Consumer confidence remains stagnant in 2024

Jun 19th at 08:09
19-06-2024 08:09:00+07:00

Consumer confidence remains stagnant in 2024

The reality of a slow recovery and increasing inflation has left consumer confidence stagnant in Vietnam in 2024, according to a report by IFM Research.


The report pointed out that consumer confidence has dropped somewhat in 2024, fuelled by the real estate bubble burst, reduced exports, increased unemployment, reduced wages, and inflation. This does not bode well for 2024 consumerism.

A key measure of consumer confidence is the ability to save money. 55 per cent of consumers noted a decline in savings, while only 28 per cent experienced increased savings, marginally better than in 2023.

Meanwhile, 31 per cent of customers have taken out loans in 2024, a sharp decline on-year. Vietnamese banks and consumer credit companies make up three-fourths of the loan sources, while friends and family have declined sharply. Half of all loans are for immediate survival and paying off debt, a 5 per cent reduction from 2022.

According to the report, consumers are playing it safe, investing in bank savings and gold, while real estate and new car purchases have seen a rapid decline. However, major growth is anticipated for funds, cryptocurrency, and forex trading.

In terms of economic recovery, only 25 per cent believe recovery will happen in 2024, compared with 55 per cent in 2025, and 20 per cent believe it will take longer.

Household utilities top the list of overall growth in terms of spending for 2024, which is not a good sign. Meanwhile, education and food and beverages will see the biggest growth in spending in 2024, followed by healthcare. Meanwhile, entertainment and dining out, home appliances, and personal electronics will suffer.

Online spending should increase in 2024, though spending fell in 2023, aligning with downtrading retail trends. TikTok has been impacting online spending in the past 12 to 18 months and garnering a significant market share in a very short timeframe.

Online shopping and more traditional formats such as wet markets and mother and father stores are the only retailers that should see any increase, but marginally. Shopping malls have continued to struggle this year.



Việt Nam remains Southeast Asia’s bright star: ASEAN specialist

Việt Nam remains a “bright star” of the Southeast Asian region despite power shortages and a weakened realty market last year, according to Kai Wei Ang, an ASEAN...

Early US recognition of market economy to increase opportunities for Vietnamese exports

The US's recognition of the market economy in Việt Nam will help expand business opportunities for Vietnamese enterprises and pave the way for Vietnamese exports to...

Quang Ninh aims to attract 3 billion USD worth of FDI this year

Northern Quang Ninh province has attracted more than 1.52 billion USD worth of foreign direct investment (FDI) in the first half of this year and is poised to reach...

Boosting knowledge for Vietnamese SMEs through collaboration

An online training project to boost Vietnamese small and medium enterprises has recently been initiated by the Ministry of Planning and Investment (MPI) and the...

Keeping foreign ownership limit unchanged for Vietnamese airlines

There is no legal basis at the moment to consider proposals related to raising the foreign ownership ratio in aviation transport businesses to 49 per cent of the...

​Vietnam premier hints at hiring foreign CEOs for state enterprises

Vietnamese Prime Minister Pham Minh Chinh has asked state-run enterprises to map out a plan to pilot the hiring of foreign chief executive officers, the Vietnam...

Quảng Ninh aims to attract $3 billion worth of FDI this year

Quảng Ninh Province has attracted more than US$1.52 billion worth of foreign direct investment (FDI) in the first half of this year and is poised to reach its goal...

Warning about risks and protecting consumers in e-commerce market place

Capturing and updating information and new regulations for business on risks in the e-commerce market place are extremely important, said Nguyễn Đức Trung, deputy...

Improvements made in sustainable business assessment

The Việt Nam Chamber of Commerce and Industry (VCCI) has launched a programme for the Corporate Sustainability Index (CSI) in 2024 in Việt Nam to assess and praise...

New decree to set stage for innovative start-up economy

Việt Nam is developing a decree to promote innovative start-ups, with the aspiration of building an innovation-driven economy in line with digital transformation...


Back To Top