Once inflation is excluded, this increase still represents the highest rate of purchasing power growth seen in the first 10 months of any year.

GSO expert Vu Manh Ha said the second consumption season of the year started in the third quarter with high demand on essential goods and services for weddings and the new school year and garments for the changing weather.

In addition, the market had higher demand for upgrading houses and apartments to prepare for the New Year and lunar New Year.

The high purchasing power contributed to the petrol price rising by 3.45 per cent, pushing up prices of goods and transport related to petrol products, Ha said.

Viet Nam’s total revenue from retail sales and services grew as consumers paid more, reaching VND3.6 quadrillion (US$154.51 billion), a year-on-year increase of 11.4 per cent, according to the GSO.

The increase accounting for inflation was 9.31 per cent, higher than the 8.79 per cent growth seen in the first 10 months of 2017.

October revenue was estimated at VND378.6 trillion, up 1.3 per cent over September and up 12.4 per cent from last October. This number includes VND286.9 trillion from retail sales.

Revenue from retail sales reached VND2.72 quadrillion for the first 10 months of the year, accounting for 75.3 per cent of the total and rising 12.2 per cent over the same period last year.

Purchasing power for food rose the most at 13.3 per cent followed by garments (up 12.6 per cent), home appliances (12 per cent), cultural and educational products (11.6 per cent) and vehicles (11.6 per cent).

Revenue from accommodation and catering services reached VND440.1 trillion, up 8.3 per cent from last year. Tourism revenue was up 15.6 per cent to VND33.5 trillion, and other services hit VND420 trillion, up 9.3 per cent.

So far this year, cities and provinces including HCM City, Hai Phong, Thanh Hoa and Da Nang have seen their purchasing power rise 12 per cent. — VNS