Hanoi (VNA) - Vietnam’s retail sales growth will bounceback to pre-COVID-19 levels next year, reaching 8.5-9 percent year-on-year,according to VNDirect Securities.
The projection was made on the back of the country’s successfulcontainment of COVID-19, which was a major contributor to the economic reboundin the third quarter that saw unemployment fall 0.23 percent against the previousquarter to 2.5 percent.
VNDirect also predicted that consumer confidence is likely to recover soon,against a backdrop of COVID-19 vaccines expected to be available in 2021.
With the rapid growth of the middle class and rising per capita income,domestic consumption remained the main growth driver of the retail industry,even during COVID-19.
Total retail sales of goods and services in the first 11 months increased6.8 percent compared to the same period last year.
The Conference Board and Nielsen reported that Vietnam was the second-mostoptimistic country globally, after only India, in the second quarter, with a ConsumerConfidence Index of 117 points, which was actually down 9 points compared tothe previous quarter.
The Ministry of Industry and Trade expected the domestic trade sector’sadded value to contribute 13.5 percent to GDP by 2025 and total retail sales ofgoods and services to grow around 9-9.5 percent annually over the next fiveyears.
The ministry forecast that total retail sales would reach nearly 350billion USD by 2025, or 1.6 times higher than in 2020.
The market’s recovery offers huge opportunities for retailers to expandtheir distribution networks. Saigon Co.op is targeting to add at least 2,000stores to its chain over the next five years, with revenue rising 8-10 percentannually. Major Japanese retailer Muji, which sells a wide variety of householdand consumer goods, has opened its first store in Vietnam, in HCM City, and isplanning to open another in Hanoi./.
The projection was made on the back of the country’s successfulcontainment of COVID-19, which was a major contributor to the economic reboundin the third quarter that saw unemployment fall 0.23 percent against the previousquarter to 2.5 percent.
VNDirect also predicted that consumer confidence is likely to recover soon,against a backdrop of COVID-19 vaccines expected to be available in 2021.
With the rapid growth of the middle class and rising per capita income,domestic consumption remained the main growth driver of the retail industry,even during COVID-19.
Total retail sales of goods and services in the first 11 months increased6.8 percent compared to the same period last year.
The Conference Board and Nielsen reported that Vietnam was the second-mostoptimistic country globally, after only India, in the second quarter, with a ConsumerConfidence Index of 117 points, which was actually down 9 points compared tothe previous quarter.
The Ministry of Industry and Trade expected the domestic trade sector’sadded value to contribute 13.5 percent to GDP by 2025 and total retail sales ofgoods and services to grow around 9-9.5 percent annually over the next fiveyears.
The ministry forecast that total retail sales would reach nearly 350billion USD by 2025, or 1.6 times higher than in 2020.
The market’s recovery offers huge opportunities for retailers to expandtheir distribution networks. Saigon Co.op is targeting to add at least 2,000stores to its chain over the next five years, with revenue rising 8-10 percentannually. Major Japanese retailer Muji, which sells a wide variety of householdand consumer goods, has opened its first store in Vietnam, in HCM City, and isplanning to open another in Hanoi./.
VNA
