Vietnam, August 21, 2023 – The retail sector in Vietnam is poised to maintain a robust growth rate of 8-9% throughout 2023, remaining resilient in the face of various challenges, according to a report by Vietnam News.
Mr. Tran Yu Dong, the Director-General of the Department of Domestic Market under the Ministry of Industry and Commerce of Vietnam, articulated that the primary objective for the year is to foster the dynamic expansion of the domestic market. This strategic focus aligns with the nation’s determination to bolster economic stability and promote local consumption.
PwC, a prominent global auditing and consulting firm, has underscored the escalating competition within Vietnam’s retail landscape. The market has witnessed an influx of new retailers, coupled with the expansion endeavors of existing players, both on the domestic and international fronts. Concurrently, consumers are displaying a more circumspect approach to spending, indicating a shift in their purchasing behavior.
In a recent report, PwC highlighted the price hikes witnessed in several product categories over the past 2-3 months. Essential commodities such as sugar, cooking oil, instant noodles, and eggs have experienced price surges, primarily attributed to elevated electricity and water expenses. Additionally, increased tuition fees, airfare, and costs related to seasonal tourism have collectively contributed to this price trend.
The Vietnam National Bureau of Statistics (GSO) disclosed that retail sales and services revenue in the initial seven months of the current year escalated by 10.4% year-on-year, surmounting a total of more than 3.5 trillion VND (equivalent to approximately 14.83 billion USD). This upswing in revenue highlights the resilience of Vietnam’s retail sector despite the multifaceted challenges it has encountered.
As Vietnam continues to navigate through economic fluctuations and external pressures, the nation’s retail industry stands as a testament to its enduring economic potential. With proactive strategies aimed at fostering domestic market growth and the resilience exhibited amidst adversities, Vietnam’s retail sector remains a key driver of the country’s economic vitality.