The competition between modern and traditional business models has become more fierce and Vietnam’s retail market needs a long-term strategy in order to ensure sustainable development in the integration process, the Vietnam Economic News reported.
According to A.T.Kearney’s ranking, Vietnam ranked top ten attractive retail markets in the world in 2010. To date, Vietnam has been out of ranking table and no longer in the top 30 developing countries having vibrant retail market in the world. However, according to experts, Vietnam’s retail market still has great potential.
A number of modern retailers in Vietnam remain limited. By the end of last year, the country had 724 supermarkets and 132 commercial centres in addition to several hundreds of convenience stores.
Vietnam’s retail market has made strong changes in a context where big international retailers have been more interested in the Vietnamese market. Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade Tran Nguyen Nam said that Vietnam’s retail market was developing based on convenience stores, commercial centres and supermarkets with the participation of foreign investors. In addition to Metro, Big C, Vincom Mega Mall, Aeon Mall and Lotte, some big retailers such as B’s Mart, Circle K, FamilyMart, Walmart, Auchan and Robinson have also been available in Vietnam.
In the first nine months of this year, total retail sales of goods and services reached more than 2,145 trillion VND, an increase of 11.12 percent compared to the same period last year. Of which, the state, non-state and FDI sectors accounted for 10.1, 86.5 and 3.4 percent of total retail sales of goods and services, respectively.
Total retail sales of goods and services are expected to reach more than 2,970 trillion VND this year, an increase of 11.3 percent compared to last year.
According to Chairperson of the Association of Vietnam Retailers Dinh Thi My Loan, by the end of last year, the country had 724 supermarkets, 132 commercial centres, 8,546 markets and about 1 million small-scale stores. By 2020, the country will have about 1,200-1,300 supermarkets, 180 commercial centres and 157 shopping malls.
Phu Thai Group JSC General Director Pham Dinh Doan was quoted as saying that the competitiveness among retailers would increase in the coming time and consumers would enjoy a high level of services.
Domestic retailers have still faced challenges and difficulties in a context where big international retailers have been more available in Vietnam. Difficulties in terms of financial resources, business administration, infrastructure and the quality of human resources remain the biggest barriers for domestic retailers.
Pham Dinh Doan said that apart from commercial centers and large supermarkets, convenience stores in Vietnam have not yet strongly developed to establish a retail chain like FamilyMart or 24h due to a lack of capital.
Domestic retailers and economists said that Vietnam’s retail market needed a long-term strategy in order to ensure sustainable development in the integration process. Central Institute for Economic Management Deputy Director Vo Tri Thanh said that the Ministry of Industry and Trade should have a full report on the retail market in order to help businesses and state management agencies have an overall view of the market to adopt appropriate strategies.
Pham Dinh Doan also emphasised that the Ministry of Industry and Trade should create a breakthrough in adopting policies in order to ensure harmonious development of the retail market.
“The government should allow a joint venture between domestic businesses and foreign companies in order to have better financial resources and gain experiences from their foreign partners,” Pham Dinh Doan was quoted as saying.-VNA
According to A.T.Kearney’s ranking, Vietnam ranked top ten attractive retail markets in the world in 2010. To date, Vietnam has been out of ranking table and no longer in the top 30 developing countries having vibrant retail market in the world. However, according to experts, Vietnam’s retail market still has great potential.
A number of modern retailers in Vietnam remain limited. By the end of last year, the country had 724 supermarkets and 132 commercial centres in addition to several hundreds of convenience stores.
Vietnam’s retail market has made strong changes in a context where big international retailers have been more interested in the Vietnamese market. Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade Tran Nguyen Nam said that Vietnam’s retail market was developing based on convenience stores, commercial centres and supermarkets with the participation of foreign investors. In addition to Metro, Big C, Vincom Mega Mall, Aeon Mall and Lotte, some big retailers such as B’s Mart, Circle K, FamilyMart, Walmart, Auchan and Robinson have also been available in Vietnam.
In the first nine months of this year, total retail sales of goods and services reached more than 2,145 trillion VND, an increase of 11.12 percent compared to the same period last year. Of which, the state, non-state and FDI sectors accounted for 10.1, 86.5 and 3.4 percent of total retail sales of goods and services, respectively.
Total retail sales of goods and services are expected to reach more than 2,970 trillion VND this year, an increase of 11.3 percent compared to last year.
According to Chairperson of the Association of Vietnam Retailers Dinh Thi My Loan, by the end of last year, the country had 724 supermarkets, 132 commercial centres, 8,546 markets and about 1 million small-scale stores. By 2020, the country will have about 1,200-1,300 supermarkets, 180 commercial centres and 157 shopping malls.
Phu Thai Group JSC General Director Pham Dinh Doan was quoted as saying that the competitiveness among retailers would increase in the coming time and consumers would enjoy a high level of services.
Domestic retailers have still faced challenges and difficulties in a context where big international retailers have been more available in Vietnam. Difficulties in terms of financial resources, business administration, infrastructure and the quality of human resources remain the biggest barriers for domestic retailers.
Pham Dinh Doan said that apart from commercial centers and large supermarkets, convenience stores in Vietnam have not yet strongly developed to establish a retail chain like FamilyMart or 24h due to a lack of capital.
Domestic retailers and economists said that Vietnam’s retail market needed a long-term strategy in order to ensure sustainable development in the integration process. Central Institute for Economic Management Deputy Director Vo Tri Thanh said that the Ministry of Industry and Trade should have a full report on the retail market in order to help businesses and state management agencies have an overall view of the market to adopt appropriate strategies.
Pham Dinh Doan also emphasised that the Ministry of Industry and Trade should create a breakthrough in adopting policies in order to ensure harmonious development of the retail market.
“The government should allow a joint venture between domestic businesses and foreign companies in order to have better financial resources and gain experiences from their foreign partners,” Pham Dinh Doan was quoted as saying.-VNA
