Nielsen report on Vietnam's Consumer Confidence Index shows much greater attention now being paid to matters of health, job security, and the economy.
Health has become the Number 1 concern among Vietnamese consumers, with nearly one-third (34 per cent) naming it their biggest or second-biggest concern over the next six months, according to the latest report from Nielsen on Vietnam’s Consumer Confidence Index (CCI) in the first quarter.
Vietnamese were the fifth-most optimistic globally, with an index score of 109, increasing 1 point compared to the previous quarter.
“Vietnam’s CCI remains at a high level despite moderate market growth,” said Ms. Nguyen Huong Quynh, Managing Director of Nielsen Vietnam. “What we are seeing is not reflected in the performance of the market but rather the future hopes and sentiments of Vietnamese consumers.”
Recessionary sentiments still grip nearly six out of every ten Vietnamese consumers (58 per cent), who believe that the country is still going through an economic slump.
Job security and economy uncertainties remain two of consumers’ key concerns. Three out of ten respondents (32 per cent) are concerned about their jobs and two out of ten respondents (22 per cent) are worried about Vietnam’s financial status.
Other major concerns in the quarter included work/life balance, rising food prices and utility bills, debt, crime, and their parents’ welfare and happiness.
Vietnamese consumers are considered avid savers. In view of the increasing general cost of living in the country, the intention to change from spending on household expenses to savings continues to be a top priority.
Eight out of ten Vietnamese (82 per cent) have adjusted their spending habits over the last 12 months to save on household expenses. More than three out of five (61 per cent) have tried to spend less on new clothes while 58 per cent have cut down on out-of-home entertainment compared with this time last year. Nearly half (47 per cent) have tried to save on gas and electricity and 44 per cent have tried to cut down on telephone expenses.
Vietnamese consumers are still willing, however, to spend on big ticket items after covering their essential living costs. Around four in ten Vietnamese consumers want to spend their spare cash on holidays and vacations (38 per cent), new clothes (38 per cent), out-of-home entertainment (34 per cent), new technology products (32 per cent), and home improvements / decorating (31 per cent).