Retail sector maintains robust growth
Retail sector maintains robust growth
The local retail sector has attracted significant foreign funding through merger and acquisition deals as well as business expansions. Last year, retail sales hit an estimated VND3,300 trillion, up 12.4% against sales in 2017, according to the General Statistics Office.
Le Viet Nga, deputy director of the Domestic Market Department, under the Ministry of Industry and Trade, was quoted by news site VietnamPlus as saying that many major foreign-invested retail firms had continued to expand their business scale as well as increase their market share in the local retail market.
As for modern retail chains, the Saigon Union of Trading Cooperatives, also known as Saigon Co.op, last year took the lead with sales of nearly VND32 trillion.
Meanwhile, local supermarket chain Vinmart and convenience store chain Vinmart+ secured the top place for store presence, with over 100 Vinmart supermarkets, 1,700 Vinmart+ stores and 66 Vincommerce shopping centers in 63 provinces and cities across the country.
Vinmart has also announced plans to increase the number of convenience stores it operates nationwide to 4,000 facilities. Saigon Co.op and other retailers are investing in convenience stores as well.
Regarding foreign-invested retail chain operators, Big C Vietnam aims to operate 40 Big C supermarkets by the end of this year, up from the current 36 facilities in the country.
Big C supermarkets are actively joining programs to sell locally made products and regional specialties, earning half the revenue of national leading retailer Saigon Co.op.
Aeon Vietnam, a subsidiary of Japanese retailer Aeon Group, pledged to export products worth at least US$1 billion annually to Aeon chains around the world by 2025.
In the years to come, the local retail sector will likely continue its upward trend since it is showing great potential for stronger growth, Nga said.
Vietnam has a large population, reaching almost 100 million people. Moreover, local people between the ages of 18 and 50, accounting for 60% of the population, have a special interest in shopping.
In addition, household expenses are forecast to rise by an average of 10.5% per year to US$714 per month by 2020, with surging spending expected at modern retail facilities.
Meanwhile, the local economy has recovered and shows signs of regaining strong growth, with a rising number of new companies being put into service and products being provided by the retail sector.
The significant improvement of the business environment for foreign investors has encouraged foreign direct investment in the local retail sector.
