Domestic market supports businesses amid COVID-19 pandemic

ABO/VNA - The domestic market can support local production and business in the context of the serious developments of the COVID-19 pandemic, said Deputy Minister of Industry and Trade Do Thang Hai at a meeting in Hanoi on August 12.

Speaking at the meeting on domestic market development, Hai said as the pandemic spreads globally, many businesses saw their export markets hit with postponed or cancelled orders, while the domestic market of nearly 100 million people is large enough for businesses to overcome difficulties and challenges.

Total retail sales of goods and services in the first seven months of this year decreased by 0.4 percent year-on-year, but revenue increased by 3.6 percent, ensuring the essential needs of people and the supply of raw materials, fuel, machinery, equipment and goods to maintain production and business for domestic market and exports as well.

Big C is one of the foreign supermarkets selling a high volume of Vietnamese goods.

“This result is thanks to the 2014-20 campaign ‘Vietnamese people use Vietnamese goods’, which has supported changing local consumers’ awareness and behaviour through dissemination programmes,” Hai said.

He said the campaign has also helped Vietnam’s distribution network develop sustainably and enhance competitive capacity for Vietnamese enterprises, showing the strong vitality of Vietnamese products as an important pillar in the domestic market, contributing to the completion of economic indicators, curbing inflation, stabilising the macro-economy and ensuring balance of supply and demand, especially essential goods.

Tran Duy Dong, director general of the Ministry of Planning and Investment’s Department for Local and Regional Economy, said the distribution sector is one of the driving forces for economic development.

He said most international organisations including the World Bank, IMF and ADB have praised the role of the domestic market in Vietnam in the context of the pandemic.

“Domestic goods are still produced and circulated regularly, not only enough to meet the domestic market's needs but also to export to countries around the world,” Dong said.

According to a report from the Domestic Market Department, Vietnamese goods in the retail supermarket system of Co.opmart account for 90-93 percent, Satra 90-95 percent, Vissan 95 percent, Vinmart 90 percent, BRG Retail 90 percent and Bách Khoa Xanh supermarket system 95 percent.

Meanwhile, the proportion of Vietnamese goods at foreign supermarkets in Việt Nam ranges between 60 percent and 96 percent. They make up 82 percent of revenue at Lotte, 96 percent of revenue at Big C, 80 percent of goods at AEON, and 95 percent of goods at MegaMarket.

As for traditional retail channels, Vietnamese goods at convenience stores and traditional markets account for more than 60 percent or more.

To promote the consumption of Vietnamese goods in the domestic market, Dong said there is a need to add mechanisms and policies to encourage domestic enterprises to increase the application of science and technology, develop supporting industries, and expand convenient and flexible distribution channels of Vietnamese goods.

“It is necessary to push up the connection of businesses from production to consumption, especially e-commerce both at home and abroad to expand the consumption market of Vietnamese goods,” he added.

(Source: VNA)