Vietnam Woos Global Retail Giants

Supermarket industry in Vietnam is increasingly gaining attention of foreign retailers and distributors, as per some global retailers and industry experts.

In the news published on Nhan Dan AT Kearney, international management consulting firm of US, said it regards the Vietnamese market as the third most attractive retail market in the world. General director of Parkson Hai Phong, Tham Tuck Choy, stated that Vietnam at present has a steadily high economic growth rate, which opens opportunities for the retail system to develop strongly.

Vietnam is becoming an attractive target for shopping centers and supermarket chain owing to the factors, such as strong economic growth, expanding middle class base with higher disposable income, primarily young people making population, booming business opportunities, and unwavering political environment here. Retail market in Vietnam is showing rapid growth and the customers' desire for sophisticated retail scenario is immense.

Key environmental and political changes encouraging and supporting country's emergence as attractive retail destination are Vietnam receiving WTO consent in January 2007, and the country allowing 100% foreign investment in consequence of its commitment to international and regional firms.

Major foreign retail giants view Vietnam as a gateway and test site to main markets in Asia owing to the country's proximity to chief retail markets like China and India in addition to Cambodia and Laos which are smaller regional retail markets.

Economic experts suggest that domestic retailers should gear themselves up to combat the challenge likely to be posed by foreign retailers, as their probability of entering Vietnam market is high.

As per the research Analyst at RNCOS, "It isn't really surprising if Vietnam retail market is wooing major global retailers, as the market has been very stable and has shown positive performance in last five years. Economic boom plus shopping freak 84 million young population is supporting and propelling the growth of retail market here. Statistics support the major foreign companies' decision to invade the Vietnamese market. The growing demand of consumer goods and stabilization in economy has lead to increased expenditure on customer goods. Retail sale increased with a CAGR value of 12.22% from 2001 to 2006."

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