Seeing the immense growth potential in the retail market of Vietnam, more and more players are eyeing to grab their chunk in the pie. In its recent market research report on “Vietnam Retail Industry Analysis”, RNCOS has found Vietnam’s retailing infrastructure is en route rapid transformation between 2007 and 2011, with air conditioned mini marts, small shopping complexes and supermarkets becoming more dominant in the country, attracting more consumers.
The supermarket industry of Vietnam is grabbing all the attention of overseas retailers and distributors. AT Kearney, the US-based international management-consulting firm, regards the market in Vietnam as the 3rd most lucrative retail market across the globe, as reported by Nhan Dan on May 14, 2007. As Vietnam started its move towards a market-based economy, there has been a remarkable improvement in its economic performance. During the five-year period spanning 2002-2006, growth of Vietnam remained 2nd only to China in Asian region and most believe this growth will either match or excel the growth of China, provided privatisation and infrastructure development continue with economic expansion.
German-based Metro Cash & Group, the first retailer to enter Vietnam, has expanded its retail network to 8 supermarkets – earning US$500 million annually and a yearly growth of 45 per cent. Also, the group has exported Vietnamese merchandise worth US$70 million to other supermarkets that belong to Casino, its mother corporation. Parkson – another major retailer – achieved 35 per cent annual growth from its operations within just two years of its launch in the country. The corporation plans to set up 10 more trade centres in future.
Economic experts opine that more foreign retailers will turn towards Vietnam in the years to come. Also, the existing groups will see further expansion. This is expected to pose challenges before the domestic contributors and retailers for securing their market share.
As per RNCOS report on Vietnam Retail Industry Analysis, the retail market in Vietnam is expanding at a relatively faster pace than various other economies globally, except China and India. Earning huge foreign investment, the retail sector in Vietnam has also encountered some instances of consolidation resulting in the formation of bigger shops and shopping centres.
Key facts and issues analysed in the report include: market size and scope of the retail industry in Vietnam, major players in the Vietnam retail industry, and opportunities and challenges before the retailers in Vietnam.