Hanoians are often known for their love of luxury products while Saigonese are renowned for their extravagance.

Hanoians prefer luxuries more than Saigonese

Saigonese extravagance

Saigonese businessman Mr. Tuan, who now lives in Hanoi, said the difference in the way Hanoians and Saigonese spend can be seen in the difference in shopping centres and supermarkets in the two cities.

In HCM City, there are hundreds of large shopping malls, while Hanoi only boasts a dozen or so.

HCM City locals like shopping but care less about labels, Tuan emphasised.

Consumers in HCM City are regarded as ‘fast-consumers’ because they tend to buy things for their immediate needs rather than for showing-off.

Only a small group of Saigonese prioritise luxurious goods, yet many are willing to spend hundreds of million VND on shopping per year, he noted. Major shopping centres such as Parkson, Diamond Plaza and Zen Plaza are rarely quiet.

Saigoneses are adaptable to trends and easier to accept new products. They are not faithful to trademarks.

“Previously, I had a shop that sold clothes, shoes and cosmetics with prices of from VND500,000-VND1 million (USD24-USD48). Saigoneses prefer medium priced products than luxuries. They are fond of new and unique products,” said Mai, who has been in retail in HCM City for over a decade.

In addition to shopping, people in HCM City often spend on parties and eating. Mr. Cuong, a state official in HCM City, who comes from Hanoi, shared, “Hanoi has public bars and restaurants that can house hundreds of guests as maximum, but there are restaurants in HCM City that can house thousands of people.”

“While men in Hanoi often go out for some beer after work and then back home to have dinner with their families, men in HCM City often drink overnight,” he noted.

According to Cuong, people in HCM City eat out much more often than those who live in Hanoi.

In terms of tourism, Saigonese prefer to away every holiday.

In HCM City, middle-aged or older people are willing to spend hundreds of VND on the theatre while people of the same age in Hanoi tend to prioritise shopping, instead. This is because people in HCM City earn more than those who live in Hanoi, Cuong explained.

Hanoians spend less but prefer the luxuries

Consumers in Hanoi are renowned for their saving, so they are more hesitant to shop.

However, Hanoians are more interested in the luxuries than Saigonese.

High-end fashion trademarks have found Hanoi a lucrative market in the past five years.

Ms. Thu, the owner of a fashion shop in the Vincom shopping centre in Hanoi, explained that economic development has resulted in an increase in the number of well-to-do people in the capital city.

The presence of luxuries in Hanoi has led to the development of new businessmen. More and more people work for joint ventures or wholly foreign-invested companies. These groups of people often earn more than others, Thu noted.

People in the north in general and Hanoians in particular are often faithful to certain trademarks. They are not willing to try new products despite their good quality.

Famous trademarks win consumer confidence in Hanoi

Herd mentality

Hanoians have more of a herd mentality than Saigonese. When a new trademark wins consumer confidence in Hanoi, people will rush to buy the product.

People in Hanoi rushed to buy land in Ba Vi District two years ago, driving up land prices and fostered speculation based on the preliminary draft master plan for Hanoi’s future development.

In the meantime, currently land prices in many areas have decreased by 20-30% from a year previous, with few people daring to invest as they have yet to see others doing the same.

With high gold prices, people in Hanoi have spent huge amounts on the precious mental, but they also rushed to sell on falling prices, instead of carefully studying market trends.