Photo: Duc Anh
Country a regular and growing member of the list compiled in the Global Retail Development Index.
Vietnam has continually been among the world’s Top 30 most attractive emerging retail markets since 2008 in the Global Retail Development Index (GRDI) published annually by the AT Kearney from the US.
The latest Index was released at a consultative workshop entitled “Identifying Risks for the Retail Industry in the Context of the TPP and the EVFTA” held in Ho Chi Minh City on June 28.
Assessing the prosperity of Vietnam’s retail market, market research companies and experts said they believe it has great prospects and will record high growth in the years to come.
A range of factors prove that Vietnam’s retail market will continue to reap high profits, with Vietnam’s 92 million people being a major driver of continued high consumption.
Among the 12 common retail models, businesses have the highest expectations in the modern retail model, while the traditional model, including markets and street vendors, are regarded as less promising. General supermarkets and shopping centers are considered to have the most promising outlook and are a strength of foreign retailers.
Vietnam’s retail market has a rosy future but according to Ms. Dinh Thi My Loan, President of the Vietnam Retailers Association (VRA), the appearance and ongoing expansion of retailers from around the world are creating more difficulties for Vietnamese retailers in a fiercely competitive landscape.
Competitive pressure has already resulted in some foreign retailers shutting up shop while domestic manufacturers still struggle to get their products on to the shelves of foreign retailers.
Ms. Nguyen Thi Thu Trang, Director of the WTO and Integration Center at the Vietnam Chamber of Commerce and Industry (VCCI), said it would be up to Vietnam’s retail sector, including domestic and foreign retailers, as to whether advantage is taken of the many opportunities presented by Vietnam’s global integration.
Vietnam has become party to many free trade agreements (FTAs) and made firm commitments to open up its retail market and eliminate tariffs and non-tariff barriers on goods. There are a host of challenges for retailer to face.
In the 2011-2015 period, total retail revenue in Vietnam has grown steadily and positively, reaching nearly $112.3 billion in 2015.
Vietnam’s retail market has recently seen some large merger and acquisition (M&A) deals. In April the Casino Group officially announced the closing of its sale of Big C Vietnam to Thailand’s Central Group, for an enterprise value of $1.14 billion. Metro Cash & Carry Vietnam was also sold by the Metro Group to TCC Land International Pte.