The competition between modern and traditional business models hasbecome more fierce and Vietnam’s retail market needs a long-termstrategy in order to ensure sustainable development in the integrationprocess, the Vietnam Economic News reported.
According toA.T.Kearney’s ranking, Vietnam ranked top ten attractive retail marketsin the world in 2010. To date, Vietnam has been out of ranking table andno longer in the top 30 developing countries having vibrant retailmarket in the world. However, according to experts, Vietnam’s retailmarket still has great potential.
A number of modern retailers inVietnam remain limited. By the end of last year, the country had 724supermarkets and 132 commercial centres in addition to several hundredsof convenience stores.
Vietnam’s retail market has made strongchanges in a context where big international retailers have been moreinterested in the Vietnamese market. Deputy Director of the DomesticMarket Department under the Ministry of Industry and Trade Tran NguyenNam said that Vietnam’s retail market was developing based onconvenience stores, commercial centres and supermarkets with theparticipation of foreign investors. In addition to Metro, Big C, VincomMega Mall, Aeon Mall and Lotte, some big retailers such as B’s Mart,Circle K, FamilyMart, Walmart, Auchan and Robinson have also beenavailable in Vietnam.
In the first nine months of this year,total retail sales of goods and services reached more than 2,145trillion VND, an increase of 11.12 percent compared to the same periodlast year. Of which, the state, non-state and FDI sectors accounted for10.1, 86.5 and 3.4 percent of total retail sales of goods and services,respectively.
Total retail sales of goods and services areexpected to reach more than 2,970 trillion VND this year, an increase of11.3 percent compared to last year.
According to Chairperson ofthe Association of Vietnam Retailers Dinh Thi My Loan, by the end oflast year, the country had 724 supermarkets, 132 commercial centres,8,546 markets and about 1 million small-scale stores. By 2020, thecountry will have about 1,200-1,300 supermarkets, 180 commercial centresand 157 shopping malls.
Phu Thai Group JSC General DirectorPham Dinh Doan was quoted as saying that the competitiveness amongretailers would increase in the coming time and consumers would enjoy ahigh level of services.
Domestic retailers have still facedchallenges and difficulties in a context where big internationalretailers have been more available in Vietnam. Difficulties in terms offinancial resources, business administration, infrastructure and thequality of human resources remain the biggest barriers for domesticretailers.
Pham Dinh Doan said that apart from commercialcenters and large supermarkets, convenience stores in Vietnam have notyet strongly developed to establish a retail chain like FamilyMart or24h due to a lack of capital.
Domestic retailers and economistssaid that Vietnam’s retail market needed a long-term strategy in orderto ensure sustainable development in the integration process. CentralInstitute for Economic Management Deputy Director Vo Tri Thanh said thatthe Ministry of Industry and Trade should have a full report on theretail market in order to help businesses and state management agencieshave an overall view of the market to adopt appropriate strategies.
PhamDinh Doan also emphasised that the Ministry of Industry and Tradeshould create a breakthrough in adopting policies in order to ensureharmonious development of the retail market.
“The governmentshould allow a joint venture between domestic businesses and foreigncompanies in order to have better financial resources and gainexperiences from their foreign partners,” Pham Dinh Doan was quoted assaying.-VNA
According toA.T.Kearney’s ranking, Vietnam ranked top ten attractive retail marketsin the world in 2010. To date, Vietnam has been out of ranking table andno longer in the top 30 developing countries having vibrant retailmarket in the world. However, according to experts, Vietnam’s retailmarket still has great potential.
A number of modern retailers inVietnam remain limited. By the end of last year, the country had 724supermarkets and 132 commercial centres in addition to several hundredsof convenience stores.
Vietnam’s retail market has made strongchanges in a context where big international retailers have been moreinterested in the Vietnamese market. Deputy Director of the DomesticMarket Department under the Ministry of Industry and Trade Tran NguyenNam said that Vietnam’s retail market was developing based onconvenience stores, commercial centres and supermarkets with theparticipation of foreign investors. In addition to Metro, Big C, VincomMega Mall, Aeon Mall and Lotte, some big retailers such as B’s Mart,Circle K, FamilyMart, Walmart, Auchan and Robinson have also beenavailable in Vietnam.
In the first nine months of this year,total retail sales of goods and services reached more than 2,145trillion VND, an increase of 11.12 percent compared to the same periodlast year. Of which, the state, non-state and FDI sectors accounted for10.1, 86.5 and 3.4 percent of total retail sales of goods and services,respectively.
Total retail sales of goods and services areexpected to reach more than 2,970 trillion VND this year, an increase of11.3 percent compared to last year.
According to Chairperson ofthe Association of Vietnam Retailers Dinh Thi My Loan, by the end oflast year, the country had 724 supermarkets, 132 commercial centres,8,546 markets and about 1 million small-scale stores. By 2020, thecountry will have about 1,200-1,300 supermarkets, 180 commercial centresand 157 shopping malls.
Phu Thai Group JSC General DirectorPham Dinh Doan was quoted as saying that the competitiveness amongretailers would increase in the coming time and consumers would enjoy ahigh level of services.
Domestic retailers have still facedchallenges and difficulties in a context where big internationalretailers have been more available in Vietnam. Difficulties in terms offinancial resources, business administration, infrastructure and thequality of human resources remain the biggest barriers for domesticretailers.
Pham Dinh Doan said that apart from commercialcenters and large supermarkets, convenience stores in Vietnam have notyet strongly developed to establish a retail chain like FamilyMart or24h due to a lack of capital.
Domestic retailers and economistssaid that Vietnam’s retail market needed a long-term strategy in orderto ensure sustainable development in the integration process. CentralInstitute for Economic Management Deputy Director Vo Tri Thanh said thatthe Ministry of Industry and Trade should have a full report on theretail market in order to help businesses and state management agencieshave an overall view of the market to adopt appropriate strategies.
PhamDinh Doan also emphasised that the Ministry of Industry and Tradeshould create a breakthrough in adopting policies in order to ensureharmonious development of the retail market.
“The governmentshould allow a joint venture between domestic businesses and foreigncompanies in order to have better financial resources and gainexperiences from their foreign partners,” Pham Dinh Doan was quoted assaying.-VNA
