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Vietnamese middle class increases most rapidly in Asia

Tue, 15 Jul 2014. Last updated Thu, 25 Jun 2015 08:46

According to a recent survey conducted by ANZ, it is reported that Vietnamese middle class increases most rapidly in Asia, about 2 million Vietnamese joining the middle-class of Vietnamese society every year.

ANZ, the Australia and New Zealand Banking Group Limited, is the third largest bank by market capitalization in Australia. This survey is conducted by ANZ annually in many countries such as China, Indonesia, India, and so on. This survey reviews the evolution of the consumer segment which is growing strongly in the economy. According to Mr. Glenn Maguire, Chief Economist of ANZ in Asia, Vietnam is in possession of middle class forming and developing faster than anywhere else in Asia, even than China. It is the important inner motivation that promotes economic growth. In term of personal finance, 48% Vietnamese expect their financial situation to grow in the next one year. The number of people anticipating bad situation is only 8%. This level of optimism is much higher than neighboring countries such as that of Chinese, Indonesian, and Indian. In addition, Mr. Glenn Maguire said that Vietnamese consumers differentiate others in ages and technological knowledge. Therefore, enterprises which want to approach this consumer class should have a correct and timely index measuring consumer’s confidence.

 

Consumption status of middle class

 

Mr. Tareq Muhmood, General Director of ANZ Vietnam, added that Vietnam economy has the advantage of young population with 1/3 of the population under the age of 20. This is solid foundation for the strong development of individual consumer segment. The increase in per capital income in Vietnam is about 10% per year. It is believed that the economic development will be directed toward rebalancing, which becomes less dependent on export and receives more investment in the next 10 years.

The survey of Confidence Index of Consumer is conducted by ANZ in several cities and provinces in Vietnam every month with a view to bringing am overview of differences in psychology and trends of consumers between large and small cities. ANZ and Roy Morgan have provided Confidence Index in Australia, New Zealand, Indonesia, China, and Vietnam. They are planning to perform this survey in 5 other Asian countries in the future.

 

Luxury shopping malls become popuplar in Vietnam

 

Another survey conducted by Boston Consulting Group (BCG) also revealed that Vietnam has the fastest growing middle class in Southeast. By 2020, Vietnam is expected to have 30 million middle class and rich consumers. With this growing consumer class, Vietnam is able to attract a number of world’s leading brands.  Samsung was recently licensed to build a US$1.2 billion factory. Nestle has just opened a US$240 million processing factory.  Food chains such as McDonald’s, KFC, and Pizza Hut are also penetrating deeper into the Vietnamese market.

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