Nielsen survey: Vietnam consumers still optimistic

Vietnam’s consumer confidence has declined, rating 11th among 55 countries surveyed for the latest Nielsen Global Consumer Confidence Index released last week, compared to fourth in 2009.

The survey, conducted from March 8-26 this year, polled more than 27,000 internet users throughout the Asia Pacific, Europe, Latin America, the Middle East and North America to gauge respondents’ confidence levels and economic outlook. It is based on consumers’ confidence in the job market, their personal finances and readiness to spend.

According to the survey, Vietnam consumer confidence dropped 24 points in 2009′s second half. The country’s confidence dipped to 101 points in 2010′s first quarter, an 8-point decrease. Meanwhile, the world’s two fastest growing emerging markets, India and China, increased seven and six index points respectively.

However, Vietnam is still 9 points ahead of the global average, which increased to 92 points in the first quarter, just 2 points less than in 2007′s third quarter before the recession hit. Confidence hit an all-time low of 77 index points in early 2009.

Darin Williams, managing director of The Nielsen Company Vietnam, said in a statement: “We view this as a slight correction rather than a significant decline in Vietnam’s confidence from the second half of 2009′s results.

“Last year, confidence jumped significantly and like other markets, we believe the massive government stimulus programmes announced, including in Vietnam, was partly the reason. The consumer price index last year was 6.88 percent – the lowest in six years – which likely also influenced the steep confidence jump then.”

However, Vietnamese consumers remained relatively optimistic.

More than half (56 percent) surveyed said they believed Vietnam was still in recession, down 69 percent compared to 2009′s second half, while 43 percent said the downturn would end in the next 12 months.

Many Vietnamese continue to be cautiously optimistic though and 55 percent said they believed their job prospects would be good-to-excellent over the next 12 months.

Despite a relatively positive outlook on jobs and finances, 54 percent of Vietnamese consumers stated that the timing is “not so good” to buy the things they want and need.

After paying for essential living expenses, 49 percent stated that they would put their money into savings, followed by spending on holidays (39 percent), new technology (30 percent), out of home entertainment (29 percent) and home improvement (29 percent).

Almost identical to their Asian neighbours, Vietnamese consumers’ top four concerns are job security (19 percent), the economy (18 percent), work/life balance (14 percent), and health (11 percent).

Williams added that consumers in Vietnam are still hesitant to go out and spend money, yet the results indicate that there is a willingness to purchase new products.

Therefore, companies that focus on value and quality and carry out targeted promotions will drive consumption in Vietnam.

TBKTSG

Tags: Vietnam consumers