Vietnamese most optimistic ASEAN consumers: UOB study

Vietnamese consumers are more optimistic than peers in Singapore, Malaysia, Thailand and Indonesia, despite inflation concerns, a study by Singapore-based United Overseas Bank (UOB) has found.

More than three in four respondents in Vietnam expect themselves to be financially better off by June next year, according to the flagship ASEAN Consumer Sentiment Study (ACSS) 2023.

This is despite rising inflation and increasing expenses fuelling fears of an economic downturn among Vietnam consumers. About three of four respondents expect an economic downturn in Vietnam within the next six to 12 months. Compared to last year, the pessimistic sentiment has increased across all age and income groups surveyed.

“The strong economic growth in Vietnam has given Vietnamese consumers more optimism on their financial well-being when compared to their regional counterparts. While they are concerned about the high inflation, we are encouraged by their continued enthusiasm to embrace a new era of digitalization,” said Paul Kim, head of personal financial services at UOB Vietnam.

In its fourth year, ACSS is UOB’s regional flagship study that analyzes consumer trends and sentiments in Singapore, Malaysia, Thailand, Indonesia and Vietnam. The study was conducted from June 1 to 26, 2023 and surveyed 3,400 respondents online, 600 of them in Vietnam.

Robust optimism

Despite concerns about an economic downturn, Vietnamese consumers are more positive about the future environment compared to their counterparts in the region, the UOB report says.

76% of respondents in Vietnam expect to be financially better off by June next year, followed by Indonesia (74%) and Thailand (68%).

Rising inflation is the top concern among the ASEAN members, cited by 62% of respondents, while 57% fret about increased household expenses. Compared to the region, the proportion of respondents in Vietnam voicing concerns in these two areas are also higher at 66% and 62%, respectively.

Eight in 10 consumers in Vietnam are concerned about their finances. The top three financial concerns in Vietnam are the ability to put money aside for savings (32%), ability to maintain current lifestyle (32%) and ability to take care of parents’ financial and healthcare needs (30%).

As such, consumers are becoming more conservative with their finances and investments. Up to 65% of respondents track their spending and money more closely via an online banking platform, and 60% research more the products that offered deals, rewards or savings.

Financial preferences are also shifting as consumers allocate more money for low-risk instruments like bank fixed deposits (32%) and insurance plans (28%). 25% of respondents in Vietnam are allocating more money into insurance compared to last year, which is four percentage points higher than counterparts in the region, especially among affluent consumers (36%).

Digital adoption

As consumers in Vietnam become more digitally savvy, mobile banking apps have seen a spike in usage with 54% of respondents increasing usage of this channel over the past year.

More than half of the respondents prefer using online channels to transfer money overseas and check status of rewards.

In the payments space, Vietnamese consumers have shown to be savvy adopters of the latest technologies. E-wallets, payment via mobile wallet cards and e-commerce payment platforms are the most popular payment methods with 67%, 58% cent and 55% of respondents using it in the past year, respectively.

Four in five consumers in Vietnam use e-wallets at least once a week and four in five are likely to recommend e-wallet use to others. Momo is the most popular e-wallet among Vietnamese consumers, followed by ZaloPay and VNPay.