Despite greater confidence, Nielsen report shows spending less and saving more remains the top priority of Vietnamese consumers.
Consumer confidence in Vietnam continued to see significant improvements in the first quarter, helping the country become the sixth most optimistic country globally, according to the Consumer Confidence Index released by global information and measurement company Nielsen today.
With an index score of 112, increasing 6 percentage points compared to the previous quarter, Vietnam’s consumer confidence index (CCI) in the first three months recorded its highest score since the second quarter of 2013.
The report also revealed that intentions among Vietnamese consumers to change their spending and save on household expenses has remained steadily high since the second quarter of 2014.
Similar to the previous quarter, more than eight out of ten Vietnamese consumers (86 per cent) have adjusted their spending habits over the past 12 months to save on household expenses, with more than half believing that the country is in economic recession at the moment.
More than three out of five, or 62 per cent, of Vietnamese consumers have reduced their spending on new clothes while 61 per cent have tried to save on gas and electricity.
More than a half of consumers have cut down on out-of-home entertainment (57 per cent). Some two in five consumers have delayed upgrading their technological devices (46 per cent) and delayed the replacement of major household items (44 per cent) to reduce household expenses over the last 12 months. (See Chart 1)
Chart 1: Action taken by Vietnamese consumers to save on household expenses, Q1 2015
Although most Vietnamese consumers are putting their spare cash into savings, the survey also revealed that after covering essential living expenses nearly half of Vietnamese consumers are willing for spend on big ticket items such as holidays (44 per cent) and new technological products (40 per cent, for a 6 per cent increase against the previous quarter). (See Chart 2)
Chart 2: Top 10 areas where Vietnamese consumers are spending their spare cash (Q4 2014 - Q1 2015)
The report also showed that about one in five Vietnamese consumers will be concerned about their health (19 per cent), the economy (15 per cent), and their job security (16 per cent) over the next six months.
The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 30,000 respondents with internet access in 60 countries.