Mr Pham Trong Nhan

“We are sad seeing Vietnamese consumers buying foreign goods and foreign businesses buying Vietnamese retailers,” he said.  

This puts domestic businesses in danger, especially SMEs, as supermarkets have fallen into foreign hands, he said.

The NA deputy also expressed concern that startups under the new law would be ‘nipped in the bud’ in such a competitive environment.
 
Vietnam has jumped five places to the sixth position in the global retail index. In 2016, total retail turnover reached $118 billion, an increase of 10.2 percent over 2015. 

Even in April 2014, when Vietnam had not opened its retail market fully to foreign investors, three foreign groups had set foot in the country. 

Japanese Aeon has announced that it will open 20 large shopping malls by 2020 with total investment capital of $1.5 billion.

South Korean Lotte plans to open 60 shopping malls throughout the country with total investment capital of $3.2 billion.

Berli Jucker spent 655 million euros to acquire Metro. In 2015-2016, the Vietnamese retail market witnessed many M&A deals in which foreign investors were the buyers. 

Central Group acquired a 49 percent stake of the company that owns Nguyen Kim chain. Later, it took over Big C.

Just after three years, foreign invested businesses account for 70 percent of the convenience store market share, 17 percent supermarket and 50 percent of the online retail market.

Nhan stressed that many investors not only focus on retailing, but also have been entering production. The CP Group, for example, makes up 50 percent of the egg market share, 30 percent of chicken and 7 percent of animal feed.

Foreign investors not only have great advantages in capital, technology and experience, but also receive strong support from the government. Therefore, losing the domestic retail market to foreign hands is likely to happen.

Foreign investors, after taking over retail chains, have refused Vietnamese goods by installing technical barriers and requiring higher discount rates.

“22 The Gioi Di Dong shops have been weeded out from Big C, and Minh Long 1 has left Metro,” he said.

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