Vietnam's index highest in Asia-Pacific, with country being third-most confident globally.
With a seven-point increase over the last quarter of 2018, Vietnam once again hit record levels in the Consumer Confidence Index (CCI) in the first quarter, increasing 129 percentage points (ppts) according to the The Conference Board® Global Consumer Confidence Survey released in collaboration with global measurement company Nielsen.
In the first quarter of 2019, Vietnam surpassed Indonesia to rank third in the world for having the most positive consumers, just after the Philippines and India, whose scores were 133 and 132, respectively.
Vietnam’s CCI score saw the biggest gain against the fourth quarter in Asia-Pacific, which made it the third-most confident country globally - a highly optimistic sign compared with its CCI decrease in the previous quarter.
The world and the region experienced a stable CCI trend (-1ppt and +1ppt versus the fourth quarter of 2018, respectively) in the first quarter. Vietnam’s overall confidence level was well above the region’s average (by more than 12 ppts).
The consumer confidence level in Vietnam remains on par with that of the third quarter last year and sharply above the global average, making Vietnam once again hit a CCI record. The strong growth is the result of confidence regarding job prospects and personal finances as well as the level of willingness among Vietnamese to spend.
“This significant increase in consumer confidence indicates that consumers continue to positively change themselves and their families,” said Ms. Nguyen Huong Quynh, Managing Director of Nielsen Vietnam. “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.”
During the first quarter of 2019, all key drivers of Vietnam’s Consumer Index, including job prospects, financial security, and spending readiness, significantly increased. Around three-quarters of people surveyed believed they would have good or excellent job prospects or would be in a good or excellent financial state in the next 12 months. In the same period, 67 per cent confirmed they were ready to spend, which is an increase of 4 per cent compared to the last quarter.
Despite a slight fall, Vietnam still continued to place first in Asia-Pacific in the first quarter for having the region’s most avid savers, followed by Hong Kong, the Philippines, and China. However, after covering essential living expenses, Vietnamese consumers were eager to spend on big-ticket items because they wish to lead a better life.
“With the greater tendency towards spending on healthcare insurance (40 per cent), Vietnamese consumers not only care much about their health but also take action to protect their health and prepare for the future,” Ms. Quynh said. VN Economic Times
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