Stimulating consumption will contribute significantly to realizing the growth target of over 8% this year.
Total social consumption, including most of personal, household and government spending, currently accounts for over 60% of GDP. Therefore, stimulating consumption will contribute significantly to realizing the growth target of over 8% this year.
While exports and public investment are on a positive growth trajectory, domestic consumption needs breakthrough solutions, along with priorities to increase income and savings for the people.
When she needs to travel, Ms. Luong usually travels within the region, and only buys tours for difficult routes. Customers like Ms. Luong account for a large proportion, forcing this travel company to regularly design new destinations to ensure sustained growth. Along with self-change, this business recommends stronger incentive policies for domestic tourism.
Mr. Nguyen Cong Hoan – General Director of Flamingo Redtours Company said: “The tourist attractions are managed by the State, obviously, we need policy solutions to create products that always have attractive prices.”
Statistics show that domestic consumption is weaker than expected. Over the past two years, total retail sales at comparable prices have increased by just over 6%. A mentality of tightening one’s belt has been quite common in recent times.
Cashless payments are now very popular. However, while foreign consumers are willing to spend first and pay later, with the use of credit cards for example, Vietnamese people still have the mentality of spending more on available cash. Therefore, there is a need for consumer credit products with simple procedures and low interest rates to encourage people to spend more.
For product supply industries such as garments, in addition to self-solutions and digitalizing the design process to increase productivity and reduce costs, businesses want the market to be managed more transparently.
Mr. Hoang The Nhu – Deputy General Director of Garment Corporation 10 shared: “We must have management to avoid cases of borrowing names and brands for sales.”
Along with that is the priority of increasing income and increasing savings for people.
Mr. Phan Duc Hieu – Standing Member of the Economic Committee of the 15th National Assembly commented: “If we soon amend the Personal Income Tax Law, for example, we will have a family deduction or reasonable deduction levels, suitable for real life. This will increase savings for the people.”
In the context of weak domestic consumption, stimulus packages should be considered to take effect immediately, but it is also necessary to limit the risk of creating pressure on inflation.