Retailers and distributors in Vietnam are set to face increased competition from international retail chains as the country opens its market in keeping with its World Trade Organisation obligations.
The local groups are considering ways to compete with the international giants as they enter the Vietnamese market, according to Thanh Nien News.
Pham Hoang Ha, vice chairman of the distribution company Phu Thai, said foreign retailers like Metro Cash & Carry and Big C were already gaining market share, and in future local players would have to compete with Walmart, Carrefour and Costco.
Mr Ha said the way forward was for distributors to join hands with producers to streamline operations, and for local retailers to play on their cultural expertise to increase consumption.
Vietnam is one of the most promising emerging markets in the world, and the country’s retail sales were worth almost US$45bn last year.
The retail sector is shared between a large number of smaller players, with the top five only accounting for 3 per cent of the market.
High inflation in Vietnam has been driving sales of luxury goods down, but food and other necessary products up.
No comments yet