(vasep.com.vn) Statistics from Association of Vietnam Retailers (AVR) show that 75% of goods are sold at traditional markets, and this trend will remain in 5 to 10 years, leaving opportunities for Vietnam enterprises to enter modern retail market.
Accordingly, Vietnam is now a potential retail market with the scale of US$ 125 billion with 90 million of consumers, 33% of which are urban residents. In 2013, PPP per capita of Vietnam was over VND 4,000. Retail purchases increased by 5.7% in the first half of 2014, compared to the same period in 2013 (excluding inflation).
Traditional distribution channels dominated the market. It is revealed that by the end of 2013, there are 8,546 markets and about 1 million family owned stores.
Modern channels such as supermarkets, convenience stores are now accounted for 25% of total shares and this rate keeps growing. According to plan of the Ministry of Industry and Trade, average growth rate of retail sector will be 19-20%/annum in 2011-2015 and 20-21%/annum from 2016 to 2020. It is expected that in 2020, there will be 1,300 supermarkets and 180 commercial centers throughout the country.
‘Free Trade Agreement (FTA) and the Trans-Pacific Partnership (TPP) Vietnam market will be more open but domestic retailers still have their opportunities’, said Mr. Pham Dinh Doan, Chairman of Phu Thai Group, Standing Deputy Chairman of Vietnam Retailers Association.
‘More foreign enterprises will join the market, therefore, domestic retailers should be prepared’, said Mr. Tran Nguyen Nam, Deputy Head of the Ministry of Industry and Trade's Domestic Market Department.