Digital transformation backs retail growth in H1

Friday, Jul 09, 2021 15:08

A woman visits a website to buy food in Ha Noi. — Photo

Revenue from retail trades and services increased 4.9 per cent to over VND2.46 quadrillion (US$107 billion) in the first half of this year, according to the General Statistic Office (GSO).

Retail sales surpassed VND1.98 quadrillion, accounting for 80 per cent of the total retail sales of consumer goods and services, up 6.2 per cent year-on-year, the GSO said.

These encouraging figures were mainly attributed to businesses and firms that quickly adapted to the “new normal” as a result of the COVID pandemic.

Actively applying technological solutions in trading and payments along with undergoing digital transformations has been an important part of promoting growth in the retail sector and maintaining stability for the business community, according to Vice chairman of the Viet Nam Chamber of Commerce and Industry, Hoang Quang Phong .

Phong said the rapid changes in technology have enabled retail companies to optimise their resources and place consumers at the centre of their businesses. This has helped them to survive, to stabilise their operations, and to thrive throughout the COVID-19 pandemic.

The Internet of Things (IoT), Big Data, AI and Machine Learning have allowed businesses to provide customer service in unique and exciting ways They have helped to optimise management strategies as well as supply chains maximising revenues.

Do Khac Cuong, Sales Director of Corporate Banking and Partner Channel Manager, at Microsoft Vietnam, says that the data points to incorporating the customer experience into an organisations digital transformation is key.

In a survey of 800 business executives, conducted by The Economist and Microsoft, respondents in the retail industry said that improving the customer experience was the top factor driving their digital transformation.

The survey also showed that retailers that deploy online shopping channels and have a deep understanding of their customers managed to better survive the impact of the pandemic.

On the other hand sales of accommodation and catering services reached VND224 trillion from January to June, down 3 per cent year-on-year. They made up 9.1 per cent of the total revenue.

Tourism revenue also experienced a decline of 52 per cent to VND4.5 trillion.

Viet Nam has yet to reopen the borders for international visitors and at the same time, some localities have implemented social distancing, discouraging domestic tourism.

Meanwhile, revenue from other services reached VND2.49 trillion, marking a jump of 4.4 per cent.

Previously, trade economists forecast that Viet Nam's retail market would likely rebound strongly predicting 11 per cent revenue growth in 2021, outperforming any other Southeast Asian country. — VNS

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