Retail revenue likely up 3-4 percent by year-end

Customers at a Homefarm store. (Photo courtesy of Homefarm)

Thanks to an expected upturn in retail demand between now and the end of the year, the total revenue for 2021 is expected to have grown by 3-4 percent, as compared to the previous year.

The forecast was delivered by the Ministry of Industry and Trade (MoIT). However, growth is expected to be lower than the target of eight percent set earlier by the industry.

According to MoIT’s Domestic Market Department, retail of goods has seen positive growth over the first 10 months of 2021, thanks to the recent resumption of trading. Travelling and circulation of goods have also become easier.

As well as winter apparel, the demand for household appliances and stationery has also increased after the social distancing period, pushing up the October retail of goods and service revenues by 18.5 percent month-on-month.

On the structure of retail of goods and service revenues so far in 2021, retail sales accounted for the largest share with 82.8 percent, accommodation and catering services had 8.3 percent; tourism just 0.1 percent and other services accounted for 8.8 percent.

To further boost domestic consumption in the remaining months of this year, the MoIT said it would concentrate on addressing concerns in business and production activities, especially those of major enterprises in industrial parks or economic zones.

“The aim is to ensure a speedy resumption of economic activities and keeping value chains intact, especially at a time when demands for goods and products would rise during the year-end period,” the ministry said.

Meanwhile, the MoIT will closely monitor the demand-supply balance and market prices of goods to intervene if necessary, along with effective distribution of goods across localities, including the pandemic epicentres, to ensure the smooth movements of goods.

In line with these efforts, the ministry will supervise the market during the year-end period to address trade fraud activities and ensure a healthy development environment for Vietnamese products.

The MoIT also plans to reopen in phases wholesale markets, supermarkets, convenience stores on the condition of complying with anti-COVID-19 measures to boost production and consumption, while trade promotion activities are expected to shift to online platforms to boost sales in late 2021 and early 2022.

“A series of promotion programmes will kickstart in the year-end shopping period, ahead of the new year festivals", MoIT added.

Meanwhile, supply-and-demand connectivity and trade promotion activities will continue at home, make full use of e-commerce to launch the domestic market development strategy and project till 2030, with a vision to 2045./.