Vietnamese folks scale back consumption, enhance home purchases, spend money on securities and save credit score

The development of decreasing spending on client companies, spending solely on important items

In line with the newest report of the Common Statistics Workplace, the full retail gross sales of client items and companies in Vietnam in August 2021 is estimated at 279.Eight trillion VND. That is down 10.5% month-on-month and down 33.7% year-on-year.

Within the first Eight months of 2021, the full retail gross sales of client items and companies reached VND 3,044.5 trillion. If excluding the worth issue, which decreased by 6.2% (in the identical interval in 2020, the worth decreased by 5.8%), the full retail gross sales of client items and companies decreased by 4.7%.

Wanting on the information over the months this 12 months, Vietnamese customers’ spending elevated barely within the first three months of the 12 months, skyrocketing within the March-April interval. Then, below the affect of the 4th Covid-19 epidemic, Vietnamese customers are tending to spend much less.

  Vietnamese people reduce consumption, increase house purchases, invest in securities and save credit - Photo 1.

Supply: GSO

This downward development has not solely taken place within the first Eight months of 2021, but in addition began in 2020. In line with Statista, in 2020 client spending in Vietnam’s industries additionally tends to lower a lot in comparison with that. In 2019. Of which, solely Three industries nonetheless maintained the rise, together with transportation, on-line buying and residential home equipment.

  Vietnamese people reduce consumption, increase house purchases, invest in securities and save credit - Photo 2.

Developments in spending reductions throughout industries in Vietnam in 2020. Supply Statista

In line with the report on Client Habits of Vietnamese in 2021 carried out by Deloitte, Vietnamese persons are tending to provide precedence to spending on important requirements. Deloitte assessed that specializing in spending on important wants signifies that Vietnamese folks minimize lots for the consumption of different services and products. In 2020, customers diminished their purchases of client electronics from 10% to 0.2%, and leisure and journey companies decreased from 4% to solely 0.4% in comparison with 2019.

“If finances cuts for leisure and tourism are defined by journey restrictions to stop illness outbreaks, then the discount in spending on client electronics displays the cautious sentiment of the folks. folks in these unsure occasions,” added Deloitte.

Vietnamese folks swap to purchasing homes, investing in shares and saving extra

Regardless of the financial state of affairs affected by the Covid-19 epidemic, Vietnamese folks nonetheless purchase a whole lot of homes and flats. In line with the newest report from the Ministry of Building, within the second quarter of 2021, the entire nation had 29,949 profitable actual property transactions (together with flats, particular person homes, and land switch).

Accordingly, the common complete transaction quantity was equal to about 118% in comparison with the earlier quarter and about 101% in comparison with the identical interval in 2020. Particularly, Hanoi had 1,094 profitable transactions and Ho Chi Minh Metropolis. Ho Chi Minh Metropolis has 3,002 profitable transactions.

In 2021, consumption in Vietnam will lower and saving will enhance. Nonetheless, this development began in 2020 and continues to at the present time. In line with a Nielsen report, in 2020, as much as 72% of survey respondents mentioned that they use their idle cash for financial savings functions.

Saving cash additionally will increase in 2021, mirrored within the enhance in deposits in credit score establishments. Within the first half of 2021, capital mobilization of credit score establishments in Vietnam elevated by 3.13%, together with the credit score development of the financial system reached 5.47%.

Vietnamese folks have a tendency to change to investing in securities lots. In line with a report by the Common Statistics Workplace, within the first 5 months of the 12 months, the full capital mobilization for the financial system of the inventory market was estimated at 116.Four billion VND, up 68% over the identical interval final 12 months.

As well as, within the first 6 months of the 12 months, the common buying and selling worth on the inventory market elevated by 302.3%, reaching 22,428 billion VND/session. The typical buying and selling worth on the bond market elevated by 17.2%, reaching 11,622 billion VND/session. As well as, the common buying and selling quantity on the derivatives market elevated by 90.9%, reaching 24,041 billion VND/session.

The shift in spending cash to funding can also be mirrored within the growing tendency to purchase insurance coverage amongst Vietnamese. That reveals that Vietnamese folks need to use their idle cash for a lot of completely different functions.

In line with information from the Common Statistics Workplace, the insurance coverage premium income of the entire market within the first 6 months of 2021 elevated by 17% in comparison with the identical interval final 12 months. Through which, life insurance coverage premium income elevated by 22%; the non-life insurance coverage sector elevated by 7%.

Dang Son