The Tan Phu Celadon shopping mall in HCM City. Pandemic impacts have prompted foreign retail businesses in Vietnam to diversify the sales channels and improve customer service. (Photo courtesy of AEON Vietnam)Huynh Le Minh Tu, deputy director of the HCM City Department of Industry andTrade, said that with a population of more than 90 million and increasingliving standards, the retail market will remain very attractive for foreigninvestors in Vietnam.
“Foreign retailers optimising the shopping experience for customer retentionand applying multiple sales process metrics will have a better edge to dominatethe market,” he said.
Given the digital transformation trend in the retail sector, many foreignretail businesses are constantly improving their technological applications forcollection, storage, management and comprehensive data analysis, based ona solid, secure, flexible and self-operating cloud computing infrastructure, hesaid.
Other observers have also remarked that the fourth wave of COVID-19 haspushed foreign retailers to diversify their sales channels instead of the usualprimary focus on providing goods onsite to consumers.
Last year, major retailers like MM Mega Market Vietnam, Central, Aeon, LOTTEMart and Emart implemented cashless payment methods for both onlineand offline shopping.
MM Mega Market Vietnam has started a multi-channel sales developmentstrategy alongside completing its online sales solutions: website MM Click& Get; Zalo and Telesales.
It also plans to launch an online shopping website for professionals withproduct prices and solutions designed for each specific customer.
With the pandemic situation remaining unpredictable this year, foreign retailbusinesses will need to be well prepared so they can keep pace with thenation’s economic recovery, experts have said.
MM said it will continue to invest and develop multi-channel sales, with itswholesale supermarket system implementing the Pick & Go softwaresoon.
Meanwhile, AEON Vietnamhas said it would open more outlets in different locations with a variety ofretail models, including shopping malls, department stores, supermarkets,convenience stores and specialised stores.
As it does this, it will maintain its digital transformation process,especially focusing on promoting O2O (offline-to-online); developing productsto meet customer needs and do more to boost sustainable development bypromoting environmental protection and social responsibility.
Furusawa Yasuyuki, general director of AEON Vietnam, said they aim toopen 30 shopping centres by 2030 along with other models.
The Republic of Korea’s Emart Vietnam Co., Ltd. (acquired by the Thaco Group)will put into operation two new shopping centres.
Hirai Shinji, chief representative of the Japan External Trade Organisation(JETRO) in Việt Nam, said the Vietnamese retail market remains very attractivefor Japanese investors.
Despite the impacts of the pandemic, retailers and non-manufacturingenterprises from Japan are expanding their business in Vietnam to takeadvantage of its young population and an increase in per capita income, headded.
A recent JETRO survey found more than 55 percent of Japanese firmsintend to expand their business in the country.
According to the survey, conducted from August to September last year, morethan 56 percent of the firms expect higher profits this year, and only 9.6 percent think their profit will reduce.
Modern retail distribution has faced huge hurdles over the last twoyears due to the pandemic impacts (changes in customer trends,human resources, warehouse operations and supply chain disruptions).
Although the Vietnamese retail market experienced a low growth rate dueto the pandemic last year, it remains a market with high long-termpotential, experts have said.
They have noted that over the next five to 10 years, the countrywill be a leader in Southeast Asia in terms of an expanding middleclass, which is expected to grow by around 9.2 percent every year./.
VNA
