Domestic retailers on the path to recovery. (Photo: VNA) SSI Securities Joint Stock Company forecast that thecompanies will see a return to profit growth in the fourth quarter and in 2024thanks to the acceleration of disbursement of consumer loans and improvementsin macro-economic conditions.
Long-term prospects of Vietnamese retailers willdepend on their transition from traditional to modern commerce as well as theircapital mobilisation plans, the firm said.
In fact, in the first six months, retailers encounteredvarious difficulties, yet experts believed that they have gone through the hardestperiod.
Total revenue from retail sales of consumer goodsand services increased 10.9% year-on-year in the first six month of this yearto more than 3.01 quadrillion VND (127 billion USD), according to the GeneralStatistics Office (GSO).
According to a survey conducted by Infocus, consumerconfidence in Vietnam dropped to 54 points in June 2023 from 63 points in July2022.
The 2023 PwC Consumer Insights Survey in Vietnamalso revealed that Vietnamese consumers have drastically adjusted theirspending habits with 62% “holding back” on non-essential spending amid theglobally rising cost of living.
However, VNDIRECT Securities Corporation said thatthe market is recovering with rosy signs for the second half, noting its hopethat new orders from major markets will rise in the remaining months, and that thetrend of declining lending rates will continue to boost consumption.
Illustrative image (Source: VNA) Furthermore, the value-added tax (VAT) has beenreduced from 10% to 8% for various essential items such as dry food, beverages,confectionery, and household utensils, which is expected to bring about dualbenefits as consumers can access items with lower prices, and businesses enjoyadditional revenue./.
VNA
