This document summarizes consumer trends in Vietnam from 2009 to projected 2011. It finds that Vietnam has experienced strong GDP growth and declining inflation over this period. Consumer spending has also grown substantially, especially in retail, FMCG, and tourism. Modern retail is gaining ground while traditional trade still dominates. The population is aging and urbanizing, with wealth concentrating in cities like Ho Chi Minh City and Hanoi. Internet and technology penetration is also increasing rapidly in Vietnam.

1. The Shifting
Landscape of
Consumerism
in Vietnam
A Consumer
Revolution
1
Alison Dexter
Research Director
TNS Vietnam

2. 2009 vs 2010 CIVETS Wealth Trends Consumer SpendingA Shifting Population
Modern Retail Tech Trends Advertising Urban vs RuralYouth Trends

3. 2010 half year in review
Things are looking up!
GDP = 6.52% 5.32%
Inflation = 6.46% 6.88%
Trade deficit = US $8.5 Billion 12.3 Billion
Exports = US $60 Billion 58.5 Billion
FDI = US $12.2 Billion 21.3 Billion
Tourism = 3.73 Million 3.5 Million
A-T-L Ad growth = 15 % 25%
FMCG growth = 17% 15.7%
Retail Growth = US $45 Billion 61.5 Billion
Cons confidence = 78 64
InternationalDomestic
Sept 2010 2009 FY

4. 2009 – 2011 Key economic measures
Economic Measure 2009 full year 2010 half year Projected 2010
full year
(TBC)
2011 projected
(estimates)
GDP 5.32% 6.16% 7.2%* 5.8%*
Inflation 6.88 5.78% 9.6%* 7.1%*
FDI 21.3 billion 8.3 billion 17 billion 19 billion
Exports 58.5 billion 32.1 billion 65 billion 70 billion
Trade deficit 12.3 billion 6.8 billion 14 billion 15 billion
Advertising growth# 25% 15% 20% 22%
Retail growth 61.5 billion 45 billion 80 billion 84 billion
FMCG growth^ 15.7% 17% 18% 19%
Tourism 3.5 million 2.5 million 4.5 million 5 million
Consumer confidence 64 78 ? 80 plus
Source:
* HSBC global Report emerging markets
Others – VN GSO
# Kantar Media
^ Kantar World Panel
GDP should grow by 6% plus as Vietnam becomes a stronger focus
globally

5. IndiaRussiaBrazil China
Colombia Indonesia Vietnam Egypt Turkey South Africa
Civets are small, lithe-bodied,
mostly arboreal mammals native
to the tropics of Africa and Asia.
ASIAN BRIC & CIVETS TEMPERATURE CHECK

6. 8.7%
10%
8.9%
7.2%
8.5% 8.3%
5.3%
7.2%
5.8%
4.5%
5.9%
5.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2009 2010 2011
China India Vietnam Indonesia
CIVETS GDP growth 2009 - 2011
Except for China & India, Vietnam is expecting the highest GDP growth in Asia.
Over the next two years, GDP should grow by at least 13%
Source: HSBC Global

7. -0.7%
10.9%
13.6%
7.0%
9.6%
3.1%
2.4%
6.0%
4.8%
5.3%
6.8%
7.1%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2009 2010 2011
China India Indonesia Vietnam
CIVETS CPI growth Rate
One of the main barriers for growth is Vietnam‟s
potentially high inflation (16.6% over 2 yrs)
Source: HSBC Global

8. Base, n= 605 618 600 500
How would you describe your country’s current economic situation?
Very Good
Fairly Good
Not good and not bad
Fairly Bad
Very Bad
How would you describe your country’s current employment situation?
Very many available jobs
Many available jobs
Not many but not few
Few available jobs
Very few available jobs
3
44
23
26
3
13
24
35
15
12
2
26
41
23
9
8
40
39
11
2
10
38
32
18
1
3
13
22
39
21
11
17
28
23
22
0
11
44
31
13
Consumers in Vietnam and other emerging markets – consider the
current situation to be good to neutral. However employment situation is
a cause for concern to a significant proportion, except for Vietnam
Current situation
Source: TNS AP Temperature check 2010

9. Base, n= 605 618 600 500
In the next six months, what do you think will be your country’s economic situation? ?
Much better than today
Somewhat better
Same as today
Somewhat worse
Much worse than today
In the next six months, what do you think will be your country’s employment situation?
Many more jobs available
Some more jobs available
Same as today
Less jobs available
Many less jobs available
10
44
34
8
2
12
32
21
16
17
6
32
49
9
2
15
53
26
6
1
18
51
24
6
0
3
25
41
18
8
15
22
21
23
19
3
21
49
16
8
Syndrome of “jobless recovery” seems to pervade consumer minds
in emerging markets. Again Vietnam seems to buck the trend somewhat
Future expectations
Source: TNS AP Temperature check 2010

10. Base, n= 605 618 600 500
To what extent would you say that now is a good or bad time to buy?
A very good time to buy
A somewhat good time
Not good and not bad
A somewhat bad time
A very bad time to buy
24
33
34
8
1
4
31
52
7
2
10
28
34
14
13
1
10
61
21
3
There is an overall feeling of “cautious
optimism”, with Vietnam being most upbeat
Time to consume?
Source: TNS AP Temperature check 2010

11.  1 Ethnicity
 1 Language
 1 Government
 1 Coast line
 1 Religion
 1 Economic direction
 1% plus of the world’s population
 1 of the youngest populations in Asia
 1 of the world’s most optimistic people
 1 of the most literate Asian populations
 1 of the top destinations for FDI
 1 of the fastest growing FMCG markets in Asia
 1 of the strongest destinations for global manufacturing
The ‘Factor of One’ remains a powerful advantage for Vietnam

12. A Shifting Population

13. Vietnam‟s population pyramid
15.4
19.9
15.7
15.5
14.3
9.5
6.6
3.4
0-9 years
10-19 years
20-29 years
30-39 years
40-49 years
50-59 years
60-69 years
70+
The next ten years will
see 17 million new and
young consumers enter
the market
1999
42.8 Million aged 20 +
56% of the population
2009
55.6 Million aged 20 +
65% of the population
Source: VN GSO 2009, TNS analysis

14. 15%
Vietnam‟s aging population pyramid
Source: VN GSO 2009, TNS analysis
7%
33%
45%
8%
24%
32%
36%
20091999
76,323,000 86,024,000
0-19
20- 39
40- 59
Age = 60 +
Vietnam‟s population is becoming more mature too,
thus creating a wealthier, more savvy consumer base

15. Wealth trends

16. North Mountains
GDP = 6%
Pop. = 13%
Red River Delta
GDP = 23%
Pop. = 23%
Central Highlands
GDP = 3.6%
Pop. = 6%
South East
GDP = 32%
Pop. = 17%
Mekong River Delta
GDP = 21.4%
Pop. = 20%
Hanoi
Da Nang
HCMC
Can Tho
North South Central
combined
GDP = 14%
Pop. = 21%
1
2
2.5
4
5
6
Source: GSO Hanoi, TNS analysis
Historically HCMC and Hanoi have been the gravitational
sources for wealth in Vietnam

17. Vietnam‟s 10 wealthiest cities / provinces
Income 2008/Capita 000 VND
Source: GSO Hanoi, TNS analysis
Binh Duong has become Vietnam‟s 2nd wealthiest area,
showing a shift in wealth and spend from traditional
markets
Income 2008 / Capita 000VND
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
HCMC Binh
Duong
Hanoi Danang Quang
Ninh
Dong
Nai
Ba Ria -
VT
Hai
Phong
Can
Tho
Tay
Ninh

18. 1.5%
3.9%
5.6%
11%
15%
29%
34%
A1
A
B
C
D
E
F
Vietnam declared monthly household income
Whilst 2/3 of Vietnam‟s population are still at the bottom of the
pyramid, growing affluence continues
Source: TNS Vietnam
BOP
63%
= 54 million
Middle
26%
= 22 million
Affluent
9.5%
= 8.2 million
Wealthy
1.5% = 1.3 million
SEC Scale - VND
A1 = 15 mln +
A = 9 - 15 mln
B = 6.5 - 9 mln
C = 4.5 - 6.5 mln
D = 3 - 4.5 mln
E = 1.5 - 3 mln
F = 1.5 - below

19. Urban declared income
The Christmas tree
3.7%
10.8%
13.5%
21.6%
22.2%
21.4%
6.8%
A1
A
B
C
D
E
F
Source: TNS Vietnam
As far as luxury goods and services, the market is still estimated
to be small at roughly 15% of urban households; the equivalent 1
million consumers or 250,000 households
SEC Scale - VND
A1 = 15 mln +
A = 9 - 15 mln
B = 6.5 - 9 mln
C = 4.5 - 6.5 mln
D = 3 - 4.5 mln
E = 1.5 - 3 mln
F = 1.5 - below
BOP
28%
= 7.2 million
Middle
44%
= 11.4 million
Affluent
24%
= 6.2 million
Wealthy
4%
= 1 million

20. 0.6%
1%
1.6%
6.9%
12%
31.9%
46%
A1
A
B
C
D
E
F
Rural declared income
The Bottom up Pyramid
Source: TNS Vietnam
Almost 4 out of every 5 rural consumers are still BOP,
representing some 47 million, while middle class has around 11
million and affluent about 1.2 million consumers
BOP
78%
= 47 million
Middle
19%
= 11 million
Affluent
2%
= 1.2 million
SEC Scale - VND
A1 = 15 mln +
A = 9 - 15 mln
B = 6.5 - 9 mln
C = 4.5 - 6.5 mln
D = 3 - 4.5 mln
E = 1.5 - 3 mln
F = 1.5 - below

21. Spending priorities

22. Source: TNS VN Consumer Confidence Poll, Jan. 2010
57
40
34
32
29
27
25
24
22
22
22
34
52
53
48
59
51
59
55
61
55
49
8
8
12
19
12
21
16
21
16
23
28
1
0
1
1
0
1
0
1
1
1
0
Education
Food & beverages products
Health care products/ services
Transportation
Household utilities
personal equipment (mobile phone, laptop ,Etc)
Personal care products
Communications: telephone/ fax/ email
House hold care products
Home appliances (wash machine, tv, hiFi, Etc)
Entertainment & dining out
More Same Less Don't know
Consumer spending in 2010?
In Dec. 2009, only two sectors were perceived to have
a stable, mild decrease in spend compared to 2010

23. Annual Spending Vietnam:
37b USD
Rural:
28b USD
Urban:
9b USD
Share of wallet
(Declared Income: 2.4 mil VND)(Declared Income: 6.4 mil VND)
F&B
10%
Education
10%
Saving
19%
FMCG &
Fresh
Foods 24%
Utility
6%
Transportation
6%
Entertainment
5%
Communication
5%
Housing
4%
Health Care
4%
F&B
12%
Education
8%
Saving
17%
FMCG &
Fresh
Foods 29%
Utility
7%
Transportation
5%
Entertainment
4%
Communication
4%
Housing
4%
Health Care
1%
Source: Worldpanel Vietnam – Urban Household Purchase Panel, TNS Analysis

24. Modern Retail Trends

25. © Kantar Worldpanel
01/11/2010
25
9.1
8.9
7.0
11.6
3.2
8.7
7.7
1.9
4.6
10.1
4.5
15.7
17.2
China (national urban)
South Korea
Malaysia (Peninsula)
Philippines
Taiwan
Thailand
Vietnam (4 urban cities)
MATQ209
MATQ210
Total FMCG value growth (%)
Source: Kantar Worldpanel – Total FMCG – Households Panel
VIETNAM FMCG MARKET CONTINUES TO SHINE IN ASIA
2009 FMCG MARKET GROWTH RATE ACROSS ASIA (VALUE)

26. © Kantar Worldpanel
01/11/2010
26
– Baby Wipes / Diapers
– Box Tissue
– Table Napkins
– Granules
– RTD Tea
– Instant Coffee
– RTD Coffee
26
WHAT DRIVES THE INCREASE OF THE FMCG CATEGORIES?
FASTEST GROWING CATGEORIES IN 2009
Convenience
– RTD Tea
Sugar free variants
– Energy Drink
– Drinking Yogurt
– Liquid Milk
– Soya Milk
– Mineral Water
Health &
Energy
– Deodorant
– Hand Washing Sanitizer
– Bleach
– Bathroom / Floor Cleaner
– Baby Wipes/Diapers
– Granules (from MSG)
Hygiene &
Safety

27. © Kantar Worldpanel
01/11/2010
27
Total FMCG excluding gift
Source: Kantar Worldpanel – Total FMCG – Household Panel - 4 key Urban cities (HCMC, HANOI, DANANG, CANTHO)`
15
19
61
63
15
12
9
6
2005
2009
Modern Trade Street Shop Market Others
CHANNELS VALUE SHARE ON FMCG
TRADITIONAL TRADE IS STILL DOMINATING THE VIETNAMESE RETAIL
LANDSCAPE BUT MODERN TRADE CONTINUOUSLY GAINS GROUND

28. Page
28
Vietnam‟s Cyber
opportunities
2008 and beyond
Technology

29. Top 18 countries – internet users
Source: WorldInternetstats.com – March 2009
Vietnam is now the 18th highest user of the internet globally
20
20.7
21
25
26.5
27
28.4
28.6
36.8
38
40.9
43.8
50
55.2
81
94
220
298
0 50 100 150 200 250 300 350
Poland
Philippines
Vietnam
Indonesia
Turkey
M exico
Italy
Spain
South Korea
Russia
France
United Kingdom
Brazil
Germany
India
Japan
US
China

30. Technology household penetration
Source: TNS VietCycle – 1999-2009
Urban Vietnam is now well-digitised
55%
94%
38%
63%
7%
2%
0
20
40
60
80
100
Mobile phone ow nership In-home PC In-home Internet penetration
Urban Rural

31. Past Month Reach (%)
Mobile Internet connectivity
Source: TNS Media Habits survey, 2009 > 2010
Vietnam is „leapfrogging‟, opening opportunity for both high end
new product categories & affordable mass tech products

32. Online User Profile
26%
14%
24%
14%
12%
10%
12%
8%35%
15%
14%
18%
General Netizen*
40+
35-39
30-34
25-29
20-24
15-19
Age
56%
52%
44%
48%
General Netizen*
Female
Male
Gender
63%
64%
37%
36%
General Netizen*
Married &
Others
Single
Marital Status
Base: * Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: Yahoo!-TNS Net Index 2008; TNS Media Habits Survey 2008 Wave 2
Skewed towards young (68% <29 years), Male (56%) and Single (63%)

33. On-line shopping
Source: TNS Media Habits survey, 2010
Past Month Usage (%)
2
3
6
7
7
7
11
11
14
16
16
17
18
28
34
Beauty products
Movies
Investment items
Hotel bookings
Music
Ringtones for phone
Movie Tickets
Pre-Paid phone cards
Software
Books / magazines
Clothes
Games
Airline tickets
Household items
Electronic goods
Strong potential for the future

34. Vietnamese youth trends

35. Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey 2008 Wave 2
*2010 TNS Global TRU study
Vietnamese youth surfing in to the future…
Past Week Reach (%)
0
20
40
60
80
100
Total 15-19 20-24 25-29 30-34 35-39 40+ years
TV
Posters/Billboards
Newspaper
Magazine
Radio
Cinema
Internet
…spending almost 2 hours* a day online

36. 36
Always online at TRUStudy.com
Online activities
Incidence of online activities in the past 30 days (%)
Activities Total
Used a search engine (like Google, Yahoo) 93
Talked to someone in a chat room 91
Surfed for hobbies or interests 83
Listened to MP3s 81
Played a single-player game 79
Sent an instant message (IM) 79
Visited a news, sports site 74
Researched for school or work 66
Forwarded a website link to somebody 66
Downloaded music, videos, movies free 66
Played a multi-player game 65
Sent an email 64
Entertainment and educational activities rule teens
web behavior

37. Education - 15 to 45 year olds
19
13
2
1
1
12
9
17
21
26
12
10
8
8
9
40
43
45
46
35
17
25
29
23
29
VC-2008, n=1000
VC-2006, n=2000
VC-2004, n=1320
VC-2001, n=1232
VC-1999, n=1304
University & above Some University Some college
Grade 10-12 Grade 9 or lower
Source: TNS VietCycle: 2008
Over the past 5 years, enrollment in University has dramatically
increased; estimated 400,000 potential students to study overseas in next 10
years

38. A Shift in Advertising

39. TV
78.7%
Internet
2.2%
Magazines
6.9%
Newspapaers
11.8%
Radio
0.3%
TV Radio Newspapaers Magazines Internet
TV is King, growing over
40% in 2009, followed by
Print. However, Internet is
the second fastest growth
media at 37% in 2009.
Advertising spend breakdown - 2009
Source: Kantar Media Co.
* CIMIGO
MEDIA TYPE
2009
USD
2008
USD
Change
Growth
%
Total
Industry
%
TV 556,000,000 389,000,000 42.9% 78.7%
RADIO 2,100,000 1,800,000 18.1% 0.3%
NEWSPAPERS 83,250,000 83,400,000 -0.2% 11.8%
MAGAZINES 49,200,000 45,400,000 8.4% 7.0%
INTERNET* 15,500,000 9,700,000 37% 2.2%
TOTAL $706,050,000 $529,300,000 25% 100%

40. 295
46
9
22 22
253
45
10
24 30
233
46
8
21
43
TV Newspaper Magazine Radio Internet
2006 2007 2008
Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)
Source: TNS Media Habits Survey (2006-2008)
Time Spent Per Day (Mins)
Media exposure trends
Time spent watching TV has decreased by 1 hour per day since 2006,
while Internet is the only medium growing (21 minutes / day)

41. Urban vs Rural
Vietnam

42. Urban Durable ownership – HH penetration
98.5%
95.8%
94.3%
92.4%
85.1%
61.1%
50.4%
38.5%
31.7%
22.0%
18.3%
0.8%
COLOR TV
MOTO
HANDPHONE
DVD
FRIDGE
WASHING MACHINE
PC
INTERNET
AIR CON
MICRO WAVE
CAMERA
CAR
2009
Source: Kantar Worldpanel 20094 key Urban
cities (HCMC, HANOI, DANANG, CANTHO)
Urbanites are now only lacking creature comforts

43. Rural Durable ownership – HH penetration
94.8%
80.5%
77.3%
62.8%
23.5%
7.4%
5.4%
2.1%
1.6%
0.6%
0.6%
0.2%
COLOR TV
MOTO
DVD
HANDPHONE
FRIDGE
PC
WASHING MACHINE
CAMERA
INTERNET
AIR CON
MICRO WAVE
CAR
2009
Whereas rural folks only own the basics, leaving mass growth potential
Source: Kantar Worldpanel 20094 key Urban
cities (HCMC, HANOI, DANANG, CANTHO)

44. the sixth sense of businessTM
alison.dexter@tnsglobal.com
www.tnsglobal.com