Experts revealed that last year's increase in purchasing power was below expectations as the rate was just half the value attained in 2010. — Photo Vu Sinh

HA NOI (Biz Hub) — The total retail sales and service revenue earned in the country in January this year was more than VND275.4 trillion (US$13 billion), data from the General Statistics Office (GSO) revealed.

The figure represents a 13 per cent year-on-year rise, GSO said, adding that the increase will be 11.9 per cent if price hikes are excluded.

GSO statistician Vu Manh Ha said that January recorded the highest total retail sales growth (inflation excluded) over the past five years. He saidretail sales saw yearly increases of 8.9 per cent in January 2011; 4 per cent in January 2012; 1 per cent in January 2013; and 7.2 per cent in 2014.

Ha attributed the significant rise in 2015 to surging consumer demand for the forthcoming Tet holiday, as well as the country's low consumer price index and sharp decline in the global petroleum price, which has curbed price hikes of essential goods. That has encouraged local consumers to buy more. During the month, the trade sector, which accounts for 77 per cent of total revenue, surged 13.6 per cent year-on-year. Several products posted increases in trade, including garments ( 6.2 per cent) and home appliances (5.7 per cent). Meanwhile, the hotel-restaurant sector, which comprises 11.3 per cent of the total revenue, was up 2.9 per cent month-on-month and 5.2 per cent year-on-year. However, tourism and other services had a yearly sales revenue fall of 1.8 per cent and 4.2 per cent respectively in January.

The GSO reported that the country's total value of retail sales of goods and services in 2014 increased approximately by 10.6 per cent, when compared to last year.

Experts revealed that last year's increase in purchasing power was below expectations as the rate was just half the value attained in 2010. They explained that while supply exceeded demand, incomes did not improve much. — VNS