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[Vietnam] Consumer confidence keeps declining, should retailers aim for stay-at-home demand during Tet holiday?

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The monthly consumer confidence index (base value 100), which had been on a downward trend since March 2021, stopped falling in October after the easing of social isolation, but fell again in November, with macro and household business sentiment falling to record low scores of 70.99 and 67.08, respectively. Personal sentiment was almost unchanged at 37.64, only one point below its record low in September.

Macroeconomic sentiment, in particular, fell 13 points, defying expectations despite a brief upturn in October when economic activity moved toward normalization.

By city, Ho Chi Minh City's only individual business sentiment score was on par with Hanoi's, while its macro business sentiment score of 65.88 and household business sentiment score of 62.18 were about 10 points lower than Hanoi's. This suggests that during the strict lockdown in Ho Chi Minh City, people's incomes were reduced due to unemployment and absence from work, and they were probably forced to live off their savings. We can expect the slump in consumer sentiment to continue for a long time.

By product, food and beverages had been the largest category of consumption until September, but in October, household goods and health care paper rose to the same level as food and beverages, while clothing consumption fell to a record low.

Tet (Lunar New Year), the largest annual consumption period, is coming up in a month. Consumer sentiment is cautious about the present and the future, and "nest egg" will be the key word, due in part to the new Corona that won't go away. If we can grasp the needs of this nest egg consumption, we may find a commercial opportunity. I hope that the government's With Corona policy will have a more positive effect on consumer confidence, especially in Ho Chi Minh City.

Translated with www.DeepL.com/Translator (free version)

  • Intage Inc

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    (Mrs.) Yuki Makino

    INTAGE VIETNAM Customer Support Representative.
    After working for 4.5 years as a Japanese teacher and secretary to the principal at Dong Du Japanese Language School, she is now a research assistant. She provides analysis results and improvement measures using various data to clients in various industries.
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  • Intage Inc

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    Intage Inc.

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  • Jan 19, 2022
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