The penetration of modern retailing in Vietnam is quite low, as the sector is dominated by traditional players. The majority of the consumers prefer buying from corner grocery shops rather than modern outlets, and they buy according to their consumption. This is opposite to international consumers, who tend to store weekly or sometimes monthly grocery demand.

 

However, modern retail channels will play a crucial role in future growth, improving their position in the market. Fast paced growth in Vietnam’s retail market has made the country an attractive destination for multinational retailers. Increased purchasing power, changing lifestyles, and the influence of western culture are some of the key growth drivers in the country’s modern retail market. It is also expected that, during the next few years, a short wave of consolidation will emerge as foreign retailers try to consolidate their position and deepen their market penetration.

 

Box: RNCOS is a leading market research and information analysis company with a global presence. It focuses on delivering high quality research services to business professionals, organizations and individuals, thus supporting maximizing success from current industry information. The company brings first-hand information and prudent analysis to various industries, technologies, economic and non-economic market parameters, potential markets, and key competitors in the industry and gives rational forecasts on market trends to help clients identify prospective growth areas and gain a competitive edge.

At the segment level, demand for consumer goods has been strong, particularly in urban areas. White goods and consumer electronics sectors have witnessed numerous foreign-invested joint ventures that manufacture their brands locally. Most of the output is exported. Although the clothing sector is well-developed and export-oriented, the cosmetics and toiletries sector does not possess well-developed local manufacturing facilities.

 

Besides, RNCOS’s report analyzes factors critical to the success of the retail industry in Vietnam. It has also identified key players in the market and includes their recent activities. Additionally, the report sheds light on emerging industry trends such as internet retailing, mobile retailing, private labels and luxury retailing, along with various growth hurdles, such as government policies, poor supply chain management, and limited retail space. Most importantly, the report discusses market structure along with current, future, and past market performance of the retail industry in Vietnam.

 

Huong Ly (Vietnam Business Forum)