Retailers gearing up for global competition hinh anh 1Illustrative photo (Source:VNA)
HCM City (VNA) Retail space for businesses and long-term capital to expand investment are both needed for domestic retailers to compete with their foreign counterparts in Vietnam.

"When Vietnam deeply integrates globally, competition will be fierce, which will require domestic retail enterprises to have proper strategies," Nguyen Thanh Nhan, General Director of Saigon Co.op Mart, was quoted as saying on a Government website.

"We are not afraid to compete but we need more support from local authorities for better competitiveness," he added.

Most goods displayed in supermarkets are Vietnamese.

Despite fierce competition, Vietnamese commodities still dominate the market as they meet local residents' demand and clients will receive benefits from competition among domestic and foreign retail enterprises.

"Opening the market will allow foreign commodities to easily enter the Vietnamese market, but in the near future, the proportion of Vietnamese goods will remain," Hong Won Sik, General Director of Lotte Vietnam, said.

Sik spoke recently at a meeting of retail enterprises and HCM City's People Committee.

He said that opening the market would force local manufacturers to produce higher quality products to compete with foreign ones.

He also revealed that Lotte's development strategy calls for expansion of their cooperation with local manufacturers to bring Vietnamese goods to the Lotte supermarket system and exports.

Last year, Lotte exported 5 million USD Vietnamese products to the Republic of Korea. The figure will double this year.

Aeon Vietnam plans to cooperate with local manufacturers to produce its own brand names with high-quality products suited to locals' taste and financial capability.

However, local manufacturers must increase their quality as well as change their packaging model to compete with imported products.

"The city will create favourable conditions for retail enterprises in order to meet huge consumption demand of local residents as well as ensure stability of goods prices," Nguyen Thanh Phong, Chairman of the municipal People's Committee, said.

He suggested that a market development strategy of retail enterprises must consider HCM City as a regional commercial and shopping centre, serving local residents as well as tourists.

"The city will connect with localities and create conditions for retail and manufacturing to meet," he said.

Phong told the municipal Industry and Trade Department to complete the city's retail system master plan.-VNA