Vietnam retail market on an upward trend: trade ministry
The presence of big global brands at an upcoming event in Ho Chi Minh City is expected to lift the retail market in Vietnam, according to the Ministry of Industry and Trade.
The ministry's (MoIT) European-American market department said that a number of international brands such as Walmart, Amazon and AES of the U.S, Aeon of Japan and Central Retail of Thailand will attend the Vietnam International Sourcing Expo in Ho Chi Minh City in September.
The ministry’s data shows that Vietnam’s total retail sales of consumer goods and services in the first six months of 2023 was VND3,016 trillion ($127.4 billion), up 11% year-on-year. Of which, revenue from accommodation and food services increased 18.7%, tourism 65.9%, and retail sales of goods 9.3%.
Many forecasts indicate that domestic demand will better recover in the second half of the year.
From July 1, VAT has been cut for many groups of consumer goods from 10% to 8%, and the base salary for cadres, civil servants, public employees and armed forces has increased by 20% from VND1.49 million to VND1.8 million ($76) per month.
These factors are expected to contribute to increasing market demand, directly affecting the expected sales of retail businesses, said the ministry.
According to Vu Thi Hau, former chairwoman of the Association of Vietnam Retailers (AVR), the domestic retail market is attracting not only domestic manufacturers but also foreign retailers.
In 2021-2022, retail sales via e-commerce channels developed strongly in Vietnam. Retailers invested a lot in technology and human resources to meet the requirements of this new trend. Manufacturers also made use of their own websites as well as e-commerce and social networking platforms to promote sales.
“This is the future trend of the retail industry,” Hau said.
According to the MoIT, Vietnam's retail market size is about $142 billion and is expected to increase to $350 billion by 2025, contributing 59% to GDP.
Overall, the e-commerce sector’s total revenue grew 46% year-on-year to VND92.75 trillion ($3.92 billion) in the first half of 2023.
Foreign giants flock to Vietnam
Thai retailer Central Retail Corp has announced that it will invest an additional VND20 trillion ($845.1 million) in the market in the next five years.
With this investment, Central Retail will expand its sales network to cover 55 provinces and cities nationwide from the current 40, said Nguyen Bich Van, the company’s communications director.
Central Retail plans to boost sales in the Vietnamese market in the 2022-2026 period to VND65 trillion ($2.75 billion), focusing on multi-channel businesses in the fields of food and trade centers, she added.
Another foreign retailer, Aeon Group from Japan, is seeking to expand its Vietnam mall network to 25 by 2025 and has earmarked around $1 billion for the purpose.
There are six Aeon Mall outlets in Vietnam: two each in Hanoi and Ho Chi Minh City; and one each in the southern province of Binh Duong and northern city of Hai Phong.
The retailer has so far invested more than $1.18 billion into Vietnam, Aeon Group executive chairman Akio Yoshida said at a meeting with Vietnamese Prime Minister Pham Minh Chinh in Japan’s Hiroshima in May.
Meanwhile, Walmart of the U.S. said it will seek cooperation opportunities with Vietnamese partners in clothing and accessories, footwear, textiles and accessories, home electronics, furniture, and food and consumer goods.
According to Su Ngoc Khuong, investment senior director at Savills Vietnam, global retailers all see Vietnam as a lucrative market with a population of more than 100 million and good purchasing power, and many of them have invested in the country.
However, Nguyen Anh Duc, chairman of the Association of Vietnam Retailers, said that currently businesses do not have a strong connection in stimulating demand. Therefore, they should connect with each other and clearly define the way ahead such as a green economy or circular economy.
Four commercial center projects, namely Central Premium Plaza, Vincom Megamall Grand Park, Sunrise City Central and Emart 2, are expected to be put into operation in the coming time, adding more than 116,000 square meters of retail space, he said.
“This signals a bright prospect for the Vietnamese retail market in the long run when it can properly meet the needs of the new generation of consumers in Vietnam,” he noted.
- Read More
Thai food giant CP enters public-private partnership to promote food system transformation
Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.
Companies - Sat, November 2, 2024 | 7:16 pm GMT+7
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7
Vietnam likely to grow 6.5% in 2024-2025: VinaCapital
VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.
Economy - Sat, November 2, 2024 | 2:00 pm GMT+7
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7
Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3
Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.
Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7
ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout
Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.
Companies - Sat, November 2, 2024 | 9:13 am GMT+7
Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex
Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.
Industries - Sat, November 2, 2024 | 8:00 am GMT+7
Vietnam becomes Australia’s fastest-growing inbound market
The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.
Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7
Study finds shift in Thai consumers’ spending patterns
Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).
Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7
Energy security, digitalization key to Indonesia's economic growth
The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.
Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7
Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM
Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.
Politics - Fri, November 1, 2024 | 9:25 pm GMT+7
Vietnam, Qatar look to tap potential for energy, oil & gas collaboration
Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.
Politics - Fri, November 1, 2024 | 9:02 pm GMT+7
Thailand bans export of raw palm oil until December
Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7
Envision Energy to build $420 mln wind power plant in Vietnam from June 2025
Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.
Energy - Fri, November 1, 2024 | 8:30 pm GMT+7
Indonesia to ban plastic waste imports from 2025
The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.
Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7
Islamic economy makes up 48% of Indonesia’s GDP
The contribution of Islamic business activities to Indonesia’s GDP has been estimated at 48%, local authorities reported at the 11th Indonesia Sharia Economic Festival (ISEF).
Southeast Asia - Fri, November 1, 2024 | 8:28 pm GMT+7
- Consulting
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
In trade and investment, ASEAN and China are better together
-
AI can be a game changer for Vietnam tourism
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?