Vietnam is focusing on boosting domestic consumption and diversifying export markets to ensure sustainable growth in response to risks of high tariffs in major markets such as the US and Europe.

Experts have believed that VAT reduction will stimulate consumption.

Nguyen Anh Duc, Chairman of the Association of Vietnam Retailers (AVR), cited the National Statistics Office as reporting that domestic retail sales and consumer service revenue reached over 1.7 quadrillion VND (65 billion USD) in the first quarter of 2025, up 9.9% year-on-year, with food consumption making up the most – 35,7%.

He said that gaining a firm foothold in the domestic market of more than 100 million people is critically important to businesses. The figures highlight the significant potential of the domestic market, which, if properly leveraged, could help offset the decline in export orders.

At the same time, efforts to diversify export destinations are being intensified as risks could be mitigated amid the spread of trade protectionism worldwide.

Pablo Arancibia Salazar, a trade representative from Chile's Export Promotion Bureau (ProChile), noted South America, with a combined GDP of 4 trillion USD and a population of 431 million, presents a highly attractive market for Vietnamese products such as aquatic products, wood products, coffee, rice, and cement, all of which are well-received by local consumers.

In Chile alone, Vietnam is currently the 12th largest goods supplier, with exports valued at 1.4 billion USD. Expanding further into the Chilean market was suggested as an opportunity that merits serious consideration.

Meanwhile, Islamic markets were also identified as promising export destinations, albeit strict standards, particularly for Halal certification.

In 2024, Vietnam's cashew industry exported 700,000 tonnes of kernels worth 3.8 billion USD, with most shipments meeting Halal and other quality management certificates.

Halal-certified agricultural products of Vietnam hold a special advantage to expand their global market share.

The Halal market is extremely large, projected to grow to 10 trillion USD by 2030, with an annual growth rate of some 5.5%, said Vice Chairman of the Vietnam Cashew Association Tran Van Hiep.

To support businesses, proposals have been made for continuing financial assistance, sustaining the 2% cut in the value added tax on essential consumer goods, and devising strong-enough incentives to attractive investment in developing regional-level distribution centres to connect cooperatives and small businesses with supermarkets and convenience stores, thus reducing logistics costs and promoting Vietnamese brands.

At a meeting with Vietnam's trade offices abroad earlier this month, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the ministry is building a network for helping Vietnamese enterprises access emerging markets, including Halal markets, aiming to reduce dependence on several major markets and enhance resilience against global trade fluctuations.

SOEs’ growth crucial for nation’s sustainable development: PM

State-owned enterprises (SOEs) must strive to obtain high and sustainable growth to contribute to promoting Vietnam's high, rapid, and sustainable development, Prime Minister Pham Minh Chinh requested at a meeting with SOEs in Hanoi on April 15.

Vietnam stands firm on 8% GDP growth goal

The Vietnamese government will maintain its 8% GDP growth target for this year despite global and domestic economic hurdles.

Vietnam aims for double-digit economic growth with tourism boost

Prime Minister Pham Minh Chinh on April 10 signed for issuance of an official dispatch outlining a plan to accelerate tourism development, aiming to drive double-digit economic growth.

PM calls for flexible response to US tariffs, maintaining 8% growth target

Prime Minister Pham Minh Chinh has stressed that the US’s new tariff policies present an opportunity for Vietnam to restructure its economy, markets, production and exports, calling for calm, proactive, creative, flexible, timely, and effective responses to ensure stability as well as rapid and sustainable development.

Bac Giang leads the country in Q1 economic growth

BAC GIANG - According to the Bac Giang Provincial Statistics Office, the GRDP in the first quarter of 2025 of Bac Giang province was estimated at 14.02%, the highest in the country.

Minister of Industry and Trade urges Bac Giang to synchronously implement solutions to lead country in growth

BAC GIANG - The Government delegation led by Nguyen Hong Dien, member of the Party Central Committee and Minister of Industry and Trade on March 27 worked with Bac Giang province on production, business, construction investment, import and export in the province.