Vietnamese consumers most optimistic in ASEAN on economic outlook: UOB

By Minh Anh
Fri, November 8, 2024 | 3:07 pm GMT+7

Vietnamese consumers showed the highest level of optimism regarding their country’s economic outlook and higher appetite for investment compared with their regional peers according to a survey by Singapore-based bank UOB.

Over 70% of Vietnamese respondents expressing confidence in the country's economic performance for the next six to 12 months, with the positive sentiment after Vietnam’s GDP growth accelerated to 6.42% in the first half of 2024, UOB's ASEAN Consumer Sentiment Study (ACSS) 2024 showed.

UOB's latest economic forecast issued last month also revised Vietnam’s full-year GDP growth to 6.4%, up from 5.9%, following a remarkable Q3 expansion of 7.4%.

Consumers shop at a supermarket in Vietnam. Photo courtesy of WinCommerce.

Consumers shop at a supermarket in Vietnam. Photo courtesy of WinCommerce.

In addition, with borders reopening post-Covid, 71% of Vietnamese respondents said they had spent overseas within ASEAN over the past year, largely on business and leisure trips, a rate surpassing the regional average of 66% and exceeding levels seen in Indonesia, Malaysia, and Thailand.

“It is encouraging to see Vietnamese consumers leading the region in optimism around local economic conditions, with the upbeat sentiment likely contributing to the exuberance in cross-border spending. This reflects Vietnam's success in promoting stable economic growth and deepening its regional integration,” said Paul Kim, head of personal financial services, UOB Vietnam.

In its fifth year, the ACSS 2024 is UOB’s flagship regional study on consumer trends and sentiments across Singapore, Malaysia, Thailand, Indonesia, and Vietnam. Conducted from May to June 2024, the study surveyed 5,000 respondents across the five countries, including 1,000 from Vietnam.

Easing recession fears and inflation pressures in Vietnam

With Vietnam experiencing robust growth from early 2024, consumers declared greater confidence in the country's near-term economic stability, with a seven-percentage point decrease year-on-year in recession concerns over the next six to 12 months.

At 70%, the proportion of Vietnamese respondents confident in the country's economic future was also 18 percentage points above the regional average. Vietnamese consumers were also the most optimistic about personal finances, with 90% expecting to be financially stable or better off by June 2025, followed by Indonesia (89%) and Thailand (82%).

Despite recession fears easing from last year, 77% of Vietnamese consumers were still worried about financial-related matters, with Gen Z showing the highest level of concern (87%). Rising inflation remained the top financial worry, cited by 60% of respondents, followed by increased household expenses (53%). However, these figures represent a six-percentage point and nine-percentage point decrease respectively from last year’s levels, indicating reduced stress around domestic price increases.

Declining global inflation has eased Vietnam’s import price pressures, with the average import price index for the first nine months of 2024 down 1.73% year-on-year. Lower global oil prices have also positively impacted Vietnam’s consumer price index, which remains at 3.9% year-to-date, below the government target of 4.0-4.5%.

Increased spending on experiences and travel

Over the past year, Vietnamese consumers said they had increased spending on essentials. The top three items Vietnamese consumers said they spent more on were children’s education (42%), healthcare (33%), and utilities (33%).

Vietnamese consumers also spent more on experiences such as vacations, fine dining, concerts, and festivals than their regional peers, with 42% reporting increased expenditure in these areas compared to the ASEAN average of 35%. Younger consumers were more partial to experiences, in particular Gen Z with 47% of them saying that they had spent more on experiential purchases.

Regarding overseas spending, over 70% of Vietnamese consumers reported expenditures abroad within ASEAN over the past year, with Thailand and Singapore being the most popular destinations.

Savings and investment levels strong, but insurance coverage lags

ACSS 2024 found that close to 60% of Vietnamese consumers had set aside at least three months of expenses for emergencies, exceeding the regional average of 54%. Nearly half of respondents said they regularly save over 20% of their monthly income, driven mostly by Gen Y.

Appetite for investment was also robust, with 63% of Vietnamese consumers allocating over 10% of their income to investments, 10 percentage points above the regional average.

However, insurance coverage remains limited, particularly for critical illness and death and total permanent disability. While 86% of Vietnamese consumers hold basic health insurance, only 15% have critical illness coverage, lagging the regional average of 24%. Additionally, just 13% have death and total permanent disability insurance, four percentage points lower than the regional average.

Comments (0)
  • Read More
Offshore wind power investors can sell entire projects in Vietnam: draft decree

Offshore wind power investors can sell entire projects in Vietnam: draft decree

A draft decree on offshore wind power being compiled by Vietnam’s Ministry of Industry and Trade will facilitate investors to sell their projects or stakes.

Energy - Thu, January 16, 2025 | 11:27 am GMT+7

Build your own sales channels if e-commerce competition too harsh: NextTech exec 

Build your own sales channels if e-commerce competition too harsh: NextTech exec 

If e-commerce competition is too harsh, Vietnamese businesses should develop their own sales channels and customer databases, says Nguyen Hoa Binh, founder and chairman of NextTech Group, a leading technology startup in Vietnam.

Economy - Thu, January 16, 2025 | 9:05 am GMT+7

Indonesia moves to secure domestic pharmaceutical independence

Indonesia moves to secure domestic pharmaceutical independence

Indonesia's Health Ministry is working to achieve domestic pharmaceutical independence through research and development, production, and market guarantees.

Southeast Asia - Thu, January 16, 2025 | 8:09 am GMT+7

Malaysia cooperates with UAE in AI development, digital transformation

Malaysia cooperates with UAE in AI development, digital transformation

Malaysian Prime Minister Anwar Ibrahim has said that the country must embark on digital transformation within its economic and financial sectors, prioritizing areas such as blockchain and cryptocurrency to remain at the forefront of the digital age.

Southeast Asia - Wed, January 15, 2025 | 11:00 pm GMT+7

Thai billionaire seeks to increase stake in Vietnam dairy gaint Vinamilk

Thai billionaire seeks to increase stake in Vietnam dairy gaint Vinamilk

F&N Dairy Investments Pte. Ltd - an entity associated with Thai billionaire Charoen Sirivadhanabhakdi - has registered to purchase nearly 20.9 million shares of Vietnamese dairy giant Vinamilk (HoSE: VNM).

Companies - Wed, January 15, 2025 | 10:54 pm GMT+7

Vietnam PM leaves for official visits to Poland, Czech, WEF meeting

Vietnam PM leaves for official visits to Poland, Czech, WEF meeting

Prime Minister Pham Minh Chinh departed Hanoi on Wednesday afternoon for official visits to Poland and the Czech Republic, attendance at the 55th World Economic Forum (WEF) Annual Meeting in Davos, and bilateral meetings in Switzerland.

Politics - Wed, January 15, 2025 | 10:31 pm GMT+7

Malaysia’s manufacturing sector sees positive signs in 2025

Malaysia’s manufacturing sector sees positive signs in 2025

Malaysia’s manufacturing sector is forecast to recover well in 2025 as global trade dynamics and geopolitical shifts influence market trends.

Southeast Asia - Wed, January 15, 2025 | 10:06 pm GMT+7

Thailand posts record investment last year

Thailand posts record investment last year

Thailand saw record investment figures for 2024, with applications exceeding THB1.13 trillion ($32.5 billion), the highest in the past decade, according to the country’s Board of Investment (BOI).

Southeast Asia - Wed, January 15, 2025 | 10:05 pm GMT+7

Indonesia considers reducing trade tariffs with US

Indonesia considers reducing trade tariffs with US

Indonesia is planning to lower trade tariffs with the U.S. as President-elect Donald Trump prepares to implement a universal tariff policy.

Southeast Asia - Wed, January 15, 2025 | 9:58 pm GMT+7

Malaysia eyes greater sustainability in palm oil sector as EU law looms

Malaysia eyes greater sustainability in palm oil sector as EU law looms

The Malaysian government said on Tuesday that it will encourage sustainability while maintaining the competitiveness of its palm oil industry ahead of the implementation of the EU’s anti-deforestation law at the end of this year.

Southeast Asia - Wed, January 15, 2025 | 9:52 pm GMT+7

T&T Group proposes 3,400 hectare urban, logistics, aviation industry complex in central Vietnam

T&T Group proposes 3,400 hectare urban, logistics, aviation industry complex in central Vietnam

Vietnamese conglomerate T&T Group and Singaporean consultancy firm CPG Corporation have proposed an urban-commerce-service-logistics-aviation industry complex covering 3,400 hectares in the central province of Quang Tri.

Real Estate - Wed, January 15, 2025 | 5:17 pm GMT+7

Samsung Vietnam facilities in Thai Nguyen province post 5% revenue growth in 2024: outgoing CEO

Samsung Vietnam facilities in Thai Nguyen province post 5% revenue growth in 2024: outgoing CEO

Factories in Thai Nguyen province of Samsung Vietnam earned a total revenue of $26.3 billion in 2024, up 5% year-on-year, said outgoing Samsung Vietnam CEO Choi Joo Ho.

Companies - Wed, January 15, 2025 | 4:22 pm GMT+7

Draft decree on offshore wind power sets requirements for foreign investors

Draft decree on offshore wind power sets requirements for foreign investors

A draft decree on offshore wind power being compiled by Vietnam’s Ministry of Industry and Trade includes requirements for foreign investors, such as financial capacity and past experience.

Energy - Wed, January 15, 2025 | 4:01 pm GMT+7

Kim Long Motors, China’s Changan Automobile to build 50,000-unit plant in central Vietnam

Kim Long Motors, China’s Changan Automobile to build 50,000-unit plant in central Vietnam

Vietnamese automaker Kim Long Motors and China’s Changan Automobile Co., Ltd. will join hands to build a plant manufacturing 5-7 seat passenger cars in the central city of Hue.

Industries - Wed, January 15, 2025 | 1:43 pm GMT+7

From a third-grade dropout to famous ceramics maker exporting worldwide

From a third-grade dropout to famous ceramics maker exporting worldwide

Ly Ngoc Minh, chairman and founder of Minh Long Ceramics Company, defied the odds by transforming from a boy who only completed the third grade into the creator of a globally recognized ceramic brand and the owner of a ceramic product museum.

Companies - Wed, January 15, 2025 | 12:30 pm GMT+7

Nestlé-invested bottled water maker La Vie LLC must pay tax arrears, payment delay fees of $2.6 mln in Vietnam

Nestlé-invested bottled water maker La Vie LLC must pay tax arrears, payment delay fees of $2.6 mln in Vietnam

La Vie LLC, a joint venture between Nestlé Water and a Long An province-based Vietnamese company, must pay tax arrears and payment delay fees of VND66.7 billion ($2.6 million), according to tax authorities.

Companies - Wed, January 15, 2025 | 11:51 am GMT+7