ANZ: Vietnam consumer confidence rises for third straight month

November’s gain was driven by higher confidence about personal financial situations compared to a year ago and improved sentiment about buying major household items, according to ANZ-Roy Morgan recent report.

In terms of personal finances, 34 per cent (unchanged from last month) of Vietnamese respondents said their families are ‘better off’ financially than the same time last year. Meanwhile, a record low of 11 per cent (down 5 percentage points or ppts) said their families are ‘worse off’.

The report also shows that 56 per cent (down 1ppt) of the respondents expect their families to be ‘better off’ financially this time next year. On the other hand, 3 per cent (down 2ppts) expect to be ‘worse off’, the lowest on record.
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About the overall economy, 55 per cent (down 2ppts) of the respondents expect Vietnam to have ‘good times’ financially during the next 12 months. In contrast, 9 per cent (down 1ppt) expect ‘bad times’ financially, the lowest value recorded since March 2015.

Over the longer term, 59 per cent (down 5ppts) of the respondents expect Vietnam to have ‘good times’ economically over the next five years. Meanwhile, a record low of 4 per cent (down 1ppt) expect the country to have ‘bad times’ economically.

“The Vietnamese economy has remained immune to a regional trade recession and the behaviour of local consumer confidence is consistent with domestic sectors that are well insulated from the slowdown in trade growth regionally and internationally. The immunity and resilience of the Vietnamese economy has been highlighted by the PMI returning above the threshold 50 level in October and the general tone of macro-economic data remaining firm,” said Glenn Maguire, ANZ chief economist South Asia, ASEAN & Pacific.

“As the full details of the Trans Pacific Partnership (TPP) continue to be revealed and the unambiguously strong positive medium term benefits the TPP is expected to bring to Vietnam become more evident, medium term confidence in the Vietnamese economy should also rise,” Maguire added.