Vietnamese consumers will dedicate most of their spending to themselves and the household during the upcoming Tet (Vietnam’s Lunar New Year) holiday, a TNS survey has found.

Fifty-seven percent of polled consumers said they would spend betweenVND5.5 million (US$246) and VND15 million ($670) for themselves and their household, mostly on food, clothing, and home improvement, in preparation for Vietnam’s biggest holiday, global market research consultancy TNS said on Friday, citing its Consumer Pulse study.

The Lunar New Year is on February 8, but the shopping spree for the holiday normally starts at least a month beforehand.

The categories ‘Gifting/Supporting Others’ and ‘Lucky Money’ account for a smaller percentage of Tet spending, with 66 percent of consumers reporting that they would spend between VND1 million ($45) and VND5.5 million ($246) in each area.

Within the ‘Gifting’ category, cash gifts/envelopes, food and beer led spending at 45 percent, 32 percent and 29 percent, respectively.

More generally, 93 percent of Vietnamese plan to increase normal spending during Tet, and overall consumers are estimated to spend VND14.2 million ($643) for Tet this year, which is over VND4 million ($179) greater than 2015, according to TNS.

On further analysis, one can see by how much Vietnamese consumers are planning to increase their spending for Tet 2016 compared with 2015 across multiple categories.

Specifically, within the travel category spending is expected to increase by VND283,000. Food for both self and the household is expected to rise by VND261,000. The increase is even more dramatic in the spending and supporting others category where consumer spending on food is forecast to go up by VND502,000, the largest of any measured category.

The study also found that Vietnamese desire many things for Tet, including clothes, food and beverages.

The most desirable category is fashion/accessories, at 25 percent, whereas 19 percent of Vietnamese most want vehicles for Tet, and high-tech devices, 11 percent.

TNS’s Consumer Pulse not only reveals big plans for spending increases, but also discovers when consumers plan to do their holiday shopping.

The shopping season starts five to six weeks prior to Tet, and peaks at two to three weeks ahead of the Lunar New Year. Only 30 percent of consumers wait for the last week prior to the holiday to begin shopping. 

Rising consumer confidence

The Consumer Pulse report released on Friday is the first be conducted by TNS for 2016. It features several questions aimed at better understanding how Vietnamese are planning to ring in the Lunar New Year in celebration of Tet. 

Besides the special section for Tet, the latest study also reveals that Vietnam’s consumer confidence is at its highest level since 2008.

In 2008, 89 percent of surveyed consumers held a positive outlook for Vietnam’s economy, believing it would improve over the next 12 months. However, the consumer confidence index has fluctuated over the years since, before reaching 90 percent in 2016, a rebound from the 2012-2014 slump and a great improvement from 2015, according to the survey.

The study finds that the savings versus expenditure rate in 2016 is 10 percent/90 percent, compared to 22 percent/78 percent in 2008.

When asked about their intention to spend more or less in 2016 compared to 2015, only four percent of Vietnamese consumers are planning to spend less this year, according to the survey.

TNS is part of Kantar, the data investment management division of WPP and one of the world's largest insight, information and consultancy groups.

The Consumer Pulse study, focusing on consumer spending patterns, consumer confidence, and lifestyle and attitudes, is done quarterly within Vietnam.

It surveys respondents in both Ho Chi Minh City and Hanoi to discover their feelings and outlooks toward the Vietnamese economy.

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