Vietnam’s retail sales down in five months

June 02, 2020 | 09:55
Total revenue of retail trade and services reached more than 1.91 quadrillion VND (82.36 billion USD) in the first five months of this year, down 4 percent year-on-year, a report from the General Statistics Office (GSO) showed.
vietnams retail sales down in five months
Illustrative image (Photo: VNA)

If inflation was excluded, retail sales dropped 8.6 percent, compared to 8.5 percent seen in last year’s corresponding period.

In May, total retail sales of goods and services witnessed a significant month-on-month increase of 27 percent to an estimated 384.8 trillion VND thanks to the end of the social distancing period, resulting in rebound in purchasing power of local people, the GSO said in its report.

Retail sales of goods during the five-month period were estimated at 1.54 quadrillion VND, representing a modest rise of 1.2 percent year on year or accounting for 80.6 percent of the total revenue.

GSO statisticians attributed the slight increase in retail sales of goods in the period to sufficient sources of essential goods provided by supermarkets and trade centres so that price fluctuations were not incurred as well as to a change in local people’s consumer behavior with a priority given to shopping online.

Among all sectors, purchases of food and foodstuff grew by 6.1 percent year-on-year, followed by home appliances (2 percent) while that of educational and cultural products dropped 8.2 percent and textiles and apparel (3 percent).

Several localities recording a retail sale growth included the northern port city of Hai Phong with 9 percent and two economic hubs of Hà Nội and HCM City with 6.4 percent and 6 percent, respectively.

As per the report, the five-month revenue from accommodation and catering services witnessed a decrease of 26 percent to 175 trillion VND, compared to 10 percent increase in the same period last year.

Despite the facts that accommodation and catering businesses have resumed their operations after the social distancing period and local people have been less worried about the pandemic, the revenue from accommodation and catering services in five months of 2020 still slumped significantly compared to the same period last year as students started to return to school and the people’s demand for travelling remained modest, the GSO assessed.

During the same period, travel service revenues experienced the strongest decline of 54 per cent at 8.3 trillion VND because of the complicated development of COVID-19 around the world so Vietnam halted visa issuance for foreigners and the domestic tourism industry has yet to recover.

Localities posting a strongest decline in travel service revenues were Ba Ria- Vung Tau at 73 percent; Khanh Hoa (68 percent); HCM City (66 percent); Quang Ninh (65 percent); Can Tho (59 percent) and Hanoi (55 percent).

From January to May, revenue from other services totaled 186.9 trillion VND, down 12 percent year-on-year, the GSO noted.


What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional