Strengthening consumer demand stimulation, promoting domestic market development

From now until the end of the year, many trade promotion and consumer stimulus programs will be implemented to boost domestic market development.

Domestic market revenue growth slows down

According to the Ministry of Industry and Trade, consumption and production demand domestic Recovery, along with strong growth in tourism, has contributed positively to the growth of the trade and service industry since the beginning of the year. Commodity market August was quite busy, the circulation of goods, especially food products, increased during the 15th day of the 7th lunar month.

In addition, the demand for cultural and educational products increased in preparation for the new school year. The supply of basic goods was sufficient to meet consumer demand, and commodity prices did not fluctuate much.

Regarding food products, pork prices are relatively stable. In some localities, due to heavy rains causing flooding, the supply of vegetables has decreased, so prices have fluctuated slightly. In modern distribution systems, prices of many food products remain stable, and many promotional and discount programs for many consumer goods have been implemented to stimulate consumption.

Commodity market maintains growth, but growth rate is slowing down (Photo: Can Dung)

According to the Ministry of Industry and Trade, with that development, the total retail sales of goods and consumer service revenue at current prices in August 2024 is estimated at VND 526.6 trillion, up 7.9% over the same period last year. Of which, the food and foodstuff group increased by 8.2%; household appliances, tools and equipment increased by 6.5%; garment increased by 8.2%; accommodation and catering services increased by 9.7%; and tourism and travel increased by 7.1%.

In the first 8 months of 2024, total retail sales of goods and consumer service revenue increased by 8.5% over the same period last year, of which revenue from accommodation and catering services increased by 14.3%; tourism revenue increased by 26.2%.

“In general, in the first 8 months of 2024, the supply of essential goods was always guaranteed, prices were relatively stable, especially for pork, due to the impact of the epidemic, the supply decreased in some periods, so the price fluctuated. However, due to the presence of many alternative food products, the price of pork did not increase suddenly and is currently stable. The price of energy fuel group items fluctuates according to world prices.” – Ministry of Industry and Trade pointed out.

Although maintaining a stable growth rate, commenting on the total retail sales of goods and consumer service revenue in the first 8 months of this year, Dr. Le Quoc Phuong - Former Deputy Director of the Center for Industry and Trade Information - Ministry of Industry and Trade pointed out that, except for the Covid-19 pandemic period, the total retail sales of goods and consumer service revenue increased by 10-11%, but in recent years, this indicator has slowed down. The reason is that the growth rate of retail sales of goods has not increased much (only increased by 7.3% in the first 8 months of 2024).

Regarding localities, Mr. Nguyen Nguyen Phuong, Deputy Director of the Department of Industry and Trade of Ho Chi Minh City, informed that although the total consumption of people in Ho Chi Minh City has increased, the value of consumer goods has decreased. This shows that people are increasingly tightening their spending, only paying attention to essential goods for daily life.

Strengthening consumer demand stimulation, promoting total retail sales of goods and consumer service revenue

In the last months of the year, due to the impact of storm No. 3, many areas of cultivation and livestock were affected, it is expected that the domestic commodity market will face pressure to increase prices.

In addition, economic expert Vu Vinh Phu also said that currently, commercial infrastructure is not developing evenly, especially in difficult and extremely difficult areas. Investment in developing synchronous infrastructure, especially large infrastructure with spillover effects, has not been attracted. Traditional types such as markets have not received due attention, facing fierce competition from other modern types (such as online shopping, supermarkets, convenience stores).

“Not to mention, the current domestic market still lacks close links between parties in the supply chain of goods, especially for fresh and essential foods. The situation of smuggling, trade fraud and counterfeit goods in the domestic market, especially in e-commerce, is still complicated, affecting the interests of consumers and legitimate businesses,” Mr. Vu Vinh Phu shared.

To promote the domestic market, on August 27, 2024, the Ministry of Industry and Trade advised the Prime Minister to sign and issue Directive No. 29/CT-TTg on stimulating consumption, supporting production, business and developing the domestic market. Accordingly, the Prime Minister requested Ministers of ministries, heads of ministerial-level agencies, government agencies, Chairmen of People's Committees of provinces and centrally run cities, industry associations and enterprises to focus on implementing a number of tasks and solutions to promptly remove difficulties for production and business activities, stimulate consumption, promote domestic market development, contribute to promoting growth, maintaining macroeconomic stability, controlling inflation, and ensuring major balances of the economy.

On September 14, the Ministry of Industry and Trade also issued an Official Dispatch on strengthening the supply of essential goods to serve people in localities affected by storm No. 3 (Yagi). It requires ensuring the supply of goods to localities nationwide. From now until the end of the year, the Ministry of Industry and Trade will implement many trade promotion programs, focusing on the National Concentrated Promotion Program organized at the end of the year to stimulate consumption.

Localities are also actively implementing solutions to promote trade and stimulate consumption. Accordingly, the Department of Industry and Trade of Ho Chi Minh City announced the market stabilization program in 2024 and Tet At Ty 2025.

According to the Department of Industry and Trade, this year's program attracted 69 key enterprises to participate (an increase of 10 enterprises compared to 2023). The program also expanded and added many groups of products such as salt and drinking water to the group of essential food and food products; added electronic equipment for learning (laptops, desktop computers, inkjet printers, laser printers, etc.) to the group of products for learning; added groups of essential consumer goods such as dishwashing liquid, floor cleaner, laundry detergent, cleaning agents, paper towels, biodegradable garbage bags, etc.

Notably, the amount of stabilized goods as committed by the program will account for 21%-32% of the market share in a normal month and about 24%-41% of market demand during the Tet holiday. In addition to the above program, from now until the end of the year, a series of focused promotional programs such as "Summer shopping", "Spring shopping" will also be continued by the Department of Industry and Trade of Ho Chi Minh City to contribute to increasing purchasing power.

In Hanoi, from now until the end of the year, in November 2024, the Hanoi Promotion Month 2024 event will be deployed throughout the city. The event will launch about 800 to 1,000 promotional points and 50 Golden Promotion Points.

During the Promotion Month, many events will take place such as "Hanoi Shopping Festival", "Hanoi Mega Sale", "Golden Day of Shock Prices"... In November 2024, the Hanoi Midnight Sale will continue to take place, from November 29 to November 30, attracting about 200 businesses, shopping centers, supermarkets, chains, production and business establishments; e-commerce platforms, e-commerce websites... Discount activities will be applied according to each time frame with the preferential rate "The later - The more discount".

In addition to the main events, within the framework of the program, many activities and events to stimulate demand and promote trade in response to the program will also be considered for implementation and effective organization to support trade connections, promote solutions to support brand promotion and product consumption for Vietnamese enterprises, typically: Fair "Goods and products for consumers"; Fair of safe agricultural products and food in Hanoi in 2024; Week of fruits and agricultural products of provinces and cities in Hanoi in 2024; Week of goods to promote, introduce and sell agricultural products and food in distribution channels; Organizing a network of cooperation in sustainable production and consumption in the production chain of traditional craft village products and OCOP products...

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