The Ministry of Industry and Trade has forecast that the nation willachieve a total retail value of goods and services this year of about100 billion USD, despite global economic difficulties.
To achieveanticipated yearly average growth of 10 percent in retail sales through2020, the ministry urged producers and retailers to focus more intentlyon the domestic market rather than exports.
Vietnamese retailerscontinue to face the challenge, however, of increasing foreigncompetition for the domestic market. Two more major internationalretailers – Japan's Aeon and Hong Kong's Giant – entered the localmarket this year, while global giants like Tesco from the UK andWal-mart from the US are expected to follow.
Nguyen Thanh Nhan,deputy director of Sai Gon Co-op, one of the leading Vietnamese retailchains, suggested that the appearance of rivals is inevitable and is achallenge to existing players to be more competitive.
SomeVietnamese retailers have already significantly stepped up investment inthe domestic market, said the director of the ministry's domesticmarket department, Truong Quang Hoai Nam. For instance, the VietnamFashion Trading Co, which sells made-in-Vietnam garments, has opened 55retail outlets in 22 cities and provinces nationwide.
Vietnameseretailers hold significant advantages over their better-financed foreignrivals, Nam said, noting that they are operating in their home marketwith a deeper knowledge of Vietnamese consumers. However, they follsignificantly behind their foreign rivals in technology, he said.
DeputyMinister of Industry and Trade Ho Thi Kim Thoa also suggested thatVietnamese retailers step up training of human resources in theirdistribution systems. Retailers and producers should also cooperate moreto boost local consumption, she said.
The nation's retail valuelast year reached 96 billion USD, up 20 percent over the previous year,according to the domestic market department. The country currently has615 supermarkets, 102 shopping centres, 2,000 convenience shops and8,590 outdoor markets. Only 15-20 percent of goods are purchased throughmodern distribution systems, while the remainder are distributedthrough traditional outdoor markets./.