Boosting Domestic Demand: A Driver for Sustainable Economic Growth
- 114
- 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
- VITA VINA: Where dreams of vocational study abroad take flight
- Green Power and Green Carbon Group sign cooperation agreement for development
- Vinpearl, Hoa Sen Group, Bim Group, and Thành Thành Công – Biên Hòa are the most favored employers
- “Imposing high taxes on short-term real estate purchases reduces market liquidity”
- The policies shaping the future of the United States
- Proposal to provide financial support for troubled BOT traffic projects
- Vietnam promotes a strategy to penetrate the Middle Eastern Halal market
- Request to thoroughly resolve real estate issues and avoid "criminalization"
- Increasing taxes on pick-up trucks: The need to hear public opinion
- Why are Vietnamese startups not focusing on the domestic market?
- QuickPack Group (Germany) invests Eur30 million in Dong Tam Group'S Southeast ASIA Long An Industrial Park in Long An (Vietnam)
- "The Vietnam-Korea Investment Cooperation Forum 2024 is a testament to the spirit of innovation and sustainable collaboration."
- KBIZ's 60-year journey in building a solid foundation for South Korea's small and medium enterprise community
- Gold peaks, stocks languish: Experts identify opportunities for investors
- What categories are included in the additional audit subjects?
- General Secretary Tô Lâm sounded the alarm on preventing and combating waste
- The potential of the blockchain and cryptocurrency
- Electricity price hike and the long-term energy dilemma
- Institutional obstacles "tie up" enterprises and challenge economic growth
- Vietnam stands poised to seize opportunities in the semiconductor industry
Đọc thêm Business
Green Power and Green Carbon Group sign cooperation agreement for development
On January 2, 2025, the collaboration between Vietnam-based Global Green Power and Green Carbon Group marks a testament to continuous efforts in promoting sustainable development through the application of green technology.
Korean businesses wants to import agricultural and seafood products from Ca Mau
Korean businesses have expressed a desire to import agricultural and seafood products from Vietnam, while also researching and developing cosmetics and pharmaceuticals from the unique ingredients of Ca Mau.
An Giang rolls out the red carpet to attract investors with 60 promising projects.
The conference introducing the potential and unique products of An Giang province in Ho Chi Minh City is not just a simple investment promotion event, but also a bridge connecting businesses and investors with a land full of development potential.
Vietnam promotes a strategy to penetrate the Middle Eastern Halal market
Vietnam is boosting its Halal exports by leveraging its agricultural strengths and upgrading its certification system to meet the growing global demand, particularly in Middle Eastern markets.
Banks inject capital to support export businesses accelerating at the end of 2024
At the end of 2024, export businesses are ramping up production, increasing orders, and receiving preferential credit support from banks to maintain sustainable growth.
Why are Vietnamese startups not focusing on the domestic market?
The reality of Vietnamese startups overlooking the domestic market is one of the notable issues in the current context of socio-economic development.
QuickPack Group (Germany) invests Eur30 million in Dong Tam Group'S Southeast ASIA Long An Industrial Park in Long An (Vietnam)
On November 18, 2024, in Cologne, Germany, Dong Tam Group (Vietnam) officially signed a Memorandum of Understanding (MOU) for an investment cooperation with QuickPack Group (Germany).
International trade connection program in Ca Mau 2024
The program aims to promote trade and enhance the image of Ca Mau province to international partners, while also fostering economic cooperation and the development of high-tech agriculture in the region.
Gold peaks, stocks languish: Experts identify opportunities for investors
Gold prices have peaked due to political and monetary factors, but face the risk of adjustment. Stocks remain difficult to recover due to weak liquidity and ongoing foreign net sales.
General Secretary Tô Lâm sounded the alarm on preventing and combating waste
General Secretary Tô Lâm has addressed visible waste and identified invisible forms of waste, delivering a powerful message with profound awakening implications...