Don't know how to save money? Just ask the Vietnamese

By Ha Phuong   November 5, 2016 | 11:00 am PT
Vietnamese are the most careful spenders in Southeast Asia.

Vietnamese people are more careful with their money than their peers in Southeast Asia, according to Nielsen’s Consumer Confidence Index quarterly report.

Four in five Vietnamese respondents chose to save money rather than spending on leisure activities in the third quarter.

Southeast Asia was also the region with the highest saving rate -- around 70 percent, compared to the global average of 52 percent.

Vietnamese consumers became thriftier last quarter, with 85 percent changing their spending habits due to tougher economic situation and inflation. Half of them spent less on clothes and entertainment activities. They also tried to cut down the amount of energy they used.

Many Vietnamese are likely to keep tightening their belt even when the economy gets better. At least a third in the survey insisted on using less electricity and gas, and a fifth said they would not be willing to pay for leisure activities.

Saving requires a stable job. Job stability has replaced health to become the top life priority of Vietnamese people. For half of the respondents, securing a position in a company is a big deal.

“Financial guarantee is considered one of the top priorities of Vietnamese consumers," said Nguyen Huong Quynh, managing director of Nielsen Vietnam. "Hence, job stability as well as economic prospects directly influence the level of consumer’s financial guarantee. This explains why job stability occupied the mind of Vietnamese people.” 

Notably, the amount of people worrying about their parents’ health tripled, compared to the previous quarter.

Vietnam’s Consumer Confidence Index in the third quarter this year remained unchanged at 107 helping the country secure the seventh position on the global optimism ranking. Indexes above 100 indicate optimism.

It should be noted that the index is calculated by Nielsen based on respondents with online access in 60 countries, not total populations.

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Vietnam's middle class projected to double by 2020

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