VN has lucrative retail market: Research and Markets

Viet Nam is one of the five most lucrative retail markets in the world, according to a study conducted by Research and Markets, a global market research source.

In its “Viet Nam Retail Market Forecast to 2014″, Research and Markets predicted that retail sales would surge at a compound annual growth rate of around 23 per cent from 2011-14.

This growth was attributed by economic growth of around 6.8 per cent in 2010, changes in the country’s regulatory structure favouring foreign investors and increasing consumer attention towards modern retail concepts.

In the study, Research and Markets said because the sector was dominated by traditional players, the penetration of modern retailing in the country was quite low.

The researcher believed that most consumers preferred buying from corner grocery shops than modern outlets.

“This is opposite to international consumers, who tend to shop weekly or sometimes monthly,” it said.

However, the researchers still believed that modern retail channels would play a crucial role in future growth, improving their position in the market. “Increasing purchasing power, changing lifestyles, and the influence of western culture are some of the key growth drivers in the country’s modern retail market,” the research said.

It was also expected that, during the next few years, a short wave of consolidation would emerge as foreign retailers tried to consolidate their position and deepen their market penetration.

In urban areas, they forecast that demand for consumer goods would be strong.

“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,” it said.

While making the report, researchers analysed factors critical to the success of the retail industry in Viet Nam. It also identified key players in the market and included their recent activities. – VNS

Tags: vietnam retail industry, Vietnam retail market