The Hanoi-based BigC supermarket was overcrowded this month with shoppers seeking discounted goods during its promotional November sale.

Deputy Director Nguyen Thai Dung said the first week of the promotional month was the supermarket’s revenues double year on year and was marked by a surge in the number of consumers from the outskirts to 35 percent against 20 percent in the same period last year.

Pico plaza enjoyed the same boom with its revenues for the month expected to increase by 50 billion VND over the monthly average to 180 billion VND.

Busy check-outs at supermarkets testify to an increasing trend among Vietnamese shoppers towards favouring modern markets. In fact, queues were so long, many would-be shoppers gave up and abandoned their purchases in their carts before even reaching the cashier.

Thanh Nga, a regular shopper at the BigC market, explained that supermarkets offer more options and ensure better product quality than traditional markets.

The Institute of Commercial Research reported that the number of supermarkets and shopping centres in Vietnam has skyrocketed over recent years, from just 10 supermarkets and two shopping centres in 1995 to over 400 supermarkets and shopping centres in late 2008.

Statistics from the Vietnam Retailers’ Association showed that the purchasing power at supermarkets has risen from 9 percent in 2005 to 14 percent in 2007 and the trend has shown signs of increasing over the past two years, especially in major cities such as Hanoi and Ho Chi Minh City.

The retail industry contributed 15 percent to the annual gross domestic product (GDP), reported the association.

As a result, Vietnam jumped seven spots in the Nielsen Company’s consumer confidence rating in six months, from 11th place in April to fourth in October, following just India, Indonesia and Norway.

Consumer confidence has rebounded across the world but Vietnam leads the pack with its 28-point leap during the period, said Nielsen-Vietnam’s Executive Manager.

However, economists both at home and abroad say the Vietnamese retail market has not yet achieved sustainable growth.

They said the market is still opting for quantity and ignoring quality, thus leading to weak competitiveness, especially in cases of strong involvement from foreign distributors or retailers.

Deputy President of the Vietnam Retailers’ Association Dinh Thi My Loan called on domestic enterprises to establish strong alliances to compete with foreign rivals, continually diversifying products and focusing on improving service to woo clients./.