Credit by Nielsen
Vietnam began 2019 with the biggest gain in Asia Pacific CCI, become the third most confident country globally
Vietnamese consumers were more confident about job prospects, financial security and noticeably spending ready
Having a stable job and good health remained the top cares of Vietnamese
Ho Chi Minh city, 25th June, 2019 - With a 7-point increase over the last quarter of 2018, Vietnam once again hit the record levels in Consumer Confidence Index, with 129 percentage points (pp). In the first quarter of 2019, Vietnam surpassed Indonesia to rank 3rd in the world for having the most positive consumers just after The Philippines and India, whose score was 133 and 132 respectively; according to the latest The Conference Board® Global Consumer Confidence™ Survey in collaboration with Nielsen, a global measurement company.
Compared to Quarter 4 2018, Vietnam CCI score got the biggest gain in Asia Pacific, which made Vietnam the 3rd most confident country globally, which was a highly optimistic signal compared with the CCI decrease last quarter.
In this quarter, global and region experienced a stable CCI trend (-1pp and +1pp vs Q4 2018 respectively). In that context, Vietnam’s overall confidence level was high above the region’s average (more than 12pp compared with regional). Within South East Asia, The Philippines overcome India to get the highest CCI, with 133 points while Singapore was the country with the biggest CCI score lost in Q1 2019 (-4 pp vs Q4 2018) and finished the year with 92 points. (see Chart 1)
The consumer confidence level in Vietnam remains on par with that of the third quarter last year, sharply above the global average and made Vietnam once again hit the CCI record. The strong growth is the impact of the confidence on job prospects and personal finances, as well as the level of willingness to spend by the Vietnamese.
“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, Nielsen Vietnam.
VIETNAMESE CONSUMERS WERE MORE CONFIDENT ABOUT JOB PROSPECTS, FINANCIAL SECURITY AND NOTICEABLY SPENDING READY
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%, +5% vs Q4 2018) or would be in good or excellent financial states in the next 12 months (82%, +6% 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. (see Chart 2)
Despite a slight fall, Vietnam still continued to place first in Asia Pacific in Q1 2019 for having the region’s most avid savers (75%, -3% vs Q4 2018), followed by Hong Kong (68%), 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.
However, in this quarter, out-of home entertainment moderately fell (46%, -2% vs Q4 2018) and downgraded from rank 4 to rank 6 with the replacement of new tech products and home improvements or decorations. They were more likely to spend on new tech products (47%, +4% vs Q4 2019), and medical insurance premiums (40%, +4% vs Q4 2019). “With the higher tendency towards spending for healthcare insurance (40%), Vietnamese consumers not only care much about their health but also take action to protect their health and prepare for the future.”explained Quynh.
Home improvements or decorations also increased sharply, 8% vs Q4 2018 to 47% this quarter as this time had Tet Holiday and consumers tend to decorate and renovate their house for a new year.
HAVING A STABLE JOB AND GOOD HEALTH REMAINED THE TOP CARES OF VIETNAMESE
In Q1 2019, Vietnamese consumers continued to rank job security (46%, +3% vs Q4 2018) and health (44%, +1% vs Q4 2018) as two key factors they care the most. The economy surpassed work-life-balance to become the third most cared about matter (27%, +7% vs Q4 2018). (see Chart 3).