Consumers shop at a Vinmart store in Hung Yen province (Photo: VNA)Hanoi (VNA) - Vietnam’s retail marketneeds a comprehensive development strategy to boost domestic trade, expertssaid at a conference in Hanoi on March 20.
The retail market has seen significantdevelopments in recent years, but the industry lacked a development strategywhich resulted in lack of connections between market participants, said Le XuanDinh, Editor-in-Chief of the Economic and Forecast Magazine, whichorganised the conference.
Still,the development is at early stage, opportunities are there for investors,especially those have professionalism and originality, Dinh stressed.
Heforecast that the next year would see retail competition heat up between localand foreign retailers and between modern and traditional retail channels,largely driven by Industry 4.0.
Vietnam’sretail market is a really attractive story, Vo Tri Thanh, Director of theInstitute for Brand and Competitiveness Strategy said, adding that the marketincluded street vendors and global retailers like Lotte, Central Group, Aeon,Circle K and Auchan.
Thanhadded that retail was the sector which saw the largest number of new firmsestablished recently.
Accordingto Le Viet Nga, Deputy Director of the Domestic Market Department under theMinistry of Industry and Trade, the country’s retail market has significantpotential with a population of more than 93.7 million, 69 percent of whom arebetween age 18 -50, and a rapid increase in household spending at 10.5 percentper year on average to reach 714 USD per month by 2020.
However,the coverage of modern retail channels was modest at a quarter of total retailsales, compared to 33 percent in the Philippines, 34 percent in Thailand, 60 percentin Malaysia and 90 percent in Singapore.
Theministry estimated that on average, every 100,000 residents would need thepresence of one mega mart and one shopping centre. Every 10,000 residents wouldneed one medium-sized supermarket and every 1,000 residents would need one tothree convenience stores.
“Itis necessary to promote the sustainable development of the retail market, basedon diversifying retail sale channels and developing retail infrastructure,” Ngasaid.
Vu Vinh Phu, Chairman of the Hanoi SupermarketsAssociation, said that the development of information and technology wouldimprove the productivity of retailers while changing the shopping habits ofconsumers.
Phuurged retailers to apply technology to improve competitiveness, service qualityand consumers’ shopping experiences.
Theministry is currently developing a draft strategy for domestic tradedevelopment, aiming for average growth of retail trade at about 10.7 percentper year by 2020 and 9 percent in 2021-2025.
Accordingto the General Statistics Office, Vietnam’s retail market has increasedrapidly, from 88 billion USD in 2017 to 130 billion USD in 2018. It is forecastto reach 179 billion USD by 2020.-VNA
The retail market has seen significantdevelopments in recent years, but the industry lacked a development strategywhich resulted in lack of connections between market participants, said Le XuanDinh, Editor-in-Chief of the Economic and Forecast Magazine, whichorganised the conference.
Still,the development is at early stage, opportunities are there for investors,especially those have professionalism and originality, Dinh stressed.
Heforecast that the next year would see retail competition heat up between localand foreign retailers and between modern and traditional retail channels,largely driven by Industry 4.0.
Vietnam’sretail market is a really attractive story, Vo Tri Thanh, Director of theInstitute for Brand and Competitiveness Strategy said, adding that the marketincluded street vendors and global retailers like Lotte, Central Group, Aeon,Circle K and Auchan.
Thanhadded that retail was the sector which saw the largest number of new firmsestablished recently.
Accordingto Le Viet Nga, Deputy Director of the Domestic Market Department under theMinistry of Industry and Trade, the country’s retail market has significantpotential with a population of more than 93.7 million, 69 percent of whom arebetween age 18 -50, and a rapid increase in household spending at 10.5 percentper year on average to reach 714 USD per month by 2020.
However,the coverage of modern retail channels was modest at a quarter of total retailsales, compared to 33 percent in the Philippines, 34 percent in Thailand, 60 percentin Malaysia and 90 percent in Singapore.
Theministry estimated that on average, every 100,000 residents would need thepresence of one mega mart and one shopping centre. Every 10,000 residents wouldneed one medium-sized supermarket and every 1,000 residents would need one tothree convenience stores.
“Itis necessary to promote the sustainable development of the retail market, basedon diversifying retail sale channels and developing retail infrastructure,” Ngasaid.
Vu Vinh Phu, Chairman of the Hanoi SupermarketsAssociation, said that the development of information and technology wouldimprove the productivity of retailers while changing the shopping habits ofconsumers.
Phuurged retailers to apply technology to improve competitiveness, service qualityand consumers’ shopping experiences.
Theministry is currently developing a draft strategy for domestic tradedevelopment, aiming for average growth of retail trade at about 10.7 percentper year by 2020 and 9 percent in 2021-2025.
Accordingto the General Statistics Office, Vietnam’s retail market has increasedrapidly, from 88 billion USD in 2017 to 130 billion USD in 2018. It is forecastto reach 179 billion USD by 2020.-VNA
VNA
