The consumer confidence index of Vietnam increased to 135.5 points in August, the highest since March, which reflected a "steadily improving" macroeconomy, according to a survey conducted by ANZ Banking Group and research firm Roy Morgan.
Consumer confidence in Vietnam has posted its third consecutive gain since tensions with China over the April to May period saw confidence fall sharply, according to Glenn Maguire, ANZ Chief Economist, South Asia, ASEAN & Pacific.
The index’s increase was primarily driven by increasing confidence about economic conditions in Vietnam over the next year. This suggests a rotation away from political concerns to focus more on the improving macroeconomic backdrop, ANZ said in a report.
Up to 32 percent of Vietnamese said their families are better off financially than a year ago compared to 21 percent who said their families are worse off, according to the survey which covers major cities and provinces across Vietnam.
As many as 56 percent of local people expect their family will be better off financially this time next year compared to just 5 percent who expect to be worse off.
Considering the Vietnamese economy, 51 percent of local people expect the country will have good times financially during the next twelve months and just 15 percent expect bad times.
Some 40 percent of local people said now is a good time to buy major household items compared to 16 percent who said now is a bad time to do it, showed the survey.
Maguire from ANZ said the sequential increase in consumer confidence has become progressively smaller over the past three months, suggesting the recovery in confidence from this year’s low is close to topping out.
Further strong gains in confidence will need to be propelled either via wealth effects from higher equity and gold prices, or a faster improvement in the economic backdrop, Glenn Maguire said. “We still believe confidence is more likely to move sideways at elevated levels rather than continue to make strong gains.”