’s consumer confidence index increased three points quarter-on-quarter to 108 in the fourth quarter (Q4) of 2015, helping the country take the sixth position globally in terms of consumer optimism, according to a survey of Nielsen.
Vietnam’s consumer confidence index in Q4/2015 indicates improvement in consumers’ optimism. This can be attributable to increasing spending intentions and considerable increase of retailers’ confidence during the Lunar New Year season, said Vaughan Ryan, managing director of Nielsen Vietnam.
Vietnamese consumers have the highest spending-restraint level in the world in the context of rising living costs. Up to 79% of Vietnamese respondents reaffirming saving intention, up one percentage point from the previous quarter.
Consumer confidence index of Vietnam. (Source: Nielsen)
According to the survey, 85% of Vietnamese consumers had adjusted their spending habits over the past 12 months to limit their expenditures. Around a half of the respondents cut down spending on out-of-home entertainment and telephone expenses.
However, Vietnamese respondents said after covering vital expenses, they are willing to spend on holidays/short breaks (44%, up two percentage points), new clothes (44%, up five ppts), and home improvements (40%, down one ppt).
The biggest concerns of Vietnamese consumers. (Source: Nielsen)
The survey adds that 52% of Vietnamese consumers believed they were in recession in Q4/2015 as the national economy has yet to recover. 37% of the respondents were concerned about job security.
One third of the Vietnamese respondents said health was their biggest concern in the coming six months. Other concerns include work/life balance, increasing utility bills, crime, child education and increases in fuel prices.
The survey shows that global consumer confidence ended 2015 with an index score of 97 - the same level as the start of the year.
Southeast Asian consumers remain the most confident in the world. The Philippines stayed on the second position globally, followed by Indonesia and Thailand.