Fruits being showcased at a VinMart supermarket in Hanoi. (Photo: VNA) Hanoi (VNS/VNA) - Vietnam’s total revenue from retail trade and servicesreached over 5 quadrillion VND (219.5 billion USD) in 2020, representing amodest yearly rise of 2.6 percent, according to the General Statistics Office (GSO).
Thisyear’s retail sales growth was much lower than 9.5 percent seen in 2019 and wasalso the lowest rate in the 2011-2020 period due to the significant impact ofthe COVID-19 pandemic.
Revenuefrom retail sales of consumer goods exceeded 3.9 quadrillion VND, up 7 percentyear-on-year or accounting for 79 percent of the total. Especially, revenueincreased by 10.7 percent for food and foodstuff; 7.5 percent for the group ofhousehold appliances, tools and equipment; 3 percent for garments and 1 percentfor cultural and educational services.
Meanwhile,revenue from accommodation and catering services dropped by 13 percentyear-on-year to 510.4 trillion VND, making up 10 percent of the total. Lastyear, the revenue from these services saw a yearly increase of 9.8 percent.
Otherservices also experienced a slight revenue decline of 4 percent to 535 trillionVND in 2020.
However,VNDirect Securities forecast that the nation's retail sales growth wouldbounce back to pre-COVID-19 levels next year, reaching 8.5-9 percentyear-on-year.
Theprojection was made on the back of the country’s successful containment ofCOVID-19, which was a major contributor to the economic rebound in the thirdquarter that saw unemployment fall 0.23 percent against the previous quarter to2.5 percent.
VNDirect alsopredicted that consumer confidence would likely recover soon, against abackdrop of COVID-19 vaccines expected to be available in 2021.
Withthe rapid growth of the middle class and rising per capita income, domesticconsumption remained the main growth driver of the retail industry, even duringCOVID-19.
TheMinistry of Industry and Trade expected the domestic trade sector’s added valueto contribute 13.5 percent to GDP by 2025 and total retail sales of goods andservices to grow around 9-9.5 percent annually over the next five years.
Theministry forecast that total retail sales would reach nearly 350 billion USD by2025.
Themarket’s recovery offers huge opportunities for retailers to expand theirdistribution networks.
SaigonCo.op is targeting to add at least 2,000 stores to its chain over the next fiveyears, with revenue rising 8-10 percent annually.
MajorJapanese retailer Muji, which sells a wide variety of household and consumergoods, has opened its first store in Vietnam, in HCM City, and is planning toopen another in Hanoi, it added./.
VNA
