Vietnamplus

Vietnam remains an attractive market for retailers as Vietnamese consumers remain optimistic about the economic challenges and are driving premium purchases.

Retailers must adapt and change, especially in modern technology, to survive and grow as consumers have more modern tools to choose goods on online as apposed to just brick-to-mortar stores.

The retail market, both domestically and internationally, has been constantly evolving following the Fourth Industrial Revolution, which generates both opportunities and challenges.

Vietnam is becoming an attractive retail market for companies all over the world with many regional and global FDI investors recently announcing plans to increase capital and expand distribution networks here.

Vietnam is becoming an attractive retail market for companies all over the world with many regional and global FDI investors recently announcing plans to increase capital and expand distribution networks here.

Vietnam’s retail market has seen positive signs of recovery, especially domestic demand, after COVID-19.

Central Retail Corporation (CRC), the largest retailer of Thailand, has announced its biggest investment in Vietnam at 50 billion baht (1.45 billion USD) in the 2023-2027 period to accelerate its market presence in the country.

Ho Chi Minh City recorded a year-on-year rise of 5.7% in total retail sales of goods and consumer service revenue in January, according to its Department of Industry and Trade.

The scale of the domestic retail market is expected to increase from 142 billion USD at present to 350 billion USD by 2025, contributing 59% of the national GDP, according to the Ministry of Industry and Trade (MoIT).

Although 2023 is forecast to see many difficulties, experts expect this is a recovery year of the retail sector after COVID-19 pandemic as there are many signs showing the return of investors and higher demands.

The Vietnamese retail sector has recovered to the pre-COVID-19 level, with 53.8% of total retailers reporting similar or better business outcomes, according to Vietnam Report JSC.

The Ho Chi Minh City commercial property market has returned to its growth trajectory from before the COVID-19 pandemic thanks to the retail and services sector as well as increasing number of foreign visitors to the city, experts said.

The Vietnam Report JSC on September 30 announced the list of the top 10 prestigious retailers in 2022.

Da Nang is entering the peak summer tourist season and tourists are coming in droves. The increase in the number of visitors has contributed to the bustling retail market of the city.

Vietnam's retail market has recently recorded strong growth and its excitement is also reflected via the successful deals of injecting capital from foreign investors into potential domestic retailers.

Foreign retail businesses are adopting a multi-channel sales strategy as well as improved operations and delivery services to expand Vietnam operations despite pandemic impacts.

Trandata Technology Engineering JSC (TDT) of FPT Software signed a strategic cooperation agreement with True Data of Japan to develop data technology on January 19.

Foreign investors poured 9 billion USD into Vietnamese retail and wholesale markets between January and November, accounting for 2.2 percent of the country’s total capital, the Ministry of Planning and Investment said.

The rise of local retailers via mergers and acquisitions is expected to balance Vietnam’s retail market, which had been dominated by foreign investors.

Vietnam and Ho Chi Minh City in particular are considered to hold promise for retailers from home and abroad on the back of the large, young population and rising consumer price index amid the COVID-19 pandemic.