ASEAN KEY DESTINATIONS
Purchasing power rises due to macro recovery, low CPI
The purchasing power of Viet Nam posted a four-year high in the first half of this year due to low inflation.
According to the General Statistics Office (GSO), the total retail sales of goods and services reached US$73.121 billion, rising by 9.8 per cent over the same period last year, or 8.3 per cent if inflation is excluded.
By comparison, the growth rates of total retail sales were 5.7 per cent, 4.9 per cent and 6.5 per cent in the same period for 2014, 2013 and 2012, respectively.
Retail sales of goods contributed 75 per cent of the total retail sales, with a value of $55.532 billion, increasing by 10.6 per cent. Retail sales of accommodation, restaurant and catering services each posted growth of between 5.9 and 9.7 per cent.
However, retail sales in the tourism sector declined 6.1 per cent over the same period last year, partly due to poor service quality.
Purchasing power was one of the indicators which reflected the macroeconomic recoveries in the first half of this year.
This was a result of the government's policies which aimed to stabilise and restore the nation's economic growth, even though the global economy had not shown a stable recovery and had instead continued to suffer financial chaos, currency fluctuations and plunging commodity prices.
According to GSO's General Director Nguyen Bich Lam, the purchasing power recovered thanks to the low consumer price index (CPI), reported at 0.55 per cent – the lowest level achieved over the past 14 years. Consumers gained benefits from the quantity of goods and services controlled by the low CPI .
Lam pointed out that in Viet Nam, although inflation was controlled at a low level, aggregated demand remained at a high level.
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