Hanoi (VNA) – Hanoi is implementing various solutions to promote domestic consumption in order to achieve the economic growth target of at least 8% this year.
According to the latest data from the municipal Department of Industry and Trade, the city’s total retail sales of goods and consumer service revenue in February reached 71.9 trillion VND (2.8 billion USD), up 7.2% year-on-year. The revenue in the first two months of 2025 amounted to 150.1 trillion VND, up 11.8% compared to the same period last year. Among this, the retail sales of goods posted 96.9 trillion VND, accounting for 64.6% of the total and increasing by 11.4%.
Retail sales are among the most important factors contributing to domestic consumption – one of the three key drivers of economic growth, with the others being export and investment. This is why large retail companies have been investing in expanding their distribution systems, aiming to contribute to the overall growth of the domestic market in 2025.
However, economist Vu Vinh Phu said that in the five years prior to the COVID-19 pandemic (2015–2019), the goods retail and consumer service revenue grew by 11.5% per year on average. Therefore, the 8.6% expansion in January represents a relatively slow pace compared to the pre-pandemic period. This indicates that domestic demand is still low as many challenges remain in the economy. Significant barriers stemming from employment issues and declining incomes have directly impacted the current retail landscape.
Sharing the same view, Nguyen Anh Duc, Chairman of the Vietnam Retailers' Association, stated that in order to stimulate domestic consumption, it is essential to have fundamental and long-term solutions. These should include measures that directly support manufacturers and distributors, helping them survive and thrive; while policies need to be planned and applied earlier, with continuity and long-term focus, so businesses can endure.
A survey by NielsenIQ Vietnam also shows that consumers are shifting their spending cuts from the short term to a longer term.
Consumers are choosing to cook at home, reducing purchases of luxury items and non-essential goods, and postponing major expenses. Notably, in response to rising goods costs, they are seeking online deals to cut back on grocery spending while prioritising physical and mental health care, said Dang Thuy Ha, Director of Customer Behaviour Research at NielsenIQ Vietnam.
Nguyen Kieu Oanh, Deputy Director of the municpal Department of Industry and Trade, stated that in order to achieve an economic growth rate of 8% or higher, Hanoi is focusing on accelerating the development of the service sector. Attention will be paid to strengthening support for businesses to overcome challenges, speeding up the progress of commercial centre, supermarket, and traditional market projects, and assisting distributors to expand their trade networks.
At the same time, the city continues to promote the "Vietnamese people prioritise Vietnamese products" campaign, open more places to introduce and sell OCOP (One Commune, One Product) products, and promote supply – demand connecting programmes. Aside from facilitating e-commerce, authorities will also hasten the construction of logistics infrastructure and perfect the legal framework for attracting more investment to modern trading – service models, added Oanh./.
VNA
