At the launch of the ASEAN Consumer Sentiment Study 2023 (Photo: VietnamPlus) HCM City (VNA) – Mobile banking apps, e-wallets, QR code-based payments, e-commerce payment platforms and mobile wallet debit or credit cards are the preferred payment methods among Vietnamese consumers, the United Overseas Bank (UOB) said in its report “ASEAN Consumer Sentiment Study" (ACSS) which was released on November 1.
Paul Kim, Head of Personal Financial Services at UOB Vietnam, stressed that as the Vietnamese consumers become more digitally proficient, there is an accompanying surge in the use of mobile apps. However, when it comes to complicated transactions such as high-value transactions, restructuring of bank loans and insurance purchase, they prefer offline channels.
Four of five consumers use an e-wallet at least once a week and introduce the wallet to others. Momo was the most used e-wallet by Vietnamese, followed by ZaloPay and VNPay.
There is an increasing preference for digital banking and new payment modes (Photo: VietnamPlus) Regarding the sentiment of the Vietnamese consumers, Paul Kim said strong economic growth has made them feel more upbeat about the current and future economic situation in the country.
Although rising inflation and increased expenses have fueled fears of an economic downturn across the Association of Southeast Asian Nations (ASEAN), consumers in the region have given a warm welcome for a new era of digitalisation.
The UOB expert said Vietnamese consumers are more upbeat about the financial future than those in other countries. Some 76% of the respondents expect to be better off in June next year, while the figures in Indonesia and Thailand are 74% and 68%, respectively.
Meanwhile, II Dong Kwon, the Vietnam lead at Boston Consulting Group, highlighted that with the boom of the Internet, Vietnam has posted a dramatic increase in online shopping and e-commerce which experience an annual growth of 41% in the past three years.
Online payment has surged as a result, he said, adding the trend will maintain and grow stronger in the time ahead.
The report said that eight out of 10 Vietnamese consumers are concerned about their finances. They are most worried about not being able to save, afford essential items, maintain their current lifestyle, and take care of their parents’ financial and healthcare needs. Therefore, they are more cautious about their investments.
Eight out of 10 Vietnamese consumers are concerned about their finances. (Photo: VietnamPlus) There are shifts in financial preferences among Vietnamese as they allocate more money into low-risk financial instruments such as bank fixed deposits (32%), while keeping more holdings in insurance plans (28%).
According to the report, sustainable investment funds, insurance and linked bonds are more popular in the region, particularly in Vietnam. Some 40% of the Vietnamese affirmed they have already included sustainable investments in their portfolio, and 58% said they will consider making a sustainable investment if it matches with their appetite.
Nine in ten consumers said sustainable investment will help them carve out on a dual target of financial profits and environmental protection.
The ACSS is the UOB’s regional flagship study analysing consumer trends and sentiments in five countries: Singapore, Malaysia, Thailand, Indonesia and Vietnam. Now in its fourth year, the 2023 survey captures the responses of 3,400 consumers across different demographic groups in this dynamic region. Some of the areas covered include everyday life outlook, shifts in spending and financial habits, digital payment habits and preferences, sustainable behaviour and sustainable finance, employee concerns and expectations.
Jacquelyn Tan, Head, Group Personal Financial Services at the UBO, described the ACSS as a barometer of regional sentiment towards the economy as well as pertinent areas of interest such as spending and financial behaviour and technology. The findings from UOB ACSS 2023 offer valuable insights for consumers and businesses, to adapt and poise themselves to navigate the current uncertain economic environment, she said./.
