Retail market back to growth

The domestic retail market has bounced back and resumed growth momentum after being hit hard by the Covid pandemic.

According to the General Statistics Office, the market in the first four months registered outstanding growth over the same period last year, with abundant goods supplies and rising purchasing power. The total revenue from retail trade and services reached VND1,777 trillion, up 6.5% year-on-year.

In April alone, the total retail sales amounted to

VND455.5 trillion, up 12.1% year-on-year and 3.1% month-on-month.

During the four-month period, the retail sales of goods grew 7.6% year-on-year. The retail sales of food and foodstuffs saw a year-on-year increase of 13.2%, while many other sectors suffered a decline in retail sales. Retail sales of apparel and home appliances inched down 3.5% and 4.6% year-on-year, respectively.

The Ministry of Industry and Trade attributed the decrease to the residents’ unstable income due to the impact of the pandemic.

The prolonged lockdown has changed the shopping habits of customers. The number of shoppers has yet to reach the peak seen before the pandemic, while their shopping frequency has dropped sharply. However, they have purchased more than before the pandemic.

The data also indicated that customers tend to shop online and make non-cash payments.

According to many experts, with a population of nearly 100 million and rising income, Vietnam is a potential retail market which has attracted multiple foreign retailers.

In spite of the pandemic, in 2020, Vietnam’s retail sales added over US$11 billion against 2019, at over US$172 billion. Last year, the total retail sales amounted to US$173 billion, up 0.2% year-on-year.