Difficulties in maintaining domestic consumption this year: surveys

Domestic consumption is likely to lose steam as consumers face uncertainties, along with changes to shopping trends. Meanwhile, businesses have reported it’s increasingly difficult to maintain purchasing power and reduce inventory buildup, said industry insiders and economists. Reports showed that younger adults (aged 18-25) have attempted to improve their financial situation by finding ways to boost income and save more, while older adults (aged 46-55) have cut spending on non-essential items. During the first quarter of this year, 62% of Vietnamese consumers opted to cook at home more and tighten spending on non-essential items. About 50% reduced purchases of luxury goods, over 30% postponed major expenses and around 40% are spending more cautiously. To make matters worse, Vietnamese consumers are increasingly shopping online to take advantage of discounts and price comparisons between products while purchasing lower-priced items.

Source: Vietnam News Agency