Retail sector to be modernised

(VOV) - Modern retail will boom and be a driving force for the development of the country’s retail sector, experts said at a seminar in Hanoi on October 13.

Tran Nguyen Nam, Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade, said the Vietnam’s retail market is booming with many convenience stores, supermarkets, and commercial centres. Some world’s leading retailers like Walmart, Auchan and Robinson are seeking opportunities or have begun operation in Vietnam.

There is a huge opportunity for investors, however, domestic businesses are not competitive right on their home turf, Nam said.

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2014 is considered a year of global retail market with basic and strong changes. Vietnamese customers have become more dynamic with increasing demands.

President of the Vietnam Retailers Association (VRA) Dinh Thi My Loan stated that more foreign retailers will penetrate Vietnamese market, posing both challenges and opportunities for domestic firms. The fierce competition will demand domestic firms to improve their retail services and skills as well as the quality of products.

Loan highlighted the transparency in policies to attract foreign investment while protecting domestic businesses.

The MoIT reported that by the end of 2013, Vietnam had 724 supermarkets, 132 commercial centres, nearly 9,000 traditional markets and around 1 million household-run shops. It is expected to have around 1,300 supermarkets, 180 commercial centres and 157 shopping centres by 2020.