Vietnamese happy to hoard spare cash: report

Seventy two percent of Vietnamese people put their spare cash into savings, according to the latest Consumer Confidence 2017 report compiled by Nielsen, a global performance management company focusing on investigating what consumers watch and buy.

Saving is top priority for Vietnamese when it comes to distributing spare money. Photo by Nielsen

This is an increase of 6 percent compared to last year, showing that Vietnamese consumers still have a strong affinity for saving, according to the index, which is part of Nielsen's cooperation with the global not-for-profit organization The Conference Board.

The report points out that Vietnamese people tend to save more than other Southeast Asians, who on average put 66 percent of their spare cash into savings.

Nielsen’s report shows that Vietnamese people achieved this high saving score by spending less on clothes, cutting down on out-of-home entertainment and saving gas and electricity.

However, do not be quick to judge the Vietnamese as tight-fisted, as the index shows they are eager to spend on pricey items if essential living expenses are covered. Nearly half of Vietnamese consumers say they are willing to spend their spare cash on clothes (49 percent) and holidays (44 percent).

Vietnamese are also willing to buy new technology products and home improvement items to enhance their quality of life, the index shows.

Job security continues to be the top concern for Vietnamese people (46 percent), according to the report. Other key concerns are health, work/life balance, the economy and parents’ welfare and happiness, the report adds.

Job security is the top concern in Vietnam. Photo by Nielsen

“It is observed that there was little movement in concerns over job security and the state of the economy. These concerns rose slightly from the last quarter of 2017, which could make consumers more cautious about their spending habits and motivate them to curb their daily expenses,” said Nguyen Huong Quynh, managing director of Nielsen Vietnam.

Vietnam's consumer confidence scores are relatively high in Asia, showing that spending habits and saving decisions have not yet been severely affected by the global economy, Nielsen points out. Vietnam has the third highest confidence score in the world, after the Philippines and Indonesia, the report shows.