Vietnam eyes formation of large scale corporations in retail sector by 2030
Vietnam eyes formation of large scale corporations in retail sector by 2030
Such a large corporation would serve as a market-leading player and reduce the dependence of foreign firms or multinationals for distribution.
The Vietnamese government continues to encourage the formation of large-scale corporations in retail, aiming to strengthen the linkage between production zones and consumer markets.This move was revealed in the government’s decision No.1163/QD-TTg on Vietnam’s strategy to boost domestic trade until 2030, with a vision to 2045.
Customers at Vinmart in Hanoi. Photo: Chien Cong
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Under this strategy, Vietnam expects to set up sustainable supply chains in the country that could ensure effective implementation of regulations on food safety and quality, origin tracing, and environmentally friendly.
“Major corporations that serve as market-leading players would create positive spillover effects to those of smaller scale and reduce the market dependence on foreign firms or multinationals,” stated the decision.
To realize this goal, the government identifies the necessity to train the high-quality workforce in trade to meet the growing demand of the global trade integration process, while transforming domestic trade promotion activities and pushing for investments in the trade infrastructure systems.
“State governance in domestic trade would focus on the aspect of ensuring market stabilization, combating trade frauds and violation of consumer rights while respecting market principles,” it added.
Meanwhile, the government aims to protect the domestic market via instruments and intervention measures that are in line with international commitments.
“The ultimate objective would be to promote modern, rapid, and sustainable development of domestic trade, which could serve as the foundation for domestic production and global economic integration,” stated the decision.
In the 2021-2030 period, the added value from domestic trade is expected to grow by an average rate of 9-9.5% per annum, resulting in a contribution of 15-15.5% of the GDP by 2030.
Total revenue from retail sales and services would average 13-13.5%.
By 2030, revenue from e-commerce is set to make up 10.5-11% of total retail sales and services of the economy, or an expansion of 20-21%; 40-45% of small and medium enterprises operating in trade would take part in major domestic and foreign e-commerce platforms.
