Vietnam's total retail market is forecast to grow at 23 percent annually between now and 2014, offering many opportunities for both domestic and foreign retail businesses, according to a report by AT Kearney.
Vietnam’s retail market is becoming less attractive, with its global ranking downgrade to 23rd place in the 2011 Global Retail Development Index (GRDI) released by A.T. Kearney.
Vietnam’s retail market is considered one of the most profitable investment areas for foreign distributors, as it is predicted to grow at 23-25 percent annually from 2011 to 2015.
Malaysia will soon enter Ho Chi Minh City’s retail market with the opening of hypermarkets to be joined by almost all leading retailers of this country.
Retail sales GDP and turnover have increased considerably in recent years, however, more premises for the retail market are necessary to meet the increasing demand.
Since 2009, Vietnam has opened its distribution market to foreign investors based on its WTO commitments and domestic retailers are trying their best to stand firm on their own turf.
Establishing a firm foothold in the retail market requires close coordination among domestic businesses and support from State management agencies.
The fourth retail fair of Thailand opened in Hanoi on May 5 with the participation of 90 Thai businesses.
Vietnam ’s retail market is still attractive to domestic and foreign investors despite its fall from the top five to the sixth position in the latest survey of 30 emerging markets conducted by the consulting firm A.T.Kearney.
Vietnam will open its doors to foreign retailers in two weeks’ time under its WTO commitments. This is a big challenge to the fledging domestic distribution network, which will vie for the lion’s share of the market with financially powerful and experienced groups from overseas.