Global uncertainties influence Vietnamese consumer preferences

Still, the country’s retail and e-commerce sectors continue to expand.

THINK of the lingering global uncertainties in the market, and that well explains why consumer spending in Vietnam remains cautious.

At the recent Retail Asia Forum in Ho Chi Minh City, Lam Thi Ngoc Hao, partner head of clients and markets and head of business transformation at KPMG, said global uncertainties, including the effects of the COVID-19 pandemic and geopolitical tensions, continue to shape Vietnamese’s consumer behaviour.

She said the combined challenges make economic recovery difficult. Consequently, consumers become more cautious and deliberate in their spending decisions.

With Vietnam’s GDP per capita projected to rise significantly by 2030, driven by a youthful demographic and increasing disposable incomes, Hao emphasised the immense potential for businesses to capitalise on shifting consumer preferences.

She said that the average increase for retail apartments is around 7%–8%, with those sold outside the shop experiencing a range of 6%–7%. Additionally, e-commerce is expected to see significant growth, potentially reaching up to 17.7%.

Technological innovation plays an important role in enhancing customer experiences and driving business growth.

Hao highlighted the growing demand for artificial intelligence (AI)-driven solutions amongst businesses, with a majority expecting tangible returns on their investments within a few years.

She cited two primary categories of AI adoption, including everyday AI, aimed at boosting operational efficiency and customer satisfaction, and game-changing AI, poised to revolutionise industry dynamics in the coming years.

Urging businesses to embrace technological advancements whilst mitigating risks, she stressed the importance of strategic foresight in navigating the evolving landscape.

She said that over the past four years, KPMG conducted extensive global research involving 21 countries and over 82,000 participants, with 1,549 participants from Vietnam.

Utilising their customer experience measurement framework, KPMG assessed satisfaction, loyalty, and brand advocacy amongst participants, providing valuable insights for businesses to enhance customer experiences.

Their framework, employed across 150 countries, identified six key pillars influencing customer experiences, including product differentiation, personalised solutions, prompt issue resolution, empathetic customer service, proactive problem-solving, and continual innovation.