ANZ and Roy Morgan develop new measure of Vietnam’s growth as consumption expands

illustration photo source Phunuonline

The survey will accurately gauge sentiment in Vietnam’s fast-growing consumer sector as consumption becomes a more significant and stable driver of overall economic growth.

“Vietnam has the fastest growing middle-income class dynamic of any economy in Asia, including China. The combination of strengthening growth, a larger labour force and strong productivity growth will all underpin very fast growth in Vietnam’s consuming class. Indeed, we expect Vietnam to add nearly two million consumers every year to the consuming class that will become an increasingly important domestic driver of growth,” Glenn Maguire, chief economist of ANZ in Asia Pacific.

“The Vietnamese consumer will be differentiated by its youth and tech savvy and businesses seeking to engage with this consuming class will need an accurate real-time measure of consumer confidence. We believe the ANZ-Roy Morgan Research Consumer Confidence Index will provide policy makers, business and financial markets with an accurate leading indicator of consumption trends in Vietnam,” Maguire added.

The survey covers major cities and provinces across Vietnam and delivers a comprehensive view of differences between consumer sentiments in top and lower tier cities.

“Vietnam has a favourably youthful demographic. It’s Asia’s fourth most populous economy and with one third of the population aged below 20, the stage is set for strong growth in consumption. Coupled with Vietnam’s average earnings growing at around 10 per cent a year, we believe economic growth will rebalance and move away from export and investment-led growth over the next decade,” Tareq Muhmood, chief executive officer of ANZ Vietnam said.

ANZ and Roy Morgan currently produce consumer confidence surveys for Australia, New Zealand, Indonesia, China and Vietnam with plans to launch in five additional Asian countries where ANZ does business over the next coming months.