Market shakes due to drop in consumer trust triggered by counterfeit predicament
Consumer confidence in Vietnam has taken a hit, reaching its lowest point since the pandemic, according to recent data. This decline is attributed to a volatile global trade environment and the government's crackdown on counterfeit goods and low-quality food products.
Amidst this economic uncertainty, the fast-moving consumer goods (FMCG) market in Vietnam remains resilient, offering potential for expansion. Brands in Vietnam can expect increased scrutiny from consumers who will be more critical in their purchases. Consumers are likely to engage in more intentional spending due to the focus on essentials, prioritizing necessary consumer goods over discretionary items.
The government's crackdown, however, is fostering consumer trust and a preference for verified, better-quality FMCG goods. This shift is powering strong growth in digital FMCG markets and online grocery shopping across Vietnam. Retailers like Saigon Co.op have upgraded their e-commerce platforms to simplify access to verified goods and reinforce consumer confidence.
The key insights reveal that the FMCG sector, notably food and essential goods, recorded strong growth on online marketplaces in 2025. TikTok Shop grew 167% and Shopee 20%, reflecting increased consumer preference for reliable, high-quality products accessible through trusted digital platforms.
Vietnamese consumers are increasingly avoiding counterfeit or low-quality items by favoring established brands and professional services. This fueled demand for better-quality FMCG products. The crackdown indirectly supports the rise of online grocery shopping as a habit, with groceries and food products leading retail growth.
Despite some market fluctuations and seller exits, overall FMCG consumption via e-commerce is projected to grow rapidly (CAGR of 35% until 2028), driven by consumer interest in shoppertainment and larger basket sizes that emphasize quality over quantity.
The decline in consumer confidence has temporarily unsettled public trust, but the redefinition of value-consciousness in Vietnam will move beyond just price to include quality, safety, and brand reliability. Masan Group Corporation, a leading player in the FMCG sector, has achieved over 50% of its full-year profit target for the second quarter and first half of 2025, signaling the sector's resilience.
In summary, the government's enforcement against counterfeit and low-quality products is fostering consumer trust and a preference for verified, better-quality FMCG goods, which is powering strong growth in digital FMCG markets and online grocery shopping across Vietnam. This shift benefits reputable retailers and platforms offering seamless, trustworthy shopping experiences.
Businesses in the fast-moving consumer goods (FMCG) sector, particularly those selling food and essential products, are experiencing growth due to the government's crackdown on counterfeit goods and low-quality food products. This growth is largely driven by increased consumer trust in verifiable, high-quality FMCG products, which is propelling the expansion of digital FMCG markets and online grocery shopping in Vietnam.
