Lifefighting for businesses
In the context of a volatile global economy, developing the domestic market becomes a key strategy to stabilize and promote economic growth.
At the conference on April 22 organized by the Ministry of Industry and Trade, businesses, industry associations and related ministries and branches analyzed and assessed the current situation of the domestic market. At the same time, many important solutions were proposed to stimulate consumption and support businesses to overcome difficulties.
Mr. Tran Huu Linh - Director of the Domestic Market Management and Development Department (Ministry of Industry and Trade) - emphasized the key role of the domestic market in maintaining growth momentum. The domestic market is not only a place to consume products but also a "lifeline" for businesses in the context of many export challenges.
According to Mr. Phan Van Chinh - Deputy Director of the Department of Domestic Market Management and Development (Ministry of Industry and Trade), the domestic market is a combination of production supply, consumer demand and distribution system. Developing a distribution ecosystem from traditional markets to supermarkets, convenience stores or digital platforms is an essential factor to expand consumption.
GDP in 2024 will grow by 7.9%, along with an increase of 6.93% in the first quarter of 2025 - the highest level since 2020 - creating a favorable foundation for spending demand. Many support policies such as VAT reduction, minimum wage adjustment, promoting public investment... have contributed to improving people's income, thereby supporting consumption. However, purchasing power has not yet met expectations, consumer sentiment is still cautious in the context of increased prices of some essential goods and the risk of existing inflation.
Removing the "bottleneck" for the market
Regarding the current situation of the domestic consumer market, Mr. Nguyen Xuan Minh - Ministry of Finance said that consumer sentiment is still cautious, purchasing power has shown signs of recovery but has not yet achieved a clear growth rate. Prices of some essential goods continue to increase, creating more pressure on the spending of low-income households. The risk of inflation remains tiem nang, while actual economic growth has not created a strong enough boost to stimulate consumption.
Many businesses are still facing difficulties in production and business activities. The development of commercial infrastructure is not yet synchronous, there are still many bottlenecks, while administrative procedures are still complicated, inconsistent and create many barriers for businesses as well as people.
In this situation, many solutions have been proposed. In particular, continuing to reduce environmental protection tax on gasoline, reduce import tax to stabilize prices, support businesses to extend tax payments and reduce land rents are urgent measures. At the same time, it is necessary to adjust the family deduction for personal income tax, helping to increase disposable income and promote consumption.
In the long term, growth momentum must come from close coordination between public investment, institutional reform and domestic market development. In particular, administrative reform - especially in the tax sector - needs to be promoted to create a transparent and efficient business environment and promote sustainable consumption.
