Boosting Domestic Demand: A Driver for Sustainable Economic Growth
- 111
- Business
- 17:23 16/04/2024
DNHN - In the context of globalisation and rapid economic transformation, boosting domestic demand has become a crucial factor in ensuring sustainable economic growth.
Domestic demand plays a pivotal role in creating a balance between supply and demand. By increasing domestic consumption and investment, the government can stimulate domestic demand, leading to increased production and job creation. This, in turn, reduces reliance on imports and creates a more stable business environment.
Specifically, stimulating domestic demand provides growth opportunities for domestic industries. By creating strong domestic demand, the government can foster the development of local industries, generate employment, and increase incomes for the population. This not only reduces dependence on imported goods but also facilitates technological innovation and advancement within the economy.
Moreover, stimulating domestic demand plays a significant role in enhancing local economic development. By increasing domestic consumption and investment, the government can encourage the growth of local economic zones, particularly rural areas and underdeveloped economic regions. This helps to reduce economic disparities between regions and creates a more equitable distribution of resources.
According to experts, stimulating domestic demand directly benefits the population. By creating jobs, increasing incomes, and improving living standards, domestic demand stimulation enhances people’s quality of life. Simultaneously, increased domestic consumption provides consumers with more choices and encourages product and service diversification. This leads to greater consumer satisfaction and positive experiences, while also driving the growth of domestic businesses.
Ms Nguyen Thi Kim Dung, Director of Ha Dong Co.op Mart supermarket, stated that to offer the best possible prices to consumers, the Co.op Mart supermarket system collaborates with over 1,000 business partners to organise promotional programs and product discounts. This enables customers to purchase essential items for their families and themselves while maximising savings.
Meanwhile, Mr Nguyen The Hiep, Deputy Director of the Hanoi Department of Industry and Trade, believes that during the current period of economic difficulty and reduced income, consumers are primarily focused on spending on essential goods. To sell products, manufacturing companies and distributors are forced to engage in price competition or offer various promotional programs, loyalty points, and other incentives.
Importantly, when an economy relies excessively on external factors such as exports or foreign investment, it becomes highly susceptible to risks arising from international market fluctuations or political instability. By boosting domestic demand, the economy can reduce its dependence on external factors and create a more solid foundation for growth.
Consequently, stimulating domestic demand helps create balance and sustainability within the economy. Rather than solely focusing on exports and foreign investment, increasing domestic consumption and investment fosters a more diversified and balanced business environment. This reduces financial volatility and ensures the economy’s stability over the long term.
Thus, stimulating domestic demand plays a crucial role in ensuring sustainable economic growth. Increasing domestic consumption and investment not only creates a balance in supply and demand but also encourages the development of local industries, enhances local economic development, and benefits the population. Additionally, domestic demand stimulation mitigates risks from external factors and promotes balance and sustainability within the economy.
Nghe Nhan
Related news
- Vietnamese brands reaching international markets
- Hòa Phát Group leaders receive major pay hike during steel market crisis
- Apartment prices continue to rise far beyond workers' incomes
- Ho Chi Minh City: Economic recovery, yet the number of businesses exiting the market remains high
- General Secretary and President Tô Lâm: "Although it is a small and medium-sized business community, it is very large..."
- Practical applications of carbon credits in the economy. Part XI: Bridging policy and strategy for the carbon credit market
- Vietnamese users pay special attention to security when using OTT applications
- Is the gold price stabilization policy truly effective?
- Yen Bai: Implementing the plan to manage and eliminate ozone-depleting substances and greenhouse gases
- FPT's strategic expansion in Japan
- Mastering Real Estate Business Law to be ready for the next growth cycle
- The Vietnam Association of Small and Medium Enterprises honors an audience with the General Secretary and President Tô Lâm
- Practical applications of carbon credits in the economy. Part XIX: Training human resources - A strategic and urgent task for the carbon credit market
- Dr. Tran Xuan Luong: Real estate businesses lacking resources will be eliminated from the game
- "Vietnam's startup ecosystem in 2024 remains on a path of promising development"
- Export-import credit is entering a “busy season”
- Tight control on foreign borrowing, businesses face more difficulties
- Why is credit growth showing signs of slowing down?
- Bank interest rates increase: Market situation and new trends
- Untying the knot of accessing investment capital for Vietnamese startups
Đọc thêm Business
Apartment prices continue to rise far beyond workers' incomes
Apartment prices continue to rise sharply, increasingly out of reach for workers' incomes. This gap not only creates significant financial pressure but also makes homeownership increasingly difficult for the majority of people.
The stock market faces increasing selling pressure, VN-Index sank into the red
The strong selling pressure across the market, especially in the blue-chip stocks, has caused the VN-Index to drop sharply, even falling below the 1,270-point mark at times.
VREC and HREC create opportunities for member businesses to connect with Nippon Paint Vietnam
Recently, at the headquarters of Nippon Paint Vietnam, the Vietnam Real Estate Club (VREC) and the Ho Chi Minh City Real Estate Club (HREC) successfully organized a networking event for member businesses.
Cash flow real estate: New investment trend in 2024
Cash flow real estate has become an investment trend in 2024 due to its stable profitability from leasing and business operations. Interest in this type of real estate demonstrates the demand for sustainable profits in an uncertain economic context.
Is the gold price stabilization policy truly effective?
Dr. Bùi Duy Tùng, an Economics lecturer at RMIT University, assesses the pros and cons of the gold price stabilization policies implemented by the State Bank of Vietnam (SBV) in recent times.
Why is there a need for a development proposal in the field of cultural industries?
In the context of globalization and the booming creative economy, cultural industries are increasingly important in national development strategies. Vietnam needs a development proposal in this field to tap into its potential.
Mastering Real Estate Business Law to be ready for the next growth cycle
In the context of the changing real estate market alongside new legal regulations, understanding the Real Estate Business Law is a crucial factor for businesses and investors to seize opportunities and prepare well for the new cycle.
The impact of FDI on the growth of serviced apartments
Foreign direct investment (FDI) stimulates the growth of serviced apartments by increasing demand from international experts. FDI drives market expansion, particularly in rapidly developing areas.
"Vietnam's startup ecosystem in 2024 remains on a path of promising development"
This is also the assessment of Dr. Chu Duc Hoang, Chief of Office of the National Technology Innovation Fund, when evaluating the overall picture of Vietnamese startups from the beginning of 2024.
Export-import credit is entering a “busy season”
Export-import credit is entering a bustling season, with increased activities to support businesses in expanding their international markets. Banks and financial institutions are ramping up funding, meeting the growing demand in global trade.