The total retail sales of consumer goods and services in July was estimated at VND512.2 trillion ($21.4 billion), up 7.1 per cent year-on-year, the General Statistics Office (GSO) has reported.

The figure was VND3.5 quadrillion ($146.3 billion) in the first seven months of 2023, a 10.4 per cent rise against the same period last year.

On that basis, the GSO said that stimulating domestic consumption over the remaining months of the year is one solution to make the sector a significant driving force for national economic growth.

According to economists, Vietnam’s retail sector has been increasingly active with the participation of large enterprises and business households and also been backed by macro policies. From July 1 until year’s end, the value added tax (VAT) rate on goods and services subject to a 10 per cent rate is cut by 2 per cent.

Economists said retailers will have four months to fulfil plans and targets set for the year, including market expansion and promoting consumption to bolster commercial production.

It is therefore essential for supermarkets and trade centers to accelerate the “Vietnamese prioritize Made-in-Vietnam goods” campaign and to strengthen links between production and consumption and demand-driven supply chain networks to ensure stable input and output.