Expectations about the recovery of Vietnam's retail market in the future

DNHN - According to the Ministry of Industry and Trade, the total retail sales of consumer goods and services on the domestic market in the first five months of 2023 are estimated to be 2,527 trillion VND, leading to the expectation that the domestic market

According to the Ministry of Industry and Trade, the total retail sales of consumer goods and services on the domestic market for the first five months of 2023 are estimated at 2,527 trillion VND, a 12.6% increase over the same period last year and the highest growth rate for the same period since 2015 onwards.

Specifically, it was estimated that retail sales of goods reached 1,993,6 trillion VND, an increase of 10.7% over the same period last year (excluding the price factor, which increased by 6.0%). Which food and food products increased by 14.6%; clothing by 11.1%; household appliances, tools, and equipment by 4.8%; means of transport (other than automobiles) by 4.2%; and cultural and educational products by 1.9%.

By province, retail sales of goods in the first five months of 2023 increased significantly compared to the same period in the previous year, as follows: Bac Ninh, 19.6%; Binh Dinh, 14.8%; Binh Duong, 13.8%; Thanh Hoa, 12.1%; Hai Phong, 10.6%; Quang Ninh, 9.9%; Can Tho, 9.8%; Dong Nai, 8.7%; Hanoi, 7.9%; Da Nang, 6.2%; Ho Chi Minh City, 6.2%.

During the warm season, the demand for cooling household items increases, as does the consumption of electricity and domestic water. In addition, the 3% increase in the price of electricity that will take effect on May 4, 2023, may affect the prices of products that rely heavily on electricity for production, such as steel, cement, and paper.

In contrast, food, food products, and vegetable prices, in general,t ended to be stable in May due to abundant supply. Due to increased demand, the prices of pork and sugar tend to rise slightly. Due to the influence of global prices, fuel, and energy commodity prices fluctuate frequently.

On the domestic market, "buying power recovers slowly, and production will remain challenging due to a lack of orders. There will be delays in the implementation of credit-, interest-, tax-, and debt-restructuring policies favorable to businesses, but they will eventually be implemented. The slow recovery of the real estate market and low investment capital disbursement will have an impact on the consumption of several related manufacturing industries. - Ministry of Industry and Trade evaluation.

However, the Ministry of Industry and Trade stated that there are still positive signs for the future. Specifically, several major economic regions, such as China and the United States, grew faster than anticipated, while several emerging economies in Asia, such as India and ASEAN, grew positively in recent years, as did inflation in European nations. May has fallen...

The government's policies to stimulate public investment and support businesses have been effective in restoring production activities; The Prime Minister has directed ministries, branches, localities, etc. to implement tasks and solutions to remove obstacles to production and business for individuals and companies.

Simultaneously, the index of industrial production tends to rise gradually over time; the import of raw materials and auxiliary materials exhibits signs of growth... These factors indicate that the production, import, and export situation will improve shortly.

Ngoc Phi (TH)