Lunar New Year High Time Spending Time Can’t Save Vietnam’s Manufacturing

Diep Nguyen

08:06 04/02/2019

BizLIVE -

One important supporting factor for Vietnamese manufacturing during January is the coming Lunar New Year.

Lunar New Year High Time Spending Time Can’t Save Vietnam’s Manufacturing
Recently, there have been many assumptions about the slowdown of Vietnamese manufacturing because of the severe effects from the US – China trade war. Assumption have become true, at least according to the latest report from Nikkei Research Center.
According to Nikkei survey and analysis, the Nikkei Vietnam Manufacturing Purchasing Managers' Index, or PMI, fell from 53.8 in December to 51.9 in January, and kept remaining above the 50-point line separating expansion from contraction. Growth has been registered in 38 successive months.
One important supporting factor for Vietnamese manufacturing during January is the coming Lunar New Year. This season is considered to be the most profitable for companies serving in the service and manufacturing industries. The consumption rate during this high time season often surges from 60 percent to 100 percent compared to the normal consumption time.
During those times, Vietnamese spend a lot of money preparing for the Lunar New Year, huge amount of money is spent on clothes, jewelry, accessories, and big items like TVs or fridges. What is more, people tend to buy more cars when it comes near to the Lunar New Year. Consumers buy more imported cars from Thailand, Indonesia. Ford, Mercedes, Lexus suffered from severely slowing car sales while Toyota and Honda still do well on selling cars.

DIEP NGUYEN