R&D and distribution capabilities propel Masan consumer’s global expansion

As the fast-moving consumer goods (FMCG) industry enters a more competitive phase, Masan pursues a strategy focused on product quality, international standards, and continuous innovation. The business has formed a closed value chain from raw materials to finished products, managed according to international standards for quality and food safety.

Nam Ngu fish sauce displayed alongside local products at Costco Korea. Photo courtesy of Masan Consumer

R&D as core driver

Masan Consumer (MCH) is part of the Masan ecosystem and one of Vietnam’s leading FMCG companies. Its development strategy centers on three pillars: premiumization, out-of-home consumption expansion, and boosting innovation (R&D). This approach helps the company broaden its customer base and build sustainable competitive advantages by developing products aligned with global consumption trends.

The Consumer Innovation Center (CIC) is the core of this system, overseeing all R&D activities based on deep insights into consumer tastes and behavior. Each year, the center generates more than 100 new product ideas, with several becoming modern consumption trends, such as Omachi self-heating hotpot noodles, Nam Ngu Ly Son chili-garlic fish sauce, and Wake-Up 247.

With a strong R&D system, the company has shortened new product launch cycles to under 12 months—twice as fast as the FMCG industry average. From 2018 to 2024, 20% of Masan Consumer’s revenue came from innovative products, reflecting the effectiveness of its R&D-driven growth strategy.

Customers selecting Chin-su chili sauce at a supermarket in the U.S. Photo courtesy of Masan Consumer

Investment in production and R&D also enables MCH to meet standards in demanding markets such as the United States, Australia, and South Korea, while preserving Vietnamese flavors in each product and bringing many brands abroad. The company placed Chin-su and Nam Ngu on shelves at leading global retailers such as Costco (U.S. and Korea) and Woolworths (Australia) beginning in October.

According to the company, MCH meets international standards in quality, production processes, and food safety. The presence of Vietnamese products in these systems expands export opportunities, affirming the adaptability of Vietnamese consumer goods to high standards in logistics, packaging, traceability, and sustainability. “This is an important step to help Vietnamese goods move deeper into regional consumer value chains,” the company representative said.

Strengthening internal capabilities for sustainable growth

While expanding internationally, MCH is also improving its direct distribution system to enhance domestic efficiency. After restructuring its distribution network, MCH expects to return to positive growth in Q4/2025, laying the foundation for recovery in 2026.

At Masan’s investor conference on Oct. 29, Huynh Viet Thang, CFO of Masan Consumer, noted that Q3 revenue declined 5.9% and EBITDA fell 7.4% due to short-term impacts from implementing the direct distribution system. However, the project has been completed across 34 provinces and cities, with positive results since October.

The company’s direct distribution model aims to optimize inventory and supply networks, helping products reach points of sale closest to consumers. The project focuses on three pillars: people, technology, and connectivity—with a reorganized salesforce by region, automated order suggestion software, and a direct link between sales staff and retailers. As a result, direct coverage increased 40% to 345,000 points of sale, the wholesale channel share dropped from 60% to 30%, and labor productivity rose 50%, while costs remained stable.

Customers sampling Chin-su chili sauce at Costco U.S. Photo courtesy of Masan Consumer

Danny Le, CEO of Masan Group, said restructuring the distribution system is crucial for medium- and long-term growth. “We are not only targeting short-term results but also aiming to modernize the entire consumer value chain in Vietnam,” he said.