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Analyst Pin-board: The Outlook of Consumer Credit in Vietnam

As mentioned in our previous Analyst Pinboard "Consumer megatrends in Vietnam" (details ), Vietnam consumer market is considered quite attractive with high and stable growth rates and in recent years. There are many attributes to the development of this market, such as positive economic expansion and the growth of the middle class in society. In addition, due to favorable conditions of the economy since 2014, the Vietnamese consumer confidence index (CCI) has increased, peaking at 129 in 3Q 2018 and 1Q 2019. More specifically about spending trends, in recent years, Vietnamese consumers became more willing to purchase high value items after paying essential living expenses, such as high-tech devices or vacation/travel, to improve living standards. At the same time, payment method gradually shifts from cash to non-cash, and Vietnamese tend to be more willing to borrow for instant purchase instead of saving until they accumulate enough to buy such items.