During the latter part of 2024, the expansion of the new retail sector will completely recommence.

DNHN - As per authoritative predictions, the year-end shopping season is anticipated to exert a substantial influence on consumer demand, thereby facilitating retail enterprises in restoring their financial standing and rekindling their growth trajectory.

The retail industry is encountering significant obstacles, particularly between the fourth quarter of 2022 and mid-2023, as a result of the deceleration in macroeconomic expansion. Retail enterprises are currently facing significant challenges stemming from sluggish demand, which is exacerbated by declining consumer income, a challenging export environment, and stagnant production and business operations. The burden is further compounded by the elevated interest rate environment and the stringent credit policies enforced by consumer finance companies.

As reported by the General Statistics Office, the aggregate revenue from retail sales of goods and consumer services for the initial ten months of 2023 amounted to VND 5,105,400 billion, reflecting a growth of 9.4% compared to the corresponding period in 2022 (and 20.8% compared to the aforementioned period in 2022). Nevertheless, growth declines to 6.9% when the price factor is disregarded, in contrast to 16.7% during the corresponding period in 2022. Concurrently, retail competition is intensifying, which presents significant obstacles to profit margins.

According to a report by Vietnam Report, significant obstacles continue to include weak purchasing power and adverse consequences stemming from the sluggish recovery of the economy. Additionally, inflation, interest rates, and excessive inventories during the final months of the year cause concern for businesses.

Positive signs do exist, nonetheless. Anticipated reductions in pressure stemming from interest expenses and substantial inventories are a result of macroeconomic stimulus measures and anticipated enhancements. Mr. Vu Dang Vinh, general director of Vietnam Report, emphasized that aid policies from the government are assisting retail enterprises in fortifying their resolve and surmounting obstacles.

Using a reduction in interest rates imposed by the State Bank, retail establishments can alleviate debt pressure and reestablish consumer credit. Demand will also increase as a result of the policy reducing value-added tax from 10% to 8% and increasing the base salary; this will have a direct impact on the anticipated sales of businesses.

Specifically, a marginal decline in the consumer price index within the United States, which serves as the largest export market for Vietnam, can alleviate consumer pressure and generate prospects for fresh orders, thereby contributing to the mitigation of inflationary apprehensions. as well as a recessionary economy.

It is anticipated that the year-end shopping season will significantly stimulate consumer demand, thereby assisting retail enterprises in enhancing their financial position and reigniting their growth trajectory. In addition, the impetus provided by support policies serves as a significant asset in assisting retail enterprises to surmount challenging circumstances.

P.V (t/h)