Vietnam has fastest-growing middle class in SEA
Vietnam has fastest-growing middle class in SEA
Vietnam has been cited as having the fastest-growing middle class in the Southeast Asian region, according to the latest survey conducted by the Boston Consulting Group (BCG).
The middle class is expected to rise to 33 million by 2020, almost triple the 12 million in 2012, and average per capita income is projected to increase by US$3,400 each year.
The BCG survey also shows that Vietnamese customers are the most optimistic in the world with more than 90% believing their living conditions are higher than their parents and that the quality of life will continue to rise.
Additionally, despite short term global economic problems, 70% said Vietnam’s economy is improving and stated they intend to increase their purchases in the future.
Vietnam has become an attractive destination for foreign investors in recent years. Samsung was licensed to build a US$1.2 billion factory while Nestle recently inaugurated its US$240 million processing factory to serve Southeast Asia market.
Retail giants, like McDonald’s, KFC, Starbucks, Pizza Hut or Burger King also penetrated the Vietnamese market.
Companies investing in Vietnam have opportunities to brand their trademarks and get on a pathway to economic growth. However, they can only gain success if they master an understanding of customers and their demands, cautioned Douglas Jackson, BCG Vietnam managing director.
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