Hanoi (VNA) - The 11.2% jump in Vietnam’s total retail sales of consumer goods and services during the first five months of 2026 underscores the continued strength of domestic consumption as a key driver of economic expansion.
The upward trend signals improving consumer purchasing power and a broadening recovery across sectors, feeding new orders, job creation and income gains.
Demand push lifts revenue past 3.18 quadrillion VND
According to the Finance Ministry’s National Statistics Office (GSO), total retail sales of consumer goods and services hit an estimated 3,185 trillion VND (122.5 billion USD) during January-May, up 11.2% from a year earlier. Stripping out price effects, growth still reached 6.1%, pointing to a steady recovery in domestic demand and consumer spending.
May alone generated close to 647.1 trillion VND, a 0.5% gain from April and 11.8% higher than a year ago.
Retail sales of goods remained the dominant driver, accounting for almost 76% of the total at 2,418.1 trillion VND and rising 11.1% year-on-year. Fuel led the advance with a 12.7% jump, followed by apparel at 10.2%, food 9.6%, and household appliances and equipment 7.5%. The category of other goods surged 17.6%.
A string of localities posted strong retail gains, including Quang Ninh 12.9%, Da Nang 12.7%, Dong Nai 11.4%, Can Tho 11.2%, Hanoi 11.1% and Ho Chi Minh City 10.9%.
Revenue from accommodation and food services maintained momentum, reaching 400.4 trillion VND and climbing 13.3%. Standout performers included An Giang 24.4%, Ninh Binh 19.2%, Da Nang 18.9%, Hue 18.6% and Quang Ninh 18.5%.
Travel services, though just 1.3% of total revenue, expanded 12.2% to about 40.6 trillion VND, buoyed by more welcoming visa policies, effective tourism campaigns, demand stimulus drives and rising service quality that pulled in growing numbers of domestic and foreign visitors.
Meanwhile, revenues from other services hit roughly 325.9 trillion VND, up 9.1% from a year earlier, adding another positive layer to consumption and services growth.
Analysts pin the strong showing on a demand recovery, government stimulus and a vigorous tourism rebound. An Binh Securities expects the retail sector to maintain a positive trajectory in the second quarter, supported by consumer-focused policies and a continued upturn in purchasing power.
Putting consumers and enterprises at the core of domestic market strategy
Despite the encouraging headline numbers, many companies reported that consumer demand has not recovered evenly across all segments. Households remain cautious, prioritising essentials and increasingly hunting for promotions and discounts before spending.
From a macro standpoint, experts argued that turning domestic consumption into a sustainable growth engine requires more than short-term promotional campaigns. A genuine consumption-driven economy demands rising household incomes, a reliable social safety net and broader access to consumer credit.
At a recent meeting on domestic market development, Standing Deputy Prime Minister Pham Gia Tuc stressed that the domestic market acts as a critical growth driver and economic pillar, key to Vietnam’s goal of sustaining double-digit economic expansion for the 2026–2030 period.
Vietnam has set ambitious targets, including annual growth of 14–15% in total retail sales and consumer service revenue, 23–25% annual e-commerce growth, and a reduction of logistics costs to around 12–15% of GDP.
Tuc ordered the Ministry of Industry and Trade to urgently draw up a new long-term domestic market strategy centred on citizens and businesses, with submission to authorities due in this December.
Ministries, agencies and local authorities were told to clear overlapping rules, accelerate decentralisation, simplify administrative procedures and cut compliance costs for enterprises. At the same time, they are expected to effectively adopt demand stimulus measures under the Government’s Resolution 88, run large-scale promotional campaigns and further spread the “Vietnamese people prioritise Vietnamese goods” campaign./.
