Thai authorities encourage businesses to expand presence in Vietnam's retail market
Thai authorities encourage businesses to expand presence in Vietnam's retail market
The Department of International Trade Promotion (DITP), a division of the Thai Ministry of Commerce, has urged Thai entrepreneurs to carefully examine the potential of harnessing Vietnam's thriving retail market.
According to the agency, Vietnamese retailers have undergone a remarkable transformation, embracing modernity and demonstrating a notable receptiveness towards investment and collaboration – thereby presenting lucrative sales prospects.
The DITP's director-general Phusit Ratanakul Sereroengrit emphasised that Vietnam's retail market is poised to reach a staggering $350 billion by 2025.
In addition to this, the leadership at the DITP has encouraged Thai enterprises to prioritise commercial enhancements, engage in environmentally friendly production practices, and demonstrate a keen focus on circular and green economies – all of which are instrumental in stimulating growth within Vietnam's retail landscape.
Moreover, Sereroengrit underscored the significance of e-commerce, noting that online transactions have emerged as a prevailing trend in Vietnam. Leveraging social media platforms for sales would provide Thai businesses with a convenient means to access Vietnamese consumers.
However, he also advised potential entrants into Vietnam's e-commerce market to meticulously examine the country's laws and regulations pertaining to online transactions.
Concluding on a forward-looking note, Sereroengrit disclosed the DITP's forthcoming endeavours in Vietnam, including sales promotion events aimed at facilitating commercial exchanges between Thai and Vietnamese retail establishments. These events are scheduled to unfold from August 1 to 14.
It is worth highlighting that even before Sereroengrit's recommendations, the Vietnamese retail market had already attracted substantial investments from prominent Thai retailers, with Central Retail Corporation (CRC) emerging as a standout player.
According to CRC's CEO Yol Phokasub, Vietnam is regarded as a market brimming with untapped potential, propelled by its continuous economic growth. The Vietnamese retail market is estimated to be valued at an impressive $49.7 billion, exhibiting a robust annual growth rate of 10-12 per cent.
Building on its solid foothold in Vietnam over recent years, CRC has outlined a comprehensive five-year expansion plan that earmarks an investment of approximately $1.45 billion to be deployed over the period.
