Vietnam is at 11th spot in the Global Retail Development Index (GRDI) ranking by AT Kearney and has been among the top 30 fastest emerging global retail markets since 2008. According to the study, Vietnam has low market saturation and its GDP growth is highest among Southeast Asian countries in the GRDI.
Its GDP has grown 5.2% annually since 2013, the highest among its Southeast Asian peers also ranked in the GRDI.
Export growth and a 17% increase in foreign direct investment has spurred economic growth, underpinned by Vietnam’s geographic advantage and low labour costs. This foundation led to impressive growth in 2015 in the retail sales area (22%) and in retail sales (9.5%).
Ecommerce in Vietnam is expected to grow as the use of mobile phones spreads and online shopping becomes more common. Ecommerce campaigns are ramping up, including Online Friday, held by onlinefriday.vn, which attracted 1.1 million visitors and close to 2,000 participating retailers.
From 2011 to 2015, Vietnam saw a continuous growth in retail turnover, worth $111 trillion (VND 2.47 trillion), accounting for 76.2% of the total retail and consumption value, according to a workshop discussing challenges facing the domestic retail sector in international integration held in HCM City on June 28.
Many market research companies and experts forecast that the retail market of Vietnam has great prospects for high growth in the future, driven by a population of 91.7 million with high consumption demands.
President of the Vietnam Retailers Association, Dinh Thi My Loan, underlined the challenges facing domestic retailers in international integration. Echoing Loan’s opinion on the increasing competition in the market, Nguyen Thi Thu Trang, director of the Centre for WTO and Integration of the Vietnam Chamber of Commerce and Industry (VCCI), called for incentives to ensure the sector’s sustainable development.
For the first five months this year, Vietnam’s total retail sales and services revenue reached $63.4 billion (VND1,430 trillion), a year-on-year increase of 9.1%. Meanwhile, the purchasing power of goods retailers witnessed high growth of 9.5% in the period, amounting to $86 billion (VND 1,920 trillion), accounting for two-thirds of the total retail sales and services revenue.