Retail therapy

This is a country that knows how to have a good time. Vietnam has a consumer confidence index of 117, 16 points below India's and over 60 per cent of consumers there think it is a bad idea to shop.

But clearly, the Vietnamese don't believe in putting their money where their mouths are: they lead the Apac region "" and are among the top two across the world "" in spending money.

Whether it is holidays, new clothes, new technology or out of home entertainment, everybody else takes their places after the Vietnamese.

Vietnam continues to be the most charged up about new technology, with 57 per cent of consumers there saying they would spend their money on new gizmos.

They are equally enthusiastic about updating their wardrobes: 54 per cent prefer spending on new clothes. Not surprisingly, a night out on the town is an important option as well (47 per cent), as are holidays (53 per cent).

India "" and indeed, the rest of the Apac region "" could learn a thing or two from Vietnam. Like last time, the country isn't among the top 10 spenders in any category (although it figures on the lists of those investing in shares and mutual funds, and retirement funds).

Indian consumers are financially conservative, with over 54 per cent leaving their money in savings accounts, 28 per cent choosing to pay off debts and loans, and 51 per cent playing the markets.

And those aren't the highest figures for Apac "" Indonesia's 65 per cent for the bank account option, the 58 per cent in Hong Kong who chose the stockmarkets and New Zealand's 48 per cent who prefer to be debt-free are No.1 across Apac in those options.

Not that Indians aren't spending any money on "fun" options. New clothes is now a priority with 34 per cent (two points more than the last round); 28 per cent chose to go clubbing, compared to 25 per cent last time; and new technology tempts 29 per cent (no change from April 2007).

But interest in home decoration continues to wane "" it is down another two points to 30 per cent "" and fewer Indians are heading for short breaks and getaways (33 per cent, compared to 39 per cent in the last round).

The rest of the world isn't too different from Apac. About a third choose to spend their spare cash on holidays, 31 per cent on new wardrobes and 28 per cent on clubbing. The top spenders in these categories? Norway for holidays (54 per cent), Russia for clothes (68 per cent) and Brazil for out-of-home entertainment (52 per cent).

Perhaps there's a lesson there: Brazil saw the highest jump in its consumer confidence index, adding 13 points to level its score with Russia's 103. And Norway overtook India to become the most optimistic nation in the world. Looks like when the going gets tough, the tough should go shopping.