Vietnam is projected to increase its growth rate of total retail goods & service turnover at 11 percent annually by 2010.
Vietnam is projected to increase its growth rate of total retail goods & service turnover at 11 percent annually by 2010, and above 10 percent in next decade. The total retail turnover is expected to touch an approx. US$ 50 Billion and US$ 125 Billion respectively, as per news published on Vietnam net.
Vietnam's economy is stable and its retail market is untapped. More than 70% of the population, below the age of 30 is educated. The country's young native's love to go on a shopping spree. These circumstances make Vietnam, an ideal destination for foreigners to expand their businesses. In the year 2007, the Vietnamese government has planned to develop both wholesale and retail supermarket network. This plan is liable for execution to make Vietnam's market position stronger than it's current standing, to compete with other big players in the market.
In 2007, the world's major retailers such as Wal-Mart and Carrefour are planning to increase their retail services in Vietnam. UK's Tesco, Dairy Farm of Singapore and Republic Korea's Lotte have also planned to start their services in Vietnam, as per news published on Bwom.
Malaysia's Parkson recently started its 1st shopping center in one of Vietnam's biggest cities and also plans to expand 9 other similar supermarkets in Vietnam. Parkson and Big C, Metro Cash also assure to start many more similar supermarkets and shopping centers in Vietnam.
The Govt of Vietnam has carved a policy to expand big trade groups, influential to compete and also cooperate with new foreign distributors once Vietnam opens its market for new players.
It took the Ministry of Trade, two years to compile the policy on the development of domestic trade. This plan is also considered important as it intends to make a healthy domestic trade, which will be based on appropriate structuring of the distribution channels, where current distribution mode will also play a key role.
However, experts believe that the domestic retail market of Vietnam would not be capable to compete with foreign retailers. Vietnam has many small supermarkets, which cannot contend with the global giants and at present prices are higher in the supermarkets with many things being out of reach of people earning an average income.
A research analyst at RNCOS said: "Economic globalization, in the respect to the entry of big retail chain stores will force domestic retailers to take broad products variety, offer low prices, or provide better service, if the domestic retailers want to get or keep customer."
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