The reading in October is far above the long-term average of 135.9, 6.4 points higher than that in October 2014, according to ANZ-Roy Morgan report released Wednesday.
“The latest improvement stems from increased optimism about personal finances as well as future economic conditions in Vietnam,” says the report.
In terms of personal finances, 34% (up five percentage points (ppts) from September) of the respondents said their families are ‘better off’ financially than the same time last year. Meanwhile, a record low 16% (down six ppts) said their families are ‘worse off’ financially.
The report shows that 57% (up two ppts) expect their families to be ‘better off’ financially this time next year. Only 4% (down two ppts) expect to be ‘worse off’, the lowest ever recorded for the indicator since the survey started.
In addition, 57% (up seven ppts) expect Vietnam to experience ‘good times’ financially during the next 12 months but 10% (down two ppts) expect ‘bad times’.
Over the longer term, 64% (up three ppts) of the respondents expect Vietnam to have ‘good times’ economically in the next five years. In contrast, 5% (down two ppts) expect the domestic economy to have ‘bad times’.
“Consumer sentiment rose both strongly and broadly in October in a sign that the Vietnamese economy continues to uniquely weather the global trade slowdown, and the strong ongoing performance of the external sector is having positive spillover effects into the broader economy, particularly for domestic-facing sectors,” said Glenn Maguire, ANZ chief economist South Asia, ASEAN & Pacific.
We believe that the global backdrop will continue to remain on a weakening trend, due to China’s economic slowdown and the recovery trend in the US, Japan and Europe firming but not strong. Thus, it is important that domestic demand in Vietnam emerges as a further stabilizer to growth. Our consumer confidence index clearly confirms that this is happening,” the chief economist added.