The food processing and drinks industry has seen growth of 7 per cent in recent years, with more and more foreign investors deciding to pour money into the sector.
Large food corporations have jumped into the snack market with traditional dishes, competing directly with street food shops.
More foreign retailers have flocked to Vietnam as they believe the market is promising. But many retailers have had to leave because of stiff competition.
More Asian brands, particularly those from Southeast Asia, have been franchised to the Vietnamese market, with seven foreign franchises licensed in Vietnam this year.
Over the last 15 months, myriad foreign businesses, including South Korea-based GS25 and Japanese-owned 7-Eleven, came to the Vietnamese convenience retail market through franchising deals.
Convenience store chains are on their way to conquer fast-growing ASEAN markets, but they get little love in Indonesia, the region’s largest market.
Fashion, fast food, beverage, cinema and retail brands have been opening more and more stores in Vietnam as the retail sector has seen fast growth in recent years.
GS Retail Co., a major convenience store chain operator in the Republic of Korea (RoK), said on January 17 that it will open its first two foreign branches in Vietnam.
With huge investment, commodities suiting all tastes, ages and income levels, and round-the-clock services, convenience stores could make a splash in the Vietnamese food and beverage market.
Vietnam has returned to sixth place among the 30 most-attractive retail markets in the world this year according by A.T. Kearney, thanks to the expansion of convenience stores and mini-marts and the increase in use of technology in the industry.
The Vietnamese street food market, with estimated value of VND47 trillion, is now attracting big food supply chains and retailers.
Even though retail premises in the central business district (CBD) of Ho Chi Minh City are becoming more scarce and the rents are increasing, premises far from the center are still unpopular with new retailers.
Japan’s convenience store chain 7-Eleven plans to recruit 10-20 Vietnamese interns to work at its stores in Japan starting in mid-2018, reported Japanese newspaper Nikkei.
With value of US$118 billion in 2016 and US$180 billion projected for 2020, Vietnam is listed among the world’s 30 most attractive retail markets.
The foreign retail brands which have entered the Vietnamese market recently are all powerful and experienced, but it is too early to say who will thrive.
The first outlet of 7-Eleven, the largest convenience store chain in Japan, opened in Vietnam last week with a lot of fanfare.
7-Eleven has announced it will open its first shop in Vietnam on June 15. Aeon, MiniStop and FamilyMart have already joined one of the fastest growing retail markets in the world.
VOV.VN - 7‑Eleven, Inc, the globe’s largest convenience retailer with some 56,400 stores worldwide, has announced its first store in Vietnam will open this June in Ho Chi Minh City.
VOV.VN -Japanese convenience store chains are rapidly expanding across Vietnam, where demand is strong for the service culture of the East Asian island nation.
Foreign retailers are showing huge appetite for a slice of the convenience store business pie in Vietnam as their investment spree will not be over anytime soon.