Survey reveals how Vietnamese consumers plan on spending for Tet
Vietnamese consumers will dedicate most of their spending for self and household in the upcoming Tet (Vietnam’s Lunar New Year) holiday, a TNS survey finds.
Fifty-seven of polled consumers say they will spend VND5.5 million to VND15 million (US$246-$670) on for self and household, mostly for food, clothing, and home improvement, in preparation of Vietnam’s biggest holiday, global market research consultancy TNS said on Friday, citing its Consumer Pulse study.
The Lunar New Year’s Eve this year is on February 8, but the shopping spree for the holiday normally starts at least a month before hand.
The categories “Gifting/supporting others” and “Lucky money” account for a smaller percentage of Tet spending, with 66 percent of consumers reporting to spend just VND1 million to VND5.5 million ($45-$246) in each area, according to the survey findings.
Within the gifting category cash gifts/envelopes, food and beer lead spending with 45 percent, 32 percent and 29 percent, respectively.
Generally, 93 percent of Vietnamese plan to increase normal spending for Tet, and overall consumers are estimating to spend VND14.2 million ($643) for Tet this year, which is over VND4 million ($179) greater than 2015, according to TNS.
When further broken down we can see by just how much Vietnamese are planning to increase spending for Tet 2016 compared with 2015 across categories.
Specifically, within the travel category spending is expected to increase by VND283,000, and food for self/household sees a planned increase of VND261,000. It is even more dramatic for spending and supporting others where food has a planned increase of VND502,000, the largest of any measured category.
The study also finds that Vietnamese desire many things for Tet including clothes, and food and beverage.
The most desired category is fashion/accessories, at 25 percent, whereas 19 percent of Vietnamese most want vehicles for Tet, and high-tech devices, 11 percent.
The TNS’s Consumer Pulse not only reveals big plans for spending increases, but also discovers when consumers plan to do their holiday shopping.
Specifically, the shopping season starts five to six weeks prior to Tet, and peaks when there are two to three weeks ahead of the Lunar New Year. Only 30 percent of consumers wait for the last week prior to the holiday to begin shopping.
Rising consumer confidence
The Consumer Pulse report released on Friday is the very first of its kind to be conducted by TNS for 2016. It featured several questions to better understand how Vietnamese are planning to ring in the Lunar New Year in celebration of Tet, according to TNS.
Besides the special section for Tet, the latest study also reveals that Vietnam’s consumer confidence is at its highest level since 2008.
In 2008 89 percent of surveyed consumers held a positive outlook for Vietnam’s economy, believing it would improve over the next 12 months. However, the consumer confidence index has fluctuated over the years, before reaching 90 percent in 2016, a rebound from the 2012-2014 slump and a great improvement from 2015, according to the survey.
The study finds that the savings vs expenditure rate in 2016 is 10 percent / 90 percent, compared to 22 percent / 78 percent in 2008.
When asked about their intention to spend more or less in 2016 compared to 2015, only 4 percent of Vietnamese consumers are planning to spend less in 2016, according to the survey.
TNS is part of Kantar, the data investment management division of WPP and one of the world's largest insight, information and consultancy groups.
The TNS’ Consumer Pulse study, focusing on consumer’s spending patterns, consumer confidence, and lifestyle and attitudes, is done quarterly within Vietnam.
It surveys respondents in both Ho Chi Minh City and Hanoi to discover their feelings and outlooks towards the Vietnamese economy.