|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. — VNA/VNS Photo Mai Trang
This marks the highest growth rate in the last four years. In 2016, retail sales rose 10 per cent, and hit 11.6 per cent in 2017 and 2018.
If inflation was excluded, retail sales increased by 9.32 per cent, compared to 8.4 per cent in 2018.
According to Vu Manh Ha from the GSO, rising incomes, boosted by beyond-expectation economic growth of 7.02 per cent, had pushed up purchasing power.
The GSO revealed that monthly income per capita was estimated at VND4.2 million ($182) in 2019, higher than the VND3.9 million 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 per cent.
Revenue from accommodation and catering services reached VND586 trillion, rising 9.8 per cent.
Tourism services recorded a revenue of VND46 trillion, up 2.1 per cent.
Provinces and cities with high purchasing power included Thanh Hoa, Hai Phong, Hanoi, HCM City, Danang, Can Tho, Nghe An, Khanh Hoa, Ba Ria-Vung Tau and Quang Ninh, seeing increasing rates of between 15.7 per cent and 17.1 per cent in retail sales.
Nam Dinh saw the highest increase in purchasing power in the country, with a growth rate of 18 per cent.