Vietnamese retailers are facing fierce competition from several newforeign players in the market, who also have strong financial potentialand experience.
Responding to concerns about Thai commoditiesflooding the supermarkets, outdoor markets and convenience stores of thecountry, Prof Le Cao Doan from the Vietnam Institute of Economics, saidforeign enterprises from not only Thailand, but from the Republic ofKorea, Japan, the United Kingdom, as well as the United States areplanning to foray into the Vietnamese market.
The arrival of the new retailers will only benefit consumers, and local enterprises might fail in this competition, Doan stated.
However, Deputy Minister of Industry and Trade Nguyen Cam Tu said Vietnam should not view the competition in a negative light.
"Thiscould be an opportunity for Vietnamese companies to access new capital,and tap new and effective management experience," he said at a recentonline discussion.
Tran Nguyen Nam, deputy head of the ministry'sDomestic Market Department, said the number of foreign firmspenetrating the domestic retail market has risen sharply in the past fewyears with several big brands also entering the market.
Forexample, billionaire Charoen Sirivadhanabhakdi's retail conglomerateBerli Jucker (BJC) recently announced a plan to buy Vietnam'scash-and-carrying wing of the Germany Metro AG for 655 million Euros(876 million USD).
The Central Group has two outlets in Hanoi andHo Chi Minh City and has acquired a 49 percent stake in the company,which owns the Nguyen Kim electronic shopping centre chain.
However,Thailand is not the only investor paying attention to the local retailmarket, as other enterprises, such as Big C (France), Lotte,Lock&Lock (the Republic of Korea) and Aeon (Japan) are also rushingto develop their retail operations in Vietnam.
Prof Doan said Vietnamese retailers lack capital and experience, and have low competitiveness.
Specifically, capital has been mainly invested in State-owned enterprises instead of small entities.
DangDinh Dao, former head of the Institute of Economics under the NationalEconomic University, added that the weakness of the local firms was highproduction costs and low quality.
In addition, Vietnamese firms should also strive to improve their prestige in the international market, he suggested.-VNA
Responding to concerns about Thai commoditiesflooding the supermarkets, outdoor markets and convenience stores of thecountry, Prof Le Cao Doan from the Vietnam Institute of Economics, saidforeign enterprises from not only Thailand, but from the Republic ofKorea, Japan, the United Kingdom, as well as the United States areplanning to foray into the Vietnamese market.
The arrival of the new retailers will only benefit consumers, and local enterprises might fail in this competition, Doan stated.
However, Deputy Minister of Industry and Trade Nguyen Cam Tu said Vietnam should not view the competition in a negative light.
"Thiscould be an opportunity for Vietnamese companies to access new capital,and tap new and effective management experience," he said at a recentonline discussion.
Tran Nguyen Nam, deputy head of the ministry'sDomestic Market Department, said the number of foreign firmspenetrating the domestic retail market has risen sharply in the past fewyears with several big brands also entering the market.
Forexample, billionaire Charoen Sirivadhanabhakdi's retail conglomerateBerli Jucker (BJC) recently announced a plan to buy Vietnam'scash-and-carrying wing of the Germany Metro AG for 655 million Euros(876 million USD).
The Central Group has two outlets in Hanoi andHo Chi Minh City and has acquired a 49 percent stake in the company,which owns the Nguyen Kim electronic shopping centre chain.
However,Thailand is not the only investor paying attention to the local retailmarket, as other enterprises, such as Big C (France), Lotte,Lock&Lock (the Republic of Korea) and Aeon (Japan) are also rushingto develop their retail operations in Vietnam.
Prof Doan said Vietnamese retailers lack capital and experience, and have low competitiveness.
Specifically, capital has been mainly invested in State-owned enterprises instead of small entities.
DangDinh Dao, former head of the Institute of Economics under the NationalEconomic University, added that the weakness of the local firms was highproduction costs and low quality.
In addition, Vietnamese firms should also strive to improve their prestige in the international market, he suggested.-VNA
