VIETNAM

IN THE DIGITAL ERA

Evolution, impacts and social considerations

Xavier Depouilly, General Manager

December 5th 2019

INDOCHINA RESEARCHIndochina Research is the only independent agency conducting research

in all 4 regional markets, including Vietnam, Laos, Cambodia and

Myanmar. We have started our service in Vietnam since 1994.

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C O N T E N T S

The Digital Era

Some impacts on The Vietnamese Society

Digital Evolution of Market Research

Vietnam at a glance

VIETNAM AT A GLANCE

96 MILTOTAL POPULATION

15th rank Worldwide

URBANISATION

35% to 55%

by 2030

$2,518 GDP PER CAPITA

Nationwide

$ 6,000 in HCM city

64%IN 15 - 55 AGE

GROUP

Hanoi

Da Nang

Ho Chi Minh

Can Tho

Urban: 4,367,100 - 59%

Rural: 3,053,000 - 41%

Urban: 932,400 - 88%

Rural: 131,700 - 12%

Urban: 6,825,300 - 81%

Rural: 1,619,300 - 19%

Urban: 853,600 - 67%

Rural: 419,200 - 33%

Key markets

Source: GSO (2017); McKinsey (2019); Publicis (2019)

18,201,600 = 19% of the population

HAPPY, OPTIMIST AND HEALTHY POPULATION

SUPPORTING THE COUNTRY DEVELOPMENT

65% Are Happy or very Happy

96% Declare having a good quality of life

89% consider themselves HEALTHY

70% Are satisfied with their job

61% Are satisfied with their remuneration

54% Consider 2020 will be a better year for them

France = 47%

Source: Indochina Research - End of Year Survey – n =500 - WIN and Gallup International

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THE DIGITAL

ERA

DIGITAL PENETRATION IN THE REGION

Source: We are Social (2019) / IRL analytics

86% 84%

82% 77%

71% 71%

67% 67%

58% 58%

66% 64%

51% 46%

45% 33%

33% 31%

26% 26%

26% 26%

Brunei

Singapore

Malaysia

Thailand

Philippines

Vietnam

Indonesia

Cambodia

Timor-Leste

LaosMyanmar

Vietnam ranks 5th

in the region, both in terms of

Internet penetration and Social

Media penetration

INTERNET PENETRATION

SOCIAL MEDIA PENETRATION

+ 30 million users (+15% per year) in 5 years | about 90% penetration among 15-55 yo

Source: WEARESOCIAL 2014-2019

Digital is growing fast – 66% have access to internet

DIGITAL PENETRATION | VIETNAM

3640

47 50

62 64

39%44%

50%53%

65% 66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

10

20

30

40

50

60

70

2014 2015 2016 2017 2018 2019

Connected population % of total population

Source: Kantar Media | Media Habit Survey 2019 | Top 4 Cities | 18 to 59 yo

98% 100% 98% 99% 97% 97%

39%

62%68%

86%89% 91%

53%57%

63% 65% 67%71%

27%

43%

17%

49%45%

41%

8%

31%

10%

36%

21% 20%

39%33%

48%

31%

16% 13%

Y2014 Y2015 Y2016 Y2017 Y2018 Y 2019

TV Internet OOH Press Cinema Radio

128 Mins 226 Mins 47 Mins 38 Mins

DIGITAL HAS 2ND REACH BUT HIGHEST TIME EXPOSURE

TV & Digital are now the biggest touchpoints in Vietnam

371700341600 334100

281200

68300 55800 36400 33200 28600 28100

100%

99%

99%

97%

96%

88%

88%

84%

80%

78%

75%

70%

70%

68%

68%

Visited / used a social network

Visited / used a search engine

Watched a video clip or visited a video-sharing site

Visited a news website / app / service

Used a chat or instant messaging service / app

Searched for a product or service you want to buy

Used a map or directions service / app

Visited an online retail site or store such as Amazon

Uploaded / shared a photo

Purchased a product online

Used a webmail service to access, read or send emails

Uploaded / shared a video

Used an internet banking service

Visited a travel / vacation website

Checked the weather online

Source: GWI Vietnam Q1 2019 | PP16-64 Total VN & WEARESOCIAL

Question 1: In the past month, which of the following things have you done on the internet via any device?

Question 2: In the past month, Which of these do you use to access the internet?

ONLINE ACTIVITIES

Social, Search, Watch, News, Communicate, Buy…

DIGITAL ACTIVITIES | VIETNAM

90% 94% 91% 85%

60%

92% 92%75% 74%

49%

Have Account

Monthly Active

SOCIAL NETWORK APPS

VISITED WEBSITES / MONTHLY TRAFFIC (thousands)

Question 1: On which of the following services do you have an account?

Question 2: Which of the following sites / applications have you visited or

used in the past month via your PC / Laptop, Mobile or Tablet?

DIGITAL BRINGS MARKET DISRUPTION AND DRIVE DIGITAL

CONSUMPTION WITH KEY GAME CHANGERS

Transportation apps

2000 - 2010(10 years)

2011 - 2017(6 years)

2018 - 2019(1 years)

Food delivery apps

E-wallets/ payment apps

Money loan apps

E-COMMERCE, THE NEW CONVENIENCE !

Source: Iprice Insights (2019), McKinsey Report (2019)

E-commerce : Estimated between 2.5 to 9 Billion USD - About 3% of overall retail but rapidly

increasing and considered to grow to 33 billion by 2025.

34,569.930,929.8 29,307.2 27,114.5 24,364.7

10,696.3 8,252.1 6,565.2 6,414.5 5,689.4

E-COMMERCE WEBSITES MONTLY VISIT RATE

E-COMMERCE SPENDS BY CATEGORY – Revenue in USD

$ 558.0Million

$ 610.0Milion

$ 348.0Milion

$ 399.0Milion

$ 354.0Milion

$ 3.491Bilion

$ 75.00Million

$ 21.00Milion

Although time spend is high, digital advertising represent only 22% of total

media spending growing to 370M (+26%) in next 5 years.

Source: eMarket (2019), TNS Infosys+, Total Industry (TV, Print & Radio) All spends are in Gross

$1.24 $1.31

$1.36 $1.41

$1.45

$0.28 $0.31 $0.33 $0.35 $0.37

2019 2020 2021 2022 2023

Total Media Ad Spending Digital Ad Spending

5.50%5%

4%3.50%

3%

% change of media ad spending

Media and Digital Ad spending 2019 - 2023 (in billions)

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SOCIAL

IMPACTS ON THE

VIETNAMESE

SOCIETY

"A day without social media

would feel like a century"

DIGITAL IS HERE FOR GOOD !!

Source: Indochina Research (2019)

"A day without social

media would feel like

a century"

"Social Media is the fastest

and most convenient way

to get new information and

connect with people"

"There are many things to

do on social media, from

talking with friends,

relaxing, to doing business,

looking for a job and

catching up with the latest

news in the world"

"Technology and

especially social media

has helped business to

manage people better"

SOURCE OF INFORMATION LIFE NECESSITY

OMNI PLATE-FORM CORPORATE TOOL

CYBER SECURITY AND DIGITAL TRUST

concerned about sharing

their personal data

information digitally46%

do not like the current privacy

practices of most data collectors

asking for their personal information42%

Cyber security issues impacts 40% of the population and should be considered seriously.

The majority of global players are considered to deal with private data quite well.

The GoV is also looking to regulate the sector more an getting its due tax-return from global players..

60%

27%

15%

10%

8%

1%None of these

Spammed by companies

Personal details have been leaked

Phishing i.e.

Email hacked

Bank account or credit card

hacked/ used fraudulently

92% 89% 83% 79% 74% 69%59%

48%

Trust ratio on data privacy practices

Source: Indochina Research End of Year Survey, 2019

Have you experienced any of the following in the last 2 to 3 years?

A“post-truth” era …to differentiate your brand value

63% of Hanoians and Saigoneers have been in contact with fake news in the past 3

months (Feb-May/2019)

65% of them faced it at least once a week

Among various contacting channels, people are exposed to fakes news mostly through ONLINE

CHANNEL, including Social Media (45%) and News Website (44%).

45% 44% 30% 15% 7%

Fake news

contact rate

by platform

Source: Indochina Research HotSpots Survey, 2019

E-Government to ease business process, Social media to

improve transparency and promote integrity.

Between 2014 and 2017, Vietnam rose 10 places to rank

88th out of 193 countries and territories on the United

Nations’ E-Government Development Index (EGDI)

“Corruption in police/traffic police decreases in this year

because many corruption cases are recorded and

published on social media (Youtube, Facebook)”

(Vietnam Corruption Barometer, Towards Transparency 2019)

Overall satisfaction on E-Government measures

• E-government services help boost the efficiency of public services by reducing processing

time and costs, and increasing accountability and transparency.

• Social media are also considered as a way for the population to contribute to more integrity

in the society.

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DIGITAL

EVOLUTION OF

MARKET

RESEARCH

Market research digitalization trend

F2F - DIGITAL DATA

COLLECTION

PAPER, MAIL,

TELEPHONEONLINE PANELS

REAL TME / PREDICTIVE

/ ONE2ONE

35% 50% 10% <5%(2019)

10% 20% 50% 20%(2029)

Predictions by the author

Requirements :

- Digital solutions - Financial Investments- Qualified HR

Key take away

www.indochina-research.com

Digital is here for good and largely adopted by a young, dynamic and optimistic

population

Digital services and social networks are bringing more convenience, media reach and

shopping opportunities.

Trust is a growing issue, so brands needs to differentiate by building meaningful

relationships, content for their target audience and customers.

The sector is largely unregulated, but the Government starts to take action to secure

content and get his due tax revenue generated by large global companies in Vietnam.

All sectors are impacted at different level with opportunities to differentiate. Need to

balance the cost – benefit ratio as requiring investment and more qualified Human

resources.

THANK YOU !

Xavier Depouilly, General ManagerMobile: 096 717 3663

xavier@indochinaresearch.com

www.indochina-research.com