Rising Confidence: Vietnam Tops ASEAN in Consumer Sentiment

Vietnam emerged as the most optimistic market in the ASEAN region, according to the UOB ASEAN Consumer Sentiment Study. With a consumer sentiment index score well above the regional average, Vietnamese respondents express strong confidence in economic, political, and social stability.

In 2025, consumer sentiment across ASEAN reflects a delicate balance between resilience and uncertainty. The latest UOB ASEAN Consumer Sentiment Study (ACSS), which surveyed 5,000 consumers in Indonesia, Malaysia, Singapore, Thailand, and Vietnam, highlights how optimism endures despite inflationary pressures, rising costs of living, and global geopolitical instability.

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The regional index score stands at 54, above the neutral mark of 50, signaling modest optimism. Yet performance varies across markets, with Vietnam leading and Singapore and Thailand falling behind.

This article examines the findings of the ACSS 2025, focusing on Vietnam while benchmarking against other ASEAN markets. It explains the key drivers of consumer confidence in the country, outlines financial preparedness trends, and explores shifts in spending and payment behavior. For businesses and investors, these insights are critical for navigating a consumer landscape that remains both promising and uneven.

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Vietnam leads ASEAN in consumer confidence

Vietnam emerged as the most optimistic ASEAN market in the 2025 survey, recording an index score of 67, up three points from 2024. This placed it well above the regional average of 54 and more than 20 points ahead of Thailand and Singapore.

Vietnamese respondents expressed particularly high confidence in:

• Economic stability: 83 percent positive;
• Political stability: 82 percent positive; and
• Social stability: 81 percent positive.

These were the highest scores in the region, reflecting confidence in Vietnam’s steady macroeconomic environment and relative insulation from external shocks.

By comparison, Indonesia scored 55, maintaining cautious optimism but falling slightly from 2024 due to concerns over food inflation and currency pressures. Malaysia rose to 53, rebounding strongly after an 11-point increase, driven by fuel price stabilization and fiscal support. In contrast, both Singapore and Thailand fell to 47, reflecting weaker household sentiment amid slowing growth and persistent structural challenges such as demographic aging and income stagnation.

Inflation pressures reshape consumer behavior

While Vietnam’s confidence leads the region, its consumer sentiment was also affected mainly by concerns over inflation and rising living costs, similar to its ASEAN peers.

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In Vietnam, respondents cited rising food prices, education costs, and healthcare expenses as top worries. Many indicated that inflation will reduce their discretionary purchasing power, leading to more cautious spending on travel, luxury goods, and lifestyle products. However, the resilience of confidence suggests that Vietnamese consumers remain optimistic about their medium-term financial security. This landscape is somewhat reassuring for businesses as the immediate risk of significant consumption erosion is unlikely.

In Singapore, where wage growth has slowed, inflation has hit household budgets harder, pushing consumers to defer major purchases. Thailand, struggling with weak tourism recovery and political uncertainty, has seen subdued consumer optimism despite easing inflation.

Financial preparedness and saving habits

One of the clearest insights from the ACSS 2025 is the uneven level of financial preparedness among ASEAN consumers, including Vietnamese people.

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Across the region, 58 percent of respondents reported having emergency savings sufficient to cover three to six months of expenses. Vietnam ranked slightly below this average at 57 percent. While relatively strong, this highlights the need for greater household resilience in the face of external shocks.

Generational differences are striking. Younger Vietnamese consumers (aged 21-35) are less likely to have robust savings compared to older groups. Many rely more heavily on family support networks and digital financial products, such as e-wallets, for short-term liquidity. By contrast, older Vietnamese respondents showed higher savings discipline but greater anxiety about long-term costs, particularly healthcare.

This disparity underscores opportunities for financial service providers, particularly in Vietnam and Indonesia, to offer savings-linked insurance, micro-investment products, and digital wealth solutions tailored to younger demographics.

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Digital payments and financial behavior trends

Responses from Vietnam’s consumers highlight their growing preference for digital ecosystems, which is gradually reshaping the country’s spending and financial behavior.

In Vietnam, mobile wallets and QR code payments have rapidly surpassed traditional debit card usage, driven by government-backed efforts to promote cashless transactions and a young, digitally savvy population. Over 70 percent of Vietnamese respondents reported regularly using e-wallets, with GrabPay, MoMo, and ZaloPay leading adoption.

Vietnam’s growing tech-savviness is similar to that of other ASEAN countries like Indonesia, Thailand, and Malaysia. For investors, this highlights the need for omnichannel retail strategies and partnerships with fintech platforms. Companies entering Vietnam, in particular, must adopt mobile wallet payments to stay competitive.

Geopolitical uncertainty and regional divergence

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While domestic confidence in Vietnam remains high, external risks weigh heavily on regional sentiment. Escalating tensions in the South China Sea, supply chain realignments, and fluctuating trade flows with major partners like the US and China influence consumer perceptions indirectly through employment prospects and price volatility.

In Singapore and Thailand, where economies are highly exposed to external trade and investment cycles, these geopolitical uncertainties are reflected in lower consumer optimism. Vietnam, by contrast, benefits from its growing role as a manufacturing hub for supply chain diversification, which reinforces confidence in economic stability despite global headwinds.

Practical implications for investors and businesses

Vietnam remains a standout market

Vietnam’s high consumer confidence and digital adoption make it a priority destination for retailers, fintech companies, and healthcare providers. However, inflation will constrain discretionary spending, requiring businesses to balance affordability with value creation.

Digital ecosystems drive competitiveness

Across ASEAN, consumers are increasingly digitally connected and price-sensitive. Companies must adopt omnichannel strategies, integrate mobile payment solutions, and leverage e-commerce to capture growth.

Resilience strategies matter

Uneven financial preparedness presents opportunities for insurers, fintech firms, and consumer finance providers. At the same time, geopolitical uncertainty demands that companies diversify supply chains and adapt to shifting consumer preferences across markets.

Takeaway

ASEAN’s consumer landscape in 2025 is one of contrasts: Vietnam shines as the most optimistic market, while Singapore and Thailand reflect subdued sentiment. For foreign investors, the message is clear. Vietnam offers opportunity anchored in stability and optimism, but no single market tells the whole story. Regional divergence demands tailored strategies – combining affordability, digital integration, and resilience planning – to succeed in Southeast Asia’s evolving consumer landscape.

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