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Retail surges 6.1% in first four months
Total retail sales value of goods and services in the first four months of the year surged 21.6 per cent over the same period last year to VND762.2 trillion (US$36.6 billion), according to the General Statistics Office (GSO).
However, when price increases were considered, the rise was only 6.1 per cent compared with the rate of 14-17 per cent of previous years, the GSO said.
An expert of the GSO Trade Department, Vu Manh Ha, said that the low retail sales growth during the period was due to the high consumer price index (CPI), which caused prices of a series of necessary goods to hike.
"As income is nearly unchanged or even lower due to the economic difficulties, most consumers have to tighten their belts and spend only for necessary goods to cope with the price hike," Ha said.
Farmers and workers in industrial and service sectors, which account for a large proportion of the country's population, were the most vulnerable in the economic slowdown and had to cut sharply their spending on retail goods and services as their incomes were lower.
Ha said there were no signals to ensure that demand for retail goods and services would increase in the near future as prices for many products were forecast to continue rising due to the recent price hike of petroleum.
However, Vice Chairwoman and General Secretary of the Viet Nam Retail Association Dinh Thi My Loan said though the retail market could face difficulties and challenges this year, it remained an attractive destination for foreign investors.
According to a report by AT Kearney, the country's total retail revenue would increase by 23 per cent per year between now and 2014. This meant the Vietnamese retail market would offer many opportunities for both domestic and foreign retail businesses.
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