Vietnam’s domestic consumer spending has risen in the first five monthsof 2015, indicating a boost for the country’s economic growth, accordingto the Dau Tu (Investment) newspaper.
After enjoying rapidgrowth from 2001 to 2010, total consumer spending (excluding spiralingprices) snapped back in the past four years with an annual averagegrowth rate half of what was seen in the previous period.
Theconsumer spending slowdown brought the Consumer Price Index (CPI) growthbetween 2012-2014 to 6.63 percent a year compared to the annual 9.35percent recorded in 2001-2011. The national Gross Domestic Product (GDP)growth also tapered off to 5.72 percent a year from 6.82 percent in therespective periods.
However, increases in domestic consumption,which is reflected in the total retail sales of goods and services, inthe first five months of this year has surpassed GDP growth, a crucialcontribution to the country’s economic recovery.
In the pastfive months, the private sector accounted for 85.7 percent of the totalretail sales of goods and services, while the public sector made up 11percent.
Despite representing just 3.3 percent, theforeign-invested sector recorded the highest growth (9.7 percent) andthe trend is expected to continue as Vietnam enters several new freetrade agreements (FTA) and joins the ASEAN Economic Community (AEC) bylate 2015.
Retail of goods accounted for a majority 76.4 percentof the total figure with a soaring pace of 10.2 percent, and revenuesfrom services also rose with an exception of tourism, as the number ofinternational visitors dropped 12.6 percent from the same period lastyear.
Although Vietnam’s consumer spending is rebounding remarkably, total domestic demand remains weak.
The paper said the country should intensify investment and exports aswell as increase per capita income to increase overall domestic demandand spending, contributing to the recovery of the country’s economy.-VNA
After enjoying rapidgrowth from 2001 to 2010, total consumer spending (excluding spiralingprices) snapped back in the past four years with an annual averagegrowth rate half of what was seen in the previous period.
Theconsumer spending slowdown brought the Consumer Price Index (CPI) growthbetween 2012-2014 to 6.63 percent a year compared to the annual 9.35percent recorded in 2001-2011. The national Gross Domestic Product (GDP)growth also tapered off to 5.72 percent a year from 6.82 percent in therespective periods.
However, increases in domestic consumption,which is reflected in the total retail sales of goods and services, inthe first five months of this year has surpassed GDP growth, a crucialcontribution to the country’s economic recovery.
In the pastfive months, the private sector accounted for 85.7 percent of the totalretail sales of goods and services, while the public sector made up 11percent.
Despite representing just 3.3 percent, theforeign-invested sector recorded the highest growth (9.7 percent) andthe trend is expected to continue as Vietnam enters several new freetrade agreements (FTA) and joins the ASEAN Economic Community (AEC) bylate 2015.
Retail of goods accounted for a majority 76.4 percentof the total figure with a soaring pace of 10.2 percent, and revenuesfrom services also rose with an exception of tourism, as the number ofinternational visitors dropped 12.6 percent from the same period lastyear.
Although Vietnam’s consumer spending is rebounding remarkably, total domestic demand remains weak.
The paper said the country should intensify investment and exports aswell as increase per capita income to increase overall domestic demandand spending, contributing to the recovery of the country’s economy.-VNA
