Despite significant fluctuations in global trade in 2025, Masan Consumer (UPCoM: MCH) has maintained strong growth momentum thanks to its strategic focus on consumer goods R&D and comprehensive distribution transformation. In just the first six months of the year, MCH’s export revenue increased by more than 35% year-on-year, driven primarily by growth in Asian markets such as Japan and South Korea.

This strategy underscores Masan Consumer’s long-term vision: instead of pursuing volume alone, the company prioritizes product innovation based on deep research (R&D), elevates quality, and leverages Vietnamese culinary strengths to win over global consumers.

Market Context and Trends Driving R&D - From “Basic Needs” to “Quality Living”

Vietnam’s GDP is expected to surpass USD 500 billion in 2025, with per-capita income rising above USD 5,000 should economic growth achieve the Government’s target of over 8%. This marks a historic transition, signaling Vietnam’s approach toward the upper-middle-income group.

But the USD 5,000 milestone is more than an economic indicator - it reflects a profound shift in spending habits. The era of “basic needs” is giving way to the era of “quality living,” where health, convenience, experience, and lifestyle increasingly shape purchasing decisions.

The expanding middle class - those spending over USD 12 per day - is driving demand for higher-quality, safer, and more personalized products. Vietnamese consumers are now willing to pay more for reassurance, trust, and emotional value.

These shifts create “positive pressure” that accelerates consumer goods R&D. Companies must deeply understand each segment to develop products aligned with needs and emotional expectations. R&D has become a core strategy enabling brands to anticipate trends and differentiate in a competitive market.

Average per-capita FMCG spending in Vietnam remains around USD 120 per year, similar to Thailand and China 7-10 years ago. Meanwhile, premium products account for only 15% of the market, lower than China’s 20%. These numbers highlight the vast potential of premiumization, a trend Vietnam is entering with strong momentum.

While urban areas drive early premiumization, rural Vietnam - home to 60% of the population but only 40% of FMCG spending - represents the next major growth frontier. As incomes and commercial-logistics infrastructure improve, the consumption gap between rural and urban areas is narrowing rapidly.

Rural consumers increasingly seek more than low prices - they value quality, brand trust, and experience. They access information faster, experiment more, and are willing to pay for safety, health benefits, and convenience. With a deep distribution network and strong local consumer insights, Masan Consumer is tapping into this opportunity to bring mid-to-premium products closer to 60% of Vietnam’s population - expanding market share while improving consumer quality of life.

Masan Consumer’s R&D and Innovation Strategy

As part of its transformation into a leading regional consumer-retail group, Masan Consumer considers R&D a core driver of innovation, market expansion, and competitive strength. Its R&D strategy covers products, technology, packaging, supply chain, and distribution - all aimed at delivering superior experiences to consumers domestically and abroad.

The company’s three key R&D pillars include:
Accelerating exports with Vietnamese culinary identity
Investing in advanced technologies and deep consumer insights
Upgrading supply chain flexibility

Together, these pillars establish a strong foundation for Masan Consumer’s sustainable growth in the global FMCG era.

Breakthrough in Exports - The Rise of Vietnamese Culinary Products

According to the Ministry of Agriculture and Rural Development, Vietnam’s processed food exports reached nearly USD 34 billion in the first half of 2025, up 16% year-on-year. Amid fierce competition, Masan Consumer has strengthened its capability by investing heavily in consumer goods R&D, ensuring products meet stringent international standards of safety and quality.

R&D Investment: From Technology to Consumer Understanding

Masan Consumer’s R&D foundation rests on two principles: quality and consumer insight. All MCH factories meet FSSC 22000, ISO 22000, HACCP, BRCGS, and HALAL standards - among the highest in global consumer goods manufacturing. But the company goes beyond compliance, investing deeply in R&D to deliver products that are both flavorful and health-conscious.

In 2023, Masan established the Consumer Innovation Center (CIC) - the “heart of R&D” within its consumer ecosystem. CIC researchers analyze culinary trends, taste preferences, and lifestyle patterns of both Vietnamese and international consumers. The “Consumer-In-Love” model enables the company to proactively gather insights and develop products that meet real needs, creating long-term value in Vietnam’s consumer goods R&D sector.

CIC also collaborates with global research bodies such as NielsenIQ and Kantar to analyze trends in sustainability, wellness, and food safety - helping Masan Consumer stay ahead of major shifts in modern consumer behavior.

Upgrading Quality, Strengthening Supply Chain and Flexible Distribution

Alongside product innovation, Masan Consumer is restructuring its domestic distribution system to adapt to tax policies and changes in purchasing behavior. The company is expanding direct distribution and leveraging the WinCommerce (WCM) retail ecosystem to increase coverage in modern trade (MT) and HORECA (hotels, restaurants, cafés).

Thanks to ecosystem synergy, MT revenue grew 5.7%, and HORECA revenue increased 34.2% in Q2 2025. The company is also deploying modern sales management systems and big-data technologies to forecast demand and optimize inventory - a hallmark of R&D applied to consumer goods operations.

At the same time, MCH is optimizing supply chain management at the point of sale - tightening inventory control, adjusting promotions based on real demand, and adopting advanced digital tools in sales and operations. The company aims to reduce revenue reliance on large traditional retailers to around 30% in the coming period (from 60% in early 2025), building a more flexible and resilient distribution system.

Strengthening the Global Presence of Vietnamese Brands

Products like CHIN-SU Pho Story, Spices & Herbs, and CHIN-SU Chili Sauce are not only celebrated domestically but are becoming iconic representatives of Vietnamese cuisine in high-standard international markets. This success reflects the impact of R&D: deep consumer understanding, quality optimization, and preserving authentic Vietnamese flavors.

In late 2025, Masan Consumer will continue investing in R&D to develop premium, high-quality products and expand exports into new markets. This strategy will strengthen its domestic leadership and elevate Vietnamese brands on the global culinary map.
R&D Investment - Enhancing Consumer Value and Experience

Through R&D, Vietnamese consumers gain access to higher-quality products that are safer and offer richer experiences. R&D also enables process improvement, cost reduction, optimized distribution, and greater value for end users.

New products such as CHIN-SU 365-day fermented fish sauce, Nam Ngư Ly Son chili garlic fish sauce, and the Omachi range have delivered strong growth across key categories. Masan has also successfully introduced innovative products such as self-heating rice and hotpot, regional specialty flavors, and unique seasoning formulations. The company has expanded into the Personal and Home Care segment with its flagship brand Chanté.

R&D Roadmap 2025-2030

In the coming years, Masan Consumer will continue accelerating R&D investment to develop premium, health-oriented product lines and expand export capabilities. The company aims to become a pioneering Vietnamese brand in innovation and a regional leader in the FMCG sector.

In a constantly evolving market, investment in consumer goods R&D is not only a growth strategy but also a protective shield - enabling Vietnamese enterprises to adapt, innovate, and break through. Masan Consumer has demonstrated that when research, creativity, and deep consumer understanding are placed at the center, a company can elevate product standards, expand global presence, and still preserve authentic Vietnamese identity.

From seasonings to processed foods, from technology to supply chain management, Masan Consumer is laying the groundwork for a new generation of Vietnamese products - more premium, safer, and richer in emotional value. This is not only the advancement of a single enterprise but a model for elevating Vietnamese brands in the integration era, where R&D becomes the bridge between innovation and the aspiration to go global.