CHANGING AGE STRUCTURE OF THE POPULATION

From 1979 to 1989, the country's population increased by 22.7 percent, but from 1989 to 1999 the increase declined to 18.5 percent. This reduction can be traced to the rapidly growing desire of many couples to limit their family size to two children. During the 1990s, Vietnam experienced a sharp decline in its population growth rate: from nearly 2 percent at that beginning of the decade to 1.4 percent by 2000. The significance of this change can be appreciated when we think of population growth rate in terms of its "doubling time." A growth rate of 2 percent, if maintained, would double a population in 35 years, but a rate of 1.4 percent would require 50 years. Given the steady decline in the country's birth rate, a continued decrease in the rate of population growth in the coming years is highly likely. At the time of the April 1, 1999 Census, the population of Vietnam stood at just over 76 million, making it the 13th largest country in the world. From 1979 to 1999, nearly 24 million people were added to the country's population. But, despite the addition of over 1 million people per year, the rate of growth of Vietnam's population has been slowing dramatically. By the end of the 1990s, the growth rate declined to its lowest point since reunification of the north and south in 1975: 1.4 percent per year in 2000. Year 1979 1989 1999 2011 0-14 years 42.55% 39.00% 33.48% 25.25% 15-64 years 50.49% 54.00% 58.41% 69.30% 64 years and over 6.96% 7.00% 8.11% 5.45%

Viet Nam is stepped into golden period of population which offers more opportunities for developments.

Some comment about stucture population in Viet Nam

Le Thi Thuy Van, an expert from the Ministry of Finances Financial and Economic Science Institute, said that the demographic bonus era is a golden chance for Viet Nam to take a big leap forward in development, with its young labour force, especially in the period of 2011-20 when the country targets becoming an industrial country and achieving middle-income status. Van said that the Government should publish and implement a comprehensive package of policies in which solutions related to education and training, jobs and human resources, health care, and social welfare must correlate. Giang Thanh Long, director of the National Economics Universitys Economic Analysis and Forecast Centre said that Viet Nams demographic bonus would last 30 years in which the young labour force would have the highest growth in the period of 2010-2020. Over this period, the average number of the working-age population group will increase by 1 million people per year.Long said that the length of the countrys demographic bonus is average. Indias is 68 years, Guatemalas 64 years and Chinas 48 years; while Poland and the Czech Republic averaged 22 and 28 years respectively. Long said that the demographic bonus era does not naturally bring social benefits and economic growth on its own. Experts agree that the lessons drawn from the countries such as Japan, India or China which have experienced this era, were focusing investment in education and creating employment for young people. Long said that all the policies must relate to the fact that the majority of the young labour force are based in the countryside and for main part, lack working skills.He added that it is necessary for the authorities to have training plans and diversify the types of jobs available in the countryside

Population by Age and Sex, Vietnam 2000

(Source: Ministry of Health, Health Statistical Yearbook 2000)

THE CHANGING AMERICAN FAMILY

In Viet Nam, more people are: Divorcing and separating Choosing not to marry Choosing to marrying later Marrying without intending to have children Increased number of working women Stay-at-home dads

The affection of changing Vietnamese family today

Divorcing and separating

eat outside

Choosing not to marry

eat outside

Choosing to marrying later

Marrying without intending to have children Increased number of working women

eat outside children food's needs eat outside

Stay-at-home dads

eat outside

need about delivery

Fresin Fries sees our targeted market group as having many "makan" (eating) Singaporean Dollar needs. A recent Consumer Trend and Analysis by Euromonitor identified the following needs among our target markets. Our core group: Wants variety and flavor in its food, preferably something fried Looks for speed of service Wants an entertaining and fun experience Insists upon a clean, friendly, and attractive environment Adopts a global lifestyle Is computer literate Enjoys eating out Has an active lifestyle Comes from various ethnic backgrounds According to a GAIN Report published in 2000, potatoes are the second largest commodity of US exports to Vietnam after fresh fruit, valuing almost USD $13 million per annum. This is caused by the increasingly younger demographic and rising incomes throughout Vietnam that have led to lifestyle changes that are influencing consumer purchases, food, and entertainment choices. Some changes taking place include a larger professional class with more working women, which means greater disposable incomes.

According to government surveys, Viet Nam's spending on "eating out" is continuing to increase (). Spending on cooked food as a percentage of total average food-spend reached 55% in 1998. The growth in spending in the food service sector arises from a number of factors:

Increased affluence amongst Vietnamese, especially those under the age of 40 years. Increases in the number of expatriate residents, which has more than doubled since 1988. Increased convenience-seeking amongst younger Vietnamese who live in a hectic city today compared to the much slower pace of life that existed 20 years ago. When they want convenient cooked food, Vietnamese have long turned to the local hawker stalls, rather than prepared ready-to-cook or ready-to-eat processed convenience foods. As the numbers and variety of food service outlets has increased in Vietnamese, locals have adopted the convenient products of other food service outlets, especially the fast food outlets, as alternative sources of convenient cooked food. Younger middle and upper income group families and individuals are also frequent users of the full service restaurants, modern-style coffee shops and cafs that now exist all across Viet Nam. Over the past 5 years, there has been a general upgrading in the food service sector which has seen the establishment of more air conditioned food centers (food courts) that are considerably cleaner than the traditional hawker markets. At the same time, increased investment from foreign and local businesses in the sector has also produced an increase in the numbers of:

Foreign chains, including chains such as Outback Steakhouse. Modern retail bakery/caf outlets such as Bread Talk. Modern coffee shops such as Starbucks.

GEOGRAPHIC SHIFTS IN POPULATION

Urbanization is migration from rural to urban areas, and increased concentration of people living in urban areas. The level of urbanization of a nation is measured by the proportion of the population living in urban areas. In terms of society, urbanization is understood as a process of restructuring of peoples residential environment. By the 20th century, global trends in urbanization were mainly in the form of expansion of urban population size, predominantly through growth in urban population, an increased number of cities and expansion of urban territory.

The proportion of the population living In urban areas in 1999 and 2009. Analyze: Economic and social structural transition in Vietnamese society in the same period of time (Educational attainment, diversification of occupational structure and spatial integration)

The increasing rate of urbanization seen in Vietnam in the first decade of the 21st century

This has strongly facilitated migration from rural to urban areas

Analyze: After the country was reunified, there was a substantial decline in the urban proportion of the population throughout the country Until 1982, there had fallen to 18.4%. Since then, the level of urbanization has increased gradually to 20% By 2009 it had reached 29.6%

Vietnam has two special urban areas: Hanoi and Ho Chi Minh City.

 Analyze: From 19891999 and 19992009, the population of Hanoi and Ho Chi Minh City increased by about 1.5 times, accounting for about a third of Vietnams urban population. In 1989-2009, provinces with the highest urban proportion of the population were mainly in the Southeast region in the vicinity of Ho Chi Minh City - Conclusion: Migration and urbanization have both increased over the last three decades and have accelerated even more during the last decade. The two processes are closely tied to each other; areas that had a high migrant proportion of the population also had a high urban proportion of the population. Moreover, migration has contributed more to population size in areas with higher levels of urbanization than to those with lower levels of urbanization. Affect on fast-food industry: When people live in different religions, they want different things. Migration into urban areas increases amount of consumers in urban areas increases need for goods and services expands sharply Migrants consist of many different forces who migrate into urban areas to search for jobs opportunity, better standard of living, educated, luxury, family reunion

Trends to enjoy and experience goods and services in urban areas increase References for instant and new trend goods services (fast food) become a huge interest for investors.

A BETTER-EDUCATED
Vietnams population is becoming more and more well-educated. According to official statistics conducted by the population census of Vietnam in 2009, 93.5 percent of Vietnamese population aged over 15 wereliterate.In group of people aged from 5 and above, 24.7 percent had been studying, 70.2 pecent had stopped learning and only 5.1 percent had never been to school before.

Chart 1:The percentage of people who were literate divided by sexes and cities or countries from 1989 to 2009

100.00%

95.00%

90.00% Males 85.00% Females

80.00%

75.00% 1989 1999 2009

From 1989 to 2009, there was also a breakthrough in education. The rate of people who had completed colleges and universities or studied higher was very high.

Chart 2: Percentage of people had completed universities or colleges and studied higher in three large regions: Red River Delta, Mekong Delta, The Highlands from 1989 to 2009

35%

30%

25%

20%

1989 1999

15%

2009

10%

5%

0% Red River Delta Mekong Delta The Highlands

Affect on fast food: Educated people are becoming busier nowadays. They are preoccupied with their studying or their work. Therefore, most of them will choose fast food for various reasons: suitable price, quick service, delicious food and KFC also has a service called home delivery which saves time a lot for customers. Moreover, KFC has great strategic marketing which approach the youth such as students or pupils through beautiful designs,etc However, there is also a small number of educated people who think that fast food is a kind of unhealthy food to eat. But they still consider fast food as the first choice to save their time. Based on a recent research, KFC is the brand of fast food that has been chosen the most by pupils and students (78%), and people who have income lower than 1 million VND account for 49%.This proves that educated people such as students and pupils is the main source of KFCs customers.

POPULATION DIVERSITY
KFC is a world-wide fast-food brand origined from American . However, their customers are not only American but also people around the world. How can KFC deal with the problem of population diversity especially when the taste of American is different from it of Asian. For example, KFC entered Vietnam market. This market seems to be a very new with with many opportunities for strong development. The KFC products are processed under common standards in the world market, but KFC Vietnam is researching products that are closer to the taste of Vietnamese people. Fried chicken tasted good, but it is too fattening. KFC still serves customers with rice and soup, which are so familiar with Vietnamese people.

For those who are going on diet or who are vegetarian, KFC still have salad or coleslaw. However, the company does not really focus on these people. Also, KFC really care about the office workers and students, who really dont have much time to have lunch or dinner. They have a special service that customer just have to call and they will bring their food to customers place in less than 30 minutes.