Vietnamese consumers are struggling, and the economy is struggling as well.
Rising
fuel prices have pushed up the price levels of a wide range of goods and services, while incomes for most households have not increased, and in some cases have fallen, making it difficult for many families to balance income and expenditure.
Photo: N.K
Ms. Hoa, owner of a small coffee shop, says the costs of ingredients—from sugar, milk, coffee, ice—to plastic cups and straws are rising, forcing her to raise the price of her coffee a little.
From 15,000 VND for a black iced coffee, it has risen to 19,000 VND. Fortunately, the thing she fears most—losing customers—has not happened yet. However, she does not know how long this relief will last, because her customers—the working poor—are also increasingly struggling in the face of price volatility.
Ms. Mai, an office manager at a company, although earning a decent income, is also having to find ways to change her daily spending habits. Previously at her desk there was always a cup of coffee and a few pastries—this used to be her daily expense of 50,000-70,000 VND, but now that habit has dropped to two to три times a week, because the family’s essential needs, from fuel and gas to food, have risen significantly, and the prices of coffee and snacks have changed.
Ms. Hoa and Ms. Mai are among many people who are feeling the most visible changes in prices these days. Their story is not isolated; it reflects a broader trend among households as markets swing and the beverage sector is only one example.
A study by iPOS—an platform providing management solutions for more than 100,000 restaurant and cafe businesses—in collaboration with Nestlé Professional, shows that Vietnam’s beverage sector revenue in 2025 grew by only 6.1%, far slower than the 20.5% rise in 2023 and 13.4% in 2024.
Citing iPOS, the frequency of consuming beverages outside (purchasing at cafes) in Vietnam’s two largest consumer markets, Ho Chi Minh City and Hanoi, has fallen quite sharply. Specifically, the daily consumption of coffee and bubble tea has declined from 18.2% to 13.6%.
The group that uses beverages 3-4 times per week has also fallen to 31.59%. This trend of cutting back persists even as 48% of sellers do not dare raise prices for fear of losing customers, showing that people are cutting back on non-essential purchases to offset price volatility for essential needs, and that consumer defensive mindset against rising prices is spreading.
For hundreds of thousands of delivery workers or those using ride-hailing services, the cost pressures may be even heavier, because when ride-hailing or delivery companies decide to keep prices stable—despite soaring fuel costs—to ease customers’ cost burdens, that burden is shifted onto the daily earners who rely on rides.
According to the Statistics Office, the consumer price index in March 2026 rose to 4.65%, the highest March reading in five years, mainly due to fluctuations in fuel prices and construction materials.
This inflation trend may not have ended even as world oil prices have begun to ease, because history shows that once service prices have risen it’s hard to revert to prior levels, and the impact of fuel costs and input materials on prices across goods and services often lags. Not to mention the pressure of wage costs, social insurance, and union fees on enterprises when the minimum wage increases.
The consumer price index for goods and services (inflation) has risen, directly affecting purchasing power. The Statistics Office reports that total retail sales of goods and services in the first three months of 2026 rose by 10.9%, higher than the 9.9% in the same period of 2025, but excluding price effects leaves a 7% increase, lower than the 7.5% in 2025.
These numbers indicate that domestic demand in reality has weakened and that result is closely linked to household incomes. The Statistics Office’s survey on household income in Q1 2026 shows that only 31.8% of households had higher income than the same period last year, meaning more than 68% did not see increases or saw declines. This is a figure deserving attention.
Vietnam is pursuing two-digit growth in the 2026-2030 period and in subsequent years. To achieve this, domestic purchasing power plays a decisive role.
If household incomes remain as tepid as they are now while prices for essential goods and services keep rising, achieving high growth will be an extremely difficult task.
Thu Nguyen
TBKTSG
