NTO - First two months of 2024

Việt Nam•04/03/2024

February 2024 coincided with the Lunar New Year (Year of the Dragon), resulting in a fairly vibrant business and service environment in the province. Despite increased demand for consumer goods and transportation, prices for goods and services remained well-controlled, with no sudden or unusual price increases.

To stimulate consumer spending, supermarkets, mini-supermarkets, and convenience stores organized numerous promotional programs, attracting a large number of shoppers and contributing to an estimated retail sales revenue of 3,302.8 billion VND, an increase of 15.1% compared to the same period last year.

Increased purchasing power in February contributed to the total retail sales of goods and consumer service revenue in the province reaching VND 6,844.2 billion in the first two months of the year, a 13.1% increase compared to the same period in 2023. By sector: Estimated retail sales of goods reached VND 5,120.8 billion, accounting for 74.8% of the total and increasing by 12.1% compared to the same period last year, including: Food and beverages increased by 16.6%; cultural and educational items increased by 13.3%; household goods and equipment increased by 9.0%; clothing increased by 7.2%; and transportation (excluding cars) decreased by 30.2%. Revenue from accommodation and food services is estimated at VND 1,103.3 billion, accounting for 16.1% and increasing by 18.2%. Revenue from travel and tourism is estimated at VND 2.5 billion, accounting for 0.1% and increasing by 11.6%. Revenue from other services is estimated at VND 617.5 billion, accounting for 9% and increasing by 13.4%.

Regarding the Consumer Price Index (CPI), in February, the CPI increased by 1.42% compared to the previous month and by 5.38% compared to the same period last year. Notably, within the 1.42% increase in the February CPI, 8 out of 11 groups of goods and services saw price increases, while 3 groups remained stable. Among the 8 groups with price increases, the transportation group saw the highest increase at 4.33%. This was due to a 5.49% increase in fuel prices (gasoline increased by 5.88%; diesel increased by 5.50%), in addition to a significant increase in public transportation service prices at 50.97%, and other services for private transport increasing by 29.47%, such as: train ticket prices increased 2.5 times, airfare increased by 39.07%, and bus fares increased by 14.04% for routes from Ho Chi Minh City. Due to increased travel demand during the Lunar New Year holiday, car wash and tire inflation services in Ho Chi Minh City and Ninh Thuan have seen price increases of 2.34%, while parking fees have risen by 42.13%.

Consumers refuel at the Ninh Thuan Petroleum Branch. Photo: Van Ny

Next, the group of other goods and services increased by 1.93%, mainly due to a 0.92% increase in jewelry prices, driven by the rise in domestic gold prices; a 2.18% increase in handbags, suitcases, and wallets; a 10.51% increase in haircut and hair washing services; and a 30.60% increase in personal care services... due to the high demand for beauty services during Tet. The food and beverage group increased by 1.74%, including: a 0.10% increase in cereals, mainly due to a 0.17% increase in rice prices; a 0.66% increase in other food items, and a particularly significant 4.58% increase in dining out services, as food and labor costs increased during Tet, leading many restaurants, cafes, and bubble tea shops to add surcharges of 10-25% compared to regular prices.

The following groups saw increases: Housing and building materials increased by 1.07%, mainly due to increases in fuel items (kerosene up 2.71%, gas up 1.23%, electricity up 0.19%), water up 0.97%, and rental housing up 2.76%. The beverages and tobacco group increased by 0.59%, mainly due to price increases in beer and spirits, with spirits increasing by 1.07% and beer by 1.84%. The clothing, hats, and footwear group increased by 0.54%, driven by increased demand for clothing, hats, and footwear during the Lunar New Year. The household equipment and appliances group increased by 0.41%, due to increased transportation and production costs, coupled with increased consumer demand during the 2024 Lunar New Year, which led to price increases for some consumer goods in this group compared to the previous month. The culture, entertainment, and tourism group increased by 0.23%. The remaining three groups of goods and services – medicine and medical services; postal and telecommunications services; and education – remained unchanged. These results contributed to an average CPI increase of 4.83% in the first two months of 2024 compared to the same period last year.

Thuc Anh

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