Most countries around the world face a downturn during covid19 pandemic. However, Vietnam shows economic resilience in the midst of covid19 pandemic. Vietnam consumer finance is relatively stable since most citizens support domestic consumption that increases the economic growth in this country.
Apparently, the role of government in determining successful strategy to maintain the economy’s well-being by supporting the dynamic Vietnam consumer behavior. The collaboration between the government and all parties will effectively keep the country’s economy stable.
Factors Enhancing Country’s Economy
Actually, Vietnam relies on two factors to grow the country’s economy. They are domestic consumption and manufacturing sector’s exports. When the covid19 outbreak rises, the demand of global export certainly decreases. It makes the gross national income a bit.
Fortunately, their domestic consumption still helps the country to maintain its economy. In addition, the consumer behavior in this country has supportive composition and characteristics to keep the country’s economy secure.
The companies must recognize the consumer characteristics and their urgent needs, so they can provide products or services that meet consumer’s preference. Another thing that enhances domestic consumption during the pandemic is the discounts or promotion in online shopping.
The Growth of Vietnam Consumer Finance
During covid19 pandemic, the GDP (Gross domestic product) rate in Vietnam shows a steady growth. In 2020, Vietnam’s GDP rate reached 1.8%, whereas its neighboring countries experienced crisis and deficits. It indicates that the economic resilience in this country is excellent.
One of the factors that enhance this economic growth in the midst of the pandemic situation is the unique condition in Vietnam. Several companies have apparently relocated their manufacturing operations from China to Vietnam. It helps Vietnam survive financially when covid19 pandemic rises.
The covid19 pandemic indeed brings impact in all aspects including consumer behavior. In this situation, the consumer behavior in Vietnam has changed. Most consumers want the digital transformation for all aspects to ease them fulfilling their daily needs.
It becomes a challenge for companies to transform digitally for the sake of their customers. Of course, without adapting to the digitalization era, the companies will not survive. With digital transformation, the companies serve the market’s needs better.
Consumer behavior in Vietnam shows significant interest toward online shopping and e-commerce. This applies for all product categories. It leads most companies to change their strategy in selling products and services via online channels.
Vietnamese believe that the government or the country can recover from the pandemic soon. Of course, the country has the solutions to handle any problems regarding the country’s economy. The government provides several fiscal and monetary relaxation for vulnerable citizens and some businesses.
This kind of support from the government effectively maintains domestic consumption. After the country reopens, the Vietnamese consumers can visit the physical stores directly to fulfill their daily needs. On the other hand, the sales of leisure products and fashion still increases drastically.
It means the companies should maintain their businesses online and offline. By doing so, the companies will maximize their service and gain more profits. When the citizens finally get vaccinated, most of them prefer to shop conventionally. The speed recovery from covid19 pandemic requires collaboration between government and citizens. They have to support each other to keep the country’s economy in good condition. With this, Vietnam consumer finance is stable.