As the country’s consumption demand increases to match national economic progress, more and more foreign retailers are entering the Vietnamese market to a warm welcome from buyers, while Vietnam’s domestic brands look for their own growth strategies against the newcomers.
Earlier, numerous giants in the retail sector have entered the Vietnamese market and now, many of them are planning to enhance investment and expand their businesses to exploit market potential.
The Association of Vietnam Retailers (AVR) has asked the government to establish a retail conglomerate from four big retail chains, Saigon Co-op, Phu Thai Group, Satra and Hapro, to compete with foreign retailers flocking to Vietnam.
A recent report of the Vietnam Chamber of Commerce and Industry (VCCI) shows free trade agreements will little impact on the country’s enterprises, however, many disagree with the findings.
Thai, Japanese, American and French retail giants are speeding up their plans to conquer the Vietnamese market.
Vietnamese retailers have been reassured that the regulation on ENT (economic needs test) would serve as a barrier that prevents foreign retailers from expanding in Vietnam and protecting local retailers. However, analysts don’t think this will work.
Foreign retail chains have been expanding their networks under the cover of domestic retailers.
Mergers and acquisitions are churning the Vietnamese retail market, with large domestic players buying out rivals and massive investment by foreign retailers.
Foreign retailers have been flocking to Vietnam because they see the great potential in a 90-million-consumer market. However, Vietnam has not been an easy playing field even for experienced players.
The retail market is seeing an invasion by foreign retailers, which has brought pressure on local businesses who lack financial capacity or experience.
Gaining access to accurate information on land, buildings and other factors needed for the investment making-decision process has been one of the greatest challenges facing foreign retailers in Vietnam, according to Hong Won Sik, General Director of LotteMart in Vietnam.
Vietnamese consumers are making their way from traditional markets into air-conditioned, brightly-lit convenience stores.
(VOV) -Participants at an October 3 seminar on retails and investment policies raised their concern over the domination of foreign retailers who, thanks to their advantages in capital and technology, may defeat local ones.
(VOV) - Retail giants from Japan, Thailand and the RoK find the Vietnamese marketplace highly lucrative and are stepping up efforts to grow their establishments and put the squeeze on domestic companies.
(VOV) -A large number of foreign retailers are actively seeking to expand their operations into Ho Chi Minh City, said CBRE Vietnam Co. Ltd.
Several foreign supermarket chains in Vietnam have opened new outlets in a bid to expand their market share in the country.
A senior official of TNS, a global market research specialist, said it is now the “perfect time” for foreign retailers to come and make long-term leases in Vietnam as real estate and construction prices here are declining.