Tet Nguyen Dan (Tet) is the first day of the lunar new year in Vietnam. The Tet public holidays last a week and mark a period of celebration for Vietnamese families, wherein they reunite and honor their ancestors. The Vietnamese indulge in a great deal of shopping, starting weeks before Tet, making it one of the most important shopping seasons in the country. The sales boost from Tet 2024 is very important for Vietnamese consumer packaged goods (CPG) companies and retailers, after the economic slowdown dampened growth in consumers’ discretionary expenditure in 2023, according to GlobalData, a leading data, and analytics company.
Raviteja Neralla, Consumer Analyst at GlobalData, comments: “The mood across Vietnam is upbeat, with the anticipation of a healthy rise in sales. According to the Hanoi Department of Industry and Trade, the value of goods readied for the festival in the city grew by 10% annually to $1.7 billion in 2024. The positive consumer mood has been persistent since January, with revenue from retail sales and consumer services increasing by 8.1% annually in the month, according to the General Statistics Office (GSO). Retailers have reported an increase in consumer footfall at their stores by three to four times during the runup to the festival.”
Tim Hill, Key Account Director, GlobalData Vietnam, adds: “The Tet shopping festival gains more importance in 2024 in the context of Vietnam’s economic slowdown in 2023. The country’s GDP growth rate fell to 5.05% in 2023 from 8% in 2022, amid weaker global demand and a decline in exports. Consumer price inflation rose in 2023, curtailing consumers’ spending. A large proportion of Vietnamese consumers (76%) were extremely concerned about their financial situation, according to a GlobalData consumer survey in 2023*. Amid such negative market sentiment, this annual shopping season wherein shoppers display a greater tendency to shop and willingness to spend is crucial to bring much-needed optimism to sellers.”
Neralla continues: “To leave no stone unturned to utilize this opportunity to the fullest, businesses and retailers have ramped up their efforts to attract consumers and expand their volumes. Supermarkets have introduced a variety of promotional offers and discounted prices. CPG companies are focused on building on their existing online capabilities and ensuring seamless electronic payments.”
Hill notes: “Looking at the larger picture, Vietnam has been witnessing the entry of a large number of new players across different sectors. Many new local startups have sprung up in recent years. Many foreign companies have opened shops in the country to grab a piece of Vietnam’s growing marketplace. During Tet, consumers are usually more receptive to any kind of marketing communication from brands.”
Neralla concludes: “Amid intense competition, the shopping festival provides an opportunity for new entrants in the Vietnamese market to interact with more consumers and substantiate their market position. In a way, the shopping festival provides a springboard for new businesses, foreign and local alike, across different sectors.”
*GlobalData 2023 Q3 Consumer Survey – Vietnam, published in December 2023, 538 respondents
