BizLIVE - Vietnam’s consumer confidence climbed to the highest level TNS Vietnam has ever recorded as income per capita is on the rise.
Vietnam Consumer Confidence Reaches Record High: TNS
The interior of Trang Tien Plaza in downtown Hanoi, where luxury goods are offered. (Photo:
Vietnam’s Consumer Confidence Index hit 91 points in the second quarter of this year, the highest level ever recorded, market research company Taylor Nelson Sofres (TNS) Vietnam said in its latest “Consumer Pulse” study.
The index is based on Vietnamese expectations for the value of the Vietnamese dong, employment, Vietnam’s economy, and personal standard of living.
“The high confidence shows continued optimism in 2016 by Vietnamese consumers. Over the past 20 years what we have seen is that is within those measures consumers have remained highly optimistic overall,” said Ashish Kanchan, managing director of TNS Vietnam.
The study showed that 96% of Vietnamese expect stability or improvement in their standard of living. Of this figure, 49% of respondents expect their personal standard of living to improve in the coming 12 months.
The study also found that expected spending for consumers monthly savings/expenditure plans are 4% higher than 2015. Planned spending remains strong in education for children, investment, food & beverage, and healthcare in particular.
In 2016 overall, the number of consumers who are planning to spend more during the year is 33% compared to just 13% in Q1/2015, it said.
The increase in consumer spending is due to Vietnam’s “incredible growth story” over the past 20 years. Vietnam’s economy has consistently remained relative strong even while other economies have struggled during and after crises.  
For the past 20 years Vietnam’s GDP has far exceeded the world average, and the GDP per capita proves the strength of the rapidly growing productivity and prosperity of the Vietnamese people. “The numbers highlight the potential and viability of this still rapidly emerging market,” said Kanchan.
Vietnamese consumers have also changed in lifestyles and ways of thinking over the past two decades.
Women are increasingly working alongside men developing successful careers. This has led to busier lives and created new opportunities for business to cater to the demand for convenience products and services.
This trend is reflected by a rapid rise in fast food consumption. The study found that 29% of consumers report to eat fast food at least several times per month compared to just 12% in 1999.
There are also equally interesting changes in entertainment. For example, TV used to dominate entertainment in Vietnam, today it is slightly behind internet surfing in urban daily consumption.
“The sustained strength in the Consumer Confidence Index seems to indicate that 2016 still holds great potential for consumers and their brands,” the report concluded.