The nation's total revenue from retail sales and services saw a significant growth of 11.5 per cent to more than VND23.9 quadrillion (nearly US$102 billion) in the first half of this year.

Shoppers at the Go!Market in Hanoi. Total retail sales hit three-year high
at nearly $102 billion in the first half, up 11.5 per cent year-on-year.
— VNS Photo Thu Tra

The increase was the highest level seen in the first half of any of the past three years, the General Statistics Office (GSO) has said in a monthly report.

Excluding the price factor, the growth rate was 8.7 per cent against the first half of last year.

The abundant supply met manufacturing and consumption demands, GSO director Nguyen Bich Lam told a press conference in Hanoi late last week. Lam said the local market was buoyed in the reviewed period by a broadened consumption market and diversified promotions.

In the six-month period, retail sales of goods reached VND18.23 quadrillion, up 12.5 per cent year-on-year and making up 76.3 per cent of all revenue. Sales of food and foodstuff rose 13 per cent, household equipment rose 12 per cent, garments rose 11 per cent and cultural, educational and transport facilities rose 10.7 per cent.

According to the report, sales of restaurant and accommodation services topped VND286.7 trillion in the period, accounting for 12 per cent of the total revenue and surging 10 per cent over same period last year. Travel services revenue amounted at VND21.9 trillion, up 13 per cent.

With the upward trend in total retail sales, the Ministry of Industry and Trade forecast total sales this year would grow by 10 per cent.

The GSO’s figures also revealed that the country’s retail market scale has rapidly increased in recent years from $88 billion in 2010 to $130 billion in 2017. It is expected to rise to $180 billion in 2020.

Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam will remove limitations on the opening of more retail stores in 2024 after the deal has been in effect for five years. The Vietnamese retail market is expected to experience a boom thanks to the participation of both traditional distributors and major e-commerce groups.