Retail sales grow by two percent in November

Hanoi (VNA) - Vietnam brought in 89.4 trillion VND (5.3 billion USD) in
total retail sales of goods and services in November, 1.7 percent higher
than last month, according to the General Statistic Office (GSO).

While the country expected a drop this year, sales in the January - November
period were up 6.2 percent over the same period last year, bringing in
872.57 trillion (51.9 billion USD).

Tran Thi Hang, head of GSO's Trade and Pricing Department, said that the
growth rate of 6.2 percent, however, is almost half of the 11 percent growth
seen in the first 11 months of last year.

November's growth rate is also lower than the growth rate of 3 percent one
year ago.

She said that the drop was a sign of declining purchasing power.

In November, goods and services in the cultural and education sector were
the highest, increasing by 2.6 percent. The increase was likely due to
Teachers' Day of Vietnam which took place on November 20.

Hang noted that as the global financial crisis has hurt Vietnamese exports
and production, incomes have also taken a hit.

Poor food hygiene and safety has also affected purchasing power for food,
accounting for a big segment of the national retail revenue.

Hang also attributed less purchases to many people waiting out on reductions
on imported electric and refrigerator products in early 2009, when import
taxes should be cut under WTO agreements.

She said that at present there is no sign of increasing shopping until the
end of the year, and sales would likely not increase like they did at the
same time last year.

Nguyen Minh Thu, marketing manager of Thien Nam Hoa Electric and Interior
Products Centre in Ho Chi Minh City , said that the consumption of
electric and interior products at present has only reached 90 percent of
what it was this time last year, even though producers have been pushing
trade promotion programmes to boost sales.

Other areas are also being hit.

"Purchasing power at Hapro's supermarkets have increased over the last few
days compared to last month," said Doan Thi Thanh, deputy director of Hanoi
Supermarket Company (Hapro). "But it is not the same as it was last year
because people are tightening their belts."

Thanh said that purchasing power this year would be the same as last year
and she expected to work with producers and distributors to reduce prices to
boost purchasing power by the end of the year and early next year for Tet.

Nguyen Phuong Thao, general director of Maximark Cong Hoa in HCM City
said that supermarket revenue has increased mainly thanks to essential
goods, including food and consumption goods. The increase of revenue is
partly due to an increase in prices and not an increase in purchasing
power.-Enditem