Shaking off economic woes, retail sales hit $80 billion in 2010

Despite economic difficulties, the country’s total retail sales revenue for commodities and services last year jumped 24.5 per cent against the previous year to VND1,561 trillion (US$80 billion), according to the General Statistics Office (GSO).

Adjusted for inflation, this equated to a 14-per- cent rise, the office said.

The trade sector reported a year-on-year revenue surge of 25 per cent to VND1,229.3 trillion ($63 billion).

The hotel and restaurant sector saw a rise of 21.8 per cent to VND172.4 trillion ($8.84 billion) and figures for the service and tourism sectors increased 23.8 per cent and 28.5 per cent to VND144.6 trillion ($7.4 billion) and VND15.3 trillion ($784.6 million), respectively.

Head of the GSO’s Trade Department Le Minh Thuy attributed the surge to increased consumer demand thanks to a series of festivals, including Ha Noi’s 1,000th anniversary in October.

The Ministry of Industry and Trade (MoIT) said the Government’s consumption demand stimulus policy as well as efficient business practices in taking full advantage of the situation had also contributed to the surge. This policy was manifested in the form of a succession of large promotional offers by both producers and distributors.

According to HCM City’s Department of Industry and Trade, businesses that took part in a Sales Promotion Month in September saw sales increase by at least 10-15 per cent compared to the same period last year, including Co.op Mart (up 30 per cent), Vissan (up 23 per cent), Thien Hoa (up 50 per cent) and Fahasa (up 20 per cent).

The Ha Noi Trade Department also reported the capital city’s retail sales revenue in November corresponding with the 2010 Ha Noi Promotional Month increased by 16 per cent over the monthly average in 2010. During that time, nine retail companies including Hapro, Huong Anh, Me Linh Plaza, Ebest, Tran Anh and Vissan reported revenue growth of 30-150 per cent.

The retail industry annually contributes more than 15 per cent of the country’s gross domestic product (GDP) and employs more than 5.4 million workers, representing over 10 per cent of the total workforce.

MoIT said the domestic market was becoming a fulcrum to foster business and production, and recover growth, thus greatly contributing to the sustainable development of the national economy. With a population of more than 80 million, Viet Nam’s retail market remained very attractive to investors, especially those from outside.

A survey conducted in the fourth quarter of last year by auditing firm Grant Thornton Viet Nam showed that the Vietnamese retail market lured more foreign investors than any other market, with 70 per cent of correspondents agreeing that retail was a more fascinating and promising investment field than others such as education, real estate and healthcare. — VNS

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