Vietnamese Are Spending More

Statistics show consumer spending is on an upward trend in Vietnam, a favorable signal for foreign investment into the country.

Increased spending is one of the major factors drawing investors to Vietnam, with the large population and high growth also contributing to the country’s appeal. Vietnam has a population of more than 83.1 million for 2005, increasing by 1.35% year on year.

In the first nine months, the total retail and service revenue was reported at VND344.3 trillion, up 19.7% year on year. Excluding price increases, growth would be pegged at 10.6%.

On average, the per capita spending on goods and services in the period is at a high of VND310,000 plus per month.

The retail and service revenue accounted for 58.6% of the country’s gross domestic product (GDP) in the period, the highest-ever rate in recent years.

The robust growth in spending should be partly attributed to improved living conditions which have pushed demand for goods and services.

Local spending habits have changed. The period including Jan.-Sept. has witnessed increased revenue at hotels, restaurants, retail, and in the service industry.

Economic sectors of the economy are also changing, with the private sector seeing business growth of 20.4%, while the foreign invested sector is also on the rise, at a rate of 3.9%.

The household business sector is the pillar of the economy, occupying 61.5% of business growth while the State sector has only 13.2%.

Written by Ngoc Minh - Translated by T.H.
Story from Thanh Nien News
Published: 01 October, 2005, 11:56:46 (GMT+7)
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