Thursday, March 17, 2016

THE APPEAL FROM THE CONSUMER GOODS MARKET VIETNAM

(VEN) – Sector in FMCG (Fast Moving Consumer Goods – FMCG) in Vietnam is much fertile land and potential for investors because Vietnam is rated one of the leading markets the world leader in consumer confidence levels with retail sales growth averages 24% / year. Add to that Vietnam is emerging as an attractive investment location, with 90 million people, a young population and rising incomes and urbanization rate strong.
We can see the development of the market economy has helped Vietnam become one of the fastest growing economies in the region, has stimulated and promote consumer spending strong, with growth consumer spending growth averaged at 17.2% / year.
According to the General Statistics Office, the total turnover of retail goods and services reached 2.32 million in 2012 billion, up 16% compared to 2011. The largest contribution to the figures, in terms of business group’s commercial sector accounted for 77.1%, equivalent to 1,789 million billion, up 15.2% from the same period in 2011. The other sectors, hotels and restaurants contributed 11.8% services and tourism accounted for 10.1% 1%. In terms of economy, the external sector reached 1.968 million state billion, accounting for 84.8% and increased 18.4% compared to 2011. The area of ​​foreign investment at 67.4 trillion billion, representing 2.9% and an increase of 34.7%. State economic sector closed 288.9 trillion, accounting for 12.3% and decreased by 1.2%. In 2013, trade and industry aims to reach total retail sales of goods and social services in 2013 about 2,742 million billion, up 18% compared to 2012. The growth figures are an important foundation for industry consumer goods in Vietnam continues to grow strongly and attract investors directly and indirectly.
Additionally, when compared to countries in the area of ​​consumer goods Vietnam has also grown rapidly in Asia in 2012, the last with 23%, compared with 18.8% and India with the Middle Korea 13%. So Vietnam is emerging as an attractive location for investment due to 90 million people, a young population and rising incomes and urbanization rate. With a young population joining the labor market, average spending per consumer of Vietnam will continue to increase in years 2012- 2016 is an important basis for promoting consumption. According to statistics in 2012, spending on food and beverages by consumers Vietnam reached 276 USD / person / year. It is expected that by 2016, total consumer spending for food and beverages will rise to 25.2 billion compared with 17.7 billion in 2011.
Especially market consumer goods in Vietnam in recent years also witnessed many acquisitions and mergers (M & A) and activities continue to be active in 2013 by foundation consumer market Vietnam remains very good, especially the young population and rising incomes; However the domestic consumer goods companies are experiencing difficulties in funding due to high interest rates; As the market develops, as a rule eliminated, companies need to build core values ​​and human investment. Lack of experience both capital and development forced the domestic consumer businesses to seek investors. Therefore, the consumer market in Vietnam is expected to be more mergers and acquisitions (M & A) in 2013 as still attractive to international investors.
Proving this fact some foreign investment funds like VinaCapital, Dragon, Mekong … very interested in investing in the field of consumer goods dung.Hien VinaCapital has invested in over 50 leading enterprises in all economic sectors in Vietnam, especially in the consumer goods industry and most of the investments in companies that consumers equally positive results. In addition to investment funds, the largest consumer companies in Vietnam such as Pepsi, Vinamilk … or large enterprises overseas consumers are also willing to invest in the consumer sector in Vietnam to have a chance. 1/2013 of the most recent month one of the biggest deals Kohlberg Kravis Roberts is firm (KKR) based in the United States increased $ 200 million investment in Masan Consumer Corporation.

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