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Less income, more prudence: Covid-hit Vietnamese world-class in tightening purse strings

By Dat Nguyen   November 12, 2021 | 11:19 pm PT
Less income, more prudence: Covid-hit Vietnamese world-class in tightening purse strings
A woman shops at a mobility shopping point in Hanoi, August 2021. Photo by VnExpress/Giang Huy
Forty-eight percent of people have seen their incomes fall this year due to the impacts of Covid-19, and more than half have cut spending, a survey by YouGov found.

A fifth lost at least 20 percent of their incomes, the survey, titled ‘How Covid-19 changed personal finance in Vietnam,’ said.

"Families are still dealing with the impact Covid-19 has had on their personal finances."

Some 53 percent cut down on non-essential spending in the last six months, and this number is expected to rise to 81 percent plan in the near future.

Vietnamese consumers are now some of the most prudent in the world: Two-thirds (67 percent) are more careful with their personal finances than before the pandemic, while a third (34 percent) prioritize protecting their household finances in case of emergencies, almost 10 points higher than the global average.

On a positive note, 38 percent were able to increase their savings during the pandemic as work-from-home mandates led to reduced spending on discretionary items such as travel, leisure and eating out.

This is the highest rate in the region, just ahead of Hong Kong and far ahead of Singapore.

Thue Quist Thomasen, CEO of YouGov Vietnam, said: "Our data shows that confidence is returning. This is essential for Vietnam to rebound and recover".

However, it also shows that Vietnamese consumers have become more conservative in their approach to personal finance, with the recent crisis highlighting the need for prudent and long-term financial planning, he added.

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