Update: 07:44 | 04/01/2020
Retail sales of goods and services in Vietnam reached VND4.94 quadrillion (US$214.8 billion) in 2019, representing a rise of 11.8% over the previous year, according to the General Statistics Office (GSO).
This marks the highest growth rate in the last four years. In 2016, retail sales rose 10%, and hit 11.6% in 2017 and 2018.
If inflation was excluded, retail sales increased by 9.32%, compared to 8.4% in 2018.
Consumers shop at a supermarket in Thua Thien - Hue province. Vietnam saw an increase in purchasing power in 2019, driven by improved income per capita.
According to Vu Manh Ha from the GSO, rising incomes, boosted by beyond-expectation economic growth of 7.02%, had pushed up purchasing power.
The GSO revealed that monthly income per capita was estimated at VND4.2 million (US$182) in 2019, higher than the VND3.9 million (US$168) reported in 2018.
In addition, the market also adapted to consumers’ tastes, with a diversification of distribution channels, quality products and attractive promotions, which also helped increase demand.
The retail revenue of goods totalled VND3.751 quadrillion, up 12.7%.
Revenue from accommodation and catering services reached VND586 trillion, rising 9.8%.
Tourism services recorded revenue of VND46 trillion, up 2.1%.
Provinces and cities with high purchasing power included Thanh Hoa, Hai Phong, Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Nghe An, Khanh Hoa, Ba Ria-Vung Tau and Quang Ninh, seeing increasing rates of between 15.7% and 17.1% in retail sales.
Nam Dinh saw the highest increase in purchasing power in the country, with a growth rate of 18%.