The Mekong Sub-region - Asia's Final Frontiers - TNS

Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com


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The Mekong Sub-region Asia’s final frontier of 168 million consumers

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2

83 Countries

300 Offices

Over 25,000 employees

TNS global footprint – the world’s largest custom research group.

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Agenda

1 Economics

2 Population

3 Wealth

4 Consumerism

5 Attitudes

6 Summary

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Economics

4

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Foreign Direct Investment

5

23,107

322 511 774

18,595

756 622 761

14,696

912 777 1,088

12,000

971 1,285

Vietnam Myanmar Cambodia Laos

2009 2010

2011 2012

FDI USD millions 2012 could be up to US $ 20 Billion

Source: data.worldbank.org

Vietnam dwarf’s CaLM in FDI, but this is changing especially for Myanmar

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Export, import, trade deficit - 2012

Sources: National data sources, IMF, and World Bank

115,000

9,135 6,640 2,840

121,000

9,035 8,606 3,324

-6,000

100

-1,966 -484

Vietnam Myanmar Cambodia Laos

Exports of goods (millions US$) Imports of goods (millions US$) Trade balance (millions US$)

Imports vs. exports 2012 (estimates only):

Typically developing nations have huge trade deficits, but due to the

economic slow-down and fiscal responsibility the CaLM region is

experiencing a trade balance which will not last long

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GDP by Sector

7

20% 34% 37%

43%

41% 21%

20% 21%

39% 45% 43%

36%

Vietnam Cambodia Laos Myanmar

Services

Industry

Agriculture

Industry still lags behind agriculture in most of the Mekong Region

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Major Exports

8

Myanamr

oil & gas

gemstones

timber

illegal drugs

rice

rubber

Cambodia

clothing

timber

rubber

rice

fish

tobacco

footwear

Oil

Laos

wood products

garments

electricity

coffee

tin

copper

gold

electric power

Myanmar & Laos are incredibly natural resource rich

Source: Worldbank

Vietnam

rice

coffee

aqua produce

pepper

garments

shoes

manufactured

goods

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Population

9

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Population

10

90

69

56

15 6

Vietnam Thailand Myanmar Cambodia Laos

With a population of 75 Million and an incredible 40% plus under 20 years of age, a population boom will help drive

consumerism in CaLM

http://www.census.gov

Millions 77 Million &

growing rapidly

Cambodia Life 2012 report

© TNS July 2012 11

Greater Mekong Sub Region - Populated key cities

Vietnam 91,519,289

Ho Chi Minh 7,300,000

Hanoi 6,450,000

Myanmar 54,584,650

Yangon 4,573,000

Mandalay 1,237,000

Nay pyi daw 924,600

Cambodia 14,952,665

Phnom Penh 1,519,000

Laos 6,586,266

Vientiane 799,000

7 Key Cities 22,862,000

The seven major cities of the region have a larger population

than Australia = 22,683,600

http://www.census.gov


© TNS July 2012

17

17

20

16

13

9

5

4

22

20

22

13

11

7

4

2

18

19

19

16

13

9

5

3 70+ yrs

60-69 yrs

50-59 yrs

40-49 yrs

30-39 yrs

20-29 yrs

10-19 yrs

0-9 yrs

Population tree

34% 37% 42%

The region is incredibly young boding well for the future

54% 56% 64%

Source: TNS VietCycle / TNS Cambodia Life / TNS Myanmar Life

70% 72% 77%

https://www.cia.gov/library/publications/the-world-factbook/flags/flagtemplate_bm.html

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88

4 4 4

Buddhist Other Christian

Muslim Others

Religions

13

50

40

7 3

Non-demoninational

Buddhist

Roman Catholic

Others

Source: VietCycle 2011; All-in-one; CIA - The World Factbook

96

2 4

Buddhist (official)

Muslim

Others

Buddhism is by far the regions main Philosophy,

but the impact of Buddhism varies greatly in terms of daily life,

Laos = Buddhist 67%, Christian 1.5%, other and unspecified 31.5%


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68

5

5

22

Burmese

Indian

Kayin

Others (i.e. Shan, Rakhine, etc.)

Ethnicity

14

86

14

Kinh (Viet)

Others (i.e. Tay, Thai,Muong, Khmer. Etc.)

90

5 5

Khmer Vietnamese Others

Source: All-in-one; CIA - The World Factbook

This region is incredibly different in terms of ethnicity and very diverse,

especially Laos = Lao 55%, Khmou 11%, Hmong 8%, other (over 100 minor

ethnic groups) 26%


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Wealth

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2012 - GDP

16

318

123

56 14 8

Thailand Vietnam Myanmar Cambodia Laos

Billions USD

Though Vietnam is but a third Thailand’s GDP and CaLM but a 3rd of

Vietnam, this will change as global economic recession continues in Europe

and the US

Source: All-in-one; CIA - The World Factbook

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CaLM GDP & Purchase power

17

1,700

4,600

1,000 930 1,400


3,300

9,700

1,300

2,371 2,000


Thousand Thousand

SOURCE :http:/imf.org; http://www.tradingeconomics.com;

GDP / Capita Purchase power parity

CaLM has a long way to go in terms of developing Purchasing Power,

which highlights the great opportunities available

http://www.tradingeconomics.com/

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38%

5% 12%

6% 5%

5%

5%

8%

3%

13%

Household expenditure

18

40%

11% 9%

8%

6%

6%

5% 4%

11%

32%

15% 10%

9%

8%

5%

5% 4% 4%

8%

Breakdown of monthly urban household expenditure (%):

Groceries are the main spend items followed by Education in CaLM

Groceries

Education Transportation Groceries



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Expenditure vs. Savings

19

78 83 93

22 17 7

Expenditure Saving

Cambodians and Vietnamese have a higher penchant for savings




© TNS July 2012

Monthly Urban Household Income Comparisons

20

2 12 8

11

30 26

22

11 26 32

25 16

23 11 15

10 11 9

Vietnam Myanmar Cambodia

USD 750+

USD 500-750

USD 325-500

Under USD

325

Vietnam is considerably more wealthy than Myanmar and Cambodia



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Consumerism

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60

73

17

81

11

18

19

2

12

%

27

15

84

4

39

11

13

5

18

7

%

Household durables ownership - Urban

22

92

87

61

60

47

41

32

26

17

13

Gas stove

Refrigerator

CRT TV

Washing machine

DVD Player

PC/Deskstop

LCD / Plasma TV

Air conditionier

Karaoke system

Digital camera

Vietnam Cambodia Myanmar

Outside off TV, DVD players CaLM is substantially behind Vietnam


0

91

96

41

77

34

0

0

0

36

%

Laos

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Household technology items ownership - Urban

23

95 98

37

98

17 15 10

34

Vietnam Cambodia Myanmar Laos

Mobile phone Laptop

Myanmar lags far behind on technology


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Consumer’s top 3 items would like to own - Urban

24

Air-conditioner

33% Laptop

33%

Washing machine

32%

Refrigerator

58%

Washing machine

44% Air-conditioner

33%

Washing machine

21%

Refrigerator

15% Laptop

15%

Similarities in terms of desired durable ownership are striking


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Top 3 favourite brands - Urban

25

Vietnam Myanmar Cambodia

Not surprisingly technology and transportation brands rule


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Attitudes

26

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Attitudes towards life – Position & Status

27

73%

49%

42%

Cambodia Myanmar Vietnam

Position and status in society is the most important aspect of my life? (top 2 box score)

Cambodians are in an all out push to catch up to the rest of the world,

while Burmese are still seeped in tradition



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Attitudes towards women

28

69

60

49

34

63

Urban Cambodia 2012 Urban Vietnam 2001 Urban Vietnam 2011

Top-2-box % agreement:

“Women must focus only on their traditional family roles”

“It is completely acceptable for women to earn more than men”

2001

2012

2011

2012 2011

Over the years attitudes towards women in society have liberalized


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Women and traditional roles

49

69

34

Myanmar 2012 Cambodia 2012 Vietnam 2011

“Women must focus on their traditional family roles”


29

Over time Cambodian and Burmese attitudes should become more equal


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Importance of family

30

92

16

95

11

96

19

Cambodia Vietnam Myanmar

“A close family is essential to my happiness”

“I prefer to spend more time with my friends than my family”


Family is still the cornerstone of society


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Summary

31

http://www.terragalleria.com/asia/cambodia/angkor/picture.camb2912.html

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Summary

32

168 Million untapped consumers

rich in natural resources

very young population = future

limited competition

willingness of host to do business

poor infrastructure for transport

poor human capital

very young population

varying ethnicities and religions

low incomes

Positives Negatives

Vietnam has 15 year head start compared with Cambodia, Laos and Myanmar but is still 15 years or more behind Thailand

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Please contact:

[email protected] Regional Managing Director TNS Cambodia | Laos | Myanmar | Vietnam or [email protected] General Manager TNS Cambodia [email protected] General Manager TNS Myanmar [email protected] Executive Director TNS Vietnam

Questions?

mailto:[email protected]





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The Mekong Sub-region - Asia's Final Frontiers - TNS