Domestic market fosters economic growth amid pandemic
Domestic market fosters economic growth amid pandemic
In the context of Covid-19 complications, the domestic market became a driving force of economic growth in 2021.
Tapping potential
The Jean Viet Thang Company Limited (VitaJean) used to export most of its products, but in recent years, it has paid greater attention to boosting domestic sales.
“I think the domestic market with nearly 100 million consumers is a potential market for fashion product manufacturers like VitaJean. We had in mind a plan to exploit this market five years ago,” said Pham Van Viet, Chair of the Board at VitaJean.
Domestic companies have paid greater attention to promoting sales in the home market |
VitaJean has made a timely shift to promoting domestic sales in the context of Covid-19, which disrupted supply chains and hindered exports. Economist Dr. Vo Tri Thanh said that in recent years, domestic consumption accounted for 70-75 percent of Vietnam’s gross domestic product (GDP), reflecting the important role of the domestic market in the Vietnamese economy. Even amid the pandemic when the economy faced numerous difficulties and people’s incomes decreased, there was consumer demand for not only essential goods but also services and tourism.
In October 2021, as soon as the long nationwide social distancing period ended, total retail sales of goods and revenue from consumer services grew 18.1 percent compared with September. In November, the index grew 6.2 percent compared with October. These increases reflect the great potential of the domestic market.
In order to facilitate the circulation of goods nationwide, according to Le Viet Nga, Deputy Director of the Domestic Market Department of the Ministry of Industry and Trade (MoIT), the ministry has maintained linkages between manufacturers and distributors, between businesses and relevant organizations, as well as coordination among state management agencies.
Market days were organized on a regular basis for sale of goods even in areas that were hardest-hit by the pandemic. Supply chains were maintained even during the most complicated pandemic period. As soon as the pandemic was controlled, sales in the domestic market increased, contributing significantly to the growth of the economy.
“During the peak time of the pandemic, Ho Chi Minh City and 18 southern provinces and cities ensured a sufficient supply of goods for consumers. This reflected the internal strength of the manufacturing sector,” Le Viet Nga said.
Ensuring a sufficient supply of goods in the context of the complicated pandemic |
Winning over local consumers
The domestic market is predicted to recover strongly in 2022 as the Covid-19 pandemic becomes controllable. Pham Van Viet said that to strengthen its position in the domestic market, VitaJean is determined to build an exclusive brand of products specifically designed for Vietnamese people, while at the same time investing in technology to improve quality.
Le Viet Nga said that in 2022, the MoIT will continue intensifying implementation of the Buy Vietnamese Goods campaign to prepare for the competition with foreign products when 17 free trade agreements take effect.
“The government is taking measures to stimulate domestic consumption. Businesses should accelerate digital transformation and technological innovation to better serve customers. Vietnamese goods must win the trust of Vietnamese consumers,” Dr. Vo Tri Thanh emphasized.
