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Vietnam’s retail growth hit 7-year rock bottom

Vietnam’s retail growth hit 7-year rock bottom

Wednesday 04, 03 2020
Retail is one of the industries heavily affected by the Covid-19 epidemic as consumers' shopping is carried out at a lower frequency than before,

and consumption structure of each family has also experienced significant change.

Accommodation and tourism services badly affected

In the first 2 months of 2020, the retail sales of goods were estimated at VND 674 trillion, up 9.8% over the same period last year, but much lower than the 13.3% growth of the same period in 2019.

According to the General Statistics Office (GSO), total estimated retail sales of consumer goods and services in February 2020 reached VND 414.1 trillion, down 7.9% from the previous month and up 6% over the same period last year.

In particular, the retail sales of goods reached VND 325.2 trillion, which is an increase of 8.2% over the same period last year, but a fall of 6.7% compared to the previous month. Notably, revenue from accommodation and catering services was only VND 44.2 trillion, down 13% over the previous month and down 3.9% over the same period of 2019.

​​Vietnam’s retail growth hit 7-year rock bottom

By the end of the Lunar New Year, the commodity market was not of high consumption due to widespread information about the disease caused by Covid-19, which caused consumers to go to crowded places on a less-often basis. Most shopping centers became deserted, and business activities of enterprises plummeted.

Accommodation and tourism services were severely affected when many tourists canceled tours and hotel reservations due to fears of disease caused by Covid-19. In fact, since the dawn of the acute pneumonia epidemic caused by Covid-19, many economic activities such as tourism and trade have almost been paralyzed. Even the daily activities of the people have also been significantly disturbed.

For the first 2 months of this year, total retail sales of consumer goods and services reached VND 863.9 trillion, up 8.3% over the same period last year, if excluding the price factor, the increase would be 5, 4% (while in the same period in 2019, it was 9.3%).

This is considered the lowest increase of 2 months since 2014. The growth rate of total retail sales and revenue of consumer services in the first 2 months compared to the same period last year of the period 2014-2020 were 13.7%; 11.3%; 9.9%; 9.6%; 10.4%; 12.2%; 8.3% respectively.

Vietnam’s retail growth hit 7-year rock bottom 2

Last year, total retail sales of consumer goods and services in February reached VND 390.8 trillion, down 3% compared to January 2019 and up 11.5% over the same period in 2018, of which retail sales of goods reached VND 301.4 trillion, which was a decrease of 3.4% over the previous month and an increase of 12.5% over the same period in 2018.

Analysis of industries and localities

Among industries, the automobile industry grew by 11.2%; gasoline and oil rose by 11%; household appliances, tools and equipment rose by 9.5%; garment increased by 8.9%; food and foodstuff increased by 8.6%; means of transport increased by 7.1%; cultural and educational items increased by 4.7%.

Localities having a good growth in the retail sales of goods are Quang Ninh (increased by 13.8%), Hai Phong (increased by 13.6%), Thanh Hoa (increased by 11.9%), Nghe An (increased by 10.9%), Hanoi (increased by 10.5%), Ho Chi Minh City (increased by 9.6%), Da Nang (increased by 8.2%), and Khanh Hoa (increased by 7.9%).

Sales of accommodation and catering services in the first 2 months was estimated at VND 95 trillion, accounting for 11% of the total sales and only increasing by 1.7% compared to the same period last year (in the same period in 2019, it increased by 10.8%).

Due to the effect of the Covid-19 epidemic, people have restricted travelling and eating out; and the suspension of visas for Chinese visitors also affected the accommodation and catering services. Sales of accommodation and catering services for 2 months compared to the same period last year decreased in most parts of Vietnam, of which Khanh Hoa decreased by 24.2%, Lam Dong decreased by 10.2%, Hanoi decreased by 8.1%,

Can Tho decreased by 5.6%, HCMC decreased by 5%, Thanh Hoa decreased by 2.9%, and Binh Dinh decreased by 1.6%. Sales of tourism in the first 2 months was estimated at VND 7.4 trillion, accounting for 0.9% of the total sales and up 1.1% compared to the same period last year (in the same period in 2019, it increased by 12.8%), of which Hanoi decreased by 9.5%, Ba Ria - Vung Tau decreased by 9.7%, Quang Nam decreased by 12.8%, Thanh Hoa decreased by 23.6%, and HCMC decreased by 1.2%, etc.

​>> Vietnam’s retail market 2019 in a nutshell

Source: GSO

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Business Economy News

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