Tiếng việtWhat’s Really Happening in the Vietnamese Market?
If you’re running a business in Vietnam, you’ve probably noticed it already: customers are harder to please, they think more carefully before buying, and they’ve become extremely price-conscious. This isn’t just your imagination — it’s the reality of the entire market.
A 2026 survey by the High-Quality Vietnamese Goods Business Association (HVNCLC) found that 40% of consumers now fall into the “defensive” group — meaning they’re tightening spending and are highly price-sensitive. In other words, 4 out of every 10 consumers are spending far more cautiously than before.
According to Ms. Nguyen Cao Ngoc Dung, representative of NielsenIQ Vietnam, while only about 43% of respondents said they were cutting back on spending in 2025, that figure rose to 57% in 2026. This means more than half of Vietnamese consumers are now spending more frugally.
Understanding the Market Slowdown Without Panic
Revenue Is Growing — But Mostly Because Prices Are Rising
Many people assume the market is still growing strongly because revenue figures look high. But that’s not the full picture.
Total retail sales of goods and consumer service revenue in the first 8 months of 2026 reached 5,235.5 trillion VND, up 13.3% year-on-year. That sounds impressive. But when price factors are excluded, real growth was only about 7.3% — barely higher than the 7.2% recorded in the same period last year.
Put simply: revenue is growing mainly because everything costs more, not because people are buying more. The fast-moving consumer goods (FMCG) sector grew 1.7% in 2025, but actual volume declined 1.1%. This is a clear sign that real purchasing power is weakening.
E-commerce Is No Longer as “Hot” as Before
E-commerce was once seen as the savior of retail, but it’s now slowing down too. According to a YouNet ECI report, gross merchandise value (GMV) across the four major platforms — Shopee, TikTok Shop, Lazada, and Tiki — reached 264.8 trillion VND in the first half of 2026, up 19% year-on-year. That’s significantly lower than the 23% growth recorded in the same period last year.
More notably, TikTok Shop — which posted 148% growth the previous year — has decelerated to just 27% in the first half of 2026. Mr. Nguyen Phuong Lam, Market Analysis Director at YouNet ECI, commented: “E-commerce growth is entering a more stable phase, in line with the broader retail market, rather than continuing to surge thanks to platform stimulus programs.”
How Price-Sensitive Are Vietnamese Consumers Right Now?
Price Is the Single Most Important Factor
Surveys show that price is the most important factor, mentioned by 68% of consumers, while 53% cited promotional programs. Notably, the importance of product quality dropped from 77% to 52%.
This means Vietnamese consumers now prioritize price above all else when making purchasing decisions. They’re willing to accept “good enough” quality if the price fits their budget.
Gen Y and Gen Z Are Spending More Cautiously
This caution is especially pronounced among Gen Y and Gen Z — the groups considered the most promising customers for the market. As many as 43% of Gen Y consumers kept or reduced their online spending in Q2 compared to Q1. That figure rises to 60% among Gen Z.
In other words, younger generations — often thought to spend more freely — are becoming extremely cautious. They no longer shop on impulse but weigh every spending decision carefully.
A Concrete Example: Office Lunches Are Getting More Expensive
The clearest example is the disappearance of bowls of noodles and plates of rice under 30,000 VND in major cities. A food market report for the first half of 2026 shows that the group of diners spending under 30,000 VND on lunch dropped sharply by more than 18%, while the group spending 51,000 VND or more unexpectedly rose by 37%.
It might seem like people are spending more on meals. But Mr. Nguyen Do Anh Quan, Brand Director at iPOS, explained: “The strong growth in the over-51,000 VND group doesn’t mean a better lunch. In many cases, it’s still the same familiar meal, just sold at a new price.”
In other words, consumers aren’t choosing to spend more — they’re being forced to pay more for the same product.
Consumers Are Buying Fewer Items Per Shopping Trip
A 2026 consumer trends survey by NielsenIQ shows that the average number of product categories bought per supermarket visit dropped from 7.4 to 5.5. At small stores and mini-marts, the figure fell from 4.4 to 3.6 categories. Notably, 86% of survey participants said they prioritize quality over quantity.
This means consumers are buying fewer items but being more selective. They no longer buy indiscriminately — only what’s truly necessary and worth the money.
What Should Businesses Do?
Don’t Just Compete on Price Cuts
In a market where consumers are price-sensitive, many businesses tend to cut prices to gain market share. But this can be a strategic mistake.
Mr. Nguyen Van Phuong, Head of the Consumer Research Committee at the HVNCLC Business Association, analyzed: “Shopping is now a careful process of ‘weighing’ price, quality, and necessity.”
Consumer trust is shifting. It no longer depends on business size or advertising budget — trust is now built from real experience and consistent quality over time. Many small local businesses have risen to compete on equal footing with the “giants” by maintaining credibility with customers.
Find the “Price Point” Customers Will Accept
Mr. Nguyen Phuong Lam from YouNet ECI recommends: “Businesses need to look deeper into the characteristics of each category and target segment, using historical data to determine the optimal price point and reasonable discount level.”
The 51,000–70,000 VND price segment per meal is forecast to be the most competitive zone in the coming period. Businesses need to identify exactly what price range their target customers are willing to pay and optimize products to compete effectively in that segment.
Focus on What Customers Actually Need
As consumers prioritize essentials, limit luxury purchases, and cook more at home to save money, businesses need to adjust their product portfolios to focus on customers’ core needs.
Data shows FMCG remains one of the main growth drivers of e-commerce in the second half of 2026. This reflects the trend of consumers shifting from non-essential products to everyday consumer goods.
Build Trust Through Quality and Transparency
While consumers tighten spending, businesses face rising cost pressures. Mr. Tran Huu Than, Deputy General Director of Tan Binh Vegetable Oil Joint Stock Company (Nakydaco), said rising fuel and input material prices have driven production costs up. Packaging at one point increased 30–40%, while supply was unstable.
To cope, many businesses have been forced to change their operating strategy. Instead of signing long-term contracts, they’ve shifted to order-by-order contracts to reduce price volatility risk. However, this approach also creates challenges for supply stability and cost management.
Good News: Vietnamese Consumers Are Still Open to Trying New Things
92% of Consumers Are Willing to Try New Products
An important bright spot in the gloomy market picture is that 92% of Vietnamese consumers say they’re willing to try new brands or products if they fit their needs and offer an interesting experience. Over the past year, the FMCG market recorded about 18,000 new products launched.
This means being price-sensitive doesn’t mean consumers are closed off to new things. They’re still looking for better solutions — but only if the product can prove its real value.
Health and Green Consumption Trends
Beyond price, health has become a top priority, with 86% of consumers prioritizing quality over price. Products with less sugar, added nutrition, and personalization are gaining ground on shelves.
The green consumption trend also reflects this shift. Although over 80% of consumers are clearly aware of green consumption and express support, actual behavior still lags. The average level of green consumption is only 2.6 out of 5, and only about 20% of consumers regularly use green products.
The reason isn’t awareness but market barriers. High prices, difficulty finding products, and lack of transparent information are the three main factors preventing consumers from fully switching. Most are only willing to pay 5–10% more for green products — a very cautious level.
Frequently Asked Questions (FAQ)
What is a market slowdown and why does it affect Vietnamese businesses?
A market slowdown is a period of weakening growth, where real purchasing power doesn’t increase in line with revenue figures. In Vietnam, although total retail sales in the first 8 months of 2026 grew 13.3%, real growth was only about 7.3% after excluding price factors. This directly affects businesses because consumers tighten spending, buy fewer products, and become more price-sensitive.
How does price sensitivity affect Vietnamese consumer shopping behavior?
Price sensitivity makes consumers extremely cautious about spending. Surveys show the average number of product categories bought per supermarket visit dropped from 7.4 to 5.5. Consumers also tend to research more before buying, prioritize products that are “worth the money” rather than “cheapest,” and are more flexible in choosing shopping channels to optimize costs.
Why shouldn’t businesses compete only by cutting prices?
In a market where consumers are tightening spending, price cuts can boost short-term sales but aren’t sustainable. Consumer trust is shifting — no longer dependent on low prices but built from real experience and consistent quality over time. Many small local businesses have risen to compete on equal footing with the “giants” by maintaining credibility with customers, not by offering the lowest prices.
How can businesses determine the optimal “price point” for their products?
Businesses need to use historical data to determine the optimal price point and reasonable discount level for each category and target segment. Analyzing each customer group’s characteristics, tracking shopping behavior, and adjusting flexibly based on market feedback is an effective approach. The 51,000–70,000 VND price segment is forecast to be the most competitive zone in the coming period.
What opportunities exist for businesses during a market slowdown?
There are two main opportunities. First, 92% of Vietnamese consumers are still willing to try new products if they fit their needs and offer an interesting experience. Second, health and green consumption trends are opening up new market segments, with 86% of consumers prioritizing quality over price. Businesses can leverage these trends to build long-term competitive advantages.
Conclusion: Understanding the Market to Respond Effectively
Market slowdown and price sensitivity aren’t temporary challenges — they’re defining characteristics of the Vietnamese market in the current period. Businesses need to accept this reality and adjust their strategies accordingly.
Instead of competing on price cuts, businesses should focus on building trust through quality, transparency, and real value. Understanding consumer psychology — people who are still willing to try new things, but only if products can prove their value — will be the key to success in this challenging period.
As Mr. Nguyen Van Phuong from the HVNCLC Business Association noted: “The market has ended its period of hot growth in breadth. Consumers are no longer easy spenders — they’ve become more calculating and more pragmatic.” Businesses that understand and adapt to this shift will have the opportunity not just to survive, but to thrive in the long term.
