Income_and_Expenditure_Vietnam.pdf

Chart 6 household income distribution in vietnam

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opportunities for companies serving consumers at both ends of the income distribution. Chart 6 Household Income Distribution in Vietnam Source: Euromonitor International from national statistics Note: Data for 2018-2030 are forecasts. Data are in constant US$ CONSUMER EXPENDITURE BY CATEGORY Urbanisation Fuels Demand for Transport Rising incomes will support a gradual decline in the share of essential spending (expenditure on food, non-alcoholic beverages, clothing and footwear and housing) among Vietnamese households, although it remains higher than regional averages: The gradual rise of discretionary spending power of Vietnamese households during 2018- 2030 will create good opportunities for marketers of discretionary goods and services, such as household durables, education, travel and financial services;
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I N C O M E A N D E X P E N D I T U R E : V I E T N A M P a s s p o r t 6 © E u r o m o n i t o r I n t e r n a t i o n a l Growth in consumer expenditure has moderated since 2015, as higher prices somewhat undermine consumer sentiment. Nevertheless, the pace of growth is expected to remain healthy through to 2030; Hotels and catering was the fastest-growing consumer spending segment during the 2012- 2017 period, fuelled by demand from Vietnam’s burgeoning middle -class, young consumers. Nevertheless, transport is anticipated to be the best-performing spending category through to 2030, as a result of urbanisation, a growing need for mobility, and the desire for a social status symbol. Chart 7 Consumer Spending in Vietnam Source: Euromonitor International from national statistics/UN/OECD Note: Data for 2018-2030 are forecasts CONSUMER EXPENDITURE BY REGION
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I N C O M E A N D E X P E N D I T U R E : V I E T N A M P a s s p o r t 7 © E u r o m o n i t o r I n t e r n a t i o n a l the South East Region Sets To Expand the Fastest Regional differences in terms of consumer spending power are remarkable in Vietnam: Given its large population, the Red River Delta region (which includes the capital city Hanoi) is Vietnam’s largest consumer market in terms of total expenditure. On the other hand, the South East region (which includes Ho Chi Minh City Vietnam’s economi c hub) continues to have the highest per household consumer expenditure, due to a concentration of high-paid jobs in the region’s dynamic commercial and industrial sectors; During the forecast period of 2018 and 2030, the South East region will witness the strongest rise in total consumer expenditure, driven by the region’s strong economy and population growth. The region offers vast opportunities for businesses, not only among the expanding middle class and wealthy households in Ho Chi Minh City, but also among lower-income consumers living in nearby regions.
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  • Fall '19
  • Household income in the United States, Euromonitor International

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