More consumption promotion programmes until year end

Many programmes on promoting consumption until year end have been launched to boost domestic consumption growth, one of the three important pillars of the economy.

According to the Ministry of Industry and Trade, in September 2024, domestic consumption and production recovered, along with the strong growth of tourism, contributing to the growth of the trade and service industry.

Total revenue from retail sales of consumer goods and services in September 2024 is estimated at 535.8 trillion VND, up 1.2% over the previous month and up 7.6% over the same period last year.

In the first nine months of 2024, total revenue of retail sales of goods and services reached 4.7 quadrillion VND, up 8.8% over the same period last year, the highest increase since the beginning of the year.

The ministry said that it would continue to strongly develop the domestic market and coordinate with local ministries and branches to closely monitor market developments.

It also would ensure adequate supply of essential goods for the market, especially during peak holidays and Tet, to avoid supply shortages and price hikes.

To stimulate consumption, Dr Nguyen Bich Lam, former general director of the General Statistics Office, said that the Government needed to implement consumption stimulus solutions through tax and social security policies, such as a reduction of the personal income tax rate and reduction of VAT for a longer period.

The State needs to reduce air and railway service prices to stimulate domestic tourism and attract foreign tourism and increase consumption promotion campaigns for Vietnamese goods.

Research Director of the Centre for Market Solutions for Socio-Economic Issues (MASSEI), Dinh Tuan Minh, also supported the proposal that the State should consider extending the 2% VAT reduction period, instead of only applying it until the end of 2024.

"This policy has been effective in the past months," Minh said.

Dr Nguyen Duc Do, deputy director of the Institute of Economics and Finance under the Ministry of Finance, suggested that the State should consider adjusting the family deduction level as it was no longer suitable. When actual income increases, people would spend more on shopping.

Meanwhile, minister of Industry and Trade Nguyen Hong Dien suggested that all levels, sectors and localities should continue to implement consumer stimulus packages, especially at the end of the year, combined with implementing market stabilisation programmes, focusing on essential goods in areas affected by storms and floods.

To stimulate the domestic consumer market, contributing to the economic recovery, the Ministry of Industry and Trade will organise a national promotion programme - Vietnam Grand Sale 2024 - taking place from December 2 to 31.

Along with this national programme, localities are also actively implementing stimulus solutions at the provincial and municipal levels.

The Hanoi Department of Industry and Trade of the city will organise a promotion event in the last months of the year.

Meanwhile, HCM City Department of Industry and Trade has announced a market stabilisation programme for the end of 2024 and the Lunar New Year 2025. This year's programme is expected to attract 69 key businesses, an increase of ten businesses compared to 2023.

Deputy general director of BRGMart Supermarket System, Nguyen Thi Hien, said that to meet people's shopping needs in the last months of 2024, as well as before and during the Lunar New Year 2025, the company had coordinated with suppliers to double or even triple the volume of goods in stock compared other months of the year.

They would also carry out control of high-quality goods, food safety and hygiene, transparent origin and stabilise selling prices.

Director of Co.op Mart Ha Dong supermarket Nguyen Thi Kim Dung said that their supermarket system would also bring in many promotional programs to stimulate consumption at 800 points of sale.

Similarly, the WinMart/WinMart+/WiN supermarket system is also launching many consumption promotion programmes for essential goods, such as food, confectionery and beverages.