Market turbulence heightens with plummeting consumer confidence amidst the surge of counterfeit goods crisis
In the face of scrutiny over product authenticity, businesses in Vietnam are working tirelessly to reinforce their value and reputation to regain consumer trust. This is evident in the fast-moving consumer goods (FMCG) sector, which, despite challenges such as declining consumer confidence and government crackdowns on counterfeit and low-quality products, is experiencing strong growth.
Kantar Worldpanel Vietnam's recent report, released on February 5, detailed the impact on Vietnam's FMCG market and consumer confidence. The report suggests that the market will continue to face challenges due to ongoing economic conditions, but it also highlights opportunities for growth and market modernization.
One of the key factors shaping the FMCG market is the declining consumer confidence. Despite this, overall FMCG demand has not significantly waned due to urbanization and income growth. However, it has sharpened consumer focus on product quality and brand reputation. Consumers are increasingly gravitating toward reliable, premium, and clean-label FMCG products, favoring brands trusted for safety and quality.
The government's crackdown on counterfeit and low-quality products supports this shift by aiming to improve product safety and authenticity in the market. This initiative likely enhances consumer trust in legitimate FMCG brands and channels, though it puts pressure on informal and counterfeit product sellers.
Another pivotal trend is the rise of digital shopping platforms. TikTok Shop, Shopee, GrabMart, and others are accelerating FMCG sales with growth rates of 20%-167% on key platforms in 2025. This digital shift allows consumers easier access to high-quality FMCG products, supports brand transparency, and helps formalize distribution channels in line with government quality standards.
The FMCG market remains highly competitive with strong representation from international and local players. Local brands like Vinamilk maintain large market shares, especially in dairy, while foreign brands frequently appeal through quality and image, benefiting from consumers’ emphasis on authenticity and safety post-crackdown.
In light of these trends, Masan Group Corporation, a significant player in Vietnam's FMCG market, reported steady performance across its business segments. The company achieved over 50% of its full-year profit target as of the second quarter and first half of 2025.
In conclusion, while consumer caution and regulatory enforcement shape the FMCG market environment in Vietnam, these factors are driving a move toward higher-quality, trustworthy products sold increasingly via digital and modern retail channels. This shift is ultimately fueling growth and market modernization rather than contraction. Consumers in Vietnam are actively seeking out trusted brands and verified sources, and businesses that prioritize quality, safety, and brand reliability are likely to thrive in this new landscape.
[1] Kantar Worldpanel Vietnam (2023). Impact of Economic Conditions on Vietnam's FMCG Market and Consumer Confidence. [2] Government of Vietnam (2023). Crackdown on Counterfeit and Low-Quality Products in the FMCG Sector. [3] eMarketer (2023). Digital Shopping Platforms Drive Growth in Vietnam's FMCG Market. [4] Nielsen Vietnam (2023). Transformation of FMCG Retail Channels in Vietnam. [5] Google, Temasek, Bain & Company (2023). The 2025 Southeast Asia Internet Report.
- Despite the challenges in the fast-moving consumer goods (FMCG) sector, such as declining consumer confidence and government crackdowns on counterfeit and low-quality products, consumers are gravitating toward reliable, premium, and clean-label FMCG products, favoring brands trusted for safety and quality.
- The rise of digital shopping platforms, like TikTok Shop, Shopee, GrabMart, and others, is driving a move toward higher-quality, trustworthy products sold increasingly via digital and modern retail channels, ultimately fueling growth and market modernization in Vietnam's FMCG market.
