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 reports from Vietnam Briefing, the consumer confidence index in the third quarter of 2014 registered its highest value since 2012, reaching 102 points.When one considers that figures above 100 points are indicative of households' optimism about the economies in which they live, it is easy to understand how such a positive sign is representative of Vietnam's satisfactory progress.

The value in question, up four points from the previous quarter, will be reflected accordingly in consumption: in fact, the evolution of the index portends greater household spending in the coming months on clothing, technological products, furniture, vacations and leisure.

It is worth noting 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 generally follows that of the economy, it cannot but be inferred that since the summer of 2014 the situation has undoubtedly improved.

Data on Foreign Direct Investment 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 Investment, from January to October 2014, Vietnam attracted an FDI flow of US$13.7 billion, an increase of 5.9% compared to the same period last year. Based on these figures, Hanoi has thus stated that it will continue its policy of openness to foreign countries and that the outlook for the economy is to be considered very favorable.

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