Consumers are tightening their spending, and domestic purchasing power is fluctuating.

TPO - Dr. Pham Viet Thuan - Director of the Institute of Economics, Resources and Environment - believes that consumption is always an important driving force of the economy. However, since 2024, there has been a trend of decreasing domestic consumption rates.

At the seminar "Unlocking Purchasing Power, Stimulating Consumer Demand" recently organized by Thanh Nien Newspaper, many experts argued that although domestic purchasing power has recovered, it has not yet created a sustainable foundation for the market.

Purchasing power remains volatile.

According to data presented at the conference, total retail sales of goods and consumer service revenue in the first four months of 2026 reached nearly VND 2,600 billion, an increase of 11.1% compared to the same period last year. Even excluding the price factor, purchasing power still increased by 6.3%, indicating that the consumption of goods and services increased in both value and volume.

Overview of the conference (photo: Doc Lap).

However, according to experts, monthly trends show that purchasing power remains unstable. The market often surges during holidays and festivals but then quickly slows down.

According to the General Statistics Office's report, in the first four months of the year, more than 108,800 businesses withdrew from the market, an increase of 12.8% compared to the same period last year. Of these, the number of dissolved businesses reached over 15,000, nearly double the previous figure, and was mainly concentrated in the group of small-scale businesses and those operating for less than five years.

Dr. Pham Viet Thuan, Director of the Institute of Economics , Resources and Environment, believes that consumption is always an important driving force of the economy. However, since 2024, there has been a trend of decreasing domestic consumption, and this phenomenon continues to return this year.

The prolonged economic hardship has led many people to tighten their spending, prioritizing only essential needs.

One of the reasons for the decline in consumption is the impact of tax policies, invoices, and declarations, which significantly increase the costs for household businesses. This sector provides employment for tens of millions of workers, and when input costs and compliance costs increase, it directly impacts people's income and purchasing power.

In addition, price fluctuations in the international market, specifically the increase in fuel and material prices, have led to an average increase of 20-22% in the prices of many goods and services. Many construction materials have also seen significant price increases compared to the previous year, putting considerable pressure on businesses.

According to Mr. Thuan, the prolonged difficulties have forced many people to tighten their spending and prioritize essential needs. This directly affects the supply and demand of goods and can have a ripple effect on many other industries. "The current increase in purchasing power is still insufficient for sustainable market development. The market landscape is clearly polarized due to price pressures," Mr. Thuan stated.

Consumers are worried about losing trust due to counterfeit goods.

Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Beverage Association, stated that in recent times, there have been numerous cases of contaminated food, counterfeit goods, and substandard products. This directly impacts consumer confidence.

Ms. Chi cited the fact that many people have eaten at roadside eateries and are at risk of consuming "adulterated" food, such as sow pork being passed off as beef.

Counterfeit and substandard goods erode consumer trust.

According to Ms. Chi, the biggest challenge for legitimate businesses is not only producing quality products but also maintaining consumer trust. Businesses operating in a proper manner find it very difficult to compete with counterfeit, imitation, and low-quality goods that are cheaper. Notably, counterfeit and low-quality goods are thriving on online sales platforms, adding further pressure to the market.

Mr. Nguyen Nguyen Phuong, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, acknowledged that combating smuggled, counterfeit, and substandard goods still faces many difficulties. Many businesses use underhanded tactics, leading to significant pressure on their operations. Furthermore, goods from all over, both imported and smuggled, flood the market. Therefore, it is difficult for any single agency to inspect, control, and prevent everything.

"By the time the qualitative inspection is complete, the goods may have already reached the market and consumers' dinner tables because if we wait for the quantitative inspection to finish, the goods are no longer usable," Mr. Phuong said.

Source: https://tienphong.vn/nguoi-dan-that-chat-chi-tieu-suc-mua-noi-dia-troi-sut-post1845455.tpo