A chart shows customers' financial priorities under new data from boutique market research consultants Decision Lab. (Photo courtesy of the company) With the global cost-of-living crisis hitting domestic house prices, exports,and orders, Vietnamese consumers are now feeling less secure about theirfinancial futures and are making more careful saving, spending, andinvestment choices.
Decision Lab interviewed over a thousand adults in Vietnam in April, askingthem about their current financial priorities, choices, and motivations as wellas their expectations for their financial future.
When asked about their current financial priorities, 50% of therespondents said that saving for unexpected hardship was their biggest concern.That is an increase of almost 10% compared to 2022 and 3% higher than2021 when Vietnam was in the midst of the COVID pandemic.
Meanwhile, ensuring their families are protected from emergencies came a closesecond (48%), up from just 33% a year earlier.
With the job market becoming more precarious, more people are turning toinvestment products to protect their families. In 2023, 41% of people hopeto safeguard their financial future through investing, a 10% increase in2022.
Even still, investors are showing a dampened risk appetite. The number ofpeople willing to take a ‘high’ to ‘extreme’ risk to achieve significantcapital growth has halved from 18% to just 9% in 12 months.
Meanwhile, 19% of people prefer to take no risk, around a third (32%) arelow-risk investors, and just over one-fifth (23%) are willing to take amoderate risk when investing their capital.
For this reason, safe-haven investments have soared over the last12 months. The number of people with a savings account, for instance, hasalmost doubled from 37% in 2022 to 62% in 2023.
Meanwhile, the proportion of the population investing in securities has risenfrom around one-fifth (21%) to one-third (33%) over the last 12 months.
Looking ahead, consumers expect to remain cautious with their personalfinances, with around half of those invested in savings, gold, and securitiesplanning to invest more in the next 12 months. However, digital currencies buckthis trend. Despite being one of the most volatile asset classes, just overhalf (52%) of Vietnamese who own crypto plan to invest more in assets likeBitcoin.
Thue Quist Thomasen, CEO of Decision Lab, said: “In uncertain times, consumerswant financial products that can help them to ride out rising food costs,falling house prices, and unpredictable job prospects. People want to protectthemselves and their families from financial hardship, with low-risk investmentproducts providing an attractive hedge against an uncertain future.
“Therefore, banks and financial institutions looking to attract customers needto respond to this trend. That means providing savings and investment productsoffering trustworthiness, transparency, and security while also showcasingthese values through their marketing messages and brand campaigns."/.
VNA
