The ability to resume manufacturing and exporting activities this year in HCMC, and Vietnam in general, is quite high even though there are still many obstacles ahead. This is because of the careful and systematic preparation of the city for the past two years via a series of promotion events for trade connection with 38 provinces and cities in the country. This year is a suitable time to boost the value chains of trade, service, and tourism.
Another chance comes from the salary reform policy in the public sector, effective as of July 1, 2024, and a drop in consumer loan interest rates. These are expected to help the purchasing power grow in the last half of the year.
The third and most promising opportunity for economic recovery in HCMC is the strong development of e-commerce, creating a new shopping habit in the community and becoming the main flow of the domestic consumption pillar as well as the major driving force for the growth this year. Selling and buying goods online through live streaming sessions has gradually become popular in the city.
HCMC is considered the cradle to nurture digital content creators, to encourage new consumer behaviors on social network sites and online platforms. This is because of a large quantity of software programmers and related human resources for online advertising, as well as the introduction of technological applications imported from other countries or developed domestically.
The last two factors for a strong recovery of the city’s economy are the dense traffic network to serve logistics purposes and reliable financial applications to boost online payment on digital platforms.
These elements have been the foundation for the completion of an ecosystem for the ‘live-streaming economy’, which will then lead trading activities and the digital transformation process in the city.
In 2024, it is advised that suitable mechanisms and policies for the project to turn HCMC into an e-commerce center (approved in 2020) should be applied and updated to include new business models like shopping on the commercial floor, shopping on social networks (social commerce), to shopping combined with entertainment (shoppertainment).
The municipal authorities have organized various e-commerce activities so far, showing their support to the ideas, projects, and plans that the market and society are forming. This participation of the state agencies plays the leading role in addressing product information lack and limits in geographical distance so that consumers can choose their products conveniently with reasonable prices.
Obviously, online trading can stimulus the city economy in the short term and create driving forces to increase the total supply in the long term.
It is now wise for HCMC to encourage purchasing via credit – an effective tool applied in many countries. Interest-free installment purchase programs or credit cards with different denominations will help consumers have the ability to spend immediately. Along with that should be merchandise with clear origin and high quality, good after-sale services or customer care. These are expected to form the core and sustainable values for the city’s commerce.
In related news, on January 25, Thu Duc Online Market was launched in response to the campaign ‘HCMC Shopping Festival’. This platform attracts the participation of 50 retailers and businesses, as well as 100 ‘Key Opinion Consumers’ (KOCs) and ‘Key Opinion Leaders’ (KOLs), content creators, students in Thu Duc City.
These livestreaming commerce activities, including product sampling, product introducing, community events, last until January 28. Many participating companies will send a part of their revenues to the charity fund ‘Loving Thu Duc’, chaired by Thu Duc City Social Security Center.
In one of the livestreaming sessions, Chairman of the Thu Duc City People’s Committee Hoang Tung enthusiastically marketed ao dai and ornamental plants. He also called upon the support of businesses to help the socio-economic development in Thu Duc City.
