If enterprises can exploit the domestic market well, they will be able to overcome the Covid-19 crisis, analysts say.
The epidemic has led to stagnant import and export activities. They have been urged to rely on the 9-million market as a new driving force for growth.
According to the Ministry of Industry and Trade (MOIT), around 100,000 people need one hypermarket and one shopping center, 10,000 people a medium-size supermarket and 1,000 people 1-3 convenience stores.
The attractiveness of the market lies in the high number of consumers, 60 percent young population and expected increase of 10 percent per annum in spending level of families.
The General Statistics Office (GSO) reported that in the first quarter of the year, during the social distancing days, the revenue from goods retail increased by 7.7 percent compared with the same period last year.
|The epidemic has led to stagnant import and export activities. They have been urged to rely on the 9-million market as a new driving force for growth.|
In fact, many enterprises have realized the importance of the domestic market and changed their business strategies.
“In the last two months, we have opened 19 more shops to better serve the shopping demand of people,” said Nguyen Thai Dung, CEO of Hanoi Hapro, a retail chain.
In the aviation sector, Bamboo Airways, has decided to join hands with partners – travel firms and accommodation service providers, to provide services to stimulate demand soon after the social distancing policy was loosened.
“We have cooperated with travel firms, such as Vietravel, and air ticket booking agents, to set up reasonable airfare policies for tourism routes from HCM City to Da Lat, Pleiku, Buon Ma Thuot, and from Hanoi to Cam Ranh, Phu Quoc and Quy Nhon,” said Truong Phuong Thanh, deputy CEO of Bamboo Airways.
Agriculture enterprises have also applied new business methods to exploit the domestic market.
“Covid-19 has changed our business behaviors. Previously, we only sold products at restaurants, hotels and cafes.
But now we focus on the sale at supermarkets and online sales,” said Phan Minh Thong, chair of Phuc Sinh JSC, adding that thanks to the changes, domestic sales have increased by 25 percent.
When asked what Vietnam’s enterprises need to conquer the home market, Ngo Tri Long, a respected economist, said gone are the days when people just needed food and clothes. They now want high-quality products.
Therefore, enterprises need to provide good products that are well designed and user friendly that fit different groups of consumers.
A market with population of nearly 100 million is more than enough for domestic firms to boost sales and expand market shares.
Meeting barriers in foreign markets, catfish processing companies have decided to exploit the domestic market.