(VOVWORLD) -A population of 100 million and a rising standard of living makes Vietnam a fertile retail market full of growth opportunities. Vietnam’s strong growth momentum in recent years in retail sales of goods and services has lured international businesses.
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Since 2000 Vietnam’s retail market has recorded the highest growth rate in the world, averaging 25% per year and even more since Vietnam joined the WTO in 2007.
According to the Department of Domestic Market at the Ministry of Industry and Trade, in 2007 Vietnam had 140 supermarkets and megamarkets and 20 shopping centers. Now it has 1,100 supermarkets, 240 shopping centers, and 2,000 convenience stores. The market has grown from 42.5 billion USD in 2007 to 142 billion USD last year.
The General Statistics Office reports that retail sales of consumer goods and services increased 11.5% in May.
Nguyen Anh Duc, Chairman of the Vietnam Retailers Association and General Director of Saigon Co.op, said, “In the first five months of the year the retail market was slowed by overall market trends, but it continued to grow. Consumers want higher-quality goods and better designs. These demands are challenging retail businesses.”
The expansion of Vietnam's retail market has attracted many foreign retailers. Vietnamese consumers can now buy many goods from Japan, South Korea, and the US.
Mr. Duc said that despite the global economic recession, Vietnam's retail market holds many opportunities for businesses.
“Retailers and distributors have certain opportunities. They still have niche markets. The business models that prevail are those that serve specialized needs. Models that offer greater convenience to customers still have dependable growth. The market for essential consumer products presents opportunities for retailers and also for manufacturers and distributors.”
The Ministry of Industry and Trade estimates that Vietnam’s retail market will expand to 350 billion USD in 2025, contributing 59% of GDP.