Besides rapid urbanization, the rising income of consumers is one of the reasons for the booming of the Vietnamese retail market.
Local retail businesses should focus on developing their own brands, improving the product quality and diversifying products in order to enhance their competitiveness in the domestic market.
Some foreign retail groups have left Vietnam recently. Is this because the retail market is no longer attractive?
Auchan has left the Vietnamese market. MM Mega Market and Big C have seen revenue decrease. But Aeon Mall and Lotte Mart continue to expand.
It is still unclear who will take over the Auchan chain in Vietnam, though the announcement about the departure was made many days ago.
The Gioi So (Digiworld), the mobile phone retail chain, is seeking to distribute office equipment, while FPT Shop is trying online sale models and The Gioi Di Dong (Mobile World) is focusing on its department stores.
More foreign investors have had to leave Vietnam after taking losses for a long time, though Vietnam is considered an attractive market with increasingly high purchasing power.
Once putting high hopes on the Vietnamese retail market, described as very promising with 90 million consumers, many retailers have had to leave the country.