Blogs

Home | Blogs
Government Stimulus Aid Drives Vietnamís Retail Industry in Q1 2009
Jun 01, 2009

Vietnam’s retail sales and services scaled up 21.5% during January-April 2009 due to the timely government stimulus aid to boost the consumption and investment.

The General Statistics Office of Vietnam said that the retail sales and services in the country during January-April 2009 surged 21.5% from the same period in 2008 to reach 360.4 Trillion Vietnamese dong (US$ 21.2 Billion), as reported by Xinhua.

An impressive growth of 22.2% was experienced by trading that mounted to US$ 16.6 Billion. Hotels and restaurants recorded an increase of 18.4% to US$ 2.4 Billion in their revenues, while the revenues of tourism (up 21.5%) and services (up 16.3%) hit US$ 223 Million and US$ 2 Billion respectively. 

Moreover, the total retail sales and services revenue for January-March 2009 climbed upto an estimated US$ 15.97 Billion, a 21.9% YOY increase. 

The growth in Vietnam’s retail sales and services during the first four months of 2009 was largely driven by the government’s stimulus package to spur investment and consumption in the country. 

In terms of investment, Vietnam is the most attractive retail market (surpassing India, Russia and China), according to seventh Annual Global retail Development Index (GRDI) report by AT Kearney. 

The Vietnamese retail market has been rapidly expanding for the past few years and is expected to continue the uptrend on account of growing disposable income and consumer spending and the liberalization of the sector in the near future, said “Vietnam Retail Analysis (2008-2012)”, a research report by RNCOS.

The study further reveals that in coming years, modern retail formats such as supermarkets, air-conditioned mini-marts and small shopping complexes will gain more popularity in comparison of traditional outdoor markets.

As Vietnam has recently got the membership of the WTO, growth prospects for the country’s textile/garment sector seem very bright as Vietnam can export increasingly to the US and Europe, which are its leading export markets, without any quota restrictions. Apart from this, increasing textile exports will create new job opportunities and increase the foreign exchange.

According to a Research Analyst at RNCOS, “The Vietnamese retail industry is expected to grow at a rapid pace in coming months. Hike in salaries of government employees will help to build consumer confidence and improve retail spending in the country. The WTO accession will also boost the retail industry by increasing exports to member countries.”

Related Market Research Reports:
Indian Cosmetic Sector Analysis (2009-2012)
U.S. Convenience Stores Market Outlook to 2013
Poland Supermarket Outlook to 2012