Vietnam, one of the world’s most optimistic countries, is experiencing a drop in confidence among local business leaders and consumers. In a new Neilsen survey, most businesses report conditions are worse now than a year ago, fewer expect to exceed their targets. and just one in three expects conditions to improve any time soon.
The top concerns: inflation and the declining local currency. Even so, 90% expect double-digit growth in their businesses over the next year — especially in financial services, telecom and pharmaceuticals.
Vietnam’s consumers, meanwhile, are saving despite inflation. Neilsen found the number people expecting to make do without non-essential goods has risen from 41% to 50% — not a good sign for consumer product sales in the near future.
More on business confidence in Vietnam