Boosting Domestic Demand: A Driver for Sustainable Economic Growth

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