Enhancing the capabilities of businesses in the FMCG sector is a key driver for stimulating domestic consumption and market growth, thereby contributing to economic development and creating numerous jobs.

Digital consumption trends

The booming development of technology and the rapid expansion of e-commerce are profoundly influencing the consumer market. According to the Ministry of Industry and Trade, total retail sales in the FMCG sector have grown by an average of 6% per year since 2021, reflecting stable and gradually increasing consumer demand.

FMCG products have short usage cycles and relatively low profit margins, but they benefit from rapid inventory turnover and large sales volumes, helping manufacturers and retailers maintain steady cash flow. Consequently, many enterprises in the sector have seized market opportunities to expand their business scale. However, the sector is also highly competitive, with both large and small businesses constantly vying over price, quality, and service. Moreover, it is highly sensitive to market shifts and reflects changing consumption trends.

Dao Thanh Tung, Head of E-commerce at Lotte Mart Viet Nam, noted that e-commerce has become a core component of the modern retail sector. In 2024, Viet Nam’s e-commerce market grew by over 22%, the second fastest in Southeast Asia, and is expected to account for 10% of total retail sales by 2025. The internet and digital platforms have become crucial sources for consumers to compare prices and assess product quality. E-commerce is not only changing consumer behaviour but also reshaping the entire retail ecosystem, emerging as a strategic driver for sustainable development and competitiveness in the digital era.

According to Tran Dieu Huong from the Domestic Market Management and Development Agency under the Ministry of Industry and Trade, major e-commerce platforms such as Shopee, Lazada, and Tiki have become familiar shopping channels for urban consumers. Surveys have shown that 73% of urban consumers search for information online before making purchases. Multi-channel retail models and the integration of cashless payments are being actively implemented by businesses in the FMCG sector.

Consumers can now shop through various channels such as physical stores, websites, and mobile apps. Models like O2O (Online to Offline) and BOPIS (Buy Online, Pick Up In Store) are becoming increasingly popular in major cities. These new business models help consumers save time and reduce delivery costs.

Coordinated support measures

Drawing from experience in supporting FMCG businesses with digital transformation, Dona Trang Ha Thanh, Chief Operating Officer of Lazada Viet Nam, explained that digitising distribution systems not only shortens processing times and reduces operating costs but also improves market access, particularly for products with short shelf lives, such as fresh food. This enables businesses to expand their scale and enhance competitiveness on digital commerce platforms.

Digitising distribution systems not only shortens processing times and reduces operating costs but also improves market access, especially for products with short shelf lives, such as fresh foods. This allows businesses to expand and strengthen their competitiveness in digital commerce.

Doan Trang Ha Thanh, Chief Operating Officer at Lazada Viet Nam.

Therefore, FMCG businesses should proactively accelerate digitalisation in logistics, warehousing, and order processing; invest in building sustainable operational capabilities on digital platforms; increase sales through livestreaming; and participate in “Mega Sales” events hosted by e-commerce platforms to broaden their distribution channels.

In terms of policy, Thanh suggested that the government continue prioritising and promoting e-commerce as an important channel for economic development; organise large-scale programmes to connect e-commerce supply and demand; and create favourable conditions for cross-border e-commerce, especially in sectors such as agriculture and food products.

According to Tran Dieu Huong, the Politburo’s Resolution No. 57-NQ/TW on breakthroughs in science and technology development, innovation, and national digital transformation has defined digital transformation as a strategic breakthrough, promoting the application of digital technology, artificial intelligence (AI), and big data in distribution and supply chain management. Resolution No. 68-NQ/TW on the development of the private economy has also expanded opportunities for businesses, including retailers and FMCG producers, to access credit, land, and technology.

In addition, the government should invest in developing a modern logistics system, including cold storage facilities for preserving fresh goods, thereby boosting domestic e-commerce. For businesses, there is a need for more support solutions, such as preferential loans and credit access, as well as for the development of human resources through training programmes focused on digital technology and business management.