Growth in Vietnam's consumer goods market is decelerating, a new survey has found. Photo by Diep Duc Minh
Vietnam's fast moving consumer goods market has been struggling to sustain growth, market research company Kantar Worldpanel has said following a regular 12-week survey ending November 3.
The report released December 20 said that the market maintained a growth of 11 percent in urban areas but slipped from 14 percent in October to 12 percent in rural areas.
The market has picked up slightly in recent months as the economy started to stabilize and inflation came under control, but the change is not significant.
Key urban retailing channels like street shops, wet markets, and modern malls all achieved moderate growth.
Street shops, whose sales grew at 5-15 percent, account for 61-62 percent of sales in urban areas and 71-74 percent in rural areas.
The other channels remained stagnant.
Personal care products scored the biggest growth in value -- 17 percent in urban areas and 32 percent in rural areas -- and packaged goods the lowest at 2 percent in cities and 4 percent in rural areas.
Kantar expected demand to pick up soon, especially for confectionary, beverages, and cooking additives, since Tet, the country's biggest festival and consumption season, comes around in just over a month.
It said demand for men's products is set to grow fast in the coming years since men have started to place greater importance on their appearance, according to a study on Asian men in eight countries.
Kantar Worldpanel is based in Spain and provides services in more than 55 countries.
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