Tapping domestic market to drive economic growth

939 Investment Trading JSC (Long Binh Ward) showcases its OCOP (One Commune One Product) offerings at a trade promotion event.

In addition to exports, the domestic market provides businesses with a stable foundation to establish their brands, capitalize on growing consumer demand, and contribute to the country’s economic growth.

Domestic consumption as an economic anchor

Vietnam’s economy maintained steady growth during the first half of 2026, despite facing challenges such as sluggish demand in several major export markets and continued uncertainty in global trade. Against this backdrop, the domestic market once again demonstrated its importance as a reliable engine of economic growth.

According to the National Statistics Office under the Ministry of Finance, total retail sales of goods and consumer service revenue rose by nearly 13% year-on-year during the first six months of 2026. This marked the highest first-half retail revenue ever recorded, reaffirming domestic consumption as one of the country's primary growth drivers.

Several localities, including Quang Ninh, Da Nang, Can Tho, Hanoi, Hai Phong, and Ho Chi Minh City, also reported robust consumer spending growth, indicating a broad-based recovery in domestic demand.

In Dong Nai City, trade and services continued to be among the sectors contributing positively to Gross Regional Domestic Product (GRDP) growth. Total retail sales of goods and consumer service revenue reached nearly VND224 trillion in the first six months of 2026, up more than 16.5% from the same period in 2025. Shopping activity was brisk at supermarkets, shopping malls, traditional markets, and convenience store chains. Retail businesses actively rolled out a wide range of promotional programs, discounts, and consumer stimulus initiatives, while also expanding sales through digital platforms.

As a company focused primarily on the domestic market, Pham The Linh, Director of The Linh One Member Co., Ltd., a manufacturer of bedding products in Ho Nai Industrial Park, said the company aims to achieve annual growth of more than 20%. To meet this target, the company has expanded its retail dealership network nationwide to boost sales and strengthen brand recognition.

Significant growth potential

There remains considerable room for growth in Vietnam's domestic market. According to economists, the final months of the year are the peak period for commercial activity. This presents an opportunity for businesses to expand their market share, increase revenue, and make a greater contribution to economic growth.

The coffee industry illustrates this untapped potential. According to independent market analyst Nguyen Quang Binh, Vietnam produces approximately 1.6 to 1.8 million metric tons of coffee annually, yet domestic consumption accounts for only 5–10% of total production. Meanwhile, coffee consumption within Vietnam continues to grow rapidly, particularly among young consumers and urban residents. Expanding domestic consumption would not only stabilize market demand but also strengthen the reputation of Vietnamese coffee brands.

The wood processing industry presents a similar opportunity. Dong Nai remains one of Vietnam’s leading centers for manufacturing and marketing wood products. The Dong Nai Wood and Handicraft Association is strengthening cooperation among its members and neighboring provinces to build a sustainable timber production ecosystem, secure raw material supplies, and better serve rising domestic demand.

Experts note that Dong Nai’s competitive advantages are becoming increasingly evident as major strategic infrastructure projects gradually take shape. These include Long Thanh International Airport, Phuoc An Port, the Bien Hoa–Vung Tau Expressway, and Ho Chi Minh City’s Ring Roads 3 and 4. Together, these projects are expected to expand the region’s development space, lower logistics costs, shorten transportation times, and enable businesses to access the Southeast region’s market of 20 million people more efficiently.

However, to ensure that the domestic market becomes a stronger growth engine during the second half of 2026, a comprehensive set of measures will be required.

According to Vu Ngoc Long, Director of the Dong Nai Department of Industry and Trade, the department will intensify consumer stimulus programs, accelerate e-commerce development, continue implementing the "Vietnamese people prioritize using Vietnamese goods" campaign, and expand product distribution to industrial parks, residential communities, and rural areas. Alongside supporting exporters in overcoming international trade barriers, the department will also encourage businesses to increase the production of essential consumer goods to meet stronger year-end domestic demand.

With a population of more than 100 million, Vietnam's domestic market is one of the country's major economic advantages. Amid continued volatility in the global economy, effectively harnessing domestic purchasing power is considered an important measure to promote growth and enhance the economy's resilience and competitiveness.