Vietnam capitalises on domestic market amid disrupted global supply chains

Minister of Industry and Trade Tran Tuan Anh

In an interview with the Vietnam News Agency’s reporter, Anh said the ministry has capitalized on the domestic market with a view to responding to the “new normal” situation to develop the national economy.

A wide range of stimulus programmes have been carried out in throughout the year to encourage demands for domestic products and services, he said, describing them as an effective measure since they have boosted the circulation of goods, and revenue gained from services across the nation.

This is a positive move to help local firms step up production and business activities, contributing to recover the nation’s economy, the minister stressed.

As compared to other countries in the region and the world as a whole, Vietnam stands out in its swift and effective response to the pandemic, he added.

The industry and trade sector has also paid due attention to developing infrastructure as well as outlining rational policies to facilitate the distribution of rural products in urban areas.

Ten years ago, the country had some 8,500 markets, over 500 supermarkets and nearly 100 shopping malls, and the figures rose to 1,085 supermarkets and 240 malls in 2019 while convenience stores mushroomed the markets with thousands set up in big cities.

The ministry is submitting to the Prime Minister a project on renewing the business of agricultural products, which is envisaged to develop the market for rural farm produce with origin traceability, he said, adding this is an important step to reduce risks for producers while enhancing the value of agricultural production.

Anh stressed a slew of cooperation agreements and Memoranda of Understanding were signed between farmers and distributers at business matching conferences held by the ministry, therefore, consumers have chances to get access to high-quality products at good prices while local production is promoted.

Besides popularising Vietnamese agricultural products through the “Vietnamese people prioritises Vietnamese products” campaign, the ministry has joined hands with distributers and businesses to carry out various programmes to support trade in ethnic minority-inhabited areas like Son Ha district (Quang Ngai province), Van Ho (Son La province), A Luoi district (Thua Thien-Hue province), and Sa Pa town and Muong Khuong district (Lao Cai province).

More than 400 tonnes of agricultural products were consumed, creating stable livelihoods for over 500 ethnic households.

Regarding measures to support businesses amidst complicated developments of the COVID-19 pandmeic, Anh said that since it is necessary to maintain growth of the domestic market, and stabilise business activities, the ministry will continue assistance to local firms, with focus placed on helping them grasp opportunities of e-commerce to better capitalise on the domestic market until 2030.

The ministry will work with the State Bank of Vietnam to make it easier for enterprises, cooperatives and business households to access preferential loans.

Further stimulus programmes will be launched, while competent mechanisms and policies are expected to be completed to facilitate conditions for enterprises to develop various kinds of trade infrastructure.

Notably, the ministry will recommend the Government to direct localities to implement the storage and price stabilization programme, in which involved businesses will get preferential loans to stock up goods to stabilise the market during peak season like Lunar New Year, he said.