The retail market of Vietnam is attractive due to its large growth potential (Photo: tinnhanhchungkhoan) Thewholesale and retail market is developing rapidly with large potential andattracting the attention of both local and foreign investors, according to arecent note from the Government Office.
Regardedas a sensitive sector, the retail market has been gradually opened to foreigninvestors following Vietnam’s international commitments. However, management offoreign retailers has proven to be inefficient while there has been a lack ofsupport for local firms to expand their distribution networks, the note said.
In the note, Dung called for management of foreign retailers to be tightened toensure compliance with the law. In addition, the expansion of distributionnetworks of foreign firms must be kept in check.
TheMinistry of Finance was directed to increase inspections of foreign wholesaleand retail firms to prevent transfer pricing and collect taxes.
TheMinistry of Industry and Trade was asked to aid local retail firms with landlease fees to promote their development.
Dung alsoasked relevant ministries to draft a decree which would replace Decree23/2007/NĐ-CP on the purchase and sale of goods by foreign-owned enterprises.
The decree should be sent to the Prime Minister within the first quarter ofthis year.
Dung saidthat the new decree should encourage foreign retailers to commit todistributing locally-produced products.
With apopulation of 90 million, around 40 percent of which are urban citizens, anddouble-digit growth in total retails sales of goods and services since joiningthe World Trade Organisation in 2007, Vietnam’s retail market has been attractiveto foreign investors.
In recent years, the market has been entered by large retailers, includingfirms from Japan, Thailand and the Republic of Korea, through the opening ofsupermarkets and acquisition deals.
According to the Vietnam Institute for Trade under the Ministry of Industry andTrade, the retail market is set to grow by 11.9 percent per year to reach avalue of 179 billion USD by 2020 from 102 billion USD in 2015.
Under theindustry’s planning, there will be 1,200-1,500 supermarkets, 180 trade centresand 157 shopping centres by 2020.-VNA
VNA
