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| Fast-moving consumer goods are one of the items that grow very quickly, continuously growing at double digits for many years. |
Lots of potential
According to a report by the General Statistics Office, Vietnam’s total retail sales of goods will reach more than US$180 billion in 2023, most of which are fast-moving consumer goods. According to expert Dinh Trong Thinh, the development of the fast-moving consumer goods industry is being demonstrated by the rapid economic growth and rapid increase in per capita income. That income is creating consumer demand for many different products, from durable technology products to fast-moving consumer products.
Fast-moving consumer goods are one of the items that grow very quickly, continuously growing at double digits for many years. Along with the growth of young consumers, population aging is also occurring. The consumption needs of middle-aged and elderly consumers are also changing, they also have a huge demand for fast-moving consumer goods.
Along with the development of digital technology, the need to order goods online and have them delivered to your home has brought convenience to consumers and is also an advantageous factor helping the fast-moving consumer goods industry each this customer base.
However, with consumer trends shifting towards a more “green” direction, fast-moving consumer goods need to increasingly meet the quality of food safety, environmental sanitation and waste collection from products.
“In recent times, many of our fast-moving consumer goods from instant noodles, beer, wine… have been strictly inspected by importing countries. Therefore, we need to be green right from the production stage, green from storage to logistics and transportation, ensuring products reach consumers in the safest hands,” economic expert Dinh Trong Thinh emphasized.
Shifting towards green consumption
From the perspective of businesses in the fast-moving consumer goods industry facing the greening trend, Mr. Shimada Shigeru, Chief of Office of the General Director of Acecook Vietnam Joint Stock Company said, the company has continued to carry out a number of practical actions to spread green production and create safe products and reduce plastic waste.
Some outstanding actions include the R&D (research and development) team continuously studying, researching and improving product packaging, cup noodle products gradually switching from plastic cups to paper cups or paper-wrapped cups. All forks in the product have also changed from PP plastic forks to bio-plastic forks, which are more environmentally friendly while the product price remains unchanged.
Kantar’s recent 2024 Vietnam FMCG Industry Outlook Report shows that 2024 promises to bring a lot of potential for Vietnam’s FMCG industry, with the prospect of strong recovery and growth. However, besides the opportunities, there are barriers and challenges due to short-term macro and economic factors.
In order to succeed, brands and businesses need to keep abreast of developments in the global and local economies, as well as changes in demographics and consumer trends, to flexibly adapt to be able flexibly adapt to short-term challenges and build long-term strategies.
Besides, according to Prof. Dr. Vu Trong Hong, there are 3 main barriers for Vietnamese businesses in the transition process to sustainable development.
Firstly, the source of capital is not guaranteed; secondly, if we want to develop quickly and sustainably, we must strengthen logistics, but in many regions in Vietnam it has almost stagnated; thirdly, the tastes of Vietnamese people often fluctuate due to online news.
At the same time, this process requires businesses to have green certificates. Each enterprise’s product must have a green certificate to easily enter the Vietnamese and international markets. This is a big problem that requires the cooperation of many agencies and departments.
However, the responsibility of the business is still on top of that. Even if businesses want to, they cannot certify green certificates on their own. Therefore, they urgently need the participation and attention of the authorities, the Government, and the National Assembly. Regulations and resolutions must be synchronized so that businesses can minimize costs to meet all requirements.
Therefore, according to experts, state management agencies must get involved and there must be official sources of information to pass on to the people to grasp. Development must be comprehensive from human awareness, economy, technology to people’s needs.