The attractiveness of Vietnam to foreign retailers has fallen from first to 14th place over the past three years, according to a retail business development index released by AT Kearney.
In 2008 Vietnam topped the index and appeared ripe for development after it opened its retail sector to foreign companies in 2009 under World Trade Organisation commitments, reported VietnamNet.
While recent rumblings from UK-based retail giant Tesco indicate it is eying a move into the country’s retail sector, the majors are yet to make an appearance.
VietnamNet reported part of the reason the world’s leading retailers are still absent form the country could be the modest incomes of Vietnamese consumers compared to other countries.
Meanwhile Vietnamese retailers, such as Saigon Coop and Big C, are increasing their market share, with 43 per cent of the country’s population now shopping at supermarkets, up from 21 per cent in the past, reported VietnamNet.
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