Fast-moving consumer goods (FMCG) are projected to enjoy another year of high growth in 2018 and grow by 6-7% on previous year.
Positive growth has been seen in the personal care category, with facial moisturizer and make-up products being the most prominent categories, getting consumer spending in urban and rural markets.
The growth of facial moisturizers was attributable to more consumers paying heed to beauty care in rural areas while the snack market is currently the main source of growth for packaged foods in both urban and rural markets.
According to the report, in the short term, the beverage sector will stand as the growth driver of the urban market. Personal care continues growing steadily in both urban and rural markets.
Vietnam’s economy exceeded 2017’s GDP target, marking the highest growth rate since 2011. Key economic indicators show good achievements, such as import/export, FDI, retail sales and others.
2018 performance is expected to be better with an estimated growth rate of 6.7%. However, in the middle and long terms, there are still some challenges such as low labour productivity and environmental issues that need to be resolved to achieve sustainable economic development, said the report.