Thanh Huyen, who works as a marketing manager in Hanoi, has no plans to buy new clothes or spend on a hair makeover this year for the Lunar New Year (Tet), since his real estate brokerage company announced that there would be no 13th month salary or bonus unlike in previous years.
“I’m waiting for discounts for shopping online before Tet. It is now important to reduce expenses. »
Son, the owner of a small, struggling tourism business in Hanoi, will not spend this year to decorate the business with a peach tree due to a lack of cash.
“We will also reduce spending on holiday gifts.”
A November survey of internet users by popular web browser Coc Coc found that 46% and 43% said they would spend less in the next 12 months on out-of-home entertainment and dining out.
Another survey by market research firm Kantar Vietnam found that 28% of households experienced financial difficulties last year, an increase of 7 percentage points compared to the post-Covid period.
Flower grower Thuan, on the outskirts of Hanoi, has reduced production this year and planted only two sections of its farm instead of the usual six, as it expects demand to fall.
Vietnamese people generally buy flowers before Tetwhich falls at the beginning of February this year.
“I’m only hoping for a small profit this year.”
In the central province of Khanh Hoa, known for flower cultivation, production of a popular flower was reduced by 11 percent, to 40,000 pots.
In the food industry, a third of all companies have seen revenue decline since 2022, according to research firm Vietnam Report.
Nearly 42% also saw their profits decline, the press release added.
Businesses are doing everything they can to survive.
The owner of a Western cuisine restaurant in Hanoi’s Ha Dong district moved to a new, smaller location last week for half the old rent.
Retailers such as MM Market, Saigon Co.op and Aeon and e-commerce platforms Shopee and Lazada are also offering deep discounts in hopes of attracting customers.
