Retail

Vietnam hits 8-year high in retail sales during Jan-May 2023: GSO

02 Jun '23

2 min read

Pic: Shutterstock/Sorbis

Insights

Retail sales of consumer goods and services in Vietnam reached an eight-year high in January-May 2023 at VND2.52 quadrillion, a YoY increase of 12.6 per cent.
May alone saw a sales surge of 11.5 per cent YoY.
Despite this, officials believe the 100-million-strong market is underutilised, proposing VAT reduction on some goods to boost consumption.

Retail sales of consumer goods and services in January-May 2023 have reached an eight-year high, as per the General Statistics Office (GSO). Total sales were estimated at VND2.52 quadrillion (around $107.2 billion), marking a year-on-year (YoY) rise of 12.6 per cent, the highest rate since 2015. The GSO has indicated that this figure represents a substantial 28.3 per cent increase from the same period in 2019, prior to the COVID-19 outbreak.

Particular growth has been seen in sales of various types of goods including garments and textiles. Significant boosts in retail sales revenue were seen in numerous localities, including Bac Ninh, Binh Dinh, Binh Duong, Thanh Hoa, and Hai Phong.

Retail sales of consumer goods and services for May alone amounted to VND519 trillion (roughly $22.09 billion), marking a 1.5 per cent rise from the preceding month and a YoY surge of 11.5 per cent, buoyed by the lengthy holidays at the start of the month, according to GSO data.

However, Nguyen Thuy Hien, deputy director of the department of planning and finance under the ministry of industry and trade, opined that the consumption potential of the vast 100-million-strong market remains underutilised. In response, the ministry has proposed a reduction in value-added tax on certain goods to stimulate consumption.

This measure will drive goods production, create jobs, increase the state budget, and contribute to the accomplishment of this year’s socio-economic development targets, local media reports said quoting Hien.

Furthermore, the ministry is set to focus on implementing programmes that promote domestic trade, notably through digital platforms and e-commerce, and provide support for local firms in establishing their trademarks.

Fibre2Fashion News Desk (NB)

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