Ho Chi Minh City’s revenue from retail sales in the first half of this year is estimated at more than 328.58 trillion VND (14.47 billion USD), accounting for 65.3 percent of the city’s total earnings from retail sales and services and up 12.9 percent from the same time last year.
Retail revenue in Vietnam approximated US$129 billion in 2017, a year on year increase of 11 percent and a quite high ratio compared to the Southeast Asia region, according to a report by Savills Vietnam Company yesterday.
Vietnam is estimated to be one of the most attracting retail markets in the world, however modern distribution channels such as supermarkets, convenience stores and commerce centers have gradually fallen into foreign firms who have held up to 53 percent revenue.
Many foreign investors said that electronics and refrigeration retail market in Vietnam has not been exploited yet and the country’s consumption of electronic and refrigeration appliances will rise from 7.3 percent to 11.9 percent by 2020.
Vietnamese Vingroup’s acquisition of 100 percent stakes of Maximark chain at the end of October has heated up retail market. The deal is said an affirmation that the retail market has leaned to investors with strong financial ability not only experienced foreign giants.
The 2015 scheduled establishment of ASEAN Economic Community (AEC) together with the implementation of World Trade Organization (WTO) commitments and other bilateral and multilateral free trade agreements will completely help Vietnam’s retail market to go out the restriction, putting local businesses in a face to face competition to foreign giants.