Stimulating domestic consumption - the key to economic growth

(Dan Tri) - Experts say that domestic consumption, if exploited effectively, will become an important driving force for the goal of stable, long-term economic growth.

Sharing at the seminar "Stimulating consumption for economic growth" on September 25, economic expert Nguyen Duc Kien, former Deputy Chairman of the National Assembly's Economic and Financial Committee, commented that the period of 2026-2030 is the time to shape the economic model of the world and Vietnam. This period is also the period when Vietnam strives and strives to achieve the target of double-digit growth.

According to Mr. Kien, the figures on the results of the first 8 months show that the domestic economy has many bright spots such as increased exports, a thriving consumer market thanks to major holidays and the policy to encourage private investment under Resolution 68 has initially taken effect.

However, according to him, the complicated developments of the world economy and the slowdown in global growth have also significantly affected Vietnam's economic policies and development. "Inflation is under a lot of pressure, production recovery is unstable, growth drivers are subject to many restrictions and exports face many challenges," he analyzed.

To achieve the growth target, he said, Vietnam needs to make great efforts in the last months of the year and the 2026-2030 period, especially in domestic consumption, to be able to achieve the expected target.

Sharing the same view, Mr. Dau Anh Tuan, Deputy General Secretary of the Vietnam Federation of Commerce and Industry (VCCI), said that to stimulate consumption, the Government, ministries, branches and localities need to implement many synchronous solutions such as lowering interest rates on consumer loans to help people easily access capital for spending and shopping, while supporting businesses to reduce costs and expand market share.

Mr. Dau Anh Tuan, Deputy General Secretary of the Vietnam Federation of Commerce and Industry (VCCI), shared at the seminar (Photo: Organizing Committee).

In addition, it is necessary to maintain or expand the policy of reducing VAT from 10% to 8% for essential goods to reduce product prices and promote purchasing power; programs to encourage domestic consumption or develop the night-time economy...

Dr. Le Duy Binh, Director of Economica, said that sustainable growth in the coming time needs to rely more on domestic consumption and private investment.

While exports still maintain a fairly high growth rate, public investment has gradually approached the threshold, so promoting domestic consumption has become a key factor, requiring taking advantage of every opportunity to turn it into a driving force for growth.

To achieve the economic growth target, Ms. Bui Thi Viet Lam, Representative of the US-ASEAN Business Council (US ABC), said that Vietnam needs to better exploit new markets under free trade agreements to promote export momentum, and at the same time pay more attention to stimulating domestic consumption.

"To stimulate domestic consumption, Vietnam needs to pay more attention to the business environment and business health, focus more on grasping and promptly resolving businesses' problems regarding unclear regulations and barriers, helping businesses overcome difficulties, recover and contribute more to the country's growth target," Ms. Lam informed.

According to the expert, to stimulate domestic consumption, support policies, especially tax support, need to be implemented in the right spirit and consistently. For example, the problem of exempting 2% value added tax on sugary soft drinks in 2026 needs to be continued to help businesses in this industry overcome difficulties and recover before the implementation of the Law on Special Consumption Tax from January 1, 2027.

Sharing more about this issue, Dr. Pham Tuan Khai, former Director of the Legal Department, Vice Chairman of the Administrative Procedure Reform Advisory Council (Government Office), said that before the Law on Special Consumption Tax was passed last June, the National Assembly decided to postpone the application of special consumption tax on the beverage industry until 2027, in line with the policy period of reducing value added tax by 2% ending at the end of 2026.

He emphasized that when a legal provision still has many different interpretations, it is necessary to carefully assess the impact to avoid causing disadvantages to businesses, especially units producing products subject to special consumption tax. Therefore, the management agency needs to have clear instructions, including considering that sugary soft drinks continue to enjoy preferential value-added tax reduction until the end of 2026.

Source: https://dantri.com.vn/kinh-doanh/kich-cau-tieu-dung-noi-dia-chia-khoa-then-chot-cho-tang-truong-kinh-te-20250925183350044.htm