Vietnam: consumer confidence on the way up

Monday 24 November 2014 13:50 CET | News

Vietnamese consumers confidence levels have crossed the 100 points barrier for the first time since 2012, currently standing at 102 points, reports.

Vietnamese consumer confidence decreased significantly in early May 2014 as tensions with China increased when the Chinese government moved its Haiyang Shiyou 981 rig into disputed waters in the South China Sea, according to a survey released by global information and measurement firm Nielsen.

However, statistics released by ANZ banking group and research firm Roy Morgan showed an almost immediate rise in June 2014, with the Vietnam Consumer Confidence Index (CCI) surpassing the 2014 average to 131 points (up 7.7 points), and again in August to 135.5 points.

Vietnamese households are opting to spend more and save less, indicating a steadily improving economy. This growing financial confidence has been reflected in encouraging FDI figures. From January to October 2014, according to the Ministry of Planning and Investment’s Foreign Investment Agency, Vietnam attracted around USD 13.7 billion of FDI, and FDI disbursement was up 5.9% to USD 10.15 billion.

By adding November 2014 as well, Prime Minister Nguyen Tan Dung said that FDI into Vietnam is expected to be up 6.16% from 2013. FDI plays a crucial role in Vietnam’s economy accounting for a quarter of total investment in the country and 60% of export revenue.

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Keywords: Vietnam, consumer confidence, rise, increase, spend, items, willingness, savings
Categories: Payments & Commerce
Countries: World
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