Find solutions to promote market development and stimulate consumer demand

Business activities at GO! Can Tho supermarket.

Synchronized solution

Mr. Phan Van Chinh, Deputy Director of the Department of Domestic Market Management and Development, said that the domestic goods market has continued to recover in line with the recovery of the national economy.

The development of the domestic market has advantages such as GDP in the first quarter of 2025 is estimated to increase by 6.93% over the same period last year, reaching the highest increase compared to the first quarter of the years in the period 2020-2025, which will support income and consumption demand in 2025. Public investment is promoted to help increase the income of workers in the construction and infrastructure sectors, thereby promoting consumption. The Government continues to implement support programs such as VAT reduction and interest rate support for retail businesses. Minimum wages increase, people's disposable income improves, helping domestic spending increase. Consumers are increasingly familiar with online shopping, making it easier for businesses to reach customers through digital platforms. Many shopping malls, supermarkets, and convenience stores are expanding, making domestic goods more accessible to consumers. In the first quarter of 2025, total retail sales of goods and service revenue reached VND 1,708,000 billion, an increase of 9.9% over the same period in 2024.

The scale of Vietnam's retail market is currently about 4,922 billion VND (2024 data). The proportion of goods consumed through traditional retail channels currently accounts for about 75%, through direct modern retail channels about 20% and through online shopping channels about 5%. Vietnam's retail market is considered a relatively potential market, attracting the attention of large retail enterprises in the world. In recent years, large retail enterprises such as Aeon (Japan), LOTTE (Korea), Cetral Retail, MM Mega Market (Thailand) ... have continuously invested and developed the number of retail locations in many localities across the country. Enterprises operating online shopping platforms such as Shopee, Lazada, Tiki ... have also expanded and strongly developed sales activities in Vietnam. Besides, large domestic retail enterprises such as Saigon Co.op, Wincommerce, Bach Hoa Xanh... are also continuously developing retail systems nationwide.

In addition to the advantages, the domestic market also faces some difficulties and challenges. The global economic downturn and factors such as trade wars and exchange rate fluctuations are negatively affecting domestic income and consumption. The change in shopping behavior from offline to online requires businesses to quickly adapt to digital platforms, but many businesses do not have the capacity to invest in implementation and adaptation. Consumers now prioritize products with clear origins and green products, but many domestic businesses have not yet had time to convert to meet this trend. Many small businesses that sell products from local areas still have difficulty bringing their products to supermarkets and shopping centers due to high display costs and complicated procedures. At the same time, cross-border e-commerce is growing strongly, affecting the consumption of goods in the domestic market.

Solve the problem

To find solutions to promote market development and stimulate domestic consumption, Mr. Nguyen Xuan Minh, representative of the Ministry of Finance, said that consumer psychology is still cautious, with free-spending despite signs of recovery but has not yet achieved a clear growth rate. Prices of some essential goods continue to increase, creating additional pressure on spending by low-income households. The risk of inflation is still latent, while actual economic growth has not created a strong enough push to stimulate consumption. Many businesses are still facing difficulties in production and business activities. The development of commercial infrastructure is not yet synchronous, there are many bottlenecks, while administrative procedures are still complicated, inconsistent and create many barriers for businesses as well as people.

In the face of the above situation, many solutions have been proposed. Among them, it is necessary to continue reducing environmental protection tax on gasoline and oil, reducing import tax to stabilize prices, supporting businesses to extend tax payment deadlines and reducing land rents. At the same time, it is necessary to adjust the family deduction level for personal income tax, helping to increase disposable income and promote consumption. In the long term, the driving force for growth must come from close coordination between public investment, institutional reform and domestic market development. In particular, administrative reform, especially in the field of tax, also needs to be promoted to create a transparent and effective business environment and promote sustainable consumption.

Ms. Le Thi Thu, Head of the General Department of the State Bank, said that the banking system has proactively adjusted lending interest rates, especially for the consumer sector... to bring cheap capital to businesses and people to promote domestic production and consumption.

Mr. Huynh Thanh Su, Deputy Director of the Department of Industry and Trade of Can Tho City, said that implementing solutions to continue promoting domestic market development and stimulating consumption in 2025, the Department of Industry and Trade of the city coordinates with the market management force, the People's Committees of districts and towns to regularly inspect and monitor the market, focusing on checking prices, product quality, and food safety regulations during the implementation of consumer stimulus programs to protect consumer rights and support the building of brands of good quality products. In addition, the Department also implements many activities and trade promotion solutions to connect supply and demand of goods to businesses and distributors, bringing products into the system of major distribution channels nationwide, expanding the business market. The Department also regularly hosts conferences to connect trade between centrally-run cities and some provinces. After each organization, many business cooperation memorandums between provincial enterprises are signed, creating a premise for enterprises to find partners and expand their business markets.

Mr. Tran Huu Linh, Director of the Department of Domestic Market Management and Development, said that the domestic market is not only a place to consume products but also a "lifesaver" for businesses in the context of many export challenges. The Ministry of Industry and Trade will continue to act as a bridge between the Government, businesses and consumers. Promote trade promotion activities, support small and medium enterprises, and at the same time, accelerate digital transformation in the trade sector to catch up with global trends. Director Tran Huu Linh emphasized that developing the domestic market and stimulating consumption is not only the task of any department, but between all levels, sectors, businesses and the whole society, close coordination is needed to promote the chain of production - distribution - consumption - credit finance - state management, building a dynamic, modern and sustainable domestic market.

Article and photos: KHANH NAM

Source: https://baocantho.com.vn/tim-giai-phap-day-manh-phat-trien-thi-truong-va-kich-cau-tieu-dung-a185938.html