The COVID-19 pandemic has put the brake on Vietnam’s economic growth over the last two years but, on the other hand, it has also fueled a significant uptick in e-commerce which recorded a 16% growth to 13.7 billion USD in retail revenue in 2021, according to the White Book on Vietnamese E-business 2022.
Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen on July 19 received visiting Noriaki Koyama, head of CEO office of Fast Retailing – the parent company of Uniqlo brand, who revealed that Uniqlo plans to open several new stores in the capital city this year, and some flagship ones in 2023 towards the 50th anniversary of Vietnam-Japan relations.
There was a significant increase in Japanese investment in Vietnam’s non-manufacturing industries, such as retailing, education, healthcare, energy, finance and insurance, transport and real estate, according to a 2021 survey of the Japan External Trade Organisation (JETRO) on 700 Japanese FDI enterprises in Vietnam.
As one of the most dynamic economies in the region, Vietnam's retail market is attractive for many foreign investors, but it can also be challenging at the same time.
Vingroup, Vietnam’s largest private firm by market value, has given up control of its retail unit as it wants to concentrate on the technological and industrial sectors.
Fast Retailing Co. of Japan said it is partnering with the International Labour Organisation (ILO) to improve working environment for workers in Asian countries, Kyodo News reported.
Vietnamese retail companies are in pole position to seize the lion’s share of the market, especially after some foreign businesses have left the country.
The Government and competent agencies of Vietnam pledge to create favourable conditions and business environment for Japanese enterprises to do business in Vietnam, Prime Minister Nguyen Xuan Phuc has said.
The joint venture between the country’s leading retailer Saigon Co.op and Singapore’s NTUC FairPrice has opened its third hypermarket in the country in Ho Chi Minh City’s District 10.
VinEco, the agriculture arm of VinGroup, expects to expand its distribution network three times to more than 3,500 supermarkets and convenient stores in 2018, said Nguyen Thi Nguyet from VinEco.
The Competition and Consumer Protection Department under the Ministry of Industry and Trade has given the go-ahead for the merger and acquisition (M&A) deal between the two largest local electronic retailers – The Gioi Di Dong (Mobile World) and Tran Anh Digital World.
Against global recession and financial crisis, Vietnam’s retail industry has cemented its position in the economy as an effective bridge between producers and consumers, actively orienting buyers towards domestic products.
Vietnam has returned to sixth place among the 30 most-attractive retail markets in the world this year according by A.T. Kearney, thanks to the expansion of convenience stores and mini-marts and the increase in use of technology in the industry.
E-commerce is a market with numerous opportunities for businesses in Vietnam, recording an annual growth rate of 35 percent – one of the fastest rates in the world.
Japanese investors have shifted their focus from manufacturing industry to service as the growing domestic market in Vietnam offers a very promising prospect for the sector.
Modern retail channels will account for 40 percent of the total retail sales by 2020, compared to only 25 percent at present, pushing domestic retailers into a fierce battle with foreign firms.
Many domestic producers have moved their markets to rural areas as local fast-moving consumer goods (FMCG) firms are facing severe competition with imported products in urban areas.
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