Vietnam looks for ways to spark domestic consumer demand

According to the Ministry of Industry and Trade (MoIT), recovery of domestic consumption and production, along with the strong growth of tourism, has positively contributed to the growth of the trade and service sector since the beginning of the year.

The ministry said the total retail sales of goods and services in August was estimated at VND526.6 trillion (US$21.35 billion), an increase of 7.9% year-on-year. Among them, food and foodstuff rose by 8.2%; household appliances, tools, and equipment up 6.5%; garments-textiles up 8.2%; accommodation and catering services up 9.7%; and travel services up 7.1%.

In the first eight months, the combined value went up 8.5% compared to the same period last year, with lodging and catering services up by 14.3%, and travel services up 26.2%.

In the rest of the year, due to the impact of Typhoon Yagi, which affected a large area of crops and livestock, the domestic goods market is expected to face price pressures.

Economist Vu Vinh Phu pointed to the uneven infrastructure development in regions, and the inadequate attention to traditional markets which are facing fierce competition with modern forms such as online shopping, supermarkets, and convenience stores.

Moreover, the domestic market sees a lack of strong connections between parties in the supply chain, especially for fresh and essential food, he said, adding that smuggling, trade fraud, and counterfeit goods in the domestic market, particularly in e-commerce, remain complex, affecting the rights and interests of consumers and businesses, he added.

The MoIT on August 27 proposed the Prime Minister issue Directive No. 29/CT-TTg on stimulating consumer demand, supporting production and business, and developing the domestic market.

Accordingly, the PM asked ministers, heads of ministerial-level and government agencies, the chairpersons of the People's Committees of cities and provinces, industry associations, and businesses to focus on implementing major tasks to remove obstacles to production and business, stimulate consumer demand, and promote the development of the domestic market.

These efforts aim to spur growth, maintain macroeconomic stability, control inflation, and ensure major economic balances.

The ministry on September 14 also issued an urgent dispatch on strengthening the supply of essential goods to residents in the areas affected by Typhoon Yagi.

From now until the end of the year, it will roll out a number of trade promotion programmes, especially those for the year-end occasion.Localities, including Hanoi and Ho Chi Minh City, are also working hard to foster trade promotion and stimulate consumer demand.