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BUSINESS REPORT

PHOTO: TRAN VIET DUNG
Back to basics

Domestic consumption has become a crucial driver of growth as economic
challenges persist, and businesses must swiftly capture evolving consumer
trends to remain competitive.

| By LINH TONG

he General Statistics Office of Viet- spending habits, opting to cut back on consume more intelligently, find better
nam (GSO) has reported that the non-essential items as the cost of living deals, discover higher-quality goods, and
T country’s Consumer Price Index rose 72 per cent in Southeast Asia and 69 facilitate more convenient payments.
(CPI) rose 0.25 per cent in November com- per cent globally. Such shifts present numer- For these reasons, the “Cool Product
pared to October, 3.46 per cent since ous challenges, prompting businesses to Awards 2023” and a ceremony celebrating
December 2022, and 3.45 per cent compared adapt strategies to boost consumer outreach, the Top 50 cool products and services in
to November 2022. The year-on-year offer appropriate solutions, and ensure 2023, as voted on by consumers and organ-
increase in the first eleven months was overall consumer satisfaction. ized by VnEconomy / Vietnam Economic
3.22 per cent, with core inflation rising The consumption landscape in 2023 Times (VET), presented an opportunity
4.27 per cent. also indicates that Vietnamese consumers to acknowledge businesses engaged in pro-
Amid ongoing economic difficulties, are gradually shopping more intelligently, ducing essential and innovative products
Vietnamese consumers have experienced placing a clearer emphasis on product and services. Emphasis was placed on
substantial changes in their spending habits, value. Instead of simply buying what they those that enhance the daily lives of pur-
from trimming unnecessary costs to curbing desire, they now opt for what is truly essen- chasers. The Awards also acknowledged
purchases and exploring alternatives within tial. And rather than focusing on appearance products and services leading the way in
a more constrained budget. According to and brand, they select items based on qual- adopting new technologies, embracing dig-
data from the 2023 PwC Consumer Insights ity, functionality, and high utility. During itization and sustainability to enhance
Survey in Vietnam, 62 per cent of local times of tightened spending, consumers operational efficiency, production, sales
consumers have significantly altered their also rely on digital technology as a tool to management, and effective marketing.

24 | VIETNAM ECONOMIC TIMES | JANUARY 2024 en.vneconomy.vn