Maintain double digit growth
According to the General Statistics Office, in the first 8 months of 2023, the total retail sales of goods and consumer service revenue at current prices is estimated at VND 4,043.9 trillion, up 10% over the same period last year. Notably, the double-digit growth has been maintained continuously since the beginning of the year. This is a positive bright spot for the economy in the context of other macroeconomic factors such as import-export and investment declining.
Speaking at the seminar on Promoting domestic market growth associated with maintaining macroeconomic stability organized by the Industry and Trade Newspaper on September 27, Mr. Le Huy Khoi - Institute for Industry and Trade Policy and Strategy Research - Ministry of Industry and Trade said that the positive results were achieved thanks to the combination of profound policies before, during and after the pandemic. Those are the policies we have put in place to control the epidemic, especially the fact that we have lifted social distancing early, helping to positively impact domestic production.
Second is the Government's accurate identification of the pillars to maintain economic growth and domestic consumption growth over the past time.
Economist - Associate Professor, Dr. Tran Dinh Thien shared that recently, the structure of the domestic market and consumption has changed. There are parts that have not emerged before, such as e-commerce, but are now growing strongly, contributing positively to domestic growth. Therefore, we must pay attention to the consumer market from a different perspective to have policies to stimulate development in the coming time.
The growth of the domestic market is also stimulated by strong promotional and consumer stimulus programs of businesses in recent times.
Mr. Phung The Vinh - Deputy General Director of Kangaroo Group, member of Vietnam Retailers Association - said that Vietnamese retail enterprises have actively participated in stimulus programs since the beginning of 2023. Leading retail chains in Vietnam have almost determined to leave profit targets open to achieve economic growth and consumer stimulus targets.
The domestic market must be considered the key to the economy.
Despite maintaining a fairly high growth rate for a long time, domestic consumption has tended to decrease in recent months. One of the most important factors affecting purchasing power in the domestic market is that many manufacturing enterprises have been reduced, causing people's income to decrease, affecting spending needs. Not to mention, although the Government's policies are numerous, they are delayed and have not brought about the expected stimulus effect.
To boost domestic market growth in the last months of the year, Mr. Le Huy Khoi suggested that the first thing the Government needs to do is closely monitor public investment and promote public investment disbursement to support production output. In addition, we need to implement policies quickly and decisively. Along with that, banks need to have policies to lower interest rates to help ensure production, business and consumption. In addition, policies need to better exploit the rural market area, which has a lot of room, as well as develop e-commerce more strongly.
On the business side, Mr. Phung The Vinh suggested: "What businesses need most is to maintain stable exchange rates and stable interest rates, including short-term lending rates and medium- and long-term investment loans."
Associate Professor, Dr. Tran Dinh Thien acknowledged that our market of 100 million people is not small, and is one of the fastest growing in the world. This makes the size of the domestic market very significant. This is a strategic market for the country. We must strengthen the domestic market because this is a key market area for stable macroeconomic growth.
Mr. Thien believes that policies must focus on fiscal solutions to support and promote production, while at the same time, removing difficulties in procedures and processes. For example, public investment is not about opening roads but about “pumping blood” into the economy, helping workers find jobs, and helping businesses revive production.
Ministries, sectors and businesses need to “join hands” to stimulate year-end consumption. The solutions are not just the usual price reductions but must include strong solutions such as providing vouchers for people to stimulate consumption, help the domestic market become more vibrant, create new momentum, new confidence and help Vietnamese businesses revive production.
“I think the policy of reducing VAT from 10% to 8% is not enough. We should reduce it more strongly, remove strict criteria and standards so that businesses can easily absorb the policy. At the same time, there should be policies to protect those who dare to do and dare to decide. Special situations require special policies,” Associate Professor, Dr. Tran Dinh Thien emphasized.
Hanh Nguyen
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