09:08 | 27/06/2018 Trade
(VEN) - With average growth of 10 percent per year, domestic trade is one of the main driving forces of Vietnam’s economic development. However, trade is still hampered by various unstable factors.
According to speakers at a recent seminar on the role of management agencies and businesses in the development of trade and services held by the Domestic Market Department under the Ministry of Industry and Trade, large population and high purchasing power make Vietnam one of the most attractive markets in the world. During the 2011-2017 period, total retail sales of consumer goods and services posted an annual 10 percent growth. This figure reached more than VND3,234 trillion in 2017 and nearly VND1,400 trillion in the first four months of this year.
Nguyen Van Hoi, deputy director of the Domestic Market Department, said although domestic trade has recorded high growth and greatly contributed to the development of the national economy, it still faces many challenges. One such difficulty is the uneven trade infrastructure system, with its main focus on the cities. The number of markets and supermarkets in rural and mountainous areas remains low in comparison.
Dinh Van Thanh from the Garment 10 Joint Stock Company (Garco 10) said legislation should be properly enforced to ensure that adjustments to the trade and service industries are reflected in practice. Management agencies should listen to the opinions of business representatives and adjust policies accordingly, he added.
Forming strong businesses
Associate Professor Hoang Tho Xuan, former director of the Domestic Market Department, said favorable conditions are required for the development of large-scale corporations so they can play a leading role in the market. These should include encouraging the development of supply chains that connect producers, processors, and distributors nationwide. Businesses should also focus on the rural market by developing convenience stores, given that 70 percent of the country’s population still live in rural areas and their consumption potential is equal to that of the urban market. The development of supply chains is the best way to progress toward modern trade in a modern market, Hoang Tho Xuan said.
According to the Ministry of Industry and Trade, a strategy is being developed to promote domestic trade by 2025 with
a vision to 2035, with a focus on supporting Vietnamese businesses to expand their distribution systems and