Viet Nam’s total revenue from retail sales and services grew in the first seven months of this year due to a strong increase in purchasing power during the prolonged hot weather, according to the General Statistics Office (GSO).

The total revenue from retail sales and services reached VND2.49 quadrillion (US$108.3 billion) in the first seven months, a year-on-year increase of 11.1 per cent. If inflation was excluded, the increase would be 8.4 per cent, higher than the 7.98 per cent growth seen in the first seven months of 2017, the GSO said.

GSO expert Vu Manh Ha said the revenue in July reached the highest level over the past three months because the revenue in May and June reached 8.3 per cent each.

The prolonged hot weather created conditions for growth in purchasing power because of high demand for cooling solutions and vacations. In addition, demand for food also rose due to the World Cup in June and July.

Revenue from tourism in the first seven months marked high growth of 17.7 per cent against the same period last year.

This was followed by accommodation, restaurant and catering services with a growth rate of 9.1 per cent in the first seven months.

The retail sector gained a year-on-year surge of 11.7 per cent in revenue to VND1.88 quadrillion in the first seven months, accounting for 75 per cent of the total revenue from retail sales and services.

Of which, several products recorded strong increases, including food and foodstuffs (12.6 per cent), garments (12.4 per cent), home appliances (12.3 per cent), cultural and education services (10.3 per cent) and transport services (10.4 per cent).

Some provinces and cities with high purchasing power in the seven months included Thai Nguyen (13.3 per cent), HCM City (12.8 per cent), Thanh Hoa (12.8 per cent), Lam Dong (12.7 per cent), Binh Dinh (12.4 per cent) and Ha Noi (12.2 per cent). — VNS