HCMC – The local retail sector maintained robust growth in the first five months of 2019, with total goods and service revenue amounting to an estimated VND1.98 quadrillion, or US$85 billion, up 11.6% year-on-year, according to the General Statistics Office.

Data from the office indicates that the fifth month of 2019 saw a year-on-year rise of 11.4% in goods sales and service revenue, reaching an estimated VND403.8 trillion, contributing to strong retail growth in the five-month period.

Of the total, goods sales amounted to VND306.9 trillion in May, up 1.7% against last month. Accommodation and food revenue grew by 9.6% year-on-year to VND48.7 trillion, while sales of tourism and other services continued to improve by 10.3% and 5.2% year-on-year, respectively.

Between January and May, the country saw goods sales reach an estimated VND1.51 quadrillion, up 12.7% year-on-year.

Retail revenue from food and foodstuffs grew by 13.3% against the year-ago period, home appliances by 12.8%, textiles and garments by 11.4%, vehicles by 11.2% and cultural and educational products by 10.6%.

Besides this, lodging and catering services generated some VND236 trillion in revenue in the first five months of this year, up 9.2% over the same period in 2018, while tourism revenue stood at VND18.4 trillion, up 12.4% year-on-year, according to the data.

Service and commercial activities posted positive performance in the five-month period, with an abundant supply on the local market, meeting demand for production and consumption, according to the office.

Vietnam’s retail market was considered a potential player by local and international market researchers due to the country’s young population and residents’ rising income.

The data also shows that Vietnam’s retail growth pace has increased recently, from US$88 billion in 2010 to US$130 billion in 2017. The figure is expected to hit US$180 billion in 2020.

Several foreign retailers, however, failed to gain ground in the local market. French supermarket chain Auchan Retail has recently announced its withdrawal from Vietnam after nearly five years of operation, while Malaysia's leading retailer Parkson has shut down many commercial centers after 15 years of operation.