Vietnam retail sales for 2021 landed at US$210 billion – the lowest rate in the last decade – after plummeting 3.8 per cent year on year as the country was severely hit by the Delta-variant.

According to the General Statistics Office of Vietnam, the retail sales of the fourth quarter showed sights of recovery, surging 28.1 per cent compared to the previous quarter, when strict lockdowns were implemented in the country’s biggest cities. However, Vietnam’s total retail sales figures also include services for industries such as travel and accommodation revenue, which explain the slight drop during the year.

In particular, the sales from consumer goods was up 0.2 per cent year on year, exceeding US$173.28 billion. The sales are considered to be a positive result as only supermarkets were allowed to operate during the five-month lockdown. E-commerce sales were also affected as delivery services were suspended.

Ho Chi Minh City, which faced the worst Delta outbreak in the country, experienced a 21.9 per cent decrease in retail sales in 2021, with the sales in the F&B sector plunging 46.4 per cent.

Retailers also recorded low purchasing power despite Black Friday and year-end sales as consumers were hesitant to shop due to the risk of catching Covid-19 and more conscious about spending as prices soared.

Vietnam retail sales are expected to increase ahead of Lunar New Year, which will start in early February.