Vietnamnet | Fri, Jul 8, 2016 09:37:20 AM
Vietnam’s ranks highly in statistical reports about consumption of South Korean sweets, ginseng and cosmetics.
A survey by Euromonitor International conducted of 400 South Korean leading fast moving consumer goods (FCMG) manufacturers shows that 132 manufacturers, or 33 percent, have expanded their business to Vietnam.
Vietnam tops the list of 10 countries that South Korean manufacturers are eyeing. Meanwhile, China mainland attracts 112 companies, or 28 percent, which is lower than the figure for Vietnam.
Over 50 South Korean product items, from chewing gum, instant noodle, cosmetics, and liquor to functional food are available in the Vietnamese market. As such, Vietnam ranks second, after China, the market which brings the highest turnover in terms of the product diversity.
Vietnam has also set a record in the consumption growth rate. In 2009-2014, the retail turnover of South Korean groups in Vietnam, estimated at $100 million, ranked fourth among the fastest growing markets, just after Russia, Iran and China.
In South East Asia, South Korean manufacturers consider Vietnam the priority market. Reports all show that the total revenue from FCMG in Vietnam in 2014 was by far higher than that in Singapore, the Philippines and Thailand.
With more than 90 million people, Vietnam is the market that most attracts the attention from South Korean manufacturers. The percentage of South Korean FCMG companies present is just 17 percent in Singapore, 14 percent in Indonesia, the Philippines and Thailand and 12 percent in Malaysia, less than a half of Vietnam’s 33 percent.
Though other South East Asian countries have similar culture and development level, South Korean manufacturers still target Vietnam as a major export target, not Thailand, Indonesia, the Philippines or Malaysia.
Lotte Group, KT&G Corp, AmorePacific Corp, Korea United Pharmaceutical Inc and Crown Confectionary are the most known to Vietnamese
Lotte, the fifth largest chaebol and the fourth largest FCMG manufacturer in South Korea, has been present in Vietnam since 2008. It has invested more than $3 billion in many projects, including $1.9 billion Eco Smart City which is under implementation.
The group now runs retail chains worth hundreds of millions of dollars, including Lotte Center, Lotte Mart, Lotte Cinema and Lotteria fast food. Owning a large network of the youth’s favorite destination points, Lotte paves the way for South Korean goods to flood the Vietnamese market.
Vietnamese newspapers call South Korea an ‘incredible phenomenon’ among foreign investors in Vietnam.
After 25 years of carrying out investment activities in Vietnam, South Korea has become Vietnam’s third biggest trade partner and the largest foreign direct investor in Vietnam.
In May, the construction of LG Display, an industrial complex, started in Hai Phong City.