People shop at a supermarket in Hanoi. (Photo: VNA)
According to the Ministry of Industry and Trade, the Vietnameseretail market is worth 142 billion USD and is expected to increase nearly 2.5times to 350 billion USD by 2025.
In January, total retail sales of consumer goods and servicesdecreased by 6% on-month to more than 481.8 trillion VND (20.4 billion USD) dueto weaker demand as many commodities were purchased ahead of the Lunar NewYear. People spent more on festival activities post Tet, said the GeneralStatistics Office.
However, it still rose 13% year-on-year.
For the first two months of the year, the country’s total retailsales of consumer goods and services advanced 13% over the same period of 2022to over 994.1 trillion VND.
With stable and positive growth, the Vietnamese retail market hasalways been appreciated by foreign enterprises.
Thailand’s Central Retail Corporation (CRC) has recently announceda capital increase of 1.45 billion USD in Vietnam. This is the largestinvestment ever announced by CRC with the goal of doubling the number of storesto 600 in 57 of 63 provinces. In 2023, the company spent more than 4.1trillion VND in the market, focusing on developing essential foods businesses,stabilising prices, and restructuring electronic stores.
Vietnam is the market, besides Thailand, that brings the largestrevenue for the group, about 21-22% of total revenue. Last year, the number was25%, said Olivier Langlet, CEO of Central Retail Vietnam.
One of the biggest Japanese retail companies, Aeon Co., Ltd is alsoaccelerating the opening of shopping malls in the country to nearly three timesto about 16 by 2025, focusing on the food segment.
Last month, Aeon Mall in Hue city was constructed on an area of8.62 hectares, with a total investment capital of about 169 million USD. Thisis the biggest complex of trade centres and services in the region.
FDI is one of the important elements to help Vietnam transformitself into one of the most open economies in the region and grow quickly,according to a representative of HSBC Vietnam. Currently, regional and globalFDI investors or multinational corporations contribute to more than 80% oftotal export turnover from Vietnam and about 25% of domestic investment value.
Research from HSBC showed that, by 2030, the Vietnamese domesticconsumer market will outstrip Thailand, the UK and Germany.
“In 2023, we will see some multinational corporations in Asiashowing their interest in Vietnam, engaging in retail, semiconductors,electronics, mobile components, plastic, renewable energy, and logisticsindustries. They are looking for ways to expand or make new investments in Vietnam,” saidthe representative./.
VNA
