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Vietnam: Domestic Retail Market With Efforts To Control Market
Jun 20, 2007

The government of Vietnam has recently asked the Ministry of Trade (MoT) to conduct a study on the ways to start a retail market dedicated to foreign enterprises.

It has required businesses in the domestic sector and other important segments to have realistic activities to remain firm and govern the domestic market of Vietnam before it gets the membership of WTO.

According to MoT, between 2001-2005, the entire retail revenue of Vietnam went up by about 18%, if calculated annually, and thus growth of Gross Domestic Product (GDP) in the same time duration got doubled.

Currently, the consumer buys a big part of the products about 40% from markets and about 44 percent of the products are sold via traditional stores or by independent retailing. Just about 10% of the goods are sold via modern distribution channel of trade centers, convenience stores and supermarkets. The left 6% of merchandise are circulated straight by the producers.

Experts at the retail market of Vietnam say that revenue in the year of 2005 went upto twenty billion US dollars, which was up 20% as of the year before and it is projected to rise to US $50 billion by the end of 2010.

With a Vietnamese population of around 83 million, those who shop maximum are below 30 years of age, so, the retail marketplace is big and it has not yet been fully explored.

With investments of diverse types from overseas investors in the Vietnamese retail sector, domestic consumers will have more choices to buy products with prices that are low and thus their consuming behavior have also changed gradually. The Domestic traders of Vietnam have been quite aware of the increasing pressure from the cross-border rivals. Indeed, before the existence of foreign business rivals, there are thirty two business centers and trades around 170 supermarkets in Vietnam.

Related Market Research Reports:
Vietnam Retail Analysis (2008-2012)
Poland Retail Analysis (2008-2012)
Booming Retail Sector in India