Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - The Ministry of Industry and Trade (MoIT) plansto consolidate traditional markets in rural areas while developing a largenumber of convenience stores and diversifying types and methods of modernbusiness.
These are part of targets set in the project to develop domestic trade in2021-25 period.
According to the ministry’s assessment of 2016-20, the local market has becomeimportant for the momentum of sustainable development. Total retail sales andrevenue from services saw a high growth rate of 9.2 percent annually from 3.5trillion VND (150.7 million USD) in 2016 to 4.9 trillion VND in 2019. Thegrowth was relatively equal among economic regions.
Total retail sales of consumer goods and services per capita increased from 38million VND in 2016 to 51.2 million VND in 2019 per person.
The contribution of the domestic market to GDP has increased, from 10.5 percentin 2016 to 11.16 percent in 2019. It showed the domestic market plays animportant role in product consumption. At the same time, it has provided jobsas it employed about 6-7 million workers (accounting for more than 12 percentof the total workforce in the country), contributing to poverty reduction andensuring social security.
Over the past five years, supply and demand connection has also performed well,contributing to stabilising prices in the market, through linking to create astable source of goods between domestic manufacturers and large distributionsystems nationwide.
The proportion of Vietnamese goods in retail distribution systems is high with90 percent for distribution systems owned by domestic enterprises (90 – 93 percentat Co.opmart, 90-95 percent at Satra and 96 percent at VinMart). The proportionis more than 70 percent at foreign supermarkets and commercial centres (90 percentat Lotte and Big C and 82 – 85 percent at AEON and Citimart).
However, the MoIT said the overall growth rate was not high compared topotential and the domestic market still has plenty of room to grow.
To effectively implement the five-year socio-economic development plan for2021-25, the ministry has set goals and solutions for domestic trade tocontinue to play an important role in the economy.
The plan hopes to increase the added value of the domestic trade sector’scontribution to GDP by 13.5 percent in 2025.
The average annual growth rate in 2021 - 25 of the total retail sales ofconsumer goods and services (including the price factor) is expected to hitabout 9 - 9.5 percent a year, while the proportion of total retail sales ofgoods by type of modern trade by 2025 will reach 35-40 percent.
Another goal is to gradually complete commercial infrastructure such asshopping malls, supermarkets, trade-service areas, convenience stores,specialised stores, logistics centres, wholesale warehouses and fair centres inbig cities.
To complete the targets, the ministry will enhance the efficiency of Statemanagement over the market; strengthening market regulation capacity for key commodities.At the same time, it will strengthen the management of goods circulation in themarket. It hopes to ensure 90 percent of businesses in provinces and cities nolonger display and sell smuggled goods, counterfeit goods, banned goods orgoods infringing intellectual property rights by 2025. All businessesnationwide shall list prices and sell them at listed prices.
Among the 10 regions with the largest market size in the country, HCM Citycontinued to lead with 1.08 trillion VND in 2019, accounting for 22.1 percentof the national market and two times higher than the second-highest Hanoi with 512trillion VND last year, accounting for 10.03 percent of the total./.
These are part of targets set in the project to develop domestic trade in2021-25 period.
According to the ministry’s assessment of 2016-20, the local market has becomeimportant for the momentum of sustainable development. Total retail sales andrevenue from services saw a high growth rate of 9.2 percent annually from 3.5trillion VND (150.7 million USD) in 2016 to 4.9 trillion VND in 2019. Thegrowth was relatively equal among economic regions.
Total retail sales of consumer goods and services per capita increased from 38million VND in 2016 to 51.2 million VND in 2019 per person.
The contribution of the domestic market to GDP has increased, from 10.5 percentin 2016 to 11.16 percent in 2019. It showed the domestic market plays animportant role in product consumption. At the same time, it has provided jobsas it employed about 6-7 million workers (accounting for more than 12 percentof the total workforce in the country), contributing to poverty reduction andensuring social security.
Over the past five years, supply and demand connection has also performed well,contributing to stabilising prices in the market, through linking to create astable source of goods between domestic manufacturers and large distributionsystems nationwide.
The proportion of Vietnamese goods in retail distribution systems is high with90 percent for distribution systems owned by domestic enterprises (90 – 93 percentat Co.opmart, 90-95 percent at Satra and 96 percent at VinMart). The proportionis more than 70 percent at foreign supermarkets and commercial centres (90 percentat Lotte and Big C and 82 – 85 percent at AEON and Citimart).
However, the MoIT said the overall growth rate was not high compared topotential and the domestic market still has plenty of room to grow.
To effectively implement the five-year socio-economic development plan for2021-25, the ministry has set goals and solutions for domestic trade tocontinue to play an important role in the economy.
The plan hopes to increase the added value of the domestic trade sector’scontribution to GDP by 13.5 percent in 2025.
The average annual growth rate in 2021 - 25 of the total retail sales ofconsumer goods and services (including the price factor) is expected to hitabout 9 - 9.5 percent a year, while the proportion of total retail sales ofgoods by type of modern trade by 2025 will reach 35-40 percent.
Another goal is to gradually complete commercial infrastructure such asshopping malls, supermarkets, trade-service areas, convenience stores,specialised stores, logistics centres, wholesale warehouses and fair centres inbig cities.
To complete the targets, the ministry will enhance the efficiency of Statemanagement over the market; strengthening market regulation capacity for key commodities.At the same time, it will strengthen the management of goods circulation in themarket. It hopes to ensure 90 percent of businesses in provinces and cities nolonger display and sell smuggled goods, counterfeit goods, banned goods orgoods infringing intellectual property rights by 2025. All businessesnationwide shall list prices and sell them at listed prices.
Among the 10 regions with the largest market size in the country, HCM Citycontinued to lead with 1.08 trillion VND in 2019, accounting for 22.1 percentof the national market and two times higher than the second-highest Hanoi with 512trillion VND last year, accounting for 10.03 percent of the total./.
VNA
