Vietnam retail sales growth slows

The growth rate of Vietnam retail sales is slowing, according to official data.

The Vietnam General Statistics Office says retail trade and services revenue for the first half of 2016 was US$89.6 billion, 9.4 per cent higher than last year.

But the rate of Vietnam retail sales growth is generally slower than that of the same period last year once inflation is excluded. The net increase would be 7.4 per cent compared to 8.3 per cent last year.

Also, according to the records, retailing during the first quarter of 2016 was 7.9 per cent lower than last year; 8.3 per cent lower than for the first four months, and 7.8 per cent in the first five months.

Analysts suggest a reason for the slowing growth could be linked to slowing accommodation bookings and tourist spending, which totalled US$11 billion (up 7.5 per cent). The decline was most evident in some Central provinces, and likely related to the mass death of fish in Nghe An and Ha Tinh.

Retail sales of goods, on the other hand, were US$68.23 billion (76 per cent of total sales) and were 9.7 per cent higher than the period of January to July of last year.

Food, household appliances and garments saw positive increases with 12.9 per cent, 10 per cent, and 12 per cent respectively.

GSO director Nguyen Bich Lam said consumer concerns about food safety and environmental pollution partly affected the retail growth in accommodation and catering. Locals tended to have home-cooked meals and became more careful in spending their money on tourism services.