Hanoi (VNA)𓂃 – Total retail sales and consumption of Vietnamese goods maintained a growth rate of over 5 percent during the first quarter of 2021 although the COVID-19 pandemic remains complicated.

This indicates that the domestic market has proved to be a source of support for enterprises to enhance their competitiveness.

Vietnamese goods hold large marketshare

During more than 11 years of the “Vietnamese people prioritise Vietnamese goods” campaign, launched in 2009, Vietnamese products have continuously accounted for a large proportion of goods on the shelves of domestic supermarkets, reaching up to 90 - 95 percent at the supermarkets of Co.opmart, Vissan, Vinmart, and BRG Retail. The rate ranges between 60 and 96 percent at supermarkets of foreign businesses. It stands at 60 percent or more in other distribution channels such as traditional markets and convenience stores. Nguyen Thi Bich Van, Communications Director of Central Retail Vietnam, which operates the GO! and Big C hypermarket chains, said her business always highly values the role of Vietnamese goods in modern retail systems and also stands side by side with local enterprises. Vietnamese goods account for over 90 percent of products sold at Big C, she noted. Nguyen Thi Kim Dung, Director of the Co.opmart Ha Dong supermarket in Hanoi’s Ha Dong district, said the parent company - Saigon Co.op, which runs the network of Co.opmart, Co.op Food, and Co.opXtra supermarkets, has consistently prioritised domestic products as seen in the favourable positions, advertising, as well as promotional activities for them. It has also coordinated with localities to provide financial and technical support for domestic businesses to produce high-quality items for its supermarkets. Such industries as textile - garment, food processing, agriculture, and fisheries have also spent much to raise their stake in the domestic market. In the first quarter of 2021, total retail sales of goods and consumer service revenue topped 1.29 quadrillion VND (over 56 billion USD), up 5.1 percent year on year, despite the complex COVID-19 situation. The sum included more than 1 quadrillion VND of retail sales, rising 6.8 percent. This is considered an encouraging outcome substantially contributed by the “Vietnamese people prioritise Vietnamese goods” campaign. While the pandemic has seriously affected supply chains and trade flows, the domestic market has truly been a source of support for local enterprises. Particularly, major retailers have increased the stockpile of goods in the face of new outbreaks, helping to keep the flow of goods uninterrupted and prevent the speculation of essential goods and price hikes, according to the Domestic Market Department under the Ministry of Industry and Trade.

Promoting connectivity

Dinh Thi My Loan, Honorary President of the Association of Vietnamese Retailers, said although Vietnamese products are making up the majority of goods present in distribution channels, they are also facing great pressure from foreign rivals as a result of the enforcement of free trade agreements such as the EU - Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Therefore, she suggested, Vietnamese businesses should upgrade technology to improve product quality and reduce production costs while stepping up advertising, diversifying products for each market segment, and strengthening their competitiveness. The Acting Director of the Hanoi Department of Industry and Trade, Tran Thi Phuong Lan, held that enhancing the connectivity between trading and production, linking supply with demand, and ensuring harmonious interests of manufacturers, distributors, and consumers will be the key to success in competing with imports. To bolster the manufacturing, trading, and consumption of Vietnamese goods, the Prime Minister issued Decision 386/QD-TTg on March 17, 2021, to approve a project on developing the domestic market in association with the “Vietnamese people prioritise Vietnamese goods” campaign for the 2021 - 2025 period. This project looks to maintain the percentage of strong Vietnamese goods at over 85 percent in modern distribution channels and over 80 percent in traditional ones such as markets and grocery stores. To develop the domestic market and sustain the stake of Vietnamese goods in distribution channels, it devised four groups of main solutions and policies: assisting the development of stable and sustainable distribution systems for Vietnamese goods; building national programmes linking manufacturers and traders with local distributors and outlets; helping businesses access capital sources to upgrade technology, improve product quality, and reduce production costs; and boosting market surveillance and consumer protection./.