Growth of Vietnam’s retail sales, services revenue slows to 9.6% in 2023

Retail sales and services revenue in Vietnam totalled an estimated VND6,231.8 trillion (roughly $256 billion) this year, up 9.6% year-on-year, but lower than the 20% growth seen in 2022.

If the price factor is excluded, the 2023 growth would be 7.1%, less than half of last year’s 15.8% increase, the General Statistics Office said in a monthly report Friday.

Retail sales in 2023 is estimated at VND4,858.6 trillion ($200 billion), or 78% of the total and up 8.6% year-on-year. Of these, food and foodstuff revenue increased 11.7% and sales of household appliances rose 7.5% over last year.

Revenue from accommodation and eating out has been estimated at VND673.5 trillion ($27.7 billion), making up 10.8% of the total and up 14.7% year-on-year. Revenue from travel services increased significantly to VND37.8 trillion ($1.56 billion), up 52.5%.

Revenue from services totaled VND661.9 trillion ($27.2 billion), up 10.4% year-on-year.

In the October-December quarter, retail sales and services revenue is estimated at VND1,662.7 trillion ($68.4 billion), up 7.2% quarter-on-quarter and 9.3% year-on-year.

The slower growth in retail sales and services revenue has happened amidst stable inflation. The average consumer price index (CPI) increased 3.25% year-on-year in 2023, below the mandated 4.5% limit.

Inflation has been driven by price increases in: education (7.44%), housing and construction materials (6.58%), food (6.85%); and retail electricity (4.86%).

Core inflation, excluding food and perishable foodstuff, energy and centrally-administered services such as healthcare and education, is estimated to have increased 4.16% over 2022.