VIETNAM IN THE DIGITAL ERA Evolution, impacts and social considerations from Xavier Depouilly, General Manager

1. VIETNAM
IN THE DIGITAL ERA
Evolution, impacts and social considerations
Xavier Depouilly, General Manager
December 5th 2019

2. INDOCHINA RESEARCH
Indochina 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.
Our Services
Media Habits
Communication effectiveness
Mystery shopping
Event Evaluation
Usages & Attitudes
Brand Health Tracking
Product and Concept Testing
Market Entry
In-home Visit
Social Research
Indochina Research Ltd. complies with ICC/ESOMAR
Code on Market and Social Research and ESOMAR
World Research Guidelines
www.indochina-research.com

3. 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

4. VIETNAM AT A GLANCE
96 MIL
TOTAL 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

5. 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

6. ..........................................................................
........................................................................................
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THE DIGITAL
ERA

7. 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
Laos
Myanmar
Vietnam ranks 5th
in the region, both in terms of
Internet penetration and Social
Media penetration
INTERNET PENETRATION
SOCIAL MEDIA PENETRATION

8. + 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
36
40
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

9. 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

10. 371700
341600 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?

11. 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

12. 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.
34,569.9
30,929.8 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
$ 558.0
Million
$ 610.0
Milion
$ 348.0
Milion
$ 399.0
Milion
$ 354.0
Milion
$ 3.491
Bilion
$ 75.00
Million
$ 21.00
Milion

13. 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)

14. ..........................................................................
........................................................................................
................................
..............................................
SOCIAL
IMPACTS ON THE
VIETNAMESE
SOCIETY
"A day without social media
would feel like a century"

15. 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

16. 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?

17. 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

18. 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.

19. ..........................................................................
........................................................................................
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DIGITAL
EVOLUTION OF
MARKET
RESEARCH

20. Market research digitalization trend
F2F - DIGITAL DATA
COLLECTION
PAPER, MAIL,
TELEPHONE
ONLINE 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

21. 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.

22. THANK YOU !
Xavier Depouilly, General Manager
Mobile: 096 717 3663
xavier@indochinaresearch.com
www.indochina-research.com