Nielsen: Consumer confidence steady in Q2

Vietnam’s consumer confidence remained stable in the second quarter of 2018, despite its index score of 120 percentage points (pp) being down four points compared to the first quarter and it dropping one spot globally, according to the latest issue of The Conference Board® Global Consumer Confidence™ Survey, conducted in cooperation with global information and measurement company Nielsen.

The downtrend was due to lower positivity about job prospects and perceptions of the right time to buy. Vietnam dropped one spot in the quarter, to the fifth most-confident country globally.

Confidence levels across Southeast Asia continue to hold strong, with four out of six countries in the region retaining their Top 10 spots globally.

“The consumer confidence level in Vietnam remains on par with that of the second quarter last year; well above the global average and the neutral threshold,” said Ms. Nguyen Huong Quynh, Managing Director of Nielsen Vietnam. “The country is still higher than two years ago. The growth in sentiment observed in the last couple of quarters, coupled with continued improvements in key economic indicators, has led to the growth of categories such as travel, out-of-home activities, and the latest technology. This likely impacted on FMCG sales in the second quarter, with overall growth of just 2.7 per cent.”

“Vietnam’s economic performance has gained momentum during the last three quarters, with GDP growing at around 6 to 7 per cent, yet the top concerns for Vietnamese consumers remain the stability of jobs and the economy,” she said. “Many still believe that the country is still in recession and it is not a good time to spend, further highlighting that there are other societal matters that could waver their optimism towards a better life that they wish to lead.”

“Despite the fact that none of the key economic indicators signify the country is in recession, consumers continue to believe that the current situation is not really positive and the future is yet to be defined,” Ms. Quynh said. “This sentiment could significantly influence consumers’ spending and saving patterns.”

“Saving is in the DNA of Vietnamese. Consumers still continue this practice for their and their children’s future. With health and wellbeing becoming top priorities, products and services that can adapt to great demand for healthcare will earn their way to the top of the mind of Vietnamese people.”