Illustrative image (Source: VNA)
Hanoi (VNA) – Domestic retailers are facing a lot of challenges and losing market share to foreign rivals due to limited capital, scale and governance skills.

With a market value of 110 billion USD by 2016 which is expected to soar to 180 billion USD by 2020, Vietnam is considered one of the 30 most attractive retail markets worldwide. Well-known retail chains such as Japan’s Aeon, the Republic of Korea’s Lotte and Thailand’s Central Group are not unfamiliar to consumers in major urban areas.

Statistics from the Ministry of Industry and Trade’s Domestic Market Department showed that retail sales in foreign-invested sector was 7-8 times higher than those in domestic one.

In order to improve domestic retailers’ competitiveness, Hanoi has offered preferential loans and courses on improving governance skills and adopting advanced technologies.

Deputy Director of the municipal Department of Industry and Trade Tran Thi Phuong Lan said the city is striving to accelerate the progress of building shopping malls and supermarkets, working closely with departments, agencies and authorities of communes and districts to step up investment attraction, and develop logistics services, mostly in Soc Son and Phu Xuyen districts.

The department will continue with bank-business community programme to facilitate firms’ access to preferential loans, and offering corporate training courses to improve management, sales and brand development skills.-VNA