged by traditional spas. Further, add-on features such as reception areas, separate waiting areas and beauty -counselling services are often eliminated to keep costs down. Regardless, according to an article inbaophapluat.vn, these spas are usually fully booked throughout the week, drawing n umerous customers through word-of-mouth and advertisements on online teenage websites. Since customers are mainly young people, these spas often focus on skin treatments such as acnetreatment, skin hydrating and skin whitening.

Demand for Collagen Treatments Rises Demand for collagen treatments has been rising due to the desire of Vietnamese women to have perfect skin, supported by influence from Korean, Japanese and Vietnamese celebrities renowned for their youthful look. Countless advertisements about the miraculous benefits of collagen have further amplified consumers‟ desire and expectations. In addition, as extracts are from animal protein, collagen appeals to women‟s love for natural ingredients. Collagen has been widely consumed in different forms, from drinks, facial masks and creams to direct injection. However, the collagen drink is the most popular format due to i ts convenience and higher absorption rate. Many working professionals consider it a d aily necessity to refill the amount of collagen they lose throughout the day. According to an article in vietnamnet.vn, around 80% of the collagen market belongs to imported brands, mostly from Korea and Japan, due to their association with foreign stars. The price for imported products ranges from VND70,000 to VND150,000 per tube. Made-in-Vietnam products are still trying to find their way into consumers‟ hearts, as most are not significantly cheaper tha n imported products. In this price range, most women prefer foreign brands, believing in thei r superior quality. Regardless, locally manufactured products have appeared on the market recently targeting the low -income segment who want to follow the trend but who are concerned about the expensive prices of imported products.

Male Grooming and Fashion Trends Thanks to influences from Korean and Japanese popular culture icons, teenagers and young adults have begun to appreciate non-traditional male features, including a lighter skin tone. This trend is shown clearly in popular teens such as Son Tung M-TP and Be Tran. A more toned body (although not overly muscular), another feature promoted by Western standards, is also now desired and has prompted many men to go to the gym. Older men seldom make use of facial wash, skincare products, perfume and deodorant, as these personal care products do not fit i nto the traditional definition o f masculinity. Shaving cream is also not widely used. Only shampoo and body wash are considered essentials. In addition, they do not actively use haircare products. Dying hair is generally rare among men older than 30 except to conceal grey hair. Men often hide signs of their advancing years until after retirement. In addition, older men typically do not follow hair styling trends; most still prefer a neat hairstyle done by local hairdressers to combat Vietnam‟s summer heat. However, a growing number of young men are now taking greater care of their bodies and hair. Deodorant is a „must have‟ among young people and the use of facial wash is common, although using skincare products is still often considered too feminine. Perfume is popular


Passport

30


among young working professionals who want to cultivate a „gentleman‟ image. The use of gels to create hair shape is prevalent, and some teenage boys even wear gels to school. Hair dye is common in brown and dark red shades, although extreme colours such as blond are often

reserved for the stylish few. Older men tend to dress simply most of the time: T-shirts and knee-length shorts or jeans for informal occasions, and shirts, polos and trousers for work. According to traditional thinking, men should not be overly concerned about their clothing choices or wear accessories, except for wristwatches or silver necklace chains. However, this thinking is being challenged by younger men. Driven by the celebrity culture, the young are wearing bolder styles, including Korean styles, as well as new Western styles. Accessories are also worn more frequently, including leather bracelets, earrings and decorated necklaces. Greater demand for men‟s personal care producs

Traditionally, a man was considered attractive if he exuded toughness and masculinity. Therefore, rugged features and tanned skin were desirable. However, the arrival of new international concepts, driven in large part by th e internet, the availability of W estern media and the influence of Korea and Japan, has prompted Vietnamese men to begin paying more attention to personal care products. Younger consumers, in particular, are paying more attention to their appearance. Men have started to go beyond buying and using the basic necessities and now buy skincare products, perfumes and haircare products. Recently, cosmetics lines for men only have been flourishing. There are aisles in supermarkets, as well as specialised shops, dedicated to men‟s products, selling deodorants, perfumes, hair gels, facial wash and even lip balms especially developed for men. Anti-wrinkle and whitening skin creams are also gaining a foothold among young men. Doanhnhansaigon.vn recently reported that the value of the male cosmetics market in Vietnam is increasing by 9% per year, double the rate of the market as a whole. Chart 16

Source: Note:

Grooming and Fashion Expenditure 2000-2020



Passport

31


HEALTH AND WELLNESS

Attitudes To Health and Well-being The public healthcare system in Vietnam is divided into four tiers: central, regional, provincial and district level. It aims to reach patients even in the most rural areas. The system is maintained by the government. The government also bears a proportion of the cost of trea tment, hospitalisation and medicine for patients through the National Healthcare Social Insurance Programme. Vietnamese citizens are strongly encouraged to participate in this programme. They can participate either via their employer or other related organisation or via the household category by registering at local insurance offices. Hence, consumers outside the public sector are no longer able to buy social insurance individually; instead, they must purchase it as a household at discounted rate. However, additional complicated paperwork has discouraged some people from buying social insurance. Citizens with social insurance are supposed to bear, at most, 20% of the cost if they use the lowest-tier healthcare institution indicated on their social insurance card. However, many institutions at lower tiers do not have the expertise and equipment to t reat complicated conditions and approval is needed to move to a higher-tier institution and this is sometimes difficult and time-consuming. In many cases, patients have to forego their designated hospital and pay as much as 60% of t he hospital cost and 100% of the outpatient cost. Due to complex paperwork and long waiting periods at social insurance counters, affluent patients usually choose serviced counters in public hospitals, even though the price to do so is nearly 10 times that of the standard service. Regardless, serviced counters also experience over-crowding issues and sometimes two to three people must share a hospital bed. As a result, many affluent patients opt for private hospitals and clinics with faster and better service. On the other hand, the private sector is not closely regulated. Apart from a few well-known private hospitals in major cities, smaller private hospitals are finding it difficult to attract patients due to their high cost and lack of reputation. In Vietnam, prescription drugs must go through numerous approval stages before the reach consumers. According to an article in Sai Gon Giai Phong in 2014, the average prescription cost was USD31.18/person/year, a 150% increase over 2009. The revised insurance programme has cut drug subsidies from some highly specialised medicines by 50%. As a result, many have opted to use locally manufactured drugs to cut their costs. According to Nhan Dan newspaper, consumption of local drugs doubled between 2014 and 2015. Many Vietnamese visit a doctor only when their illness gets serious. Symptoms of common illnesses like colds and flu are often self-diagnosed and treated with OTC medicines. According to an article in baotintuc.vn, nine out of 10 consumers buy antibiotics without prescription and most pharmacies are willing to sell any amount requested. People also frequently buy common OTC medicines such as paracetamol and mild sleeping pills to keep at home. In addition, Vietnamese also like using Western food supplements, such as fish-oil, seaweed pills and collagen. Many use Chinese herbal medicines. Spending on tobacco increased from about VND407,258 per capita in 2005 to VND635,805 per capita in 2015. According to vietnamplus.vn, 70% of children under five years-old are constantly exposed to smoke. According to vietbao.vn, the average age of trying the first cigarette in Vietnam is only 16.9 years. In order to lower the proportion of smokers, a new tobacco tax is to be introduced and it is expected to increase from 65% to 75% in 2019. Health tourism claims popular among many Vietnamese The healthcare system in Vietnam has long been subject to scepticism and criticism by users. Over-capacity, outdated i nfrastructure and old equipment are common issues cited. Clients also complain about long waiting times, lengthy paperwork, poor customer service and hidden costs.


Passport

32


Private hospitals, though offering better service and equipment, are nevertheless often inconsistent in terms of medical quality. All of these issues have driven an increasing number of healthcare consumers to seek treatment overseas. According to an article in Tien Phong newspaper in 2014, every year Vietnamese spend around USD2 billion on health tourism. Popular destinations include Singapore and Thailand, which are famous for t he privileges they provide to foreign patients. While many who go overseas are simply able to afford to do so, another group of patients also leave the country for treatment, i.e., those diagnosed with terminal or chronic illnesses. These patients engage foreign institutions to take advantage of their state-of-the-art equipment, cutting-edge treatment methods and transparent costing models. Yoga increasingly popular amongst those seeking a healthier lifestyle Yoga has become increasingly favoured as a physical activity by Vietnamese of all ages and from different walks of life, including students, office workers and celebrities. According to tuoitre.com.vn, the number of yoga practitioners recorded in Ho Chi Minh City is roughly 10,000 and increasing. Some parents send their children (some as young as three years-old) to yoga classes with the hope that practicing yoga from a young age can enhance the child‟s memory, intelligence and flexibility. Additionally, there is an emerging trend among pregnant women to do pre-natal yoga in order to reduce stress and pain caused by pregnancy. Chart 17

Source: Note:

Health of the Nation 2000-2020


SHOPPING HABITS

Main Household Shop Shopping habits are changing to cope with the increasingly fast-paced lifestyle of urbanites. Supermarkets and hypermarkets are now common sights in new residential areas, and customers are switching to these modern retail venues for their household purchases. However, the shift is still moderate. In general, consumers prefer supermarkets for non-food household products because of the variety on offer and year-round promotional programmes. Since many


Passport

33


consumers ride motorbikes, they tend to prefer nearby supermarkets to avoid carrying bulky shopping bags for long distances. In rural areas and small towns where modern supermarkets are scarce, shopping for household products at wet markets, independent grocers and corner stores is still the way of life. Most households only purchase products from supermarkets that are not available in wet markets, mostly premium, imported produce. Some young and busy working families have started to go to supermarkets at the weekend and stock up food for the whole week. However, they are in the minority. Many women still visit the wet market every morning, as Vietnamese love to eat fresh food. A study by tapchitaichinh.vn concluded that an overwhelming 821% of Vietnamese said they choose wet markets for their food shopping. The prevailing view is that food products sold at supermarkets are not as fresh as at wet markets. Given that there is usually at least one wet market in every neighbourhood, shopping at wet markets is convenient. In fact, the same study showed that 77% of consumers said they believed that the concentration of wet markets in residential areas is satisfactory. For top-up shopping, consumers tend to go to small independent grocers and corner stores located in their neighbourhoods. Residents of high -rise condominiums also visit the convenience stores or minimarts often located in the basements of their buildings. Consumers usually do not go to supermarkets for top-up shopping because a trip to the supermarket can be fairly troublesome and lengthy, given the amount of time spent on commuting, parking and queuing for payment. Professional grocery purchasing service is revolutionising shopping habits A new service has emerged to take care of the grocery shopping task for busy families: professional grocery purchasing. The increasing demand for this service has been driven by busy urbanites with little time for grocery shopping. Even if working couples find time after work to go to the wet market, fresh ingredients are usually no longer in the best condition or of the best quality. In addition, hot or rainy weather makes it difficult for food shoppers to visit wet markets. To use the new service consumers place orders via designated websites or via phone calls to service providers. The service scope ranges from fresh produce in wet markets to dried food in specialised shops. Professional purchasers then carry out the order and deliver it to the customer‟s door at the requested time. Further, customers can request for pre -seasoning, washing and pre-cutting of food items prior to delivery, helping working mothers save considerable time and effort on food p reparation. Affordability is also another attractive feature of this new service. According to a 2015 article on vietnamnet.vn, the basic prices are often competitive since the purchaser is able to source from wholesale markets. In addition, the transportation surcharge ranges from only VND10,000 to 30,000 per shipment. This service is still limited in its reach and is only available in inner cities

Shopping for Big-ticket Items and Personal Goods When considering expensive big-ticket items, most Vietnamese ask for friends and relatives‟ recommendations and do research well before buying. Tech-savvy consumers usually browse the internet to compare prices and features as well as read up on recent reviews and consumer discussions. They then often visit a few stores to have a look at their short -listed items before making a final decision. Buying expensive items online is not popular as Vietnamese are cautious consumers who want to see and handle goods before committing to payment. Many believe online product images can be misleading. For some items, it is even difficult to obtain exact prices on the internet or via the phone as they are subject to bargaining and negotiation. Therefore,


Passport

34


consumers looking for big-ticket items still tend to go to showrooms to get information and view models. Buying habits for personal goods such as clothing, footwear and beauty and personal care products is varied and often depends on the age of the consumer. Older consumers tend to purchase personal products from brick-and-mortar shops. Younger consumers, on the other hand, are more comfortable with online shopping, and this is beneficial as many of the personal products that they like are not available at local stores or are sold at highly inflated prices. Online shopping is gaining momentum According to an article from nld.com in March 2015, the percentage of Vietnamese who had made at least one online purchase increased by 12% in the prior three months. The same article noted that the majority of interviewees listed online shopping as one of their main reasons to use the internet. The number of visits to shopping websites done via mobile devices also surpassed that of personal computers. Young women are the driving force behind the boom in internet retailing. In particular, they buy the majority of their personal care products (such as international branded beauty products) from online vendors. When shopping online, consumers tend to care most about the reputation of the vendor, their refund policy, pricing and payment methods. Vietnamese online shoppers favour international retailers such as Amazon and eBay, as well as regional giants such as Lazada, Zalora, Hotdeal, Muachung and Chotot. Independent vendors that operate on social media platforms are also popular because they often offer attractive deals. In some cases, these local retailers act as an intermediate between local consumers and overseas online retailers. Their customers are usually those who want to purchase foreign goods but face language barriers and hi gh international shipping fees. Local independent retailers help to solve these problems: the customer only has to send pictures or product codes to the local vendor. The local vendor will consult with the customer, source for the best online deal and place an order on the customer‟s behalf. By pul ling orders from several customers, utilising the overseas retailer‟s promotional programmes and consolidating shipping costs, as well as taking advantage of social media to connect with shoppers on a personal level, the local vendor is able to considerably reduce costs and offer a customised shopping experience. Chart 18

Where Households Shop for Essentials 2000-2019


Passport

35


Source: Note:

Euromonitor from trade sources/national statistics In Constant 2015 prices

LEISURE AND RECREATION

Leisure Time Watching television remains the most popular at-home entertainment activity. The most popular programmes among adults are news, drama series and sports. Korean dramas dominate lunchtime TV schedules (12pm-1pm), pre-dinner hours (5pm-7pm) and late-night hours (11pm-12am) on the national channel group (VTV). However, the impact of Korean dramas has started to wear off as more Vietnamese series are being broadcast during peak hours. There has also been a significant shift towards Chinese drama series based on bestselling romance novels. Game shows, including The Voice Vietnam, Sasuke, and Vietnam‟s Next Top Model, continue to attract a l arge number of viewers of all ages. An increasing number of young viewers have switched to watching their favourite programmes over the internet rather than on TV. In addition, using the i nternet they can access television series mostly Western and Korean) which are not presented on major TV channels. Further, since cable providers recently lost the right to broadcast popular football leagues to exclusive providers such as K+ (whose monthly subscription fee is almost three times that charged before the switch) many viewers now use internet apps such as Sopcast and ot her payper-match tablet apps. Or, they watch important matches at their local sports bar. Vietnamese spend much time on the internet, mainly participating on social networks, reading news and playing online games. While Instagram and Twitter are now making their way into Vietnam, Facebook remains the most widely used site, attracting not only young people bu t also older consumers. According to a Facebook report, 30 million Vietnamese use Facebook every month spending, on average, 2.5 hours per day on the site. Many use Facebook to catch up with friends, visit brand websites and update the latest news and trends. Facebook has also become a marketplace for entrepreneurs who are not able to invest in brick-and-mortar stores. An increasing number of people are spending their leisure time going to gyms, yoga classes and swimming pools and generally just trying to keep fit. Other less physical activities popular amongst young consumers include going to the cinema, hanging out in coffee shops, browsing weekend flea markets and going to theme parks. Cinemas have also attracted more older consumers, particular since the recent emergence of Vietnamese films. Bars and pubs with live music are widespread in major cities, especially Ho Chi Minh City, although clubs are still not considered socially acceptable by many people. Meanwhile, entertainment complexes like A3 Station, the Yard and Hanoi Creative City are poised to become the new p opular gathering spots for enthusiastic and artistic youngsters because they offer one-stop destination for entertainment, drinking and dining. Convenience and ambience are always valued by young consumers. Initially introduced in the southern cities of Vietnam, paintball shooting (also called mock combat) has since spread throughout all major cities and has b ecome a huge success among the young. More city dwellers are enjoying gardening Many urbanites are spending their leisure time growing their own vegetables and fruits at home. In order to overcome the constraints of a limited living area, rooftops and balconies have been amended into mini-gardens where vegetables are either kept in trays equipped with ventilation holes or in hanging po ts placed over windows. Affordability is an appeal of this activity, as home gardening tools such as plastic pots, hangers, organic soil and microbial fertiliser are largely inexpensive.


Passport

36


Many take pride in the fact that they are the architects of their mini-gardens, overseeing design, seed selection, planting, fertilisation and care. The mini-garden also brings greenery to the concrete urban living space which appeals to the Vietnamese love of nature. More importantly, growers enjoy eating the fruits of their labour. This has been a particularly desirable benefit in light of heightened concerns over pesticide-contaminated vegetables and fruit sold in local wet markets in recent years. Mini cyclos are booming as a leisure acitivy The cyclo is a three-wheel bicycle taxi that has been present in Vietnam since the French colonial period. A double seat is supported by two front wheels, with one driver sitting behind using his strength to move and control the vehicle. Traditional cyclos have been out of use as a transportation mode for more than 10 years. But cyclos are making a comeback as a leisure vehicle attracting parents and children alike. The new type of cyclo is a mini-version of the traditional one they are often integrated with colourful light strings, comical roofs and music players. Prices often range from VND2 million to VND3 million per vehicle. Customers can also easily rent a mini--cyclo for roughly VND20,000 to VND50,000 per hour in numerous shops. Originating in Danang, mini-cyclos have since become very popular and have spread throughout many cities. They can be seen in pa rks and alongside residential roads. Demand in rental shops often peaks during the after -dinner hours when shops usually operate in full capacity. Mini-cyclos provide a unique way to spend leisure time in a country where crowded cities are lacking open spaces. Parents consider it a relaxing activity that all ows them to spend precious time with their children while getting moderate exercise after a long working day.

Vacations Beside public holidays, full-time employee enjoy 12 days of annual leave. Most people, especially families with school-aged kids, often go on vacation during the summer months (May to August). Coastal cities such as Danang, Nha Trang, Vung Tau and Cua Lo and islands such as Phu Quoc, Binh Ba and Ly Son remain the favorite destinations for a large percentage of Vietnamese tourists. Traditional accommodation such as hotels and resorts are more popular among family groups. Younger holiday-makers are usually more interested in spending time exploring places off the beaten track, and they tend to pick hostels or home-stay services for their affordability and local blend. Travelling abroad has become more popular, but due to complex visa application processes the most popular destinations are still neighbouring visa-free Southeast Asian countries such as Thailand, Singapore and Malaysia. Many travel agencies provide tours to these destinations at affordable prices: USD200 per person to Thailand and USD400 to Singapore and Malaysia. A popular way of travelling among younger holiday-makers to undertake inter-provincial road trips on motorbikes, called „phuot‟. These trips are mostly favoured by people who love adventure and want to explore local cultures in depth. Phuot usually involves a group of friends or a group who h ave met through Facebook or road trip onli ne forums. Popular destinations include the Tay Bac area, Ha Giang, Lao Cai and Lai Chau, which possess astonishing scenery and an interesting ethnic minority culture. Many phuot groups also use these trips to conduct charitable activities, bringing food, clothing and other neccesities to give local people, most of whom are living in poverty.

Public Holidays, Celebrations and Gift-giving Vietnamese people generally have three long holiday p eriods every year, the Lunar New Year (Tet) Holiday, Labour Day and Independence Day, each lasting from four to 10 days.


Passport

37


Tet, which is celebrated from the first day until the fifth day of the first Lunar month, is the most important holiday. It is the occasion for all Vietnamese to express their respect and remembrance to ancestors, as well as spend time with family members and visit friends and relatives. The preparation usually starts a few weeks in a dvance. In order to banish bad luck, people often spend a few d ays cleaning the house and polishing the utensils. Tet trees, usually kumquat, peach blossoms and yellow apricot blossoms, are a significant part of the holiday spirit. The price for those trees varies considerably, from hundreds of thousands to tens of millions of VND, depending on the size, age, form, and amount of buds. The ancestral altar is decorated with five kinds of fruit and votive offerings. On the eve of the first day of the year, people often prepare a „year‟s end‟ meal to offer to their ancestors and the Earth God. They then go out to watch fireworks. During the Tet holiday period the entire family often gathers to cook traditional food and wish each other a prosperous and lucky new year. Gifts are exchanged among family members, friends and relatives while children and the elderly receive „lucky money‟ kept in red envelopes. Independence Day (2 September) is the second biggest celebration of the year. Vietnamese have a day off from work to commemorate the event‟s historical significance. There is also an annual march on Ba Dinh Square and fireworks in big cities. People often show their respect by hanging the national flag outside their windows. On this occasion, many pay gratitude to the Founding Father of the nation, President Ho Chi Minh, at his Mausoleum. There are also posters of President Ho reading out the Declaration of Independence in 1945 in government buildings. There are often television broadcasts of special programmes such as concerts to commemorate and celebrate this annual event. Labour Day (1 May) is often celebrated tog ether with Reunification Day (30 April) and, as a result, people have two-day break from work. In recent years, there has been a trend among city dwellers to take advantage of this by taking long vacations and travelling. In addition to public holidays, there are several special days for specific groups that are widely celebrated by all Vietnamese. These include Women‟s Day (8 March), Teacher‟s Day (20 November) and Military Day (22 December). On these days people often buy gifts and flowers for those in group being celebrated. Travelling for spiritual purposes Most Vietnamese are devoted to Buddhism and they often visit temples and pagodas near their homes to pray for good health, fortune and the well-being of their loved ones. In recent years, many have taken their worship a step further and taken part in spiritual tours or travelled on their own to distant sacred sites, particularly during the first Lunar month a fter the New Year holiday. During this period, many pagodas throughout the country hold major festivals and worshipping events. People believe that being willing to travel, their devotion will be appreciated by Buddha and their wishes will be granted. Holiday visits to sacred sites provide an excellent opportunity for family bonding. Many also like to simply breathe in the holy atmosphere in ancient pagoda complexes to purify themselves and prepare for the new year ahead. According to vietnamtourism.com, the number of guests registering for spiritual tours accounts for 50% of the total number of those on tour after the New Year period. Popular sacred sites include the Perfume Pagoda, Bai Dinh Pagoda and Yen Tu Pagoda in the Northern region and Tay An Co Tu and Mieu Ba Chua Xu in the Southern region. Chart 19

Possession of Selected Home-Tech and Mobile Phones 2000-2020


Passport

38


Source: Note:


GETTING AROUND

Private Transport In 2015 approximately 85% of households in Vietnam possessed at least one motorbike and 77.4% possessed bicycles. The preference for private t ransport partly stems from affordability, convenience and the poor quality and unreliability of the public transportation system. Moreover, most cities have a large number of intertwined networks of narrow alleys which can only be accessed by private vehicles. For many years, motorbikes (scooters and underbones) have dominated the roads from cities to rural areas. The price of a motorbike can vary considerably depending on brand and country of production, going from VND15 million to VND200 million, and this makes it a popular choice for both high- and low-income households. Motorbikes are useful in small crowded city roads, as well as bumpy dirt roads in the countryside. Thanks to the relaxation of the vehicle licence policy for big-capacity motorbikes, the purchase of big-engine motorbikes has become easier since the end of 2013. Bicycles are popular among students under the age of 18 who are not legally allowed to ride a motorbike. They are also a popular option amongst low-income households which cannot afford a motorbike. In addition to cost-saving benefits, riding a bicycle is a physical healthy exercise. In the last few years electric bicycles using integrated electric motors for propulsion have grown in popularity. As levels of disposable income have risen in recent years, owning a personal passenger car has become less financially prohibitive for many consumers. Cars have also become more popular among the expanding upper-middle class group and, for many, cars are seen as status symbols. Thus, many purchase the most expensive model that they can afford. Taxes, levies and other surcharges on new cars assembled domestically currently account for 10%-12% of the total cost. Purchasers of imported cars must bear an additional 50% of the price in import tax. Chart 20

Getting Around on Private Transport 2000-2020


Passport

39


Source: Note:


Public Transport In 2015 buses continued to dominate the public transportation picture in Vietnam. Buses are currently the only means of public transport available for trave l in the inner city and suburban areas. In big cities bus routes cover almost all major roads and streets. In some provinces, there are also buses run by private companies. Passengers can catch a bus at bus stops scattered around the city or province, and buy tickets directly from the conductor. The basic fare varies across cities and companies; however, in general bus fares are relatively cheap. As a result, buses are popular among low-income workers, the elderly and students. Nevertheless, bus arrivals and schedules are often unreliable, and over-crowding is often an issue during peak hours. High-speed sky train networks are currently being constructed in Hanoi and Ho Chi Minh City. These will connect the city centres with their satellite suburban areas. Once in operation, the socalled sky trains are expected to revolutionise the way Vietnamese urbanites travel. Suburban density is likely to increase significantly as travelling to the inner city becomes easier than ever. For inter-provincial travelling, coaches are the most popular and cheapest mode of transport for low and middle-income people. Each province has its own major terminal from which passengers can find buses to nearly all major provinces. Typically, inter-provincial coaches are of good quality with l arge and comfortable seats. Many are sleeper coaches, allowing customers to sleep during their jou rneys. Fares often depend on travel distance and the type of seats. Passengers from small provinces with no direct coach to their intended destination usually use connecting routes through major hubs (Hanoi for Northern provinces, Hue or Da Nang for Central area, and Ho Chi Minh City for Southern provinces). The railway system is used solely for long-distance travel between regions. It is an old bu t dependable service which offers a relaxing and affordable way to travel across the country. Each train usually has sleeping compartments (with or without cushions / air-conditioning), sitting compartments (with or without cushions), cargo compartments and a refreshment compartment. Travelling by train is faster than by coach and cheaper than by air. During holiday seasons, tickets can be sold out three months in advance. Taxi usage has become common among urbanites, especially during periods of harsh weather conditions. Taxis offer passengers comfort and convenience. Fares vary across taxis providers, but in general, they are fairly expensive. Since Uber and GrabTaxi recently entered the market, many customers have been shifting away from traditional taxi service providers to


Passport

40


app-booking taxi services. Customers appreciate the reduced fares as well a s the flexibility and fast confirmation offered by t hese services. Motorbike taxi services, which were usually p rovided on a small scale by independent service providers, are now available via booking apps, as well. Thanks to the introduction of budget airlines and their new flight routes to nearly all major cities, travelling by air has become more accessible. In some instances, it can even be cheaper and less time-consuming than travel by traditional trains or coaches.

Commuting Workers tend to get to work via their motorbikes or, in urban areas, via bus. The minimum age to possess a motorbike or car licence is 18 years-old and, as a result, children and teenagers are often driven to school by their parents. In the last few years, electric bicycles have also emerged as an alternative method of transport for medium distances. According to an article from TuoiTreNews, between December 2013 and December 2014 there were 25,322 traffic accidents nationwide, killing 8,996 people and injuring 24,417 others. This is partly because Vietnamese commuters often fail to comply with traffic safety rules, and many parents don‟t insist that their children wear helmets. The poor c onditions of roads have also played a large part. There have been many projects aimed at improving the t ransportation system, such as the construction of more flyover roads and the high-speed t rain systems in Hanoi and Ho Chi Minh City. However, the speed of change is still unable to keep up with the population and vehicle boom in major cities. Young city dwellers infatuated with electric unicycle Launched in the market at the end of 2013, electric unicycles (or solo-wheels) have become popular amongst Vietnamese youth in urban areas. Indeed, it is now a common sight to see riders in Hanoi and Ho Chi Minh City‟s residential roads and high -rise office complexes. A solo-wheel has no seat and equipped with self-balancing system to promote comfort. Riders stand on the pedals at two sides of the wheel and use their legs to control the vehicle. A solowheel can travel up to 2 5 kilometres at a maximum speed of about 20 km/h. The first solowheels were initially imported into Vietnam from the USA, with prices ranging from USD1,000 to USD2,000 apiece. Thanks to alternatives from Asian countries, however, local enthusiasts can now purchase a unicycle for less than VND10 million. One major advantage of the unicycle is the ease of navigation through crowded streets during congestion. Riders also appreciate its ease-of-use along building complex roads, parks and inside shopping malls, making it popular among working professionals and young students. Many people believe that the unicycle can serve as a n alternative to conventional means of transport such as the bicycle for short-distance travel. In particular, in the next few years when the city metro system is brought into operation commuters will be a ble to use solo-wheels between their homes and metro stations. Chart 21

Getting Around on Public Transport 2000-2020


Passport

41

Consumer Lifestyles in Vietnam

Recommend Documents