Localities strengthen trade promotion, stimulate domestic consumption

Abundant supply, slow purchasing power

According to the Ministry of Industry and Trade , in August, the supply of goods was guaranteed, and prices did not fluctuate abnormally compared to the previous month. Demand for tourism and recreation in August decreased compared to the previous month when the summer vacation ended, while demand for clothing, utensils, equipment, cultural and educational items increased as students prepared to enter the new school year.

Regarding prices, the prices of fresh food items tend to be stable, although consumer demand increases at the end of the seventh lunar month. In particular, the price of live pigs continues to decrease due to abundant supply, African swine fever reappears in some localities, so farmers tend to sell off the disease, and demand decreases because many people have the habit of being vegetarian during the seventh lunar month...

Các địa phương tăng cường xúc tiến thương mại, kích cầu tiêu dùng nội địa

Strengthening domestic consumption stimulus

On the contrary, due to the influence of world prices, some commodities tend to increase in price such as: gasoline, LPG, domestic wholesale price of white sugar (in particular, domestic retail price of sugar is stable at a high level), domestic rice price increases quite strongly, especially raw rice for export (price of paddy and regular rice is estimated to increase by about 500-1,500 VND/kg, depending on type and locality), some types of fertilizer such as SA, Potassium increase slightly (other types remain stable). Some commodities tend to decrease in price such as: construction steel, mixed feed for pigs...

Total retail sales of goods and consumer service revenue in August is estimated at VND515.4 trillion, up 0.9% over the previous month and up 7.6% over the same period last year due to high demand for essential goods, especially goods for the new school year, and August being the last summer month of the year, also the end of summer vacation for students, so tourism and outdoor activities are more bustling.

In the first 8 months of 2023, the total retail sales of goods and consumer service revenue at current prices is estimated at VND 4,043.9 trillion, up 10% over the same period last year (the same period in 2022 increased by 19.2%), if excluding price factors, it increased by 7.7% (the same period in 2022 increased by 15.1%).

Thus, since the beginning of the year, the total monthly retail sales of goods and cumulative service revenue have maintained double-digit growth. However, the trend is decreasing month by month, showing that purchasing power is slowing down.

Localities "get involved"

To promote the recovery of the domestic market, localities have been promoting trade promotion activities. For example, to stimulate domestic consumption, since the beginning of 2023, the Department of Industry and Trade of Quang Ninh province has organized many fairs, exhibitions, product promotion weeks, etc. Typically: Quang Ninh OCOP Fair - Spring 2023; Quang Ninh OCOP Fair - Summer 2023; localities organized 7 OCOP fairs combined with trade; Fair of Vietnamese people giving priority to using Vietnamese goods, etc. These are all effective activities to bring Quang Ninh products closer to a large number of consumers.

Thanks to that, the total retail sales of goods and consumer service revenue in the province in 2021 increased by 5.73% over the same period, in 2022 increased by 24.4% over the same period, expected to increase by 23.9% in 2023, expected average increase in the period 2021 - 2023 reached 17.68%, higher than the set target (target increase of 17 - 18%).

In Hanoi, Acting Director of the Hanoi Department of Industry and Trade Tran Thi Phuong Lan said that 2023 will continue to be a very difficult year for the national economy in general and the Hanoi industry and trade sector in particular. The sector will continue to be steadfast and effectively organize and implement trade promotion programs to stimulate domestic consumption.

In May, the Hanoi Department of Industry and Trade launched the Hanoi City Concentrated Promotion Program 2023, introducing a series of promotional events within the framework of the Program lasting from May to November 2023.

The program launches large-scale, concentrated promotional events in May, July, and November 2023 with discounts and promotions of up to 100%, attracting 1,000 - 2,000 businesses from all economic sectors to participate. The program aims to create conditions for businesses to organize activities to stimulate demand, consume products, reduce inventory and serve people's shopping needs.

Ms. Tran Thi Phuong Lan said that in the coming time, the Department of Industry and Trade will continue to organize a series of events to stimulate demand, promote trade; connect trade, promote brands, and consume products for Vietnamese enterprises such as a chain of sustainable production and consumption connections for traditional craft village products; a week of promoting, introducing and selling agricultural and food products at distribution channels; organizing a chain of sustainable production and consumption connections for textile and garment products; a souvenir exhibition fair; organizing a Hanoi booth at festivals, fairs, and exhibitions in provinces and cities; a fair for Vietnamese export goods; a fruit festival; a fair of safe agricultural and food products supplying markets in the city, etc.

Some localities had high retail sales of goods in the first 8 months of 2023 compared to the same period last year such as: Quang Ninh increased by 11.8%; Hai Phong and Can Tho both increased by 9.5%; Binh Duong increased by 9.4%; Dong Nai increased by 8.2%; Hanoi increased by 6%; Ho Chi Minh City increased by 4.8%; Da Nang increased by 3.1%.

How will the domestic market perform in the last months of the year?

According to the Ministry of Industry and Trade, domestically, the domestic consumer price index is still assessed at a fairly high level compared to previous years. However, the increase in basic salary from July 1st not only stimulates demand in the economy but may cause certain consequences for businesses and workers, especially the issue of increasing domestic price levels.

In addition, price management is expected to continue to face many difficulties with increasing inflationary pressure due to the potential risk of price increases for raw materials and strategic goods in the world market, and exchange rate risks creating pressure on domestic import costs of raw materials, fuels and materials.

From the above risks and challenges, the whole industry must not be negligent or subjective, closely monitor the fluctuations in supply and demand, and commodity prices in the world and domestically to be ready with timely response solutions to achieve the industry's goals.

Therefore, in the coming time, the Ministry of Industry and Trade will closely coordinate with ministries, branches and localities to closely monitor market developments, promptly implement or propose to the Government measures to ensure balance between supply and demand of essential goods when the market experiences unusual fluctuations.

In addition, coordinate with ministries and branches in advising on price management of state-controlled goods, including petroleum products, to ensure the supply of petroleum products in the market, contributing to controlling general inflation according to the Government's target.

Coordinate with ministries, branches and localities to implement activities to connect supply and demand, promote trade to support the consumption of agricultural products; synchronously and effectively implement the campaign "Vietnamese people prioritize using Vietnamese goods".

Coordinate with media units to focus on providing full information to people about the supply situation of goods... to create a stable mentality for consumers, promptly handle false information that causes psychological instability for consumers.

Regarding gasoline prices, we will continue to closely coordinate with the Ministry of Finance to calculate and manage gasoline prices consistently and in accordance with the provisions of Decree No. 83/2014/ND-CP and Decree 95/2021/ND-CP amending and supplementing a number of articles of Decree No. 83/2014/ND-CP, guiding and directing circulars of the Prime Minister, Deputy Prime Minister Le Minh Khai - Head of the Steering Committee for Price Management so that domestic gasoline prices move in line with the developments of world gasoline prices.

At the same time, use the Price Stabilization Fund effectively and flexibly to limit the strong fluctuations in domestic gasoline prices compared to fluctuations in world prices (when world prices increase), contributing to the goal of controlling inflation and supporting economic recovery, ensuring the harmony of interests between business entities and gasoline users. Continue to restore the Price Stabilization Fund to have room to regulate prices when the market still has many potential instabilities and prices tend to increase.

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