Retail sales continue upward spiral

04-Jan-2019 Intellasia | The Saigon Times | 6:00 AM Print This Post

Vietnam’s retail sales are forecast to amount to nearly $150 billion this year, up from some $140 billion last year, according to the general Statistical Office (GSO).

With an annual growth rate of over 10 percent, local retail sales are expected to maintain their upward trend and attract more foreign retailers in the years to come.

According to GSO, last year’s retail sales growth is remarkable compared with that of previous years. In 2016, the retail sector recorded a sales value of $118 billion, rising some 10 percent versus that of 2015, while that of 2017 totalled nearly $130 billion.

The retail sales of some product groups saw a strong increase over the past year. Precious stones and metals, wooden products and building materials, food and foodstuff, household appliances, and clothing all registered an increase of over 10 percent versus the year-ago figures.

Also, some localities across the country recorded considerable growth in sales, with the average growth rate fluctuating between 10 percent and 15 percent, such as Vinh Phuc, Hai Phong City, Thanh Hoa and HCM City.

Experts noted that the local retail sector was reaping multiple benefits from the country such as the stable economic growth rate, rising incomes per capita and a large proportion of young consumers. Moreover, the local modern retailing model has made itself widely known and thus continues to attract investment from foreign investors.

Over the next few years, experts forecast that many foreign retailers will establish their businesses in Vietnam, introduce new products and modern technology and offer more convenient services to local consumers, such as through robot sellers and the elimination of checkout counters. Further, the upcoming presence of foreign retailers is expected to motivate local retailers to change for the better.

In 2018, many modern retailers at home and abroad joined the local market or expanded their scales under various business models, such as convenience store operators (7 Eleven, Circle K and Ministop) and giant retailers (Saigon Co.op, Aeon and Auchan).

Although multiple major retailers have established a firm foothold in the local market, there will be many more opportunities for latecomers to grow if they can apply advanced technology to their operations, make a difference and offer more added value to consumers, remarked the experts.

According to Vietnam Report, Vietnam is considered one of the major retail markets in Asia thanks to its emerging economy and rising consumption rates. Its retail market may reach an estimated value of VND160 billion by 2020.

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Category: Economy, Vietnam

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