Vietnam: consumer confidence on the rise

Consumer spending in Vietnam will increase in the coming months

Good news comes from the Vietnamese economy. Based on what was reported by Vietnam Briefings, the consumer confidence index in the third quarter of 2014 recorded the highest value since 2012, reaching 102 points: if one considers that the figures above 100 points are indicative of the optimism that families have towards the economies in which they live, it is easy to understand how this positive sign is representative of the satisfactory path undertaken by Vietnam.

The value in question, which rose by four points compared to the previous quarter, will consequently be reflected in consumption: the evolution of the index in fact suggests greater household spending in the coming months as regards clothing, technological products, furnishings, holidays and free time.

It is considered appropriate to observe that the Vietnamese population still shows a cautious attitude in relation to spending and consumption: to date, seven out of ten citizens prefer to save rather than make new purchases. However, since consumer behavior broadly follows that of the economy, one cannot but deduce that the situation has undoubtedly improved since the summer of 2014.

The data on Foreign Direct Investments also testify to the confidence in the Asian country: according to the Foreign Investment Agency, which falls under the control of the local Ministry of Planning and Investments, from January to October 2014, Vietnam attracted a flow of FDI of $13.7 billion, an increase of 5.9% over the same period a year earlier. On the basis of these figures, Hanoi then declared that it will continue its policy of opening towards foreign countries and that the economic prospects are to be considered very favourable.

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