With a seven-point increase over the last quarter of 2018, Vietnam’s Consumer Confidence Index once again hit the record levels, with 129 percentage points (pp).
Compared to Quarter 4/2018, Vietnam’s CCI score got the biggest gain in Asia Pacific, which made Vietnam the third most confident country globally, which was a highly optimistic signal compared with the CCI decrease last quarter.
Vietnam’s overall confidence level was high above the region’s average (more than 12pp compared with regional).
“This significant increase of consumer confidence indicates that consumers continue the positive changing for themselves and their families. Manufacturers and retailers need to capture the latest trends in the consumer market and need to act faster to respond to the evolving needs of consumers”, said Nguyen Huong Quynh, managing director of Nielsen Vietnam.
During the first quarter of 2019, all key drivers of Vietnam Consumer Index, including job prospects, financial security and spending ready, significantly increased. Around three-quarters of the people surveyed believed they would have good or excellent job prospects (80%, up 5 ppts vs Q4/2018) or would be in good or excellent financial states in the next 12 months (82%, up 6 ppts vs Q4/2018). In the same period, 67% respondents confirmed that they were ready to spend, which is an increase of 4% compared with last quarter.
Despite a slight fall, Vietnam continued to place first in Asia Pacific in Q1/2019 for having the region’s most avid savers (75%, down 3 ppts vs Q4/2018), followed by Hong Kong (68%), the Philippines (68%) and China (67%).
However, after covering essential living expenses, Vietnamese consumers were eager to spend on big-ticket items because they wish to lead a better life, for example, new clothes or holidays. They were more likely to spend on new tech products, and medical insurance premiums.
Meanwhile, in Q1/2019, Vietnamese consumers continued to consider job security and health there two biggest concerns. The economy surpassed work-life-balance to become the third most cared about matter.
