Retail sales and services reach almost $175 billion

The total revenue from retail sales and services reached VND3.93 quadrillion (US$174.85 billion) in 2017, surging 10.9 per cent year-on-year, according to the General Statistics Office (GSO).

Customers shop for goods at Co.opmart Ly Thuong Kiet Supermarket in HCM City. - VNA/VNS Photo Thanh Vu

Excluding inflation, the increase would be 9.46 per cent, higher than the growth rate of 8.33 per cent in 2016, GSO said.

The growth showed that the people’s purchasing power was improving, contributing significantly to the gross domestic product (GDP) growth rate of 6.81 per cent this year, said GSO experts.

The higher purchasing power of the people was due to the curbing of the consumer price index (CPI) at a low growth rate of 3.53 per cent for 2017, lower than the government’s target.

The people’s purchasing power increased sharply for some products, including automobiles, due to price reduction on certain products, higher demand for wooden products and building materials after large storms and floods in the central region, and increased demand for health care services despite price increases under the Government’s schedule. Meanwhile, an increase in the petrol price escalated the prices of some services, such as transport services.

The GSO said retail sales revenue in 2017 reached VND2.94 quadrillion, a year-on-year increase of 10.9 per cent, accounting for three fourths of the total revenue of retail sales and services.

The revenue of retail sales rose 14 per cent for auto, 13.2 per cent for gemstones and precious metal, 12.8 per cent for wooden products and building materials and 11.1 per cent for food, as well as 10.2 per cent for cultural and educational products and 9.6 per cent for garments.

The revenue of accommodation and catering services this year stood at VND494.7 trillion, a year-on-year surge of 12 per cent, accounting for 12.6 per cent of the total revenue of retail sales and services.

Some localities recorded an encouraging growth in revenue of retail sales and services, including Ha Noi, HCM City and Thanh Hoa, Ben Tre, Phu Yen and Ninh Binh provinces.

Meanwhile, Hai Phong City, HCM City and Nghe An, Khanh Hoa, and Lam Dong provinces gained high revenues from tourism services.