Boosting consumption to drive economic growth
At the opening session of the 9th extraordinary meeting of the National Assembly in February, Minister of Planning and Investment Nguyen Chi Dung, as authorised by the prime minister, presented a proposal to supplement the socio-economic development plan for 2025.
Accordingly, the government proposed adjusting the GDP growth target for this year to at least 8%. This is 1–1.5% higher than the plan approved by the National Assembly at the end of last year and 1% point higher than the 7.09% growth achieved in 2024.
If economic growth reaches the proposed 8% target, Vietnam’s GDP will exceed 500 billion USD in 2025, with per-capita GDP surpassing 5,000 USD.
Under this scenario, economic sectors are expected to grow 0.7–1.3% higher than in 2024. Specifically, total retail sales of goods and consumer service revenue (at current prices) are projected to grow by at least 12%. This double-digit growth in total retail sales suggests a bright outlook for the consumer market as Vietnam meets its growth objectives.
As a result, leading consumer goods companies like Masan Consumer will benefit from the booming economy, increased consumer confidence, and greater spending on daily needs.
From a consumer perspective, individuals can contribute to the country’s growth target, particularly through consumption. Increased consumer spending boosts the revenue of retail and consumer goods companies, providing them with financial resources to expand operations, invest in research and development, and introduce new products.
Additionally, to meet growing consumer demands, businesses must expand production, invest in infrastructure and technology, and create more job opportunities. As companies grow, they hire more workers, further stimulating economic growth.
Household and individual consumption, along with a smaller proportion from government spending, accounts for over 60% of GDP. Stimulating consumption will be crucial in achieving the 8%+ growth target for 2025, laying the groundwork for double-digit economic growth in the coming years.
To stimulate consumption, the Ministry of Finance is seeking public feedback on a draft National Assembly resolution regarding a reduction in value-added tax (VAT). The draft proposes a 2% VAT reduction for goods and services that are currently taxed at 10% (bringing the rate down to 8%). If approved, this tax reduction would take effect from July 1, 2025, to December 31, 2026.
Lowering VAT could stimulate not only direct consumer spending but also the retail and manufacturing sectors. Increased corporate revenues would lead to more job creation and higher production, setting the stage for broader economic expansion. As a leading consumer goods company, Masan Consumer’s business prospects remain strong this year. The company has recently unveiled its 2025 growth plan, signaling further optimism.
Masan Consumer aims for double-digit growth in 2025
As a top player in the consumer goods sector, Masan Consumer owns five “power brands,” each generating annual revenues of over 100 million USD with extensive market coverage. These brands — namely Chin-Su, Nam Ngu, Omachi, Kokomi, and Wake-Up 247 — have become household names for millions of Vietnamese consumers, accounting for 80% of Masan Consumer’s domestic revenue over the past seven years.
Additionally, with strong ties to 313,000 traditional retail partners and 6,700 modern retail outlets, Masan Consumer has penetrated nearly every corner of the Vietnamese market, serving 98% of households.
Masan Consumer concluded 2024 with outstanding achievements. The company, a subsidiary of Masan Group, reported net revenue of 30.897 trillion VND, marking a 9.4% increase from the previous year.
Gross profit margin improved significantly, reaching 46.6%, thanks to a premium product mix and optimised portfolio, delivering higher added value. Notably, international market revenue surged by 30.8%, reflecting the success of its "Go Global" strategy, which aims to elevate Vietnamese brands on the global stage.
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Masan Consumer has penetrated nearly every corner of the Vietnamese market, serving 98% of Vietnamese households. |
According to J.P. Morgan, Vietnam represents one of the most dynamic and noteworthy consumer growth stories in Asia. With a population of nearly 100 million — half of whom are under 32 — Vietnam’s per-capita GDP grew at a compound annual growth rate (CAGR) of 7.1% since 2017, reaching over 4,000 USD in 2022, the highest among ASEAN nations.
With rapid economic growth, an expanding middle class, and an urbanisation pace comparable to China and India in 2010, J.P. Morgan believes Vietnam is entering a phase of modern trade growth, presenting opportunities for consumer goods companies to enhance their valuations in the future.
Moreover, the government’s goal of achieving at least 8% GDP growth in 2025 — bringing per-capita GDP above 5,000 USD — will be a powerful catalyst for the recovery of the consumer market this year, subsequently driving positive business performance for companies like Masan Consumer.
In 2025, Masan Consumer aims to maintain double-digit revenue growth, targeting a revenue range of 33.5–35.5 trillion VND while ensuring strong profit margins.
