Tiếng Việt
普通话
At the Vietnam Marketing and Retail Investment Forum, jointly held by the Economy and Forecast Review magazine, the Vietnam E-commerce Association and the Institute for Brand and Competitiveness Strategy, Le Viet Nga, deputy director of the Domestic Market Department, under the Ministry of Industry and Trade, pointed out that the country has seen double-digit annual growth in its total retail sales of goods and services.
Last year, the country’s total retail sales reached US$146 billion, up 12.4% over the figure recorded in 2017, said Luu Bao Van, managing director of Intage Vietnam.
The figure is expected to surge more than twofold to reach US$356 billion by 2025, with half of it being generated from modern retail channels, well above the current proportion of 27%, Van noted.
News site Vietnamplus cited Dr Vo Tri Thanh, head of the Institute for Brand and Competitiveness Strategy, as saying that the retail sector has the most startups in Vietnam.
Also, Vietnam ranks second among 54 surveyed countries and territories in terms of retail development, Thanh stated, citing a recent study by an international organization.
Besides foreign retailers, many local firms have ventured into the retail sector, with Vingroup being a typical example. The group currently has 1,700 Vinmart+ convenience stores, 11 Vincom Centers, some 100 Vinmart supermarkets and a chain of VinPro and VinPro+ electronics stores.
Despite these achievements, the domestic retail sector still has shortcomings. The unprofessional supply chain management, uncompetitive prices and the low quality of the products have hindered the development of many local retailers, according to Le Xuan Dinh, editor-in-chief of the Economy and Forecast Review magazine.
Meanwhile, multiple international retail giants, such as Lotte, Central Group, Aeon, Circle K and Auchan, have boosted their investments in the Vietnamese market.
Sasamori Hiroaki, deputy general director of the back-office of Aeon Vietnam, said that the company intended to focus on the quality and safety of its products and offer consumers better services.
In addition, the imbalance between supply and demand for products continues to be a great challenge for the sector. Farmers often rush to produce goods with high prices, causing a redundancy for some products, Nga noted.
She urged greater attraction of investment, the development of infrastructure and the training of local human resources to further develop the local retail sector.
She also stressed the need to create supply and demand connectivity and encourage the establishment of national retail groups to compete with foreign rivals in the local market, or even in other markets.
Vu Vinh Phu, former chairman of the Hanoi Supermarket Association, remarked that Vietnamese retailers should apply advanced technologies, such as Big Data and artificial intelligence, as well as the experiences of other countries to improve their competitiveness.
At present, consumers pay attention not only to the quality and prices of products but also to retailers’ customer care services. Therefore, local retailers should train their staff to better serve customers and to conduct their business honestly.