(25)Mosaic-like Vietnamese Consumer Layers

Vietnam has numerous types of pho. "Pho," commonly called "Vietnamese pho" in Korea, is one example. There's also "Bun Bo Hue," a northern Vietnamese pho with thick noodles and a spicy red broth, similar to Korean galak-guksu. "Bun Cha Hanoi," which became known worldwide when US President Obama visited Vietnam, is another. Rice noodles are served with grilled pork meatballs in a broth, either tossed in or dipped in. There are dozens of Vietnamese pho varieties like this. Koreans often think that only pho, a dish of noodles in broth, is Vietnamese pho. While pho is a representative Vietnamese dish, it doesn't encompass the whole of Vietnam.

Like the various types of pho, Vietnam is a country with a mosaic of diverse phenomena and appearances. To understand the Vietnamese market, you need to look at the whole picture. If you focus only on a prominent part and mistakenly consider it the whole of Vietnam, your business ventures may fail. The reason for Vietnam's diverse appearances is that it has only been significantly open for about 20 years, and the characteristics of people of different age groups differ significantly in the midst of rapid changes.

After the Vietnam War with the US ended in 1975, Vietnam declared the Doi Moi reform and opening-up policy in 1986 to quickly rebuild its devastated nation and integrate into the global economy. Vietnam established diplomatic relations with the US in 1995 and joined the World Trade Organization (WTO) in 2007, becoming a highly promising market globally and experiencing remarkable development. According to the Vietnam Statistics Office, the trade volume between the US and Vietnam was US$450 million when the two countries established diplomatic relations. 26 years later, in 2021, it reached US$111.56 billion, a 246-fold increase. It is difficult to simply define Vietnam, which is developing at such a rapid pace every day. It is necessary to fundamentally examine and approach Vietnamese consumers and their consumption patterns.

1970s generation = Korean 6.25 War generation The 1970s generation in Vietnam shares similar sentiments with the Korean 6.25 War generation. Although the war with the US ended in 1975, it soon faced the Cambodian Khmer Rouge regime's genocide, the "Killing Fields," and continued fighting until 1977. Then, in 1979, 300,000 Chinese troops invaded Vietnam, leading to a month-long war. Thus, the 1970s generation in Vietnam experienced the war firsthand or spent their childhood in a resource-scarce environment after the war. They experienced the same hardships as the Korean 6.25 War generation, who had to eat gruel and forage for wild plants to survive.

1980s generation = Korean baby boomers The 1980s generation was born in the peaceful and stable period after the war, and many families had 8-10 children. However, Vietnam's economy was still struggling, with food shortages requiring rice imports until 1988. Like the Korean baby boomers of the 1950s, they had to worry about meals during their childhood. Sharing and saving were natural for this generation.

China implemented a one-child policy from 1980. This drastically different situation between the two countries clearly distinguishes the Chinese and Vietnamese markets. In the 2000s, when the Chinese economy exploded, mothers, fathers, grandparents, and great-grandparents focused their consumption on a single precious child. Chinese consumer purchasing power increased, and the high-end market grew rapidly. In contrast, Vietnam's limited resources were distributed among numerous children. Products that were affordable and durable were preferred.

The 1970s and 1980s generations, who were the backbone of Vietnam's overall consumer market for the past 15-20 years, were cautious about spending due to their difficult childhood experiences. Instead, they prioritized their children's education.

1990s generation = Hallyu and smartphone generation After Vietnam and South Korea established diplomatic relations in 1992, numerous South Korean companies entered Vietnam, bringing Korean dramas and music with them. Many believe Hallyu started in China, but it also began in Vietnam around the same time. The 1990s generation in Vietnam grew up amidst the winds of reform and opening-up, naturally embracing Hallyu. They also ushered in Vietnam's online era by actively using PCs and smartphones. The popularity of low-cost airlines led to the democratization of international travel. They are also the children of the 1970s generation, who married and had children soon after reaching adulthood. Their parents' dedication to their children's education led to increased private tutoring and overseas study opportunities. They are similar to the 1980s generation in South Korea.