Volatile retail climate to last through 2012

The domestic retail market will continue experiencing difficulties next year due to volatile business conditions, experts told the "World and Vietnam: Forecast 2012" seminar held in the capital over the weekend.
The domestic retail market will continue experiencing difficulties nextyear due to volatile business conditions, experts told the "World andVietnam: Forecast 2012" seminar held in the capital over the weekend.

Phan The Rue, chairman of the Vietnam Retail Association, said at theevent, organised by the Vietnam Chamber of Commerce and Industry, thatthe world market is predicted to undergo slow growth next year due toeconomic downturn in the US and Europe as well as social instability inother countries around the world. Emerging economies, including those inAsia , have been faced with high inflation and low economic growthrates compared to 2010.

These factors will affect the domestic economy as well as the retail market next year, Rue said.

In addition, the Government will continue controlling the macro-economyand inflation to boost production and ensure social security, he noted.

To achieve macroeconomic stability, both the scale andgrowth rate of the local retail market will have to be kept in check, headded.

With the market dependent on macro-economicdevelopment, price stability and the relationship between supply anddemand will in turn depend on the price of essential, Governmentcontrolled products such as electricity, coal, petrol and oil.

The high price of import materials will continue affecting customerswhile real incomes reduce, Rue said, adding that competition betweenforeign and local retailers is also expected to remain low next year.

Nguyen Thai Dung, deputy general director of the Big C SupermarketTrading and Service Ltd Company, said that high inflation has erodedpurchasing power while saving trends have affected consumption.

Consumption growth, following deducted price factors, was 14 percent in2010 and only 4 percent in 2011, making forecasts for 2012 dismal, hesaid.

Inflation, along with increased interest rates,unstable exchange rates between the US dollar and Vietnamese dong,fluctuations in gold prices, a lack of capital, stagnating production,and unemployment have all affected consumer confidence.

"Small retailers in Vietnam managed to cope well with these challenges this year," Rue said.

He added that the local retail sector still has problems to address,including the quality of goods as well as difficulties in controllingfood prices, hygiene and safety.

Enterprises experiencedprice increases without improvement to quality while failing to declareor list prices sufficiently. In addition, trade fraud has grown.

The country currently has around 600 modern retail supermarkets andshopping centres alongside around 9,000 traditional markets. Foreignretail enterprises have been allowed to promote their businessactivities on the local market since 2009.

According tothe ranking of global retail markets (GRDI) by AT Kearny, in 2008,Vietnam 's market was the most attractive globally amongst foreigndistributors. Since then, the local market has fallen to sixth place in2009 and 14th in 2010.

Pham Tat Thang, a representativefrom the Trade Research Institute at the Ministry of Industry and Trade,said that the domestic management system and complicated trade barriersare to blame and not market supply and demand factors.

Heexpected the average retail market growth rate to remain at 23 percent -25 percent per year until 2015 with the Vietnamese market developinginto one of the hottest in the world.

"The country'sretail market will become an increasing target for foreign distributorsonce unnecessary barriers are removed," Thang said. /.

See more

Consumers shop at the WinMart Vo Thi Sau supermarket in Hanoi's Hai Ba Trung district. (Photo: VNA)

Hanoi keeps CPI well under control

The CPI for the first quarter of 2025 increased by 2.75% compared to the same period last year, indicating that inflation remains well under control.

Vietnam’s KRX trading system is set to go live on May 5. (Photo: VietnamPlus)

Vietnam to launch KRX trading system on May 5

The KRX system is currently in its final testing phase before full implementation. During this period, securities firms are conducting simulated trading sessions as if on a normal trading day.

Vietnam has proactively reviewed and adjust tariffs, particularly on US imports, as part of efforts towards balanced trade relations. (Illustrative photo - Source: VNA)

Vietnam reviews, adjusts import tariffs to promote trade balance

The Ministry of Finance is now working closely with other agencies to evaluate policy options that support businesses. Possible solutions include market diversification, supply chain optimisation, and leveraging opportunities from Vietnam’s existing free trade agreements.

Illustrative photo (Photo: VNA)

Retail petrol prices up in latest adjustment

Under the new pricing structure, E5 RON92 and RON95-III have increased by 341 VND and 495 VND per litre to a maximum of 20,373 VND (0.79 USD) and 20,919 VND per litre, respectively.

The Lumitel brand is being promoted on walls across Burundi. (Photo: Viettel)

Lumitel – A bright spot in Vietnam-Burundi collaboration

After a decade of operations, Lumitel has become the leading telecommunications provider in Burundi and one of the largest contributors to the Burundian government's budget, providing stable employment for over 60,000 workers and indirectly creating around 100,000 jobs.

Belarusian Deputy Prime Minister Anatoly Sivak speaks at the forum. (Photo: VNA)

Ample room remains for Vietnam - Belarus trade cooperation

To further develop the Vietnam-Belarus economic and trade relationship, it is essential to enhance trade promotion and investment initiatives such as trade fairs, forums, thematic workshops, and trade connections, which serve as an important bridge for businesses from both sides to meet, connect, and seek cooperation opportunities.

The 5th Exhibition of Ho Chi Minh City and Friendship Provinces and Cities in Savannakhet takes place from April 2 to 6. (Photo: VNA)

Vietnam, Laos boost trade at Savannakhet expo

Vice Governor of Savannakhet Saensak Soulisak highlighted the exhibition’s role in expanding trade collaboration, enabling businesses to connect, share experience, and explore investment prospects. He also noted its significance in promoting local products to a wider market.

Visitors at the exhibition (Photo: VNA)

Vietnam Expo 2025 opens, spotlighting digital transformation, innovation

This year’s edition, themed “Step together in a digitised world,” has attracted around 400 businesses from 18 countries and territories, with over 500 booths. Alongside traditional networking, it introduces online business-to-business (B2B) matching, enabling year-round connections.

Prime Minister Pham Minh Chinh speaks at the second meeting of the National Steering Committee for building the private economic sector development project (Photo: VNA)

Private sector encouraged to join major national programmes, projects

It must fully unleash the productive capacity and resources of the country through the private sector; mobilise all private resources for national development; harness the effectiveness of internal forces, including human, natural resources, history, and culture, while effectively combining them with external resources such as capital, technology, human resources, and management experience, he said.

At the annual Vietnam-Cambodia business dialogue in Phnom Penh on April 4 (Photo: VNA)

Annual Vietnam-Cambodia business dialogue held in Cambodia

The annual business dialogue in Cambodia attracted around 150 delegates, including Vietnamese businesses and Vietnamese-origin companies operating in Cambodia across various sectors such as finance, banking, insurance, telecommunications, agriculture, construction, interior design, food services, transportation, logistics, trade, healthcare, and tourism.