The draft project on restructuring the industry and trade sector for the period to 2030 sets the goal of restructuring the domestic market towards rapid and sustainable development.

Total retail sales of goods surged after 2 years of the pandemic

In 2022, the domestic Covid-19 epidemic was basically controlled, production activities and people’s daily life gradually recovered, and the demand for goods increased again. The domestic supply of goods basically meets consumer demand, commodity prices do not have large fluctuations, the market is relatively stable. Particularly for petroleum products, in order to stabilize the market and limit the impact when the price of petrol fluctuates up and down with a large margin, the Ministry of Industry and Trade has made many efforts in ensuring supply as well as coordinating with the Ministry of Industry and Trade. Finance effectively uses the Price Stabilization Fund tool to limit the increase in domestic gasoline prices compared to the increase in world prices.

The Ministry of Industry and Trade assessed that, in general, the prices of many domestic goods tended to increase from the end of the first quarter and in the second quarter due to the influence of the increase in the price of raw materials and materials on the world market, which increased input costs. Since the beginning of the third quarter, following the trend of world prices, prices of many commodities have gradually stabilized again.

The domestic market grows again after 2 years of the pandemic

Statistics of the General Statistics Office show that, in 2022, the total retail sales of consumer goods and services is estimated at VND 5,679.9 trillion, up 19.8% over the previous year. Excluding the price factor, the increase is 15.6%. This is a fairly high growth rate in recent years. Thus, after two consecutive years of decline due to the impact of the Covid-19 pandemic, the country’s total retail sales this year rebounded sharply. It shows that the state’s post-pandemic economic recovery policies have been effective, and people’s purchasing power has gradually recovered to its pre-pandemic level.

In particular, the travel and tourism industry, accommodation, catering and other services have the strongest growth because these are the industries that are restricted from operating much during the Covid-19 pandemic. The commodity retail industry still maintained the same good growth as every year, focusing on the group of cultural and educational products, garments and vehicles.

In order to promote the development of the domestic market, the draft project on restructuring the industry and trade sector for the period to 2030 sets the goal of restructuring the domestic market towards rapid and sustainable development of the domestic market. Seamlessly connected with import and export markets to ensure market space for domestic manufacturing industries and improve the internal strength of the economy on the basis of expanding domestic consumption in association with the development of Vietnamese brands, exploiting the advantage of population size with the rapid growth of the middle class and young and dynamic consumers. Prioritize the development of new consumer economic models such as the sharing economy, night economy, tourism economy, green economy, circular economy, digital economy, e-commerce… added value of domestic trade reached an average growth rate of about 9.0-9.5%/year.

In addition, building and developing a synchronous and modern domestic commercial infrastructure system. To strongly shift the distribution system to modern distribution types, giving priority to modernizing the distribution system in rural and mountainous areas; encourage enterprises, commercial cooperatives and business households to innovate their operation methods towards modernity and professionalism.

Striving to 2030, the proportion of goods distributed through the modern retail system will account for about 38-42%; the proportion of goods distributed through e-commerce channels accounts for about 10.5-11%; The proportion of retail sales of goods in the domestic economic sector accounts for about 85% and the economic sector with foreign investment capital (FDI) accounts for about 15%.

Focusing on supporting the formation and development of a number of domestic wholesale and retail groups with large brands and ability to compete in the region with a modern distribution system, mastering the system of general warehouses and logistics centers and goods supply in order to stabilize supply and demand, improve price competitiveness in association with strengthening competition management and anti-monopoly. Encourage large distribution groups of Vietnam to invest abroad.

Strengthening effective connection between production and market along the supply chain to ensure stable supply and demand, commodity prices and origin. Consistently manage the quality of goods circulating in the country by regulations, standards and technical regulations in line with international practices. Implement the application of product and goods traceability. Forming and developing supply chains of domestic consumer goods, giving priority to the development of supply chains of essential agricultural products and food.

Forming and developing large consumer centers

The draft project also identifies, develops and diversifies the country’s consumption centers by region and region, associating the development of shopping centers with tourist centers, concentrated areas of industrial production and services; giving priority to the development of markets in rural and mountainous areas.

At the same time, develop and diversify the country’s consumption centers by region and region, associating the development of shopping centers with tourist centers, areas where industrial production and services are concentrated; give priority to the development of markets in rural and mountainous areas.

In addition, promoting e-commerce into an important distribution channel, actively supporting the consumption of goods, especially agricultural products and consumer industrial goods; forming large e-commerce corporations with national brands and global competitiveness. Prioritize the development of supply chains of essential agricultural products and foodstuffs.

Developing e-commerce into an important distribution channel, actively supporting the consumption of goods, especially agricultural products and consumer industrial goods; forming large e-commerce corporations with national brands and global competitiveness. Prioritize the development of a system of e-commerce transactions with international connections. Narrowing the gap between big cities and localities in terms of e-commerce development. Striving for the proportion of B2C e-commerce sales compared to the total retail sales of consumer goods and services to reach 10% by 2025 and 13% by 2030, the average growth rate of cross-channel retailing e-commerce increased by about 20-25%.

Building and perfecting the institutional and legal system on trade remedies, competition management and consumer protection in line with international commitments. Strengthen the effectiveness of consumer protection from central to local levels. Enhance trade remedy capacity and effectively implement measures on trade remedies, combat evasion of trade remedies, abuse and fraud of origin in order to protect the legitimate rights and interests of manufacturing industries and the domestic market in the context of increasing competition from outside.

Renovate methods and improve operational efficiency of market management forces in the whole country. Focus on building and developing a clean and strong market management force. Work closely with functional forces and associations to fight smuggling, commercial fraud and counterfeit goods to achieve the highest efficiency. Promote digital transformation of market management.

Source: Bo Cong Thuong

The draft project on restructuring the industry and trade sector for the period to 2030 sets the goal of restructuring the domestic market towards rapid and sustainable development.

Total retail sales of goods surged after 2 years of the pandemic

In 2022, the domestic Covid-19 epidemic was basically controlled, production activities and people’s daily life gradually recovered, and the demand for goods increased again. The domestic supply of goods basically meets consumer demand, commodity prices do not have large fluctuations, the market is relatively stable. Particularly for petroleum products, in order to stabilize the market and limit the impact when the price of petrol fluctuates up and down with a large margin, the Ministry of Industry and Trade has made many efforts in ensuring supply as well as coordinating with the Ministry of Industry and Trade. Finance effectively uses the Price Stabilization Fund tool to limit the increase in domestic gasoline prices compared to the increase in world prices.

The Ministry of Industry and Trade assessed that, in general, the prices of many domestic goods tended to increase from the end of the first quarter and in the second quarter due to the influence of the increase in the price of raw materials and materials on the world market, which increased input costs. Since the beginning of the third quarter, following the trend of world prices, prices of many commodities have gradually stabilized again.

The domestic market grows again after 2 years of the pandemic

Statistics of the General Statistics Office show that, in 2022, the total retail sales of consumer goods and services is estimated at VND 5,679.9 trillion, up 19.8% over the previous year. Excluding the price factor, the increase is 15.6%. This is a fairly high growth rate in recent years. Thus, after two consecutive years of decline due to the impact of the Covid-19 pandemic, the country’s total retail sales this year rebounded sharply. It shows that the state’s post-pandemic economic recovery policies have been effective, and people’s purchasing power has gradually recovered to its pre-pandemic level.

In particular, the travel and tourism industry, accommodation, catering and other services have the strongest growth because these are the industries that are restricted from operating much during the Covid-19 pandemic. The commodity retail industry still maintained the same good growth as every year, focusing on the group of cultural and educational products, garments and vehicles.

In order to promote the development of the domestic market, the draft project on restructuring the industry and trade sector for the period to 2030 sets the goal of restructuring the domestic market towards rapid and sustainable development of the domestic market. Seamlessly connected with import and export markets to ensure market space for domestic manufacturing industries and improve the internal strength of the economy on the basis of expanding domestic consumption in association with the development of Vietnamese brands, exploiting the advantage of population size with the rapid growth of the middle class and young and dynamic consumers. Prioritize the development of new consumer economic models such as the sharing economy, night economy, tourism economy, green economy, circular economy, digital economy, e-commerce… added value of domestic trade reached an average growth rate of about 9.0-9.5%/year.

In addition, building and developing a synchronous and modern domestic commercial infrastructure system. To strongly shift the distribution system to modern distribution types, giving priority to modernizing the distribution system in rural and mountainous areas; encourage enterprises, commercial cooperatives and business households to innovate their operation methods towards modernity and professionalism.

Striving to 2030, the proportion of goods distributed through the modern retail system will account for about 38-42%; the proportion of goods distributed through e-commerce channels accounts for about 10.5-11%; The proportion of retail sales of goods in the domestic economic sector accounts for about 85% and the economic sector with foreign investment capital (FDI) accounts for about 15%.

Focusing on supporting the formation and development of a number of domestic wholesale and retail groups with large brands and ability to compete in the region with a modern distribution system, mastering the system of general warehouses and logistics centers and goods supply in order to stabilize supply and demand, improve price competitiveness in association with strengthening competition management and anti-monopoly. Encourage large distribution groups of Vietnam to invest abroad.

Strengthening effective connection between production and market along the supply chain to ensure stable supply and demand, commodity prices and origin. Consistently manage the quality of goods circulating in the country by regulations, standards and technical regulations in line with international practices. Implement the application of product and goods traceability. Forming and developing supply chains of domestic consumer goods, giving priority to the development of supply chains of essential agricultural products and food.

Forming and developing large consumer centers

The draft project also identifies, develops and diversifies the country’s consumption centers by region and region, associating the development of shopping centers with tourist centers, concentrated areas of industrial production and services; giving priority to the development of markets in rural and mountainous areas.

At the same time, develop and diversify the country’s consumption centers by region and region, associating the development of shopping centers with tourist centers, areas where industrial production and services are concentrated; give priority to the development of markets in rural and mountainous areas.

In addition, promoting e-commerce into an important distribution channel, actively supporting the consumption of goods, especially agricultural products and consumer industrial goods; forming large e-commerce corporations with national brands and global competitiveness. Prioritize the development of supply chains of essential agricultural products and foodstuffs.

Developing e-commerce into an important distribution channel, actively supporting the consumption of goods, especially agricultural products and consumer industrial goods; forming large e-commerce corporations with national brands and global competitiveness. Prioritize the development of a system of e-commerce transactions with international connections. Narrowing the gap between big cities and localities in terms of e-commerce development. Striving for the proportion of B2C e-commerce sales compared to the total retail sales of consumer goods and services to reach 10% by 2025 and 13% by 2030, the average growth rate of cross-channel retailing e-commerce increased by about 20-25%.

Building and perfecting the institutional and legal system on trade remedies, competition management and consumer protection in line with international commitments. Strengthen the effectiveness of consumer protection from central to local levels. Enhance trade remedy capacity and effectively implement measures on trade remedies, combat evasion of trade remedies, abuse and fraud of origin in order to protect the legitimate rights and interests of manufacturing industries and the domestic market in the context of increasing competition from outside.

Renovate methods and improve operational efficiency of market management forces in the whole country. Focus on building and developing a clean and strong market management force. Work closely with functional forces and associations to fight smuggling, commercial fraud and counterfeit goods to achieve the highest efficiency. Promote digital transformation of market management.

Source: Bo Cong Thuong