Stimulating consumption demand in Hanoi’s post-COVID-19 economy hinh anh 1Businesses participate in trade fairs organized by the Industry and Trade industry. (Photo: Vietnamplus)

Stimulating consumption demand and promoting economic growth are the foundational goals of the Hanoi city’s Promotion Program in 2022, with a focus on May, July and November.

According to Tran Thi Phuong Lan, Acting Director of Hanoi Department of Industry and Trade, the implementation of domestic stimulus programs should increase Hanoi’s retail sales of consumer goods and services.

Promoting production and consumption

 - Could you please tell us about the consumption stimulus programs that Hanoi will deploy in the near future?

Ms. Tran Thi Phuong Lan: Recently, the domestic market has seen a boost in numbers as COVID-19 cases gradually decrease.

Contributing to this recovery, focused promotion programs are showing results, promotional events have been renewed and improved in quality to help drive domestic sales. As long as business stay focused on quality of good and incentives, this will contribute to drive consumer sales.

For businesses participating in the program in May, July and November 2021, revenue and the number of visitors increased from 15% to 30%, inventory decreased by 30% to 70%.

With those encouraging results, Hanoi’s Promotion Program for 2022 offers discounts and promotions of up to 100% at more than 2,000 businesses.

In May 2022, the promotion program was deployed at 1,000-1,200 businesses in all economic sectors.  Participating businesses took part in signage and promotional material campaigns to let customers know of the program and discounts, pushing the sales numbers for the month.

On April 30, May 1 holiday weekend, coupled with the 31st SEA Games, businesses taking part in promotions saw revenue increases to 20-35%. The number of visitors increased by 30-50%, and e-commerce revenue increased by 30-40%.

 -  Could you please evaluate the effectiveness of the programme for the capital’s economy.

Ms. Tran Thi Phuong Lan: COVID-19 epidemic has had a great impact on consumer incomes, causing a significant reduction in purchasing power.

Recently in Hanoi, COVD-19 numbers are down and restrictions have been relaxed. Businesses have gradually reopened, contributing to economic growth recovery.

Total sales and revenue of consumer services in Hanoi in four months reached about 1,086 trillion VND, up 8.5% compared to the same period in 2021.

Along with that, the total retail sales of goods and services reached about 215.6 trillion VND, up 8.8% from 2021. Retail sales of goods reached 143.8 trillion VND accounting for 66.7% of the total, up 8.8% year on year.

The figures reveal that the domestic stimulus programs are showing results, especially in the goods and services sector in Hanoi. The programs have supported enterprises to overcome difficulties, and recover after the two-year hiatus caused by the pandemic.

 - How do you evaluate the businesses participating in the promotion program?

Ms. Tran Thi Phuong Lan: In 2022, the Department of Industry and Trade undertook promotional programs right after the city approved the plan. Businesses have responded quickly.

In May 2022, the Hanoi Department of Industry and Trade received registrations of more than 10,000 promotional programs.

In July and November 2022, about 25,000 promotional programs are expected to be launched in the market.  Notably, businesses throughout the country are bringing goods into the capital city.

The most important thing about stimulating demand right now is that businesses need to ensure the quality of goods and increase incentives for customers. If they can do those two things they will definitely see increased consumer spending to bring on a strong recovery for the city./.