VN ranks second in world on consumer confidence in Q3

Friday, Dec 14, 2018 18:39

Vietnamese consumer confidence reached a 10-year high in the third quarter of this year. — VNA/VNS Photo My Phuong

Vietnamese consumer confidence ranked second in the world in the third quarter of this year, driven by optimism in jobs, incomes and spending, according to the Conference Board Global Consumer Confidence Survey conducted in collaboration with Nielsen.

The report, announced on Thursday, revealed Viet Nam scored 129 points in the consumer confidence in the third quarter, nine points higher than the previous quarter, a record score for the country in the past decade.

The report said that while most Asian economies were vulnerable to the ongoing trade dispute between China and the US and general protectionist tendencies globally, Viet Nam was a possible exception as it might attract parts of the global value chain that run through China.

Besides the solid labour market, strong third-quarter GDP growth and rising credit growth in Viet Nam also created a positive outlook for the consumer sector, according to the report.

Nguyen Huong Quynh, general director of Nielsen Viet Nam, said this was an opportunity for producers and retailers.

“However, rising inflation and new petroleum taxes to be implemented in early 2019 could dampen confidence in Viet Nam going forward,” the report noted.

In Asia-Pacific, Thailand, Malaysia, Viet Nam and Australia were the main drivers of the confidence uptick in the region, which improved from 112 points in the second quarter to 114 in the third quarter.

In the global ranking, India ranked first in consumer confidence, scoring 130 points in the third quarter.

The top five also included Malaysia, Indonesia and Pakistan.

Overall, the global consumer confidence index increased by two points in the third quarter to 106 points from 104 in the prior quarter and was now back to its all-time high.

This was driven by optimism about job prospects and personal finances improving compared to the second quarter.

The report said the global uptick in confidence was a positive sign for economic and business growth. However, moderate expectations regarding global GDP growth along with several other headwinds seemed to have translated into a more cautious attitude toward spending.

The Conference Board projected global GDP growth in 2019 to fall slightly below 2018. “Fears of significant pullback of global trade could undermine the growth outlook,” the report said.

Also, with anticipated price rises amid high oil prices, trade uncertainty, falling currency and rises in borrowing costs, global consumer’s were likely to be more prudent in the near future. — VNS

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