Vietnam Consumer Confidence at Highest Level Since 2008


Consumer confidence high entering Year of the Monkey

According to a TNS Consumer Pulse study conducted before Tet, consumer confidence in Vietnam it at its highest level since 2008, which bodes well for 2016. The study surveyed consumers in Ho Chi Minh City (HCMC) and Hanoi, the two largest cities in Vietnam, to discover their feelings about Vietnam’s economy.  (Follow this link to read the article on which this post is based.)

As the report points out, consumer confidence has had its ups and downs over the years.  In 2008, 89% had a positive view of Vietnam’s economy, believing it would improve over the next 12 months. The consumer confidence index has fluctuated over the years but is now at 90%, a rebound from the 2012-2014 slump and a significant improvement from 2015.

Vietnam, which has been described as one of the few bright spots in Asia, had one of the fastest growing economies in the world last year with a 6.7% growth rate, the best result since 2007.  In addition, the inflation rate is projected to be below 5% this year and foreign direct investment (FDI) continues unabated.

This high level of confidence means that consumers will be spending more and saving less in the coming year.  In 2008, the savings vs. expenditure rate was 22%/78% while today it’s 10%/90%.  This speaks to economic opportunity for more segments of the population and the concomitant ability to pay, including for education in Vietnam and overseas.

MAA

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