As of December 17, 2024, retail sales in Ho Chi Minh City have shown a robust increase of 11% year-on-year, reaching VNĐ567.98 billion (approximately US$22.36 million). This growth was reported by the municipal Department of Industry and Trade, highlighting the city's resilience amid economic fluctuations. In contrast, the average consumer price index (CPI) for the city rose by only 3.19%, which is notably lower than the national CPI increase of 3.69%. This suggests that while sales are up, inflationary pressures remain relatively contained in the region.
In preparation for the upcoming Tết holiday, key measures have been implemented to ensure the availability of essential goods. Saigon Co.op has proactively stockpiled over 12,000 tonnes of essential items, which is 30-50% higher than normal levels to meet anticipated demand. Retailers are also encouraged to engage in promotional activities, including discounts and mobile sales campaigns, particularly in suburban areas, to stimulate consumer spending.
This retail growth comes at a time when Vietnam is grappling with rising electricity prices, which have increased by 4.8% as of October 11, 2024. This hike has raised concerns among manufacturers about the potential impact on production costs and competitiveness. The increase in electricity prices, alongside the ongoing implementation of the direct power purchase agreement (DPPA) mechanism, aims to reform the electricity pricing structure and attract investment in the sector. Industry experts have noted that while the reforms are necessary, they could pose challenges for businesses already facing rising operational costs.
The interplay between rising retail sales and increasing operational costs due to electricity price hikes presents a complex landscape for businesses in Ho Chi Minh City as they navigate both consumer demand and production expenses. [fa1ac68d][a0aef9bd][030ff774]