AsemconnectVietnam - In the first 7 months of 2024, Vietnam's consumer price index increased by 4.12% compared with the same period last year, according to the General Statistics Office (GSO).

The country's total retail sales of consumer goods and services saw a year-on-year increase of 8.7% to 3.6 trillion VND (143.3 million USD) in the first 7 months of this year.
Meanwhile, the index of industrial production (IIP) also increased 8.5% year - on - year in the first 7 months of this year.
Vietnam's CPI in July and the first seven months of 2024
According to the General Statistics Office (GSO), Vietnam’s consumer price index (CPI) in the first seven months of this year increased by 4.12% from the same time last year, mostly due to increases in tuition fees, healthcare services, housing costs and prices of power, water, fuels and building materials,.
Increading petrol prices, high demand for power, and adjusted health insurance premium pushed up the CPI in July to 0.48% as compared to the previous month.
Among the 11 main groups of consumer goods and services, 10 saw price hikes compared to the previous month, while postal and telecommunications services remained unchanged.
The group of medicine and medical services recorded the highest increase of 8.13%, followed by education with price climbing by 8% as a result of higher tuition fees in several localities during the 2023-2024 academic year.
Other goods and services increased by 6.93%, with the fees of notary, insurance and other services increased by 17.86% and personal services by 6.5%.
The group of transport recorded an increase of 4.4%, and that of food and catering services was up by 4.27%.
In July of this year, the domestic gold prices fell 0.12% as compared to June, while rising by 18.11% to December last year, and 29.39% year-on-year.
The GSO also said that core inflation in July increased by 0.36% month-on-month, and 2.61% against the same time last year. On average, the January-July core inflation grew by 2.73% year-on-year.
Vietnam's retail sales of consumer goods, and services increased by 8.7% in the first 7 months of 2024
Vietnam’s total retail sales of consumer goods and services saw a year-on-year increase of 8.7% to 3.6 trillion VND (143.3 million USD) during January – July, said the General Statistics Office (GSO).
The revenue from retail sales of goods was estimated at 2.8 trillion VND, accounting for 77.3% of the total and up 7.4% year-on-year. Sales of food and foodstuffs rose by 10.7%, household appliances and tools 11.1%, garment 9.1%, vehicles (except cars) 3.4%, and cultural and educational products 11.2%.
In July alone, the total retail sales of consumer goods and services reached 528.3 trillion VND, surging 9.4% compared to the same period last year.
The localities posting an increase in the retail sales of goods in January-July included Quang Ninh (10.2%), Da Nang (7.8%), Can Tho (7.6%), Hanoi (6.6 %), and Ho Chi Minh City (6.3%).
The revenue from accommodation and catering services totaled 419.2 trillion VND, up 15.2% year-on-year, while tourism and travel services earned 35.2 trillion VND, rising 31.8%.
According to GSO, the favourable visa policies and tourism stimulus programmes have proven effective, helping lure nearly 1.15 million international visitors in July, up 10.9% year-on-year, and nearly 10 million in the seven months, up 51%.
Besides, the strong rise in tourism revenue was seen in several localities during January-July, including HCM City (42.2%), Da Nang (38.6%), Can Tho (33.7%), Hanoi (29.7%), Quang Ninh (21%) and Binh Duong (18.5 %). Meanwhile, revenue from other services stood at 370.2 trillion VND, a year-on-year rise of 9.4%.
In order to stimulate consumption, localities are stepping up the implementation of trade promotion solutions. The Hanoi Department of Industry and Trade has organised the July Sale Promotion Fair from July 26-30 with discounts of up to 100%. Visitors to the event can sample goods and take part in various gameshows and lucky draw activities, which aimed at stimulating demand and offering opportunities for them to experience and purchase quality products at preferential prices.
In HCM City, from the beginning of August, the municipal Department of Industry and Trade will organise mobile sales trips to serve low-income workers in industrial parks and export processing zones - the group of customers who have little opportunity to regularly access shopping in supermarkets, where major promotional programmes take place.
In order to ensure the supply of essential goods and boost the domestic market in the remaining months, the GSO suggested the Ministry of Industry and Trade (MoIT) further review, amend and perfect legal documents regarding state management of the domestic market. The MoIT should continue its coordination with other ministries, agencies and localities in monitoring market developments, and providing consultations in price management, it said.
Vietnam's IIP in July and the first 7 months of 2024
Vietnam's index of industrial production (IIP) is continuing its positive growth pace in July with an increase of 0.7% over June and 11.2% compared to the same period last year, according to the General Statistics Office (GSO).
According to GSO, the IIP in the first seven months of this year soared 8.5% year-on-year. The index saw a yearly decline of one% in last year's corresponding period.
The manufacturing and processing sector increased by 9.5%. Electricity production and distribution was up by 12.4% and water supply, waste and wastewater management and treatment activities up by 7.2%. The mining sector dropped by 6.2%.
In the period, the sectors that recorded a significant IIP rise were rubber and plastic, up 29%, furniture (21.5%), chemical and chemical products (17%), metal production (13%) and electronic products, computers and optical products (11.1%).
Several sectors posted a decline in IIP, including crude oil and natural gas exploitation, down by 12.4%; repair, maintenance and installation of machinery and equipment (by 3%); and coal mining (by 1.3%).
However, several industrial products showed a rise in IIP from January to July, including steel bars and angle steel (31%), rolled steel (17.8%), NPK fertiliser (14%), powdered milk (12.3%) and phone components (12%).
By contrast, the IIP of several goods decreased compared to the same period last year such as natural gas and liquefied petroleum gas (16.9%), crude oil (7.1%), beer (3.8%) and mobile phones (3%).
According to the GSO, the IIP surged in 66 localities such as Lai Chau (43%), Phu Tho (39%), Bac Giang (28%), Binh Phuoc (17%) and Thanh Hoa (15%).
Meanwhile, the index dropped in three localities including Quang Ngai (4.3%), Ha Tinh (2.1%) and Gia Lai (2%) during the reviewed period.
GSO also said that the number of workers in industrial enterprises as of July 1, 2024, increased one% month-on-month and 3.3% year-on-year.
During a conference in Hanoi on July 29, Pham Tuan Anh, deputy director of the Department of Industry under the Ministry of Industry and Trade (MoIT) said the department has focused on assisting enterprises that operate in processing and manufacturing and supporting industries with applying and transferring technology and fostering work force training.
Mr. Anh said the department has also helped these firms connect with multinational assembly corporations and large suppliers in the world to find product outlets to participate in the supply chain of FDI enterprises.
Despite these positive figures seen in the first seven months, Vietnam’s industry still faces many challenges in the short and long term, according to the MoIT's Department of Industry.
The internal strength of domestic manufacturing industries is still weak and major industrial bottlenecks in the past years have not been effectively overcome. Industrial production still depends largely on external factors, especially on the FDI sector.
The added value of domestic industries is still low, while supporting industries are underdeveloped, leading to the lack of many domestic hi-tech industrial products.
On the other hand, industrial production has not recovered comprehensively. Some key manufacturing industries, such as smartphones, televisions, cars and crude iron and steel, have declined compared to the same period in 2023.
Meanwhile, some key export products, like footwear, wood, phones and components, recovered but have not yet returned to their peak of 2022.
The situation in the world and region will continue to be complicated and volatile in the last six months of 2024, the department said.
Geo-political tensions and competition with major countries are expected to increase. While the recovery of major trading partners is still slow, there is still a risk of disruption to the global supply and production chains.
The MoIT said it will promote the operation of new industrial production projects, creating more motivation for production development and goods for export.
The ministry said it will continue to effectively implement supportive policies for enterprises approved by the Government to remove difficulties and obstacles in production and business activities, especially in major industries such as textiles, garments, footwear, automobiles, mechanical engineering and steel.
The ministry will also focus on perfecting institutions, policies, laws and development strategies for several foundation industries, which will motivate the development of other industries over the short and long term.
In addition, it continues to effectively implement cooperation programmes with localities to restore and promote the growth of the industrial sector in localities and key economic regions.
CK
Source: VITIC/Vietnamplus.vn