Illustrative image (Photo: VNA)Hanoi (VNA) – Vietnam’s retailmarket has developed strongly in recent years, with a large amount of foreigninvestment poured into the market.
In the first months of 2019, Ryohin Keikaku –a Japanese firm that runs household product and apparel chain Muji – announcedits decision to establish Muji Vietnam Ltd., Co. in the Southeast Asian nation.
IKEA, the Swedish home furnishings retailer,plans to build a retail centre and warehouse in Vietnam, with total investmentof about 450 million EUR (505 million USD), aiming to provide home interiors tothe nation.
Firms currently in Vietnam also plan toexpand their operations.
Japan’s Aeon, for example, will pour another5 billion USD into 30 large-scale commercial centres in Vietnam, while Lotte ofthe Republic of Korea (RoK) will open an additional 60 Lotte Mart supermarkets in2020.
Thailand’s Central Group, which owns the BigC supermarket chain, will inject another 500 million USD to open 500convenience stores in the country in the next five years.
To compete with foreign rivals, domestic retailfirms have made efforts to build distribution systems in cities and provinces.
Vingroup, which runs the largest retail systemin Vietnam with about 100 Vinmart supermarkets and 1,700 Vinmart conveniencestores, aims to raise the number of supermarkets to 200 and convenience storesto 4,000 by 2020.
Tran Thu Hien, Deputy General Director ofVincom Retail, said the company will open another 13 commercial centres in2019, increasing the total number of centres to 79.
The Bach Hoa Xanh chain of The Gioi Di DongJSC and Saigon Co.op are also working to expand their operations.
Le Viet Nga, deputy head of the DomesticMarket under the Ministry of Industry and Trade, said these moves by domesticand foreign groups shows the attractiveness of the local retail market, notingthat the competition to gain market share is growing fiercer.
Under the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP), Vietnam will removelimitations on the opening of more retail stores after the deal comes into forfive years in 2024.
Therefore, the Vietnamese retail market isexpected to boom, with the participation of both traditional distributors andmajor e-commerce groups like Amazon and Alibaba.
Dang Thuy Ha, Northern Region Director ofmarket research company Nielsen Vietnam, said multi-channel retail will be amajor trend of the Vietnamese market this year.
Economists suggested Vietnamese ministriesand agencies set long-term goals and specific plans to support domestic retailfirms, helping them catching up with e-commerce development trends.-VNA
In the first months of 2019, Ryohin Keikaku –a Japanese firm that runs household product and apparel chain Muji – announcedits decision to establish Muji Vietnam Ltd., Co. in the Southeast Asian nation.
IKEA, the Swedish home furnishings retailer,plans to build a retail centre and warehouse in Vietnam, with total investmentof about 450 million EUR (505 million USD), aiming to provide home interiors tothe nation.
Firms currently in Vietnam also plan toexpand their operations.
Japan’s Aeon, for example, will pour another5 billion USD into 30 large-scale commercial centres in Vietnam, while Lotte ofthe Republic of Korea (RoK) will open an additional 60 Lotte Mart supermarkets in2020.
Thailand’s Central Group, which owns the BigC supermarket chain, will inject another 500 million USD to open 500convenience stores in the country in the next five years.
To compete with foreign rivals, domestic retailfirms have made efforts to build distribution systems in cities and provinces.
Vingroup, which runs the largest retail systemin Vietnam with about 100 Vinmart supermarkets and 1,700 Vinmart conveniencestores, aims to raise the number of supermarkets to 200 and convenience storesto 4,000 by 2020.
Tran Thu Hien, Deputy General Director ofVincom Retail, said the company will open another 13 commercial centres in2019, increasing the total number of centres to 79.
The Bach Hoa Xanh chain of The Gioi Di DongJSC and Saigon Co.op are also working to expand their operations.
Le Viet Nga, deputy head of the DomesticMarket under the Ministry of Industry and Trade, said these moves by domesticand foreign groups shows the attractiveness of the local retail market, notingthat the competition to gain market share is growing fiercer.
Under the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP), Vietnam will removelimitations on the opening of more retail stores after the deal comes into forfive years in 2024.
Therefore, the Vietnamese retail market isexpected to boom, with the participation of both traditional distributors andmajor e-commerce groups like Amazon and Alibaba.
Dang Thuy Ha, Northern Region Director ofmarket research company Nielsen Vietnam, said multi-channel retail will be amajor trend of the Vietnamese market this year.
Economists suggested Vietnamese ministriesand agencies set long-term goals and specific plans to support domestic retailfirms, helping them catching up with e-commerce development trends.-VNA
VNA
