Retail sales and services reach almost US$175 billion

Excluding inflation, the increase would be 9.46%, higher than the growth rate of 8.33% in 2016, GSO said.

The growth showed that the people’s purchasing power was improving, contributing significantly to the gross domestic product (GDP) growth rate of 6.81% this year, said GSO experts.

The higher purchasing power of the people was due to the curbing of the consumer price index (CPI) at a low growth rate of 3.53% for 2017, lower than the government’s target.

The people’s purchasing power increased sharply for some products, including automobiles, due to price reduction on certain products, higher demand for wooden products and building materials after large storms and floods in the central region, and increased demand for health care services despite price increases under the Government’s schedule. Meanwhile, an increase in the petrol price escalated the prices of some services, such as transport services.

The GSO said retail sales revenue in 2017 reached VND2.94 quadrillion, a year-on-year increase of 10.9%, accounting for three fourths of the total revenue of retail sales and services.

The revenue of retail sales rose 14% for auto, 13.2% for gemstones and precious metal, 12.8% for wooden products and building materials and 11.1% for food, as well as 10.2% for cultural and educational products and 9.6% for garments.

The revenue of accommodation and catering services this year stood at VND494.7 trillion, a year-on-year surge of 12%, accounting for 12.6% of the total revenue of retail sales and services.

Some localities recorded an encouraging growth in revenue of retail sales and services, including Hanoi, HCM City and Thanh Hoa, Ben Tre, Phu Yen and Ninh Binh provinces.

Meanwhile, Hai Phong city, HCM City and Nghe An, Khanh Hoa, and Lam Dong provinces gained high revenues from tourism services.