Higher per capita income lays significant platform for greater spending, according to GFK Vietnam research.
Spending among Vietnamese people on electronics and electronic refrigeration products is estimated at VND157 trillion ($7.06 billion) each year from now to 2020, according to the results of market research conducted by GFK Vietnam on the basis of information from the General Statistics Office and the World Bank. Electronics will account for VND60 trillion ($2.75 billion) and refrigeration products VND97 trillion ($4.31 billion).
Higher per capita income has had a significant impact on household spending, its research found, especially in terms of consumer electronics. Increased spending is also attributed to the younger generation, who make up about 60 per cent of Vietnam’s population, having major demand for household electronics.
Vietnam’s annual per capita income now stands at $2,109, the unemployment rate has fallen to 2.31 per cent, the consumer price index stands at 0.63 per cent, and economic growth is expected to reach 6.68 per cent this year.
Mr. Huynh Phuoc Cuong, Director of GFK Vietnam, said the company forecasts total spending to increase to $3,737 per household per annum by 2020.
He also noted that zero per cent tariffs are to be applied to many commodities imported from countries with which Vietnam has a free trade agreement, such as the EU and South Korea, together with the TPP and the ASEAN Economic Community. Imported electronics and refrigeration products with high quality and good prices will increasingly find their way to Vietnam, he said.