HCM City (VNS/VNA) - With its vast potential, Vietnam's domestic market serves as a crucial “support base” for local enterprises, especially amid increasingly complex and unpredictable global economic fluctuations, delegates said at a seminar in Ho Chi Minh City on April 22.

The event, organised by the Domestic Market Management and Development Department under the Ministry of Industry and Trade, focused on practical solutions to promote domestic market growth and stimulate consumption. It brought together representatives from ministries, local authorities, businesses, and associations to assess ongoing challenges and propose sustainable development strategies.

Tran Huu Linh, director of the department, highlighted that this year the global economy is expected to face persistent difficulties stemming from the Russia–Ukraine conflict, instability in the Middle East, and the US tariff policies. These issues will likely affect global energy prices, inflation, and consumer sentiment.

Against this backdrop, Vietnam’s domestic market emerges as a critical lifeline, helping to maintain growth momentum and provide new opportunities for Vietnamese enterprises.

Phan Van Chinh, deputy director of the department, emphasised that with a population of over 100 million and an annual growth rate of 9–10% in total retail sales of goods and services, the domestic market is a ‘gold mine’ of untapped potential.

According to the National Statistics Office, total retail sales of goods and services in the first quarter of 2025 reached 1.7 quadrillion VND, marking a 9.9% increase compared to the same period in 2024. The domestic goods market continues to recover in line with the broader economic rebound.

Many key localities nationwide have begun implementing supply-demand connection and market stabilisation programmes, which are expected to enhance consumer confidence. At the same time, the diverse supply of domestically produced goods is meeting the population's shopping needs effectively.

However, Vietnam's distribution infrastructure has not kept pace with the market's rapid expansion. Logistics systems and domestic supply chains remain fragmented and poorly integrated, he said.

Meanwhile, the ongoing shift in consumer shopping habits from offline to online platforms demands that businesses swiftly adapt to digital technologies. Yet, many enterprises still lack the resources and capabilities to invest in modern technologies. Additionally, the rapid rise of cross-border e-commerce, which enables consumers to purchase goods directly from overseas, poses a growing challenge for domestic product consumption.

At the seminar, representatives from business associations and enterprises urged ministries, sectors, and local authorities to intensify trade promotion programmes both at home and abroad, with a particular focus on "Made in Vietnam" products. They also called for stronger efforts to prioritise domestic goods in distribution and retail networks, especially in modern retail formats. Other recommendations included interest rate support for manufacturers and measures to expand the domestic consumption market.

Participants also called for stricter inspection and oversight of low-quality imported goods, counterfeit items, and untaxed cheap products that enter the domestic market through both traditional retail and e-commerce platforms, to safeguard both businesses and consumers.

Nguyen Anh Duc, Chairman of the Vietnam Retailers Association, said that for sustainable development of the domestic trade sector, State agencies must focus on strengthening consumer confidence and supporting the adoption of advanced technologies.

He proposed restructuring the domestic trade ecosystem and leveraging technology to respond to evolving consumer preferences and improve productivity.

Retail businesses also recommended stronger coordination between central and local governments in commercial infrastructure planning, along with enhanced support for developing modern retail systems. They also called on increasing investment in logistics infrastructure, including warehouses, transport networks, and logistics centres, to reduce transportation costs and boost the competitiveness of Vietnamese goods against imports.

Tax and fee policies also play a significant role. The 2% VAT reduction in 2024 clearly helped stimulate consumption and ease cost pressures for businesses.

Many enterprises have called for the extension of this policy and improved access to preferential loans to support the expansion of modern distribution systems, especially in remote and disadvantaged areas.

Linh noted that the Ministry of Industry and Trade has issued Directive No 08, instructing relevant units to implement synchronised measures to stimulate domestic consumption and develop the domestic market through 2025. The goal is to boost total retail sales of goods and services by around 12% this year.

He also called for closer coordination among all levels of government and the private sector to build a dynamic, modern, and resilient domestic market./.