Vietnam’s retail market draws in domestic and foreign investors

The growth and openness of the economy have made Vietnam an attractive retail market for both domestic and foreign retailers.

Vietnam’s retail market draws in domestic and foreign investors
Convenient stores account 15 per cent of Vietnam's retail market share

Entering the southern market of Vietnam two years ago, Japanese company Heian Shindo Kogyo Co., Ltd., which provides smart racks and rods, has witnessed fast-growing demand for their products. With the aim of expanding their market to the north, the company participated in a recent business-matching event hosted by JETRO in Hanoi.

“Within two years, our sales have increased by 50 per cent. There is a boom of department buildings and houses for homestay services in Vietnam. This is a good opportunity for our company and our products. We hope this year, our products can appear on shelves in Hanoi,” Yusuke Katayama, general manager of Heian Shindo Kogyo Co., Ltd told VIR.

Not only to Heian Shindo Kogyo, currently Vietnam is an attractive market for many retailers.

Starting to export Japanese detergent products to Vietnam since 2015, Abell Bio Clean Corporation (ABC) wished to introduce new products to Vietnam.

“Japanese products in general are famous for their quality. Particularly, our products are environmentally friendly and pose no health risks. That’s why we are happy to see continuous increase in the demand of our products,” Shinki Abe, director of Sales of ABC, told VIR.

As the distributor of ABC’s products in Vietnam, Sakuko Vietnam has witnessed a sigfinicant increase in consumption.

“Although these products are new to our system, they received a warm welcome from consumers,” Hoang Thi Tan Huong, head of Buying and Supplying Department of Sakuko Vietnam, told VIR.

According to Huong, ABC’s products have been on the shelves of 27 stores of Sakuko Vietnam along with many other Japanese products.

“On October 5, we opened the 27th store. So in 2019, we have opened six Japanese domestic good stores and four franchises,” Huong said.

 

Before that, on September 22, Sunshine Group’s second supermarket was also officially put into operation at the Sunshine Riverside project in Tay Ho district, Hanoi. While on the 10th of the same month, Hanoi Trade Joint Stock Corporation (Hapro), a member of BRG Group, officially opened its first Hapromart, supplying household appliances and food.

“Hapromart provides over 10,000 kinds of products, including imported goods from the US, Japan, and the Republic of Korea,” Vu Thanh Son, general director of Hapro, said at the opening ceremony.

Besides, a significant increase of 22 stores of the Circle K system over the last four months and eight new Vinmarts has also added excitement to the retail sector.

Addressing the recent Vietnam-Russia Business Matching event in Hanoi with the participation of 13 Russian giants who wished to seek connections with retailers in Vietnam, Dinh Thi My Loan, ch­­­­­­airwoman of the Association of Vietnam Retailers (AVR), said, “With a population of nearly 100 million people, 60 per cent of whom are under 35 years of age and 50 per cent are middle class, Vietnam is a promising market.”

Besides, she also added, “The retail, service, and the food and beverage sectors in Vietnam have witnessed annual growth of 10 per cent. With the support of technology and the increase of M&A, the Vietnamese retail sector is looking at great prospects of positive change in the future.”

According to the latest report of the General Statistics Office of Vietnam under the Ministry of Planning and Investment, by the end of September, total retail sales of consumer goods and services reached VND3,634.8 trillion ($158 billion), up 11.6 per cent over the same period last year. This number in September was estimated at VND420.3 trillion ($18.27 billion), up 1.7 per cent compared to August and up 12.7 per cent over the same period last year. VIR

4 major trends of Vietnam’s distribution and retail channels

4 major trends of Vietnam’s distribution and retail channels

With a population of nearly 100 million, the country’s final consumption expenditure has been maintaining at a high rate of over 70% annually, indicating huge potential remains for the market.

Retail sales rise on strong consumer demand

Retail sales rise on strong consumer demand

Total revenue from retail trade and services in the first nine months of this year reached VND3.6 quadrillion (US$156.5 billion), 11.6 per cent over the same period last year.

Finance Ministry to tighten control of cross-border retail activities

Finance Ministry to tighten control of cross-border retail activities

As online commerce has boomed, agencies fear that it will be difficult to prevent banned goods, goods restricted for import and export, and origin fraud.

 
 

Other News

.
Vietnam budget deficit forecast at 3.6% of GDP in 2021
Vietnam budget deficit forecast at 3.6% of GDP in 2021
FEATUREicon  12/01/2021 

Fitch Solutions holds a more optimistic view on Vietnam’s economic rebound in 2021, with its real GDP growth forecast at 8.6%, against the government’s 6.5% target.

Vietnamese ports on pace to post banner year
Vietnamese ports on pace to post banner year
BUSINESSicon  12/01/2021 

Vietnam’s port sector will flourish this year as trade in goods is expected to thrive on the back of recovery in production, domestic consumption, and export markets, according to industry analysts.

Bright future tipped for Vietnam’s e-commerce market
Bright future tipped for Vietnam’s e-commerce market
BUSINESSicon  12/01/2021 

Vietnam’s e-commerce market is forecast to continue growing strongly in the time to come thanks to a big population with high rates of young people and internet users.

Resolution on switching investment format of North-South Expressway’s component projects adopted
Resolution on switching investment format of North-South Expressway’s component projects adopted
BUSINESSicon  12/01/2021 

The National Assembly Standing Committee yesterday adopted a resolution on the switching of investment format of some component projects on Eastern North-South Expressway project in 2017-20 period, which failed to find investors through biddings.

UK trade deal gives Vietnamese consumers greater access to luxury goods
UK trade deal gives Vietnamese consumers greater access to luxury goods
BUSINESSicon  12/01/2021 

Tran Hung Khuong, owner of an automobile shop in HCM City’s Tan Binh District, said people could now save up to VND15 billion by buying a Rolls-Royce Wraith directly imported from the UK, thanks to the Vietnam-UK Free Trade Agreement (UKVFTA).

Da Lat’s largest flower village unusually quiet before Tet
Da Lat’s largest flower village unusually quiet before Tet
BUSINESSicon  12/01/2021 

Van Thanh, the largest flower village of Da Lat, is quiet these days, with no flower collectors, though Tet will start in one month.

2020: black credit pushes people to the wall
2020: black credit pushes people to the wall
BUSINESSicon  12/01/2021 

Black credit grew strongly in 2020 when many people lost jobs because of Covid-19 and faced financial problems.

Railways revenues take $57.4 million hit from COVID
Railways revenues take $57.4 million hit from COVID
BUSINESSicon  11/01/2021 

The Vietnam Railways Corporation has lost VND1.32 trillion (US$57.4 million) in revenues due to the COVID-19 pandemic and flooding in the central region.

Fitness chains, gyms face ups and downs during 2020
Fitness chains, gyms face ups and downs during 2020
BUSINESSicon  12/01/2021 

Prior to the pandemic, Lamita, a fitness studio chain, suspended its operation temporarily on January 4 because of unsettled internal conflicts.

Vietnam continues to move forward in 2021
Vietnam continues to move forward in 2021
BUSINESSicon  11/01/2021 

Dr Tran Thi Hong Minh, Director of the Central Institute for Economic Management, talks about Vietnam’s potential for economic development in 2021.

Where to invest your money in 2021?
Where to invest your money in 2021?
BUSINESSicon  11/01/2021 

Traditional investment channels such as stock or real estate markets are set to continue to be the focus for investors in 2021.

What scenario ahead for Vietnamese price market in 2021?
What scenario ahead for Vietnamese price market in 2021?
BUSINESSicon  11/01/2021 

Despite suffering a slowdown in production and business activities as a result of the impact caused by the novel coronavirus (COVID-19) pandemic, the Vietnamese economy enjoyed positive annual growth of 2.91% in 2020, according to economic experts.

Stock market 2021: Positives and risks
Stock market 2021: Positives and risks
BUSINESSicon  11/01/2021 

The stock market ended 2020 with diverse notes, from the selloff in Q1 which sent the VN-Index down to 660 points, the lowest in four years, to the recovery and strong rally, especially in Q4.

Amid favorable conditions, bank listings on the rise
Amid favorable conditions, bank listings on the rise
BUSINESSicon  11/01/2021 

In the context of favorable conditions on the stock market which saw the indices rising sharply over the past eight months, getting listed at the moment will give banks better valuation and make it easier for them to attract greater cash flows,

Insurance firms struggle to attract investors despite good performance
Insurance firms struggle to attract investors despite good performance
BUSINESSicon  11/01/2021 

Insurance companies performed well in Vietnam during the COVID-19 pandemic, but their shares have not attracted much attention from investors.

US newspaper: US, Vietnam working to resolve trade issues
US newspaper: US, Vietnam working to resolve trade issues
VIETNAM & WORLDicon  11/01/2021 

The Inside US Trade has published an article entitled “US, Vietnam working to avoid imposition of Section 301 tariffs”.

Shrimp exporters bring home 3.85 billion USD in 2020
Shrimp exporters bring home 3.85 billion USD in 2020
BUSINESSicon  10/01/2021 

Earnings from shrimp exports reached 3.85 billion USD last year, up 15 percent year-on-year despite difficulties caused by the COVID-19 pandemic.

Flexible, cautious monetary policy management bears fruit
Flexible, cautious monetary policy management bears fruit
BUSINESSicon  10/01/2021 

Vietnam’s economy was adversely affected by the COVID-19 pandemic in 2020, along with natural disasters and the impact of trade conflicts.

Government to have new policy on purchase of solar power soon
Government to have new policy on purchase of solar power soon
BUSINESSicon  10/01/2021 

At present, the cost of solar power panels has cooled down, so shortly, the MoIT would suggest the purchasing price of solar power without using feed-in tariffs (FITs).

Lotus silk in fight for survival as cost becomes King
Lotus silk in fight for survival as cost becomes King
BUSINESSicon  10/01/2021 

The year 2020 will go down in history for a host of reasons, one being that the COVID-19 pandemic shut borders that had long been open wide for trade.

 
 
 
Leave your comment on an article

OR QUICK LOGIN