International trade connected with domestic consumption market
Since the beginning of this year, a diverse range of foreign products have entered the Vietnamese market, with Ho Chi Minh City experiencing a surge across various promotional channels.
Highlighting the importance of Vietnam as a trade partner, Kim Ki-hoon, a member of the Republic of Korea's Ministry of Oceans and Fisheries' Promotion Bureau for Processing and Export, acknowledged Vietnam as the 4th largest food trading partner.
He outlined the bureau's plans to expand partnerships with Vietnamese retailers and distributors to introduce a variety of seafood products, including abalone, oysters, and seaweed, to Vietnamese consumers. Additionally, Korean companies are seeking to strengthen ties with hotels, restaurants and catering businesses.
Nguyen Anh Duc, Chairman of the Vietnam Retailers Association, underlined the significant role of the retail sector, contributing 35% to Vietnam's GDP. However, he noted that growth primarily stems from traditional channels, signifying immense potential for modern retail expansion.
Statistics indicated a substantial need for supermarkets and convenience stores, with an estimated requirement of one mega supermarket and one shopping outlet per 100,000 people, one medium-sized supermarket per 10,000 people, and 1-3 convenience stores per 1,000 people. These figures represent promising opportunities for distributors and retailers to capture a larger market share.
According to the Ministry of Industry and Trade, Vietnam's retail market surpassed US$180 billion in 2023, with projections for continued growth in the coming years. This thriving market, coupled with a rapidly growing affluent population, including a doubling of the ultra-rich segment and a 70% increase in the affluent class over the past five years, is attracting renowned global brands.
A report by the Euromonitor Market Research Organisation further pointed out the significance of brand reputation and product quality for Vietnamese consumers, with 26.1% frequently purchasing from well-known brands and 35.8% prioritising higher-quality products even if it means buying less.
