Domestic trade outlook optimistic
Domestic trade outlook optimistic
Domestic trade is expected to continue rising this year, experts forecast.
Total retail and services are predicted to hit VND3.9 trillion (US$168.7 million), up more than 10 per cent annually and meeting the set 2017 target.
Recently, domestic trade has enjoyed a high growth rate, including strong increase of total retail sale and services revenue. Moreover, commodity prices did not fluctuate much, while abundant supply has boosted retail and service growth. This mix shows the growth in production as well as good macroeconomic policies and efforts from each business.
Hoang Anh Tuan, deputy head of the Ministry of Industry and Trade (MoIT)’s Domestic Market Department, said total retail sales and services revenue hiked 10.16 per cent to VND1.9 trillion ($83.65 million) in the first half of this year. The department reported exclusive of inflation, total retail sales and services revenue increased about 8.4 per cent, higher than 4.8-7.6 per cent from 2011-16, showing that purchasing power is recovering.
Trade experts said that since January, the domestic market has generally remained stable. In addition, advantages in agricultural production and the market stabilisation programmes have helped keep prices from fluctuation in many areas.
Phan Thi Dieu Ha, deputy head of MoIT’s Import and Export Department, said export goods have also contributed to domestic goods consumption in the first half of this year.
Export value gained a year-on-year surge of 18.9 per cent, a high growth rate that shows Viet Nam’s efforts in opening up the market and improving the quality of export products.
Domestic enterprises have upped production, diversified products and improved quality.
However, to advertise brands, find agents for distribution system expansion and increase competitiveness for Vietnamese products, Pham Thiet Hoa, director of HCM City Investment and Trade Promotion Centre (ITPC), said more fairs and exhibitions should be opened to connect businesses with consumers and strengthen co-operation among the provinces and cities in the nation.
Tran Quang Minh, representative of the Dien Quang Lamp Joint Stock Company, said his company has had a large distributor in Ben Tre Province. Its products are available in electronic product retail shops in the province. Manufacturers and distributors have considered co-operation among them as efficient solution to promote domestic consumption.
To boost consumption of Vietnamese goods on the domestic market, Nguyen Anh Duc, deputy general director of the Saigon Co-operative Trade Union (Saigon Co.op), said his chain of supermarket, Co.op Mart, has sought ways to increase volume of Vietnamese goods that the supermarket are buying from local producers.
Instead of focusing on overseas market development, many Vietnamese footwear enterprises have actively developed the domestic market that has great potential in footwear consumption.
The ministry’s Light Industry Department said that the average demand on the domestic market has reached about 150 million pairs of shoes per year. However, domestic production has only met 40 per cent of demand. Therefore, many manufacturers are forming sustainable development plan for the domestic market.
According to the Viet Nam Leather and Footwear Association, they have had equipment and technology innovation and built new large-scale plants to increase the footwear industry’s production capacity. Most enterprises have applied the management system ISO 9000, ISO 14000, SA 8000 for production and business.
Meanwhile, the MoIT will embark on 71 projects and a domestic market development scheme in combination with the campaign “Vietnamese people prioritise Vietnamese goods” for 2014-20. It will also promote domestic trade, particularly during the New Year holidays and the year’s end, refine trade and distribution infrastructure, and develop supply chains with a focus on farm produce.
