Although Vietnam’s retail market has just dropped from top 30 world, many businesses are still optimistic about the potential development of this industry and continuously enter or expand.
Earlier, in 2008, Vietnam is considered as an emerging country that has attractive retail market in the world, thanks to strong economic growth and many policies to attract foreign investment, especially Vietnamese consumer are the youngest in Asia and they are increasing aggressive spending.
By 2009, Vietnam’s retail market is only ranked 6th in the level of attraction and fell to 23rd in 2011. Till June 12th, the reputation of A.T.Keraney – a famous US consulting firm published the annual global retail development index (GRDI) in 2012, Vietnam was officially dropped out of the list of 30 developing countries that have the most exciting retail market in the world. That was the fourth consecutive year Vietnam relegated in this list.
However, despite these challenges, many retailers in the world and domestic still decided to join the Vietnam retail market this time with the expectation that the situation will be improved in the last 6 months and the near future. SUTL Group on Monday June 13th was put into operation the millions USD entertainment food continuum in HCM City. This is a group specializing in entertainment, dining, retail and health care.
Explanations for this move, the representative of SUTL said that they are very optimistic about the potential for business development at this S-shaped country, in which the market with large and young population and their entertainment needs are on a rise.
Moreover, in the case other retailers from Japan – AEON Group also recently announced Celedon Shopping Mall project from the previous quarter and was inaugurated the convenience store chain – Ministop in HCM City. In addition, this unit also coordinate with Trung Nguyen plans to open another 30 stores in 2012 and expected to develop the system up to 500 stores throughout Vietnam for 5 years.
A leader of the Trade Research Institute (Ministry of Industry and Trade) also shared, we should not be too pessimistic when only concerned in the ranking. According to this leader, the potential attractiveness of Vietnam’s retail market is still very abundant because consumers in our country have not satisfied all their needs.
In fact, many foreign distributors were present in Vietnam such as Big C, Parkson, Metro Cash & Carry, Lotte Mart, Family … are continuing to expand their business systems, while other large foreign distributors are jumping into Vietnam like Aeon, E-Mart …