While COVID-19 will disrupting FMCG businesses, not all product categories and retailers will see a negative impact, according to Kantar Worldpanel Vietnam.

It is still unclear who will take over the Auchan chain in Vietnam, though the announcement about the departure was made many days ago.

VietNamNet Bridge - Convenience stores have been developing rapidly in Vietnam, with foreign retailers having the upper hand.

VietNamNet Bridge - Foreign retailers are ‘encircling’ the gateways to the central area of HCMC with hypermarkets, while inner districts now have thousands of convenience stores.

The Vietnamese retail market, which had record-high revenue of $69.45 billion in the first half of the year, is witnessing a rush of convenience store openings. 

More foreign retailers have flocked to Vietnam as they believe the market is promising. But many retailers have had to leave because of stiff competition.

VietNamNet Bridge - Vietnamese and foreign convenience stores are rushing to open more shops, use more technologies and provide more services in the retail market.

VietNamNet Bridge - While many retailers have expanded their convenience store chains, others have had to scale down their networks because of ineffective operations.

VietNamNet Bridge - More than 10 convenience store brands in the central business district in HCMC are in a competition to secure retail premises in advantageous positions.

Reports released recently by market analysis firms all show that in the FMCG (fast moving consumer goods) sector, Vietnamese brands hold the upper hand over rivals from multinational corporations.

VietNamNet Bridge - More than one-third of Vietnamese households shop at convenience stores or minimarts 10 times a year, according to Kantar Worldpanel. 

VietNamNet Bridge - Brands are trying to fully exploit their advantage to compete with rivals, but most of them are developing a model that is a hybrid between a convenience store and fast food shop.

VietNamNet Bridge - Household-use and cosmetics stores like Miniso and Ilahui earn hundreds of millions of dong a day from selling products to office workers and university students.

Vietnamese goods have to go through many intermediaries to enter foreign supermarket chains. As a result, enterprises have to pay high costs to sell their goods, and cannot develop their brands. 

VietNamNet Bridge - Vietnamese retailers have withdrawn from the convenience store market after a long period of incurring losses, leaving the market more open to foreign retailers, who have been expanding their chains.

Some years ago, economists predicted the strong development of convenience stores and mini supermarkets which fit the current development conditions in Vietnam and the living standards of Vietnamese people.