Vietnam boosts domestic consumption, seeks to expand export destinations
Revamped Article:
🚀 Vietnam's Strategic Shift: Boosting Domestic Consumption and Expanding Export Markets 🚀
🗺️ HANOI - In the wake of potential high tariffs in major markets like the US and Europe, Vietnam is diving headfirst into bolstering domestic consumption and diversifying export markets, a strategy aimed at ensuring sustainable growth.
❓ Why's Domestic Consumption Crucial? 🤔
Nguyen Anh Duc, chairman of the Association of Retailers (AVR), highlights data from the National Statistics Office indicating that, during Q1 of 2025, domestic retail sales and consumer service revenue clocked in at over VND1.7 quadrillion (US$65 billion), a 9.9% year-on-year surge. Food consumption spearheaded the growth at 35.7%. duc emphasizes the importance of securing a strong foothold in the over-100-million-people domestic market, a move that could cushion the blow of dwindling export orders.
Experts have believed that VAT reduction will stimulate consumption - VNA/VNS Photo
🌍 Let's Talk Export Diversification 🌐
As global trade protectionism looms, efforts are ramped up to diversify export destinations. For instance, Pablo Arancibia Salazar, a trade rep from Chile's Export Promotion Bureau (ProChile), identifies South America as a prime target for Vietnamese products such as aquatic products, wood products, coffee, rice, and cement, products that are well-received by South American consumers. Currently, Vietnam ranks as the 12th largest supplier of goods to Chile, with exports worth $1.4 billion, and expanding further into this market is suggested as a promising avenue to explore.
- Artificial intelligence (AI) is being utilized to optimize logistics and supply chain management in Vietnamese businesses, aiming to streamline the export process and ensure effective trade diversification by 2025.
- With the finance industry evolving, there's an increasing focus on providing loans and investments to companies looking to expand their businesses in domestic consumption and export markets, as highlighted by the State Bank of Vietnam in a recent announcement.
- A report released by the Industry and Trade Ministry in 2023 emphasized the need for Vietnam to prioritize the development of high-tech industries and exports in order to secure its position as a leading player in the global trade landscape by 2025.
- As part of Vietnam's efforts to boost domestic consumption and improve industry competitiveness, the government has proposed reducing corporate income tax rates for businesses that primarily rely on domestic markets, a move that is hoped to encourage growth and stimulate economic activity.
- In an interview, the CEO of the Vietnamese Business Association stressed the importance of developing regional collaborations and partnerships, particularly with countries in Southeast Asia, as a strategic approach for businesses to navigate both domestic consumption growth and export market diversification by 2025.
