Vietnam’s Retail and Consumer Services Grows 11.7% in 2018
Driven by the domestic market’s growing purchasing power, the total revenue generated from retail sales and consumer services in Vietnam in 2018 reached VND 4,396 trillion (US$191 billion), up 11.7 percent compared to 2017.
The wholesale and retail sector continues to be a major attractor of foreign direct investment (FDI), with total registered capital in 2018 reaching US$3.37 billion, accounting for 10.3 percent of the total FDI.
The revenues from retail goods in 2018 reached VND 3,306 trillion (US$143.3 billion), growing by 12.4 percent compared to 2017. Retail goods alone accounted for over 75 percent of the total retail sales.
Accommodation and catering services
In 2018, sales from accommodation and catering services grew by 9.1 percent to VND 539.5 trillion (US$23.3 billion), accounting for 12.3 percent of the total retail sales.
Driven by a growth in the number of international tourists, which grew by 19.9 percent in 2018, the revenue from travel and tourism services grew by 14.1 percent to VND 41 trillion (US$1.78 billion).
The cities and provinces that witnessed growth in revenue were Hanoi, Ho Chi Minh City, Hai Phong, Binh Dinh, Kien Giang, Quang Binh, and Khanh Hoa.
According to Vietnam’s Ministry of Industry and Trade, total revenue generated from the retail sales of goods and consumer services is estimated to grow at an average of 13 percent from now to 2020 reaching VND 5.8 quadrillion (US$255.5 billion) by 2020.
Between 2021 and 2025, the predicted growth rate is 14 percent with total revenue reaching VND 11 quadrillion (US$484.58 billion) by 2025.