With 80 million inhabitants, high population growth and fast rising per capita incomes, Vietnam offers a large potential market for consumer goods. Yet, accessing these potential customers still presents considerable challenges as the marketing and distribution infrastructure is not well developed.

Sales potential exist both in price-competitive mass market, where economies of scale and efficiency of production and distribution are essential, and in the fast growing premium market of middle class consumers. The latter segment is particularly attractive for foreign investors with global brands as Vietnamese consumers have a high appreciation of Western brands. Like for other Asian consumers, conspicuous consumption is important, that is consumers buy prestigious brands as status symbols and to impress their peers rather than purely due to their functional value. Many consumers associate quality of live with the consumption of branded products, and are willing to pay considerable premiums. This creates low price sensitivity and high profit potential for well-positioned brands in the premium segment