Copyright © 2017 The Nielsen Company. Confidential and proprietary.

E-COMMERCE IN VIETNAM

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

VIETNAM –A MARKET OF

OPPORTUNITIES

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VIETNAM REMAINS ONE OF THE FASTEST GROWING IN SOUTHEAST ASIA

GDP GDP GDP GDP Q2’19 Q2’19 Q2’19 Q2’19 growth vs. YAgrowth vs. YAgrowth vs. YAgrowth vs. YA 6.86.86.86.8

4.24.24.24.26.06.06.06.0

1.91.91.91.9

5.15.15.15.13.33.33.33.3

VietnamVietnamVietnamVietnam MalaysiaMalaysiaMalaysiaMalaysia PhilippinePhilippinePhilippinePhilippine SingaporeSingaporeSingaporeSingapore IndonesiaIndonesiaIndonesiaIndonesia ThailandThailandThailandThailand

8.68.68.68.6

0.50.50.50.5

8.18.18.18.1

0.10.10.10.1

2.82.82.82.8

5.85.85.85.8

0.00.00.00.0

1.01.01.01.0

2.02.02.02.0

3.03.03.03.0

4.04.04.04.0

5.05.05.05.0

6.06.06.06.0

7.07.07.07.0

8.08.08.08.0

9.09.09.09.0

10.010.010.010.0

VietnamVietnamVietnamVietnam MalaysiaMalaysiaMalaysiaMalaysia PhilippinePhilippinePhilippinePhilippine SingaporeSingaporeSingaporeSingapore IndonesiaIndonesiaIndonesiaIndonesia ThailandThailandThailandThailand

FMCG MAT FMCG MAT FMCG MAT FMCG MAT Q2’19 Q2’19 Q2’19 Q2’19 growth vs. YAgrowth vs. YAgrowth vs. YAgrowth vs. YA

VietnamVietnamVietnamVietnam MalaysiaMalaysiaMalaysiaMalaysia IndonesiaIndonesiaIndonesiaIndonesia ThailandThailandThailandThailandSingaporeSingaporeSingaporeSingapore

123123123123 110110110110130130130130

92929292126126126126

105105105105

0000

20202020

40404040

60606060

80808080

100100100100

120120120120

140140140140

VietnamVietnamVietnamVietnam MalaysiaMalaysiaMalaysiaMalaysia SingaporeSingaporeSingaporeSingapore IndonesiaIndonesiaIndonesiaIndonesia ThailandThailandThailandThailand

Consumer Confidence Consumer Confidence Consumer Confidence Consumer Confidence

IndexIndexIndexIndex

• Source: GSO Vietnam. Economist Intelligence Unit. Nielsen Quarter by number report Q2’19

PhilippinePhilippinePhilippinePhilippine

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CONSUMERS ARE STILL ASSURED. CONSUMERS ARE STILL ASSURED. CONSUMERS ARE STILL ASSURED. CONSUMERS ARE STILL ASSURED.

HOWEVER, WITNESS CUTHOWEVER, WITNESS CUTHOWEVER, WITNESS CUTHOWEVER, WITNESS CUT----BACKS & PRICE CONCERNSBACKS & PRICE CONCERNSBACKS & PRICE CONCERNSBACKS & PRICE CONCERNS

% Respondents say they will spend on this item after necessities

CONSUMER CONFIDENCE CONSUMER CONFIDENCE CONSUMER CONFIDENCE CONSUMER CONFIDENCE INDEX*INDEX*INDEX*INDEX*

112112112112120120120120114114114114

129129129129117117117117 122122122122117117117117

129129129129117117117117 123123123123

Asia PacificAsia PacificAsia PacificAsia Pacific VietnamVietnamVietnamVietnam

2018-Q22018-Q22018-Q22018-Q2

2018-Q32018-Q32018-Q32018-Q3

2018-Q42018-Q42018-Q42018-Q4

2019-Q12019-Q12019-Q12019-Q1

2019-Q22019-Q22019-Q22019-Q2

6363636366666666

72727272 7373737370707070

72727272

7878787875757575

69696969

36363636

44444444

4949494951515151

46464646

53535353 5353535355555555

46464646

38383838

44444444 4444444446464646

49494949 4848484850505050

53535353

48484848

31313131

44444444

40404040

46464646 46464646 47474747

43434343

47474747

39393939

29292929

3838383841414141

43434343 4343434346464646

4848484846464646

40404040

30303030

37373737

42424242 42424242

38383838

48484848

39393939

47474747

39393939

Q2'17Q2'17Q2'17Q2'17 Q3'17Q3'17Q3'17Q3'17 Q4'17Q4'17Q4'17Q4'17 Q1'18Q1'18Q1'18Q1'18 Q2'18Q2'18Q2'18Q2'18 Q3'18Q3'18Q3'18Q3'18 Q4'18Q4'18Q4'18Q4'18 Q1'19Q1'19Q1'19Q1'19 Q2'19Q2'19Q2'19Q2'19

SavingsSavingsSavingsSavings

New clothesNew clothesNew clothesNew clothes

Holidays/vacationsHolidays/vacationsHolidays/vacationsHolidays/vacations

New technology productsNew technology productsNew technology productsNew technology products

OOH entertainmentOOH entertainmentOOH entertainmentOOH entertainment

Home improvementsHome improvementsHome improvementsHome improvements

VIETNAMESE TOP SPENDING AFTER NECESSITYVIETNAMESE TOP SPENDING AFTER NECESSITYVIETNAMESE TOP SPENDING AFTER NECESSITYVIETNAMESE TOP SPENDING AFTER NECESSITY

TOP VIETNAMESE INCREASING CONCERNSTOP VIETNAMESE INCREASING CONCERNSTOP VIETNAMESE INCREASING CONCERNSTOP VIETNAMESE INCREASING CONCERNS

HEALTHHEALTHHEALTHHEALTHCHILDREN CHILDREN CHILDREN CHILDREN

EDUCATIONEDUCATIONEDUCATIONEDUCATIONINCREASING BILLSINCREASING BILLSINCREASING BILLSINCREASING BILLS

44%44%44%44%(+2pts vs. Q2’18)(+2pts vs. Q2’18)(+2pts vs. Q2’18)(+2pts vs. Q2’18)

13%13%13%13%(+1pts vs. Q2’18)(+1pts vs. Q2’18)(+1pts vs. Q2’18)(+1pts vs. Q2’18)

9999%%%%(+2pts vs. Q2’18)(+2pts vs. Q2’18)(+2pts vs. Q2’18)(+2pts vs. Q2’18)

ELECTRICITY PRICE INCREASEELECTRICITY PRICE INCREASEELECTRICITY PRICE INCREASEELECTRICITY PRICE INCREASE

Electricity price uplifted 8.368.368.368.36%%%%

in Mar’19 after 2 years of stability

% Respondents say these are there top 2 biggest concerns

Consumer Confidence Index: Perceptions of local job prospects, Perceptions of state of personal finances over the next 12 months, Perceptions of good/bad time for people to buy the things they want and need over the next 12 months. Source: Nielsen

Global Survey Consumer Confidence Section

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2015

7%

7%

GEN Z(15-19 y.o)

MILLENNIALS(20-49 y.o)

SHARE OF POPULATION

48%

43%

14%

18%

2025

BABY BOOMER(50-64 y.o)

VIETNAM HAS A YOUNG POPULATION WITH MILLENNIALS DOMINANT & GEN Z ARE CONSUMERS OF FUTURE

• Seek for greater convenience• More going out• Open to new things• Go premium but value for money

• Super connected with synergy between Online & Offline activities

• Care about society issues (social responsibility, gender equality, LGBTQ)

• Strong POV & KOL influence

• Seek for delivery services• Willing to try Health supplement

products

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FAST CHANGING PACE OF MODERN “CASH-RICH TIME-POOR” LIFESTYLE LEADING TO THE BOOMING OF CONVENIENCE SOLUTIONS

VIETNAMESE ARE LIVING IN VIETNAMESE ARE LIVING IN VIETNAMESE ARE LIVING IN VIETNAMESE ARE LIVING IN

SMALLER YET RICHER HOUSEHOLD SMALLER YET RICHER HOUSEHOLD SMALLER YET RICHER HOUSEHOLD SMALLER YET RICHER HOUSEHOLD

THEY ARE ALSO LOOKING FOR & THEY ARE ALSO LOOKING FOR & THEY ARE ALSO LOOKING FOR & THEY ARE ALSO LOOKING FOR &

WILLING TO SPEND ON WILLING TO SPEND ON WILLING TO SPEND ON WILLING TO SPEND ON

CONVENIENCE PRODUCTSCONVENIENCE PRODUCTSCONVENIENCE PRODUCTSCONVENIENCE PRODUCTS

� Vietnam average household size & wage Vietnam average household size & wage Vietnam average household size & wage Vietnam average household size & wage

4.594.13

3.78 3.60 3.50

0

50

100

150

200

250

300

0.00

1.00

2.00

3.00

4.00

5.00

2000

2005

2010

2015

Est. 2020

Household size('person)

Wage per month('USD)

Source: EIU. CEICDATA.com. International Labor Organization est. for 2025

BUSIER WORKBUSIER WORKBUSIER WORKBUSIER WORK

LongerLongerLongerLonger working hours with more pressure 5.1 more pressure 5.1 more pressure 5.1 more pressure 5.1

hours/week ~ 9 hours9 hours9 hours9 hours/day

EVOLVING WOMAN’S ROLEEVOLVING WOMAN’S ROLEEVOLVING WOMAN’S ROLEEVOLVING WOMAN’S ROLE

79.6% 79.6% 79.6% 79.6% - FemaleFemaleFemaleFemale labor force participation rate. Highestparticipation rate. Highestparticipation rate. Highestparticipation rate. Highest in

APAC (average of 50.1%)

Source: Nielsen shopper trend 2017-2018

56%56%56%56%“Anything that saves me time is worth

paying extra for”

7,968| 7,968| 7,968| 7,968| +14% +14% +14% +14% vs YA

MTMTMTMT

Top 2 important attributes for shopping in

Supermarket/ CVS/ Mini-mart

# of stores # of stores # of stores # of stores –––– Mar’19 Mar’19 Mar’19 Mar’19

SUPERMARKETSUPERMARKETSUPERMARKETSUPERMARKET CVS/ MINICVS/ MINICVS/ MINICVS/ MINI----MARTMARTMARTMART

Convenient to get to

Easy to find what I need

Convenient to get to

Always available in stock

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

THE RISE OF THE RISE OF THE RISE OF THE RISE OF NEW NEW NEW NEW

CHANNELSCHANNELSCHANNELSCHANNELS

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Source: Nielsen Retail Measurement, Nielsen Universe Update, * including independent stores, ** including Health & Beauty store MAT : Moving Annual Total, FMCG includes 37 categories without Cigarette

~ 1.5 MIL STORES (+0.2% vs. YA)

Market Stall 65,248

ON Premise 675,469

OFF Premise 811,032

MODERN TRADETRADITIONAL TRADE

5% 19%

Value % contribution – Total Vietnam OFF+ON Premises in

MAT Jul’19

Growth % vs. YA

MODERN TRADE IS BOOMING RAPIDLY ACROSS STORE TYPES & DRIVING THE GROWTH OF FMCG

Updated: Universe Update H1’18

Hyper/ Supermarket* 717

Minimart & Food Store* 5,301

Convenience Store 889

Modern Drug Store** 434

Mom & Kid Store 627

7,968 STORES (+14% vs Oct’18)Updated: Jul’19

87% 13%

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Wet Markets Traditional

Grocery

Supermarkets Department

Store

Health &

Beauty

Drugstore

Convenience

Stores

Minimarts

PENETRATION 86 81 97 14 32 46 51

FREQUENCY 18.7 7.0 2.3 0.7 1.2 4.2 3.7

36 7 45 0 1 3 2

Base: 2018 (n=1500), 2019 (n=1702)

Ref: Q7a Which of these types of stores have you visited in the past 7 days?

Ref: Q8 On average, how often would you shop at the following type of store?

Ref: Q7d Which of these types of stores would be the one where you normally buy most of your food and grocery items?

SPEND MOST AT

SMALL FORMAT CONTINUES GAINING IN “PENETRATION”, “FREQUENCY” AND “MOST SPENDING”

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This artwork was created using Nielsen data.

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

EEEE----

COMMERCECOMMERCECOMMERCECOMMERCE

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APAC 51%

Japan 94%

APAC 86%

Hong Kong 95%

APAC 7H 34M

Thailand 9H 38M

Myanmar 29% Phillippines 58 % South Korea 5H 04MHighest in APAC

Vietnam 58% Vietnam 94 % Vietnam 6H 52M

INTERNET PENETRATION

4,021 4,021 4,021 4,021 BILLIONCONNECTED PEOPLE

53%

FREQUENCY OF INTERNET USE

85%

DAILYTIME SPENT

6H 33M 6H 33M 6H 33M 6H 33M DAILY TIMESPENT ONLINE

DAILY

6.5H

3,418 3,418 3,418 3,418 BILLIONCONNECTED PEOPLE

Source: Internet Penetration: Demand Institute | Mobile Internet Penetration, Frequency and Daily Time Spent: We Are Social & Hootsuite, Digital in 2018

HIGH INTERNET PENETRATION FUEL THE GROWTH OF ONLINE PURCHASE IN VIETNAM

Lowest in APAC

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INFRASTRUCTURE & DEVELOPMENT RATE OFE-COMMERCE IN VIETNAM TO 2020 REACHING $10 BILLION MARKET VALUE

2018201820182018 2020202020202020

8.1 billion8.1 billion8.1 billion8.1 billion

USDUSDUSDUSD

8.1 billion8.1 billion8.1 billion8.1 billion

USDUSDUSDUSD

10 billion10 billion10 billion10 billion

USDUSDUSDUSD

10 billion10 billion10 billion10 billion

USDUSDUSDUSD

$250/ person$250/

person30%/ year30%/ year $350/

person$350/

person20%/ year20%/ year

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E-COMMERCE SIZE & EVOLUTIONIn 2018, US$2.901 Billion globally (12.0% of Total Retail Sales)

Source: eMarketer | Worldwide Retail e-commerce Sales by Region | 2018 – All categories | Hootsuite 2018

AFRICA &

MIDDLE EAST

SALES 2.2%

GROWTH +22.6%

ASIA-PACIFIC

SALES 18.3%

GROWTH +30.3%

WEST

EUROPE

SALES 9.6%

GROWTH +11.6%

LATIN AMERICA

SALES 2.7%

GROWTH +17.9%

NORTH AMERICA

SALES 9.9%

GROWTH +16.5%

CENTRAL &

EAST EUROPE

SALES 5.2%

GROWTH +20.6%

VIETNAM

SALES

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FMCG ONLINE TO GROW ~4X FASTER THAN FMCG OFFLINE & GDP

* Nielsen forecasts based on 34 countries

** CAGR: Compound Annual Growth Rate

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ONLINE SALESLegend: OFFLINE SALES

Skin Care, China

35%

68%

Diapers, South Korea Cosmetics & Fragrances, UK

20%

14%

OTC, Germany

16%

Pet Food, Sweden

ONLINE IS ALREADY A DOMINANT CHANNEL IN

SOME MARKETS

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WHAT PEOPLE BUY ONLINE THESE DAYS - VN & APAC

Source: Nielsen Global Commerce Study 2018

% of consumers who have purchased the following categories online (penetration)

69%

51% 53%55%

47%

40%44%

70%

26%

49%

61% 45% 40% 38% 36% 34% 31% 29% 24% 23%

Fashion Beauty &Personal care

Books & Music IT & Mobile ConsumerElectronics

Household care Packagedgrocery food

Travel Children &baby products

Event Tickets

APAC VIETNAM

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PROMOTION IS KEY TRAFFIC DRIVING FACTOR FOR MOST E-RETAILERS

SENDO SALE DAY 7.7 SHOPEE SALE DAY 9.9 TIKI MUSIC SPONSORSHIP

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Products may have a problem when

delivered

Products may have a problem when

delivered

Some websites are not easy to

process

Some websites are not easy to

process

Not familiar with online shoppingNot familiar with online shopping

Do not have a credit card

Do not have a credit card

Actual product is not the same as

website

Actual product is not the same as

website

DO NOT TRUST online shoppingDO NOT TRUST online shopping

“Inconvenience”“Inconvenience”

“I want to see products in reality

before purchasing”.

“I want to see products in reality

before purchasing”.

Afraid of FRAUD Afraid of FRAUD

Source: The Nielsen Vietnam Omni-Shopper Trend Report 2018

PRODUCT QUALITY AND SERVICE

ACCESSIBILITY EXPERIENCE

“The real stores are not far from

where I live”

“The real stores are not far from

where I live”

TRUST

VIETNAM E-COMMERCE BARRIERS

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

ENABLE ENABLE ENABLE ENABLE YOUR SUCCESS IN VIETNAM YOUR SUCCESS IN VIETNAM YOUR SUCCESS IN VIETNAM YOUR SUCCESS IN VIETNAM

MARKET POTENTIAL

• Vietnam holds promising growth

in both GDP & FMCG

• Consumers are young, optimistic,

and seeking convenience

solutions

MARKET

LANDSCAPE

• Traditional Trade is still key

channel with 1.5M stores,

contributing to 87% of FMCG

• Modern Trade is booming with

store expansion and higher

consumer penetration

E-COMMERCE

• Vietnam has strong foundation for E-commerce to take off with high

internet and smartphone penetration

• Still humble, ~1% FMCG, growing 30+%

• Have much white space for across categories,

• Very promotional driven

• Need to overcome trust issue for sustainable growth