Domestic consumption seen as economy-booster

Vietnam is seeking to boost domestic consumption as a key driver of economic growth and a major contributor to state revenues.

- By Nguyen Dat

The Government Office last week issued a May resolution on national economic performance, conveying Prime Minister Le Minh Hung’s requirement that the Ministry of Industry and Trade coordinate with authorities nationwide to focus on developing the domestic market while expanding and diversifying export markets.

“It is a must to effectively implement the campaign for people prioritising Vietnamese goods, alongside promotional programmes, stimulating consumer demand, trade promotion activities, and product marketing,” the resolution read. “It is also a must to create better conditions for businesses in carrying out customs procedures for goods. Logistics must be developed as the ‘backbone’ infrastructure of domestic trade through an integrated multimodal network comprising air, rail, maritime, inland waterway, and road transport.”

Authorised agencies were also ordered to manage prices and markets, while flexibly utilising regulatory and management tools to oversee production and price administration in line with legal regulations and market mechanisms, ensuring supply-demand balance and price stability.

They were also required to study and calculate adjustments to the prices of goods and services managed by the state, including electricity tariffs, healthcare service charges, and education fees, to limit their combined impact on the consumer price index and ensure inflation remains under control in accordance with the set targets.