Vietnamese consumer confidence index (CCI) increased one percentage from the previous quarter to reach 109 in the first quarter of this year, helping Vietnam become the fifth most optimistic country globally, according to Nielsen, a global information and measurement company.
“Vietnam CCI continues to maintaining at a high level despite a moderate market growth. What we are seeing here is not reflected in the performance of the market but rather the future hopes and sentiments of the Vietnamese consumers,” said Nguyen Huong Quynh, managing director of Nielsen Vietnam.
Vietnam is still a very young and optimistic country, with 57% of the population under 35 years old, with a 60% increase in the last decade of the amount of people graduating from university, she noted.
“This optimism is further inspired by the fact that the average Vietnamese consumer has more money to spend on themselves, improved lifestyles and an aspiration to be better each day,” Quynh added.
When it comes to savings, consumers in Vietnam remain to be the highest globally (78%, -1pp), followed by Indonesia (75%), Philippines (69%), Singapore (67%), Malaysia (67%) and Thailand (66%).
In view of the increasing general cost of living in the country, intention of changing spending to save on household expenses continues to be the top priority for Vietnam consumers.
Eight in 10 Vietnamese have adjusted their spending habits over the past 12 months to save household expenses (82%) while nearly three out of five Vietnamese consumers (61%) have tried to spend less on new clothes and cut down on out-of-home entertainment (58%) in comparison with this time last year.
Around half of Vietnamese consumers have tried to save on gas and electricity (47%) and telephone expense (44%).
However, Vietnamese consumers are still willing to spend on big tickets after covering essential living expenses. Around four in ten Vietnamese consumers want to spend their spare cash in holidays and vacations (38%), new clothes (38%), out of home entertainment (34%), new technology products (32%), as well as home improvements/decorating (31%).
Health becomes the number one concern of Vietnamese consumers. Nearly one third of consumers (34%) citing health as their biggest and second biggest concern over the next six months.
Recessionary sentiments still grips over six in 10 Vietnamese consumers who believe that the nation is still in the state of economic slump (58%). Therefore, job security and the economy uncertainty remain two of consumer’s key concerns.
Other major concerns that makes the top 10 list of key concerns this quarter include work/life balance, increasing food prices and utility bills, debt, crime and parents’ welfare and happiness.