Covid impact sees Vietnam retail sales drop
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Vietnam retail sales plunged 33.7 percent year-on-year in August as the country faced stricter restrictions due to the ongoing Covid-19 pandemic.
According to the General Statistics Office, August’s retail sales plunged 10.5 percent compared to July. In the first eight months of this year, revenue from retail trade and service declined 4.7 percent year on year, reaching US$133.43 billion.
The Covid-19 situation in the country has seen varying degrees of lockdown in Vietnam’s major cities including Hanoi and HCMC since June.
In HCMC, retail revenue is estimated to reach US$1.5 billion, falling 15.9 percent month on month. The e-commerce sector, which had been expected to flourish as demand soared, recorded negative growth due to the restriction of delivery services under the Prime Minister’s Directive No.16.
Restaurants – including online ordering with delivery or pickup – have been banned from trading for nearly two months in Ho Chi Minh City.
Questions & Answers
Q.Which specific cities in Vietnam have faced stricter lockdown measures impacting retail sales?
Which specific cities in Vietnam have faced stricter lockdown measures impacting retail sales?
Vietnam's major cities, including Hanoi and Ho Chi Minh City (HCMC), have experienced varying degrees of lockdown since June. Ho Chi Minh City, in particular, has seen restaurants banned from trading for nearly two months.
Q.What was the total revenue from retail trade and service in Vietnam during the first eight months of this year?
What was the total revenue from retail trade and service in Vietnam during the first eight months of this year?
In the first eight months of this year, the total revenue from retail trade and service in Vietnam reached US$133.43 billion. This figure represents a 4.7 percent decline compared to the same period last year.
Q.Why did the e-commerce sector experience negative growth despite an expected increase in demand?
Why did the e-commerce sector experience negative growth despite an expected increase in demand?
The e-commerce sector recorded negative growth because of restrictions placed on delivery services. These limitations were implemented under the Prime Minister’s Directive No.16, hindering its potential to flourish.
Q.What was the retail revenue estimate for Ho Chi Minh City, and how did it change from the previous month?
What was the retail revenue estimate for Ho Chi Minh City, and how did it change from the previous month?
Retail revenue in Ho Chi Minh City was estimated to reach US$1.5 billion. This figure marked a 15.9 percent fall compared to the previous month, reflecting the impact of restrictions.
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