Half of Vietnamese think country still in recession: survey

By Dat Nguyen   September 3, 2018 | 08:47 pm PT
Half of Vietnamese think country still in recession: survey
Vendors are seen at a market in Hanoi, Vietnam. Photo by Reuters/Kham
Almost half of Vietnamese think the country is still in recession, a recent Nielsen survey has found.

The Vietnam Consumer Confidence Index Report for the second quarter said while 48 percent of respondents thought the recession persists, 46 percent were positive the country would come out of it in the next 12 months, an increase of 8 percentage points from the previous quarter.

The survey was done for The Conference Board, which describes itself as “a global, independent business membership and research association working in the public interest.”

But Nguyen Huong Quynh, managing director of market research firm Nielsen Vietnam, said the country is not in a recession and has actually been growing at 6-7 percent in the last three quarters.

“Despite the fact that none of the economic key performance indicators indicate the country is in recession, consumers continue to believe that the current situation is not really positive.”

This sentiment could significantly influence consumers’ spending and saving patterns, she added.

Many believe it is not a good time to spend. Up to 70 percent of respondents said that they are willing to channel their spare cash to saving, the report said.

The report also said consumers continue to feel upbeat about their personal state of finance.

Seventy-six percent of respondents thought their personal finances would be good or excellent in the next 12 months, a drop of one percentage point from Q1.

Vietnam’s GDP grew at 7.08 percent in the first half, the highest ever since 2011.

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