AEON's fifth centre in Ha Dong in the capital city attracts many customers with children with many playful areas in the mall (Photo: nemtv) Hanoi (VNS/VNA) - As one ofthe most dynamic economies in the region, Vietnam's retail market is attractivefor many foreign investors, but it can also be challenging at the same time.
Trang Le, head of Research and ConsultingServices, real estate and retail services firm Jones Lang LaSalle (JLL) Vietnamtold Vietnam News: "Vietnamis in the golden phase for economic development, especially in retail."
Vietnam is forecast to produce the highestGDP growth rate in the dynamic Southeast Asia region with 6.6 percent. Itsgrowing urbanisation is expected to bring an annual growth rate 2.6 percentin the urban population by 2030, the highest in Southeast Asia.
Trang believes as more people move intocities and take on higher-value manufacturing and service jobs, their incomesalso increase.
She calculated the high growth of middleclass population at 19 percent in 2020-25, including 70 percent of peopleof working age, is a key driver of strong retail growth. At the same time,experts said increasing tourism also helps lift the market.
Since 2014, the market has witnessed a seriesof mergers and acquisitions (M&A) deals. An example is Berli Jucker’sacquisition of Metro Cash & Carry Vietnam, the largest M&A deal ever inVietnam.
Shortly after, Central Group – another Thaigiant – acquired Nguyen Kim Trading JSC, Vietnam's leading electronicsretailer, and Big C Vietnam, the second-largest supermarket chain in terms ofthe number of stores in the country.
E-mart – the Republic of Korea (RoK)'sleading retailer – also officially joined the playground in 2015 with a 60million-USD shopping mall in the north of HCM City. Also from the RoK, LotteMart has been quite successful with a series of supermarkets and shoppingcentres across the country.
AEON, one of the world's leading retailgroups from Japan, is also gradually expanding its network with a fifth centrein Ha Dong in the capital city opening last November. Its Japanesefellow, Takashimaya presented in a prime location in HCM City four yearsago.
However, foreign retailers are also facedwith fierce competition. The evidence is that big brands likeAuchan, Parkson and the series of foreign convenience store brands had toshrink their networks, withdraw from or struggling in the market.
Some retailing experts considered Parkson’sloss was due to the less diversified tenant structure which focused toomuch on fashion and cosmetics while neglecting dining and entertainment whileAuchan and Shop & Go failed to align with market trends.
Trang told VietnamNews: "Foreign retailers need to conduct careful studies tobetter understand the local trends."
She cited AEON offering a prime spot forfamilies to shop and relax as one of the successful models.
According to JLL's observations, besides thefocus on food and beverage, plus entertainment to attract customers, retailersshould develop more green spaces, increase the application of technologyand big data, set up shopping omni-channel to keep the hearts of customers.
Trang added: "Creative efforts toenhance the shopping experience will translate into success of theretailers."/.
Trang Le, head of Research and ConsultingServices, real estate and retail services firm Jones Lang LaSalle (JLL) Vietnamtold Vietnam News: "Vietnamis in the golden phase for economic development, especially in retail."
Vietnam is forecast to produce the highestGDP growth rate in the dynamic Southeast Asia region with 6.6 percent. Itsgrowing urbanisation is expected to bring an annual growth rate 2.6 percentin the urban population by 2030, the highest in Southeast Asia.
Trang believes as more people move intocities and take on higher-value manufacturing and service jobs, their incomesalso increase.
She calculated the high growth of middleclass population at 19 percent in 2020-25, including 70 percent of peopleof working age, is a key driver of strong retail growth. At the same time,experts said increasing tourism also helps lift the market.
Since 2014, the market has witnessed a seriesof mergers and acquisitions (M&A) deals. An example is Berli Jucker’sacquisition of Metro Cash & Carry Vietnam, the largest M&A deal ever inVietnam.
Shortly after, Central Group – another Thaigiant – acquired Nguyen Kim Trading JSC, Vietnam's leading electronicsretailer, and Big C Vietnam, the second-largest supermarket chain in terms ofthe number of stores in the country.
E-mart – the Republic of Korea (RoK)'sleading retailer – also officially joined the playground in 2015 with a 60million-USD shopping mall in the north of HCM City. Also from the RoK, LotteMart has been quite successful with a series of supermarkets and shoppingcentres across the country.
AEON, one of the world's leading retailgroups from Japan, is also gradually expanding its network with a fifth centrein Ha Dong in the capital city opening last November. Its Japanesefellow, Takashimaya presented in a prime location in HCM City four yearsago.
However, foreign retailers are also facedwith fierce competition. The evidence is that big brands likeAuchan, Parkson and the series of foreign convenience store brands had toshrink their networks, withdraw from or struggling in the market.
Some retailing experts considered Parkson’sloss was due to the less diversified tenant structure which focused toomuch on fashion and cosmetics while neglecting dining and entertainment whileAuchan and Shop & Go failed to align with market trends.
Trang told VietnamNews: "Foreign retailers need to conduct careful studies tobetter understand the local trends."
She cited AEON offering a prime spot forfamilies to shop and relax as one of the successful models.
According to JLL's observations, besides thefocus on food and beverage, plus entertainment to attract customers, retailersshould develop more green spaces, increase the application of technologyand big data, set up shopping omni-channel to keep the hearts of customers.
Trang added: "Creative efforts toenhance the shopping experience will translate into success of theretailers."/.
VNA
