Due to the upcoming Tet season, and the entry of foreign players in Vietnam, the Vietnamese market is geared up to flourish.
Vietnam service revenue and retail sales Q1 2010 soared nearly 24.1% as against Q1 2009 to around VND 364.5 Trillion (US$19.2 Billion). The General Statistics Office Figures (GSO) reveals that it was a 14.4% rise, thereby allowing for a price rise, as per the news published by lookatvietnam
A major part of this surge was contributed by private business with VND121.2 trillion ($6.4 Billion) worth of revenue, a 34.8% rise. Then, the contribution of trade industries with revenue of VND287.3 Trillion ($15.1 Billion) was also a considerable one, 24.7% surge; then with 40.3 Trillion ($2.1 Billion) revenue, hotels and restaurants followed the league of significant contributors.
Besides, revenue of the service industry was VND32.9 Trillion and tourist industry’s revenue was VND3.9 Trillion.
Tet, i.e. Lunar New year is the major reason behind the rise in the retail sales in Vietnam. Shopping complexes and super markets were highly flooded with the shoppers who were rushing to purchase presents and essential goods to mark the beginning of Tet. Moreover, retailers also offered impressive discounts during the festive season, which helped a lot in attracting buyers.
The General Statistics Office also attributes the leap to the revival of the Vietnamese economy, which propelled domestic consumption. The research report added that the Vietnamese retail industry would be driven by growing urbanization, a continuous increase in the level of income, and a shift in culture more inclined towards western markets.
Furthermore, according to market research report by RNCOS
, “Vietnam Retail Analysis (2008-2012)
, the retail sector in Vietnam retail sector will reach the US$85 Billion mark by the year 2012. Continuous rise in income level, growing urbanization and cultural shift towards the western markets will drive the retail industry in Vietnam, the report added.
This year, various international retailers will enter the lucrative Vietnamese market. The consumers in Vietnam generally use 70% of their earnings in shopping. Backed by the modern operating methods and competitive pricing structures, the reputation of top foreign companies will grow, thereby laying extreme pressure on the domestic retailers.
According to a Research Analyst at RNCOS
, “To remain competitive in the Market, domestic retailers need to update their services and operations to gain utmost profit. In the rural regions, houses equal to 70% of Vietnamese people.”
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