Domestic trade could boost GDP growth: experts

Domestic trade could boost GDP growth: experts

Experts stressed the importance of comprehensive solutions, including industry-wide collaboration. Rather than isolated competition, sectors such as tourism and trade should work together to drive broader economic expansion.

Shoppers at a supermarket in Thanh Xuân District, Hà Nội. VNA/VNS Photo

Domestic trade serves as a crucial pillar supporting economic growth, and industry experts say strengthening this sector is essential to achieving the government’s target of at least 8 per cent GDP growth in 2025.

In the first two months of 2025, total domestic retail sales of goods and services reached an estimated VNĐ1.1375 quadrillion, marking a 9.4 per cent increase year-on-year (compared to 8.4 per cent in 2024).

Retail sales alone accounted for VNĐ 878.4 trillion, comprising 77.2 per cent of total revenue and reflecting an 8.7 per cent annual increase.

The CEO of Saigon Co.op, Nguyễn Anh Đức, said that there's a strong correlation between national GDP growth and retail performance, emphasising the need for long-term strategies to support manufacturers and distributors.

To enhance domestic consumption, Đức stressed the importance of comprehensive solutions, including industry-wide collaboration. Rather than isolated competition, sectors such as tourism and trade should work together to drive broader economic expansion, he said.

Achieving the government’s target of 12 per cent growth in retail and consumer services by 2025 requires prioritising supply chain efficiency. Đức pointed to e-commerce as a key growth driver, with Việt Nam's online retail market surpassing US$25 billion in 2024—an annual increase of 20 per cent, accounting for nine per cent of total consumer goods sales. Maintaining this 20 per cent growth trajectory over the next five years is crucial for sustaining double-digit GDP expansion.

Economist Vũ Vinh Phú stressed the need for supportive policies, including demand stimulus, tourism development, and most critically, increased household incomes through investment and export-driven growth.

Phú also called for targeted financial assistance to help unemployed workers transition into new roles through vocational training and business start-up support. Enhancing the investment climate for small and medium-sized enterprises will further contribute to economic resilience.

The Deputy Director of the Hà Nội Department of Industry and Trade, Nguyễn Kiều Oanh, outlined the city’s efforts to develop a modern, efficient service sector, while ensuring high-quality basic services. Key initiatives include easing business constraints, accelerating commercial infrastructure projects, and promoting the integration of traditional and digital commerce.

The Vice President of the Vietnam Retailers Association, Trần Thị Phương Lan, said that in addition to policy support, industry players must embrace digital transformation to strengthen supply chain connectivity, enhance customer experience and expand multi-channel retail models.

Government efforts should also focus on modernising commercial infrastructure and accelerating digital transformation. By promoting multi-channel retailing and supporting small businesses in digital adoption, policymakers aim to increase market accessibility. Shopping malls, supermarkets and convenience store chains are set to play a larger role in shaping the country's retail landscape.

Furthermore, aligning production, distribution and consumer behaviour with green practices will foster long-term sustainable growth. Strengthening consumer trust in local products is essential for boosting spending and achieving the targeted 12 per cent growth rate in 2025.

Bizhub