A clear intent was visible on part of consumers to ‘splurge’ and treat themselves, with more than 70 per cent of respondents saying they intend to increase spending on categories of products or services they spent less on over the past year and a half, McKinsey wrote in a recent article on its website.

Vietnamese consumers were becoming more sophisticated and seemed to be evolving in four ways: they were more value-conscious, preferred omni-channel platforms, had less brand and store loyalty and looked for purpose in what they bought, McKinsey said.

Over half of the Vietnamese population would enter the global middle class by 2035, creating more disposable income and fuelling consumption.

Vietnamese consumers were, however, turning more discerning and value-conscious.

The country’s prospects remained strong for the upcoming decade since gross domestic product (GDP) growth was on the rise again—with year-on-year growth of 2-7 per cent expected between 2023 and 2030, the article said.

However, the country was facing headwinds at the start of 2023 that were likely to affect the ability of its population to spend.

“More Vietnamese consumers anticipate a reduction in income and savings than consumers in other Asia-Pacific countries, with more than 90 per cent noting price increases, fears of inflation, gas shortages coupled with higher fuel prices, and rising interest rates. These mounting financial pressures and uncertainties are accelerating consumers’ shift to more discerning shopping choices,” the article said.

Fibre2Fashion News Desk (DS)