Vietnam consumers hold back spending despite 8% GDP growth

Rising living costs and global uncertainties are influencing how they spend.

Vietnam’s strong economic growth last year has not translated into robust consumer spending, according to Long Le, head of retail at NielsenIQ Vietnam.

Speaking at the Retail Asia Summit Vietnam -2026, Le said that retail consumption in the country remains subdued despite achieving an 8% GDP growth, with consumers increasingly cautious about their purchases.

He pointed to specific segments where demand is slowing. “If you look at the tech and durables, unit growth is actually declining at 8.5% and if you look at the exchange of good like FMCG, the volume growth is declining at 1.1%.”

“They got the money, but they do not want to spend it," Le said. "From our consumer sentiment survey last year, 63% said that they will be cautious and refrain from increasing spending, an increase of 6% versus last year.”

Rising living costs and global uncertainties are influencing spending habits. “They worry about food and grocery costs, they worry about economic slowdown, health and medical costs, gas and fuel and with the reason happening in the world, the conflict with Iran and US, I think this kind of worry will be increasing,” Le noted.

He noted that many Vietnamese are saving for major purchases such as houses, motorbikes, or gold, rather than spending freely.
Despite short-term caution, Le emphasized the long-term potential of the Vietnamese retail market.

“Fundamentally, Vietnam's retail market is very, still very potential, at least in the next 10 years, because of the urbanisation rate, because of rising disposable income, and because the modern trade retail still has a huge space for growth.”

Le pointed out that whilst traditional trade still dominates—accounting for 81% of retail activity—its growth has slowed to just 1%, whilst modern trade channels like supermarkets, mini-marts, and convenience stores continue to expand.

Online retail is also growing rapidly, with overall online sales increasing by 20% and mom & baby products growing 10% annually.

For retailers, the challenge lies in capturing consumers’ attention and adapting to their evolving behaviors. Le outlined three priorities, namely providing a compelling reason to shop, staying agile to respond to shifting demand, and leveraging data and AI to gain market insights.

“Observing or guessing may no longer work, he said. “You need to digitalise the customer behavior and leverage the AI power to generate the market insight and with the activation plan to capture the customers.”

Le also said that retailers must consider changing consumer preferences. “The consumer in Vietnam right now, they no longer purely seek cheap prices. They are seeking values, not cheap prices [and] you need to adapt to it.”

He pointed to a shift away from emotional or impulse purchases. “They become more disciplined in shopping. Their [tendency] to stop buying certain products increased from 17% in 2024 to 35% in 2025,” Le said.

Retailers cannot rely solely on population size to predict sales as meaningful data can uncover hidden opportunities, Le noted.

He cited examples where a small proportion of stores accounted for a disproportionate share of sales, citing the need to target investments carefully and optimise returns.

“Vietnam is facing certain headwinds in the short term, but I encourage you to believe in the long-term growth of this market. It is very potential,” he said.