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The FMCG industry in Southeast Asia has been growing rapidly, especially in rural areas of Malaysia and Vietnam. But it’s not a one-size-fits-all market out there – rural communities have unique socio-economic factors that can impact FMCG consumption. 

When it comes to the FMCG market in rural areas of Vietnam and Malaysia, there are some things to keep in mind. People in these areas have different cultural, social, and economic factors at play, which makes it hard for FMCG companies to figure out how to market to them. 

A study by Nielsen found that the demand for FMCG products in rural Vietnam has been on the rise, growing at a rate of 5% in 2020. Meanwhile, Euromonitor International revealed that the rural FMCG market in Malaysia is expected to have an annual growth rate of 6.8% from 2020 to 2025, compared to 5.5% in urban areas.

Rural areas are an important part of the global economy since they are home to a large population. Did you know that in Malaysia, 22% of people live in rural areas, while in Vietnam, the number jumps to 62%?

In this fast-moving economy, supply chains need to be quick on their feet, resilience, and flexibility. That’s why traditional logistics providers that only focus on the movement of goods are slowly being replaced by more high-tech, one-stop solutions. 

In Vietnam, small-scale mom-and-pop retailers are an important factor in the country’s economic growth. They account for 75% of the country’s retail market, helping to shape Vietnam’s rapid economic development.