Retail sector trails region

The growth of the nation’s retail market is far below its actual potential, said Viet Nam Retailers Association vice chairwoman Dinh Thi My Loan, calling for greater domestic and foreign investment in the sector.

Total retail trade and service-related consumption has increased by 18-20 per cent per year in recent years, Loan told a business seminar yeserday in Ha Noi. By the end of 2008, the country had over 8,300 markets of all kinds and nearly 400 supermarkets and shopping centres, compared to modest 10 supermarkets and 2 shopping centres in 1995.

The emergence of modern retail trade and foreign retailers has brought a breath of fresh air to the domestic retail market, as Vietnamese retailers have had to improve their services in order to remain competitive, Loan said.

“We see great opportunities for Viet Nam’s retail market in the next year thanks to the fact that Viet Nam has become one of the most important markets in the region, with consistent consumer demand,” said Eurocham Ha Noi director Matthias Duehn. But a lack of professionalism, inadequate human resources, poor financial and management capacities, and inadequate marketing skills and branding remained challenges to domestic retailers.

In addition to improving product quality and reducing prices, participants in yesterday’s seminar emphasised the importance of closer co-operation among the domestic retailers and manufacturers to better cope with stiff competition from foreign rivals.

Good retail locations, effective promotion and loyalty programmes were also described as ways for retailers to drive brand loyalty and promote regular purchases of products.

Customers shop at a Co.op Mart supermarket in HCM City. The growth of the nation’s retail market is far below its potential, says the Viet Nam Retail Association.

VietNamNet/VNS

Tags: Vietnam business news, Vietnam retail market