Revenue from retail and services in the first two months of the year increased by 20.6 percent despite the global economic recession and a reduction in exports compared with December 2008. The growth is higher than the general economic growth of Vietnam, Truong Dinh Tuyen, former Minister of Trade said.
|Customers a supermarket in HCM City. Revenue from retail and services in the first two first months of the year increased by 20.6 percent (Photo: SGGP)|
Speaking at a seminar on domestic market control, held by VN Economy, March 11 in Ho Chi Minh City, the former minister said that retail and service growth has improved due to the large potential of the domestic market.
The domestic market accounts for 15 percent of GDP and employs around 5.4 million people, 10 percent of total employment.
This an estimate by the global management consulting firm A.T Kearney, which believes Vietnam has over taken India and China to become the most attractive retail market in the world, Mr Tuyen said.
According to figures given at the seminar, the number of goods sold through supermarkets and shopping centers accounts for 19.4 percent of the retail industry’s revenue.
Although this number has increased in recent months, it is still low compared with countries in the Southeast Asian region, such as Philippines with 33 percent, Thailand with 34 percent, China with 51 percent and Malaysia with 60 percent.