According to the General Statistics Office, in the first quarter this year retail and consumer services reported revenues of VND270 trillion, a year-on-year increase of 22 percent, significantly higher than the overall growth rate.  

The value of domestic trade accounted for more than 15 percent of GDP, and the country has employed 5.4 million additional workers, more than 10 percent of the current total workforce.  

Economic experts say that the main reason for these results is price, and evidence of this can be seen in the number of discount and promotional programmes offered by businesses and retailers.  

 
The price of small cars has dropped after a law was passed, granting a 5 percent tax reduction for small vehicles as of April 1.  

Several large supermarket chains are also making efforts to reduce the prices of their products to match those of traditional markets. The Big C supermarket chain has announced a sale with a reduction of between 7 to 50 percent on 250 types of products, and Maximark has cut the prices of all its drinks products.  

Apart from small, staple consumer goods, the prices of electric products or white goods, such as refrigerators, washing machines, gas cookers, and fans have also been reduced by up to 50 percent.     

The domestic market has laid the foundations for the national economy to develop and has attracted many local and foreign investors.  

Besides the growing consumption rate, the Global Retail Development Index (GRDI) is also indicating positive signs in Vietnam.  

According to an announcement from US consulting firm A.T. Kearney, Vietnam’s GRDI ranked first in the world last year after being placed fourth in 2007.  

The value of the country’s retail goods and services sectors is expected to continue to rise at roughly 20 percent a year.  

 
Vietnam is among the most lucrative retail markets in the world, according to global market research firm RNCOS and numerous international brands are flocking to the market.  

The Association of Vietnamese Retailers (AVR) has reported that Vietnam’s total retail value in the 2006-2008 period increased by 25 percent a year, compared to 11 percent in the years before.  
In 2008 alone, Vietnam’s total retail value is estimated to have reached VND 970 trillion.  

The country now has nearly 140 supermarkets, 20 trade centres, and nearly one million square metres of retail shops.

(Source: VNA)