Financial security and wellness: a key focus of Vietnamese customers

The Consumer Sentiment Report for Q3 2024 by NIQ. -- Photo Courtesy of NIQ report

HCM CITY - Financial security and wellness are the primary concerns for Vietnamese customers in the long term, as per a new report titled the Consumer Sentiment Report for Q3 2024 released by researcher NIQ.

Based on responses from 1,200 Vietnamese consumers in HCM City and Hà Nội, NIQ found that 70 per cent of consumers prioritise financial security, while 66 per cent focus on securing their future well-being.

Other highly sought-after aspects include time flexibility, meaningful experiences, strong relationships, and future sustainability.

In the short term, the personal focus in the next six months includes enhancing career prospects to improve financial status, prioritising physical health and well-being, emphasising family and relationship dynamics, and promoting sustainable living practices.

NIQ's research indicates that many Vietnamese consumers are reducing spending to avoid waste, even as their financial situation gradually improves.

Seventy-three per cent actively avoid waste, 47 per cent spend more time at home, and 49 per cent have cut back on luxury spending.

Efficiency also ranks high in their priorities, with 85 per cent comparing prices before purchasing and 78 per cent willing to pay more for higher quality products. These trends demonstrate a sustainable and conscientious approach to consumption, focusing on quality over cost.

The report also confirms a gradual improvement in the financial situation of Vietnamese consumers after a period of volatility.

Sixty-seven per cent of respondents stated they are in a better financial position compared to the previous year, with only 10 per cent reporting a decline in their financial status.

Another positive indicator is improving economic sentiment among Vietnamese consumers.

About 45 per cent of respondents agreed that Việt Nam is not currently in a recession.

This confidence, the report said, is particularly notable in Hà Nội and HCM City, where optimism levels have increased by 10 per cent year-over-year. This shift in perception is rooted not only in subjective feelings but also in tangible changes in the business environment and job market.

NIQ attributed the improvement to further support by the robust growth of e-commerce, driven by such factors as compelling promotions, convenient delivery options, and the ability to research and plan purchases online.

Although optimistic about the national economy and reaching higher incomes, Vietnamese customers seemed to be burdened by essential expenses such as healthcare costs.

The rising costs of essential goods, particularly food, have prompted 64 per cent of consumers to focus solely on purchasing essentials they need and 63 per cent to buy less quantity in total.

Promotions play a crucial role in this landscape, with 75 per cent of consumers taking advantage of a special offer or deal to stock up on everyday grocery items. Interestingly, 42 per cent of consumers reported they only buy promoted items if they already favour the brand, highlighting the limited impact of promotions on brand loyalty.

About 57 per cent of Vietnamese consumers reported they live comfortably and are able to buy something just because they want it, while 33 per cent said they only had enough money for food, shelter and the basics, and 9 per cent said they are able to spend freely.