Vietnam: consumer confidence on the rise

Consumer spending in Vietnam will increase in the coming months.

Good news is coming from the Vietnamese economy. According to Vietnam Briefing, the consumer confidence index in the third quarter of 2014 recorded the highest value since 2012, reaching 102 points. Considering that figures above 100 points indicate optimism families have towards the economies in which they live, it is easy to understand how this positive sign represents the satisfactory path taken by Vietnam.

The value in question, up four points from the previous quarter, will consequently be reflected in consumer spending: the evolution of the index indeed foreshadows increased household spending in the coming months regarding clothing, technological products, furniture, holidays, and leisure time.

It is worth noting that the Vietnamese population still shows a cautious attitude regarding spending and consumption. To this day, seven out of ten citizens prefer to save rather than make new purchases. However, since consumer behavior generally follows that of the economy, it is evident that the situation has undoubtedly improved since the summer of 2014.

Data on Foreign Direct Investment also reflects confidence in the Asian country: according to the Foreign Investment Agency, which operates under the local Ministry of Planning and Investment, from January to October 2014, Vietnam attracted FDI inflows totaling $13.7 billion, representing a 5.91% increase compared to the same period the previous year. Based on these figures, Hanoi has therefore stated that it will continue its policy of opening up to foreign investment and that the economic outlook is considered very favorable.

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