Businesses Respond to the Volatile FMCG Market
Vietnam’s fast-moving consumer goods (FMCG) sector is undergoing a period of significant volatility, as consumer purchasing power shows signs of slowing and the retail channel structure evolves rapidly. In this context, Masan Consumer has proactively restructured its distribution system, accelerated product premiumization, and leveraged the strength of its integrated value chain to reinforce a sustainable growth foundation for the coming years.
According to Insight Asia’s September 2025 report, Vietnam’s retail market reached USD 309.67 billion, with modern trade accounting for around 27% of total retail sales-nearly double the level in 2005. By 2030, the market is projected to grow to USD 547 billion, with modern trade rising to 35% and digital integration reaching 65%. This marks a transition in Vietnam’s retail model-from network expansion to operational efficiency, enhanced customer experience, and comprehensive digital transformation.
Vietnamese Consumers Embrace Digital Shopping Behavior
A survey by Insight Asia involving over 1,300 consumers across six major cities revealed a strong shift toward omnichannel shopping. Specifically, 43% of consumers frequently order groceries online, 67% use mobile apps to check prices and promotions, and 61% make digital payments. Consumers now combine online and offline shopping seamlessly: 52% “research online - buy in-store,” 31% alternate between both channels, and 17% shop primarily online.
The most common digital touchpoints in the shopping journey include checking promotions (73%), comparing prices (61%), making shopping lists (54%), using e-payments (61%), and managing reward points (31%). According to Insight Asia, the ability to integrate online and offline experiences smoothly is becoming a key differentiator for leading retail chains-especially in categories with strong emotional engagement such as fresh food selection and post-purchase product evaluation.
Digital Transformation in Retail - From Operations to Experience
The 2025-2030 period is expected to see Vietnamese retailers accelerate digital transformation to optimize operations, enhance transparency, and deliver personalized customer experiences. Insight Asia’s report highlights several key trends:
More transparent supply chains through quality control and product traceability technologies.
Customer data analytics to optimize product portfolios and promotions.
Widespread adoption of digital payments, click & collect, and fast delivery services.
Application of artificial intelligence (AI) and augmented reality (AR) to personalize in-store shopping experiences.
These trends show that digital transformation is no longer just a supporting tool but a competitive foundation for FMCG companies as consumers increasingly demand convenience, transparency, and seamless cross-channel experiences.
Shifting Consumer Trends and New Success Models
Insight Asia forecasts that by 2030, the highest-growth product categories will include organic and healthy foods (68%), ready-to-eat meals (54%), ingredients for international cuisines (51%), sustainable packaging (47%), and regional specialty products (43%). These categories reflect the shift in Vietnamese consumer behavior-from value-driven spending to conscious, quality-oriented consumption.
The report also identifies three successful retail models for the coming period:
Convenience Champion - Leading in coverage, speed, and technology application.
Value-Fresh Specialist - Combining competitive pricing with consistent freshness.
Experience Destination - Focusing on premium offerings and immersive shopping experiences.
As a result, competition in Vietnam’s FMCG sector will no longer be defined by store count, but by adaptability, technological capability, and consumer understanding-where data, experience, and operational efficiency converge to create sustainable competitive advantages.
Vietnam’s Consumer Spending Recovery
After a slowdown in the first half of the year, domestic purchasing power is showing clear signs of recovery. According to the General Statistics Office (GSO), total retail sales of goods and consumer services in the first nine months of 2025 reached over VND 5.176 quadrillion, up 8.8% year-on-year (6.5% excluding inflation). Retail goods alone rose nearly 9.6%, signaling improving consumer demand in Q3 as inflation stabilizes and confidence recovers.
Experts attribute the rebound to looser monetary policy, lower interest rates, and rising incomes in industrial and service sectors, which have boosted household spending. Additionally, the expansion of modern retail systems in major cities and urbanizing rural areas has created favorable conditions for new consumption channels to thrive.
Although purchasing power has not yet returned to double-digit growth as seen before the pandemic, this recovery trend is viewed as a positive signal for Vietnam’s FMCG market, opening opportunities for companies such as Masan Consumer to strengthen distribution, enhance product innovation, and meet diverse consumer needs in Q4 2025 and 2026.
Masan Consumer: Agile Adaptation and Strengthened Growth Momentum
Under market pressure, Masan Consumer’s Q2 2025 revenue declined 15.1% year-on-year, while net profit dropped 24.7%, primarily due to a downturn in the general trade (GT) channel as many retailers reduced inventory-impacting revenue by VND 600-800 billion.
In response, Masan Consumer implemented a distribution transformation strategy to reduce reliance on GT and expand its direct distribution network. In H1 2025, coverage in pilot areas increased 62%, while the average number of outlets managed per sales representative rose 48%, demonstrating early success of the new model.
In Q3 2025, Masan Consumer (UPCOM: MCH) recorded revenue of VND 7,517 billion, down 5.9% year-on-year, reflecting the initial phase of its Direct Distribution Model rollout in the GT channel. This strategic transition typically requires 3-6 months to stabilize and deliver full efficiency.
Nonetheless, positive signs have emerged - the revenue decline narrowed significantly compared to Q2 2025 (-15.1%), signaling the start of a recovery trend.
According to Masan Consumer’s management during a recent investor meeting, after nationwide implementation of the Direct Distribution Model, key operational metrics have improved, and the company expects to return to positive growth from Q4 2025.
Accelerating Collaboration with WinCommerce and Expanding Modern Trade Channels
While GT remains under pressure, the modern trade (MT) channel has become a bright spot in Vietnam’s FMCG landscape. In the first five months of 2025, FMCG volume through MT increased 4.2% year-on-year. Recognizing this consumption shift, Masan Consumer strengthened its partnership with WinCommerce (WCM)-a key retail arm within the Masan Group ecosystem.
This deep collaboration enables Masan Consumer to reach modern consumers more effectively while leveraging the integrated value chain to expand market coverage and sustain revenue growth. As a result, MT sales rose 12.5%, and exports grew 14.8% year-on-year, underscoring the company’s agility amid structural transformation in the FMCG sector.
Product Premiumization - A Differentiating Strategy in Vietnam’s FMCG Market
Alongside distribution optimization, Masan Consumer continues to advance product premiumization, focusing on core brands such as Omachi, CHIN-SU, Nam Ngư, and Wake-Up 247.
In Q2 2025, despite the instant noodles category contracting 2.2%, Omachi gained 0.8% market share, proving the tangible impact of the premiumization strategy. Other key categories-coffee (+1.8%), personal and home care (+1.3%), and exports (+7.7%)-also maintained positive growth, contributing to stable performance amid market challenges.
The premiumization strategy has enabled Masan Consumer to strengthen its positioning within Vietnam’s FMCG landscape, targeting consumers who seek higher quality, safety, convenience, and emotional value in their purchases.
Vietnam’s consumer goods market is undergoing rapid transformation, with shifting shopping behaviors, technological adoption, and evolving distribution models. In this environment, Masan Consumer stands out as a local enterprise with strong adaptability-integrating technology, products, and an ecosystem-driven distribution network to meet consumer needs.
Today’s strategic initiatives-from distribution restructuring and modern retail collaboration to product premiumization-not only help Masan Consumer navigate short-term market fluctuations but also lay a solid foundation for long-term growth in the 2025-2030 period.