Vietnam - Consumer confidence tumbles to record low: Nielsen

Vietnam sees the lowest consumer confidence since last year’s third quarter as consumers remain concerned about the economic situation, according to global consumer confidence findings released by Nielsen on Thursday.

The consumer confidence index for Vietnam dipped five points versus the previous quarter to stand at 94 points for Q1/2012. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

The survey also reveals that three out of every four Vietnamese online consumers believe it is not a good time to buy the things they want and need over the next 12 months.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, tracks consumer confidence, major concerns and spending intentions among more than 28,000 Internet consumers in 56 countries.

The sentiment remains pessimistic as nearly two-thirds (61%) of Vietnamese consumers believe they are in a recession, down from 66% in the previous quarter and remains flat versus Q1 2011. Up to 68% indicated that Vietnam would not be out of the economic recession in the next 12 months, an increase of three percentage points versus Q4 2011.

Around 53% of Vietnamese online respondents described their job prospects in 2012 as good/excellent, a slight decline from 58% in Q4 2011 and 60% from a year ago. Only 49% of Vietnamese consumers are confident that their personal finance will be good/excellent in the coming year, dipping 5 points versus the previous quarter and 7 points versus Q1 2011.

As confidence declines in Vietnam, saving spare cash becomes top choice (69%) among Vietnamese consumers, an increase of 4 percentage points versus the previous quarter. Consistent with the previous quarter, 84% of consumers surveyed say that they have changed their spending to save on household expenses, mainly on new clothes (65%), gas and electricity (65%), out-of-home entertainment (61%), replacement of major house items (52%), and upgrading technology (48%).

The finding about Vietnam consumer confidence is a part of the Nielsen Global Survey of Consumer Confidence and Spending Intentions that was conducted between February 10 and February 27, 2012.

Saigon Times

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