Other BriefingsUnderstanding Vietnam’s Middle Class in 2025: Size, Spending Patterns, and Opportunities for Businesses
Vietnam aspires to attain upper-middle-income status by 2030 and to achieve high-income country status by 2050. The middle class in Vietnam is expected to expand to 26 percent of the population by 2026, up from 13 percent (approximately 13 million people) in 2023, creating significant opportunities for businesses.
Vietnam is projected to reach upper-middle-income status by 2030 and high-income status by 2050, supported by a strong manufacturing base and strategic infrastructure investments. Rising incomes, robust foreign investment, and resilient growth are strengthening its position as a key regional economy.
While consumer spending remains broadly positive, households are prioritizing essential purchases amid a challenging economic climate, prompting businesses to refine engagement strategies. This article examines the growth of Vietnam’s middle class, their evolving spending patterns, and the business opportunities they create.
Economic trajectory of Vietnam
Vietnam’s ascendance in the global supply chain has been pivotal to its economic trajectory, driven by its manufacturing and export sectors. From 2012 to 2022, Vietnam’s exports expanded at an average annual rate of 12 percent, significantly outpacing the global average growth rate. The momentum continues as the country’s export turnover reached nearly US$306 billion in the first eight months of 2025, an increase of nearly 15 percent compared to the same period in 2024, according to the General Department of Customs.
Major multinational corporations, such as Samsung, Google, Microsoft, Apple, Nike, and Adidas, among others, have increasingly integrated Vietnam into their supply chains as part of diversified strategies like “China plus one.”
Foreign direct investment (FDI) into Vietnam continues to exhibit robust growth, reaching a total registered capital of US$26.14 billion in the first eight months of 2025. Of this, US$11.03 billion was from 2,534 new projects. The manufacturing and processing sectors led the growth, with US$6.53 billion, which accounted for 59.2 percent of the newly registered capital. The real estate sector was next, with US$2.37 billion, or 21.5 percent.
Vietnam’s infrastructure investments constitute approximately six percent of its GDP – higher than the ASEAN average of 2.3 percent. These investments, coupled with Vietnam’s numerous free trade agreements, have fostered a conducive environment for manufacturing and trade growth.
Economic reforms have further stimulated expansion by promoting trade liberalization, private enterprise, and increased foreign investments.
Official data from the World Bank indicated Vietnam’s GDP grew by 7.1 percent in 2024, reaching a value of US$476.39 billion. Despite external headwinds, especially new US tariff policies, the country’s economic outlook has stayed resilient in 2025, with most forecasters expecting its GDP growth to be within the 6.5-7 percent range.
Vietnam’s master plan for 2021-2030 outlines ambitious goals to transform into an upper-middle-income country by 2030 and a developed, high-income economy by 2050. Key objectives include achieving an average annual GDP growth rate of 7 percent from 2021 to 2030 and increasing GDP per capita to approximately US$7,500 by 2030.
The plan emphasizes spatial organization for national development, promoting economic balance, and enhancing resilience through dynamic economic zones and modern infrastructure. Environmental sustainability is prioritized with goals for low carbon emissions and achieving “net zero” emissions by 2050.
Vietnam income growth
According to the 2024 Household Living Standards Survey by the General Statistics Office (GSO), the earnings of Vietnamese citizens continue to grow. Their average monthly income per person reached VND 5.4 million (US$204.41), a 9.1 percent increase from 2023, outpacing the 6.2 percent growth in the period from 2022 to 2023.
Specifically, the average monthly income per person in urban areas reached VND 6.9 million (US$261.19), marking a 10.1 percent increase compared to the previous year. This was more than 1.5 times higher than in rural areas, where the average stood at VND 4.5 million (US$170.34), up 8.0 percent year-on-year.
Within Vietnam, the Southeast region reported the highest income level nationwide at nearly VND 7.1 million (US$268.76) per person per month, while the Northern midlands and mountainous region recorded the lowest, at just under VND 3.8 million (US$143.84).
Vietnam middle-class consumption habits
According to Worldometer, Vietnam’s median age in 2025 is 33.4, indicative of a youthful demographic that is adept at leveraging technology and actively participating in the global marketplace. Moreover, they exhibit a higher educational attainment compared to the general population, with many holding university degrees. This educational background not only enhances their earning potential but also fuels aspirations for upward social mobility.
Geographically, the middle class is predominantly concentrated in urban areas, particularly in major cities like Hanoi and Ho Chi Minh City. This urban concentration drives substantial demand for a wide array of goods and services, influencing market trends and opportunities. Vietnam’s aspirational middle-class consumers prioritize investments in education, healthcare, and housing, reflecting their ambition to improve their quality of life. Additionally, there is a growing emphasis on leisure activities, travel experiences, and personal development, showcasing their evolving consumer preferences and priorities.
Vietnam market opportunities
Vietnam’s middle class is expanding, particularly in urban areas, driven by rapid economic growth, industrialization, increasing wealth, and a young, growing population. This expansion is fueled by several key factors: a young and expanding population, a fast-growing economy, smaller households, a rise in suburban consumers, and a higher standard of living. With a population of close to 100 million and a youthful median age, many young individuals are entering the workforce, earning money, and contributing to the burgeoning middle class.
“Vietnam’s pursuit of developed economy status by 2050 is reshaping its consumer landscape. A fast-expanding middle class is redefining spending priorities and expectations – creating vast opportunities for companies that deliver high-quality products and services aligned with their evolving needs. Aspirations of the large youthful demographic are also influenced by exposure to global cultural trends, both online and offline, a sentiment that can be tapped into if companies are successfully able to merge with local habits and practices,”
- Melissa Cyrill, Deputy Managing Editor, Asia Briefing.
Vietnam’s economy has experienced an impressive annual growth rate for the past decade, creating numerous job opportunities and increasing disposable income. Improved living standards, driven by economic growth, government policies, and foreign investment, have also played a crucial role in this middle-class expansion.
The expanding middle class in Vietnam is having a profound impact on the nation’s economy and society. This demographic is driving increased demand for new goods and services while making substantial investments in education and real estate. On the global stage, Vietnam’s middle class is emerging as a significant force, playing a crucial role in international trade and investment.
What are Vietnamese consumers spending on?
Highlights in Vietnam’s consumer spending from 2024
Vietnam’s consumer spending showed signs of recovery in 2024 following a challenging post-pandemic period, led by stronger demand in urban areas. On average, each citizen spent around VND3 million (US$118) per month, representing a 6.5 percent increase compared to 2022, and an annual growth rate of 3.2 percent over the 2022–2024 period.
Spending patterns, however, diverged between regions, with per capita monthly expenditure in urban areas reaching VND3.8 million (US$150), up 15.4 percent from 2022, while rural spending remained relatively stable at VND2.5 million (US$99).
Household living expenses accounted for the bulk of spending in 2024, averaging VND2.8 million (US$111) per person per month, or 94.5 percent of total household expenditure. Of this, food-related expenses amounted to nearly VND1.4 million (US$55), a 7.3 percent increase compared to 2022, while non-food consumption exceeded VND1.4 million (US$56), up 3.8 percent over the same period.
2025 short-term outlook
Despite various indicators showing that the economy remains resilient, persisting risks still impact consumer spending, reflecting a more cautious approach in the short term.
Overall, Vietnamese households' purchasing power is boosted by rising real wages, tax incentives, and the potential slight appreciation of the VND against the US dollar. Nevertheless, household debt in Vietnam remains worrisome, and exports face risks from global issues like trade tensions, supply chain disruptions, and declining demand. These challenges could put pressure on future disposable income and reduce overall spending.
Against this backdrop, Vietnamese consumers are recalibrating their spending habits by cutting back on non-essential purchases, limiting shopping activities, and adjusting choices to fit tighter household budgets.
Consumers are adopting a more disciplined approach in their financial decisions. Improving personal financial health has emerged as a key priority, with NielsenIQ data showing it ranks second among individual goals for 2024.
Practical measures are already shaping consumer behavior. Around 26 percent of Vietnamese respondents to NielsenIQ’s survey are reducing unnecessary expenses, while 13 percent are focused on increasing savings. At the same time, digital platforms are playing a bigger role in purchasing decisions, with 72 percent of consumers preferring online shopping as they seek greater value and convenience.
Long-term view: Spending trends on upward trajectory in key categories
Although cautious spending is anticipated for the remainder of 2025, experts continue to see Vietnam’s consumption growth in an optimistic light. BMI’s latest forecast suggests that real earnings will grow at an average of 4.8 percent annually until 2029, increasing purchasing power by 13 percent compared to 2019.
Several trends are driving the growth of Vietnam’s middle-class spending. The urban population is creating new opportunities, particularly in the services and manufacturing sectors. Steady increases in disposable income, fueled by economic growth and higher wages, are leading to more spending on education, healthcare, and entertainment. The middle class is becoming more sophisticated and discerning in their consumption habits, driving demand for high-quality goods and foreign brands. The burgeoning e-commerce sector, supported by widespread internet access and mobile device usage, is also becoming a crucial shopping channel for middle-class consumers, significantly boosting the country’s retail sector.
Rising affluence is reflected in the purchase of durable goods such as cars, motorcycles, and home appliances. Consumers are increasingly willing to pay more for reputable brands, and online shopping has become a popular option due to its convenience, discounted rates, and wide range of products.
Opportunities for foreign businesses in Vietnam
With the increasing digital presence of consumers, businesses can align their product portfolios and distribution channels to meet the evolving value-for-money needs. This may involve offering a wider range of products and exploring new retail formats such as discounters, alongside promotional activities. The current landscape also favors the flourishing expansion of e-commerce platforms to reach a broader consumer base.
Businesses can tailor premium offerings to attract affluent, less price-sensitive customers, particularly younger generations willing to invest more in quality. This entails accelerating innovation to broaden product offerings and catering to more sophisticated demands. As the Vietnamese consumer market matures, there is growing space for premium brands to enter. Companies with established brand portfolios and distribution networks should consider introducing premium products tailored to Vietnam to capture this segment.
Expanding distribution networks to include tier-2 and tier-3 cities in Vietnam is crucial. Companies need to adapt their route-to-market models to navigate the consolidating yet fragmented retail landscape effectively. A 2021 consumer survey in Vietnam revealed that 84 percent of respondents prioritize sustainability, indicating a willingness to invest in organic, healthier, and sustainable products even at higher costs. Companies can enhance their consumer offerings by focusing on products with organic ingredients and emphasizing local or locally perceived brands to meet the demand for purposeful purchases. Strong local players currently hold significant market share, and developing such products can accelerate growth by aligning with consumer values and preferences.
In Vietnam, the primary spending trend centers around the food and beverage industry, with increasing expenditures on high-end products aimed at enhancing the quality of life. Consequently, there is a growing local appetite for select foreign luxury items. The fastest-growing expense categories in Vietnam include food and non-alcoholic beverages, health products and medical services, and clothing and footwear.
FAQs: Vietnam’s middle class – Business essentials
Q1: How large is Vietnam’s middle class in 2025?
Vietnam’s middle class is expanding rapidly and is expected to reach 26 percent of the population by 2026, up from just 13 percent in 2023. This growth translates into a projected addition of over 25 million consumers with rising disposable incomes and evolving consumption patterns.
Q2: What are the top spending priorities for Vietnamese middle-class households?
In the long term, the middle class in Vietnam prioritizes education, healthcare, housing, and quality-of-life upgrades such as travel, personal development, and home appliances. Spending on premium goods, branded products, and sustainable offerings is also rising steadily, driven by increasing incomes and lifestyle aspirations.
However, due to anticipated future pressures on disposable income, the country’s middle class has been limiting non-essential purchases, reducing shopping activities, and modifying choices to accommodate tighter household budgets in the past few months.
Q3: How is digital adoption influencing consumer behavior in Vietnam?
Digital platforms are reshaping consumer purchasing decisions – 72 percent of consumers prefer online shopping for value, convenience, and variety. E-commerce growth is fueling demand for direct-to-consumer brands, digital-first services, and omnichannel retail strategies.
Q4: Which sectors offer the best opportunities for foreign businesses targeting Vietnam’s middle class?
Key growth industries include consumer goods and FMCG, education and edtech, healthcare and wellness, financial services, and travel and leisure. Companies that can localize offerings, focus on quality, and build strong digital engagement will have a significant advantage in capturing market share.
Q5: What strategies should companies adopt to succeed in Vietnam’s consumer market?
Success depends on tiered product strategies (affordable + premium), regional expansion into tier-2 and tier-3 cities, sustainability-focused branding, and robust digital distribution channels. Local partnerships and strong after-sales service are also key to building brand trust and long-term loyalty.
Ready to Tap into Vietnam’s Middle-Class Growth Story?
As Vietnam’s consumer landscape evolves, businesses that act early will capture the most value. Our experts at Dezan Shira & Associates help foreign companies navigate Vietnam’s regulatory, tax, and market-entry landscape with:
- Consumer market analysis tailored to your industry
- Market entry and expansion strategy across Vietnam’s cities and provinces
- Partner identification and business matchmaking
- Cross-border business structuring to scale in ASEAN
Contact us today to discuss your entry strategy or request a customized Vietnam market opportunity report at: Vietnam@dezshira.com
(With inputs from Melissa Cyrill.)
This article was originally published July 5, 2024. It was last updated September 30, 2025.
This article first appeared on Vietnam Briefing, our sister platform.
