Retail sales of goods and services in Vietnam reached VND4,940 trillion (US$214.8 billion) in 2019, representing a rise of 11.8 percent compared to 2018, according to the General Statistics Office (GSO).
The 11.8 percent increase marks the highest growth rate in four years.
Retail sales in Vietnam rose ten percent in 2016 and expanded 11.6 percent in 2017 and 2018.
Without taking inflation into account, retail sales increased 9.32 percent in 2019, compared to just 8.4 percent in 2018.
Rising incomes, boosted by “impressive” economic growth of 7.02 percent, pushed up purchasing power in the Southeast Asian country last year, according to a statement GSO officer Vu Manh Ha gave the Vietnam News Agency.
The GSO also revealed that monthly income per capita was estimated at VND4.2 million ($182) in 2019, higher than the VND3.9 million ($168) reported in 2018.
In addition, the market also adapted to consumers’ tastes, with the diversification of distribution channels, products, and promotions, major factors which analysts say led to the increased demand.
Retail revenues in 2019 totaled VND3,751 trillion ($161.77 billion), up 12.7 percent year-on-year.
Turnover from accommodation and catering services reached VND586 trillion ($25.27 billion) while the tourism industry recorded a revenue of VND46 trillion ($1.95 billion), an increase of 9.8 percent and 2.1 percent, respectively, from 2018. Provinces and cities with the highest purchasing power included Thanh Hoa, Hai Phong, Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Nghe An, Khanh Hoa, Ba Ria – Vung Tau, and Quang Ninh, which all saw increases of between 15.7 percent and 17.1 percent in retail sales.
Nam Dinh Province in northern Vietnam experienced the highest increase in purchasing power in the country, with a growth rate of 18 percent.