Da Nang’s retail sector and its exports recorded a spectacular recovery and breakthrough growth  in 2022. The city will face intertwined difficulties and advantages in 2023, thereby requiring more support from local authorities for businesses to help them boost domestic consumption, explore traditional export markets, and find new consumer markets in other parts of the world.

Trade fair helped boost domestic demand and promote the development of domestic trade. IN PHOTO: A ribbon cutting ceremony for the Hoa Vang Agriculture Fair 2022. Photo: QUYNH TRANG

Domestic trade and exports enjoy strong grow

Da Nang, and Viet Nam as a whole, yielded positive results for exports in 2022 due to a strong recovery in global demand with breakthrough growth recorded in second and third quarters. However, there was significant decrease in demand from some major export markets in the fourth quarter of 2022 due to the effect of economic and political crisis in some countries.

Data provided by the Da Nang Department of Industry and Trade showed that overall value of exports in Da Nang amounted to an estimated USD 2.079 billion USD in 2022, up 16.2% from the previous year. In which, the value of exports by domestic businesses reached an estimated USD 924 million USD, up 15% while that by foreign-invested enterprises hit an estimated USD 1,147 million, up 16.3%.

The value of the city’s top export products was higher than in last year. The value of USD 532 million generated from textiles and garments, up 13.2% over the same period in 2021, USD 233 million from seafood products, up 13.1%, 22 million from handicrafts and wood products, up 13.4%, USD 106 million from children's toys, up 14%, USD 120 million from finished rubber, up 19.6%, USD 680 million from motors, electrical equipment and electronic products, up 14.7%.

Meanwhile, stimulus programs jointly launched by local relevant agencies and businesses with the aim of boosting domestic demand helped domestic trade continue its strong growth momentum, and play an important role as a driving force of the city’s economic development.

During last year, Da Nang hosted numerous trade and tourism activities plus international events in a bid to increase domestic trade, and attract a large number of domestic tourists especially in the summer and major public holidays. Included were the Routes Asia 2022, 'Enjoy Danang Summer' Festival, the International East-West Economic Corridor (EWEC) Trade and Tourism Fair, the Da Nang Golf Tourism Festival, Vietnamese Goods Fair, and the launch of new international flights between Da Nang and India.

Total retail sales in Da Nang was estimated at VND 66,233 billion in 2022, a rise of 15.7% over the same period in 2021, and surpassed the year’s target of 3.5%.

Da Nang hosted numerous fairs to connect supply and demand in 2022. IN PHOTO: Business partners, and customers visiting a show booth displaying products on the sidelines of the supply-demand connection conference which took place in the city in August 2022. Photo: QUYNH TRANG

Many solutions for trade development in 2023

According to the Da Nang Department of Industry and Trade industry, the city is forecast to face intertwined difficulties and advantages in 2023, including an uncertain global landscape, raging inflation, economic recession, strategic competition among major powers, military conflicts threatening political stability at the regional and global level. All these challenges will have negative impact on economic growth in Viet Nam, and the world at large.

The country’s economy will continue to be affected by many external factors, along with many lingering problems and new issues that need to be resolved, including hidden risks to financial and real estate markets, and no signs of strong rebound showed in investment attraction. However, positive outlook is forecast for Viet Nam's economy in 2023 as the national government will boost the implementation of the country’s Socio-Economic Recovery Programme in efforts to provide more support for businesses to expand their production, as well as to stimulate demand in financial and real estate markets, and more. All these activities will be driving forces of the country’s economic growth in 2023 and the following years.

In 2023, the value of Da Nang exports is expected to increase by 6-7% from 2022 while that of the city’s imports is expected to rise by 3-4% over last year.

Meanwhile, domestic trade and the total retail sales in the city is expected to increase by 8-9% compared to 2022.

Mr Nguyen Van Tru, the Deputy Director of the Municipal Department of Industry and Trade said that the Department will continue its efforts to take effective measures to achieve the city’s goals set for 2023. Heed will be paid to continuing to effectively implement the city’s trade promotion programs, and e-commerce development plan for the 2021-2025 period. Importance will be attached to launching a program to promote Da Nang’s products in association with the 'Vietnamese people give priority to using Vietnamese goods' campaign. Special attention will be paid to promoting the use of technology application and boosting digital transformation in trade promotion activities. High priority will be given to introducing OCOP products, typical rural industrial products, craft products and more, as well as selling them through distribution channels in addition to setting up points of Da Nang products’ display and selling.

On the other hand, the Municipal Department of Industry and Trade will boost its coordination with the Ministry of Industry and Trade and relevant local agencies to provide more support for local exporters in order to help the city’s exports have a vital role to play in driving the city’s economic recovery from the COVID-19 crisis. The focus will be on helping local exporters improve their competitiveness, and implement export promotion programs. Heed will be paid to connecting local exporters with their foreign partners. High priority will be given to choosing 1 to 2 key markets to implement the city’s export promotion program.

Reporting by QUYNH TRANG – Translating by H.L