HANOI (Vietnam News/Asia News Network): Vietnam saw strong growth in revenue from the retail sale of goods and services in May 2022 due to an increase in tourism demand after the pandemic was fundamentally under control and that the 31st SEA Games were successfully held in the country in mid-May.
According to the General Statistics Office (GSO), the country’s total income from retail sales of goods and services topped VNĐ477 trillion ($20.7 billion) in May, up 4.2 percent over the month and 22.6% over the year. Year-on-year growth hit a higher rate in the years before the pandemic.
According to the GSO, total revenue from retail sales of goods and services topped VNĐ2.25 quadrillion in the first five months of 2022, up 9.7% year-on-year. other.
Revenues from the retail sale of consumer goods increased by 9.8% over the year, with revenues up 13.1% for food, 12.8% for cultural and educational products and 3.1% for transport.
Meanwhile, accommodation and food services revenue in the first five months grew 15.7%. Strong demand from domestic tourists and SEA Games 31 drove May revenues up 69.3% compared to the same period last year.
The localities whose income from accommodation and food services increased are Cần Thơ (39.7%), Hà Nội (34.2%), Đồng Nai (22.6%), Quảng Ninh (17.3% ), Haiphong (10.5%). ), Bình Dương (11.4%) and Đà Nẵng (11.2%).
The strong recovery in tourism activities and the 31st SEA Games increased travel and tourism revenue in the first five months of 2022 by 34.7% compared to the same period last year.
Localities with increased travel and tourism income are Khánh Hòa (347.6%), Cần Thơ (88.2%), Phú Thọ (80.6%), Quảng Nam (67.8%), Hà Noi (61.1%). and Quảng Bình (29.6%).
When export business encountered many difficulties due to market fluctuations, increased sea freight and longer transportation time, some small and medium-sized enterprises returned to the domestic market.
As a small and medium enterprise in the food processing industry, Surifarm Organic Vegetables Co., Ltd., based in HCM City, sees huge potential in the domestic market for small and medium enterprises, said Tô Huỳnh, a representative of the society.
According to Huỳnh, 90% of the company’s revenue comes from the domestic market, while only 10% of its revenue comes from exports.
He said exports face many difficulties due to ocean freight and congestion at international seaports.
Meanwhile, agricultural and food products remain essential products in the domestic market, even as consumers have tightened their spending due to the pandemic.
“Despite the difficulties of the pandemic, the domestic food industry market is still quite good. During the pandemic outbreak period, many enterprises in this field have operated efficiently and even expanded their market shares. Now as the pandemic is brought under control, opportunities for small and medium enterprises will open up,” Huỳnh told VnBusiness.
Nguyễn Hoàng Đạt, director of Vinahe Co. Ltd., a company in Bình Phước province specializing in the production and processing of cashew nuts, said exports are now a challenge for the company.
The company continues to focus on the domestic market even though there are periods of slow production due to the pandemic. Today, the sales of national supermarket chains account for around 90% of the company’s total turnover.
According to experts, when focusing on the domestic market, companies should pay attention to local consumer confidence in their products.
Domestic consumers now have more and more information about products, brands and services, and their needs are also increasingly demanding.
Therefore, in the long term, small and medium enterprises must have strategies to improve the quality of their products and services and produce according to market needs.