According to the latest forecast of the Ministry of Trade, monthly spending per capita in Vietnam in the 2006-2010 period will increase around 10.57% a year on average.

The increase will be around 10% in urban areas and 11.25% in rural areas.

By 2010, per capita spending per month of Vietnamese people will be VND657,800 (US$41.12), specifically VND1,054,700/person ($65.87) in urban areas and VND537,400 ($33.56) in rural areas.

The increase of spending of Vietnamese people, the difference in spending among regions are important foundations upon which companies build their business strategies.

The trend of buying expensive, fashionable products and those with famous brands has appeared among the young in big cities, catching up with the consumption trend of the region and the world.

In terms of spending structure, spending in housing, health care services, medicine, traveling, information and education will be higher than other kinds of spending.

Most Vietnamese people still buy food, especially fresh food, at traditional markets. In the coming years, along with the urbansiation process, increasing income, improved awareness of food quality and hygiene, Vietnamese people will gradually turn to supermarkets or specialty shops.

In addition, the trend of buying cosmetics and medicines at specialty shops is still developing, at the growth rate of 12%/year.

Clothes and fashion products circulate in different channels, including traditional markets, specialty shops, fashion shops, supermarkets, trade centres and sale-off shops.

Consumers in cities often buy products produced by reputed factories or imported ones while those in rural areas buy locally-made products without origin at traditional markets.

It is forecast that the growth of retail clothes and fashion products will increase around 5% annually.

Garment companies expanding their systems of fashion shops have become a trend. Thanks to the application of modern technology and the improvement of design ability, local wood and household products have been accounting for large market shares.

The Trade Ministry predicts that the demand for IT and electronic products will become very high.

Air conditioners, fridges, washing machines, microwave ovens, coloured TVs, VCD and DVD players are all becoming more popular.

The major markets for these appliances are Hanoi and HCM City, which account for 45%.

Consumers often buy those products at electronic supermarkets and shops, through trade centres, general supermarkets and the Internet. In the near future, electronic supermarkets will experience the highest growth rate.

Source: VNECONOMY