In Vietnam, consumer optimism is rising
Optimistic consumers boosting the local economy
According to the latest survey by Financial Times Confidential Research (FTCR), as consumers spending increases due to increasing household incomes, Vietnam is going to remain the fastest-growing major economy in Southeast Asia second year in a row. Based on the research, Vietnamese consumer sentiment is the highest in the last three years.
After FTCR surveyed 5,000 consumers in Thailand, Indonesia, the Philippines, Malaysia and Vietnam (ASEAN 5), young Vietnamese were seen among the most optimistic about their country’s economic outlook. This result boosted Vietnam’s Economic Sentiment Index (ESI) to the highest level since the start of 2015.
Among the ASEAN 5, discretionary spending rose the fastest in Vietnam. 49% of the Vietnamese respondents at the end of 2017 mentioned they plan to increase their spending in 2018. Such trends and results are attracting foreign companies, with H&M, Costa Coffee and Dolce & Gabbana all entering the Vietnamese market in the second part of 2017, while the number of convenience stores is rising sharply.
Vietnam in numbers
- GDP growth in 2017 -- 6.8% (7.38% in Q1, 2018)
- Dependency ratio of 42.9% (low ratio, which means Vietnamese working population is reasonably unburdened by social support for the young and the elderly)
- $17 billion was invested solely by Samsung since 2009
- 147,000 cars were sold in 2017 (almost a 100% increase compared to sales in 2014)
- Retails sales in Vietnam rose to $129 billion (11% increase compared to 2016)
- Online shopping sales increased 25%
- 41.8% of the labor force works in agriculture (55.1% in 2005, 71.7% in 1992)
Other BDG Vietnam articles on sales, distribution and consumer behavior
Retail market in Vietnam
Consumer behavior in Vietnam
Vietnam logistics issues and opportunities