Domestic market: 'Support' for 8% growth target

In the context of export markets facing challenges, the domestic market of more than 100 million people will help Vietnam achieve its growth target in 2025.

Identify potential from domestic market

At the seminar "Solutions to strengthen and develop the domestic market" organized by the Vietnam Association of Foreign Investment Enterprises (VAFIE) on the morning of April 25, experts proposed solutions to support Vietnam in achieving the growth target of 8% or more in 2025.

In particular, special attention is paid to solutions to stimulate consumption, promote domestic market development, improve domestic production and distribution capacity, and support businesses and consumers.

Delegates attending the discussion. Photo: Huu Thang

Specifically, according to Mr. Bui Nguyen Anh Tuan - Deputy Director of the Department of Domestic Market Management and Development, Ministry of Industry and Trade : In 2025, the Government sets a target of GDP growth of 8% or more, with three main contributions being domestic consumption, export and public investment. Of which, domestic consumption will account for 60-65% depending on the year.

Seeing the positive opportunities of Vietnam's domestic market, Mr. Tran Anh Thang - Member of the Board of Directors of Vietnam Export Import Commercial Joint Stock Bank - said: Along with GDP growth, Vietnam's domestic consumption growth has also increased gradually over the years.

"If the total retail sales and consumer service revenue in 2018 was nearly 4.4 million billion VND, this number will reach 6.39 million billion VND by 2024" - Mr. Tran Anh Thang stated the figure.

However, in recent years, the growth rate of domestic consumption has shown signs of slowing down. This was also a concern of Mr. Bui Nguyen Anh Tuan in his speech when he said: To achieve GDP growth of over 8%, the total growth rate of retail sales of goods and consumer service revenue must reach a rate of 12%.

Through monitoring over the past 10 years, Mr. Bui Nguyen Anh Tuan said that no year has exceeded 9%, not to mention the period of very low growth during the Covid-19 pandemic.

Sharing his views on the domestic market, Professor, Dr. Nguyen Mai - Honorary President of VAFIE - said that Vietnam is a country with 100 million people, an attractive market not only for domestic enterprises but also for foreign enterprises.

Although the domestic market is considered to have great potential, according to economic experts, Vietnam has not yet effectively exploited this market but depends heavily on the import market, making it vulnerable to 'global shocks'.

On that basis, Mr. Tran Anh Thang said that this is the 'golden time' for Vietnam to implement solutions to stimulate domestic demand, through promoting consumption of Vietnamese goods.

Professor, Dr. Nguyen Mai also said that the capacity of the domestic business sector is increasingly developing, currently Vietnamese businesses are capable of replacing foreign businesses in making cars, motorbikes, construction, hotels, etc. The capacity of Vietnamese businesses is enough to do it, even do it better and faster than foreign businesses. So this is the golden time to stimulate domestic consumption.

Seminar 'Solutions to strengthen and develop domestic market' organized by VAFIE on April 25. Photo: Huu Thang

Find solutions to effectively exploit the domestic market

Proposing solutions to develop the domestic market, Professor, Dr. Nguyen Mai said that it is necessary to implement solutions, including: Innovation of institutions, laws, and policies related to the market; businesses also need to change their business strategies with a medium and long-term vision based on market research and forecast of market fluctuations.

In addition, businesses need to have an image and brand strategy; improve business management capacity; increase investment in R&D (research and development) and human resource training.

According to Professor, Dr. Nguyen Mai, Vietnam needs to have policies to encourage domestic enterprises to link up in chains and participate in domestic and global value chains, so that there will be a series of large-scale enterprises capable of competing with foreign enterprises.

Also appreciating the potential in the domestic market, Mr. Dau Anh Tuan - Head of the Legal Department, Deputy General Secretary of the Vietnam Federation of Commerce and Industry (VCCI) - said: Currently, there are only 14 countries in the world with a domestic market of over 100 million people. Therefore, in the eyes of businesses, Vietnam is a very potential market.

Accordingly, to effectively exploit the domestic market, Vietnam needs to have practical policies to support domestic enterprises to participate in product development and consumption in the domestic market. Specifically, policies to support enterprises to participate in supply chains of goods, penetrate the market, and better meet the demand for Vietnamese goods.

In addition to effectively exploiting the domestic market, economic experts also shared at the seminar that Vietnam has signed 17 free trade agreements (FTAs) with more than 60 countries, so it is necessary to promote the exploitation of signed FTAs. This is a 'way out' for Vietnamese goods and opens up opportunities for businesses to grow, contributing to the economic growth target of 8% or more in 2025 and double digits in the period 2026-2030.

To promote the development of the domestic market, according to Mr. Bui Nguyen Anh Tuan - Deputy Director of the Department of Domestic Market Management and Development (Ministry of Industry and Trade), the Ministry of Industry and Trade is also proposing groups of solutions, typically stimulating domestic consumption and supporting businesses to effectively exploit the market through improving production capacity and product quality.

Nguyen Hoa

Source: https://congthuong.vn/thi-truong-noi-dia-be-do-cho-muc-tieu-tang-truong-8-384820.html