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Retail market maintains strong growth
The domestic retail market has retained strong growth despite adverse impacts throughout the rest of the economy due the global recession, said the Association of Vietnam Retailers (AVR).
According to the General Statistics Office, commodities retail and consumption services have reported revenues of 270 trillion VND in the first quarter this year, a year-on-year increase of 22 percent, significantly higher than the overall growth rate.
Domestic trade value accounted for more than 15 percent of GDP, and the domestic market has attracted 5.4 million additional labourers, more than 10 percent of the current total workforce.
Retail experts say the most important factor in these results is price, and evidence of this is shown in the mass discount and promotion programmes offered by producers and retailers.
For example, the price of small cars was cut after the special consumption tax law was passed, regulating a 5 percent tax reduction for small vehicles as of April 1.
Several large supermarket chains are also taking efforts to reduce the prices of their products to match those of traditional markets. For instance, the Big C supermarket chain has implemented price cuts from 7 to 50 percent on 250 types of products, and Maximark has cut prices on all their drink products.
Apart from small, staple consumer goods, the prices of electronic products such as refrigerators, washing machines, gas cookers, and fans have also been reduced by up to 50 percent.
Experts say the domestic market has laid a foundation for sustainable growth of the national economy and has attracted many local and foreign investors.
Apart from the growing consumption rate, the Global Retail Development Index (GRDI) is also indicating positive signs in Vietnam.
According to an announcement from US consulting firm A.T. Kearney, Vietnam’s GRDI was ranked first in the world last year, following its ranking of fourth in 2007.
The country’s retail goods and services consumption value is expected to continue going up at roughly 20 percent per year.
Vietnam is among the most lucrative retail markets in the world, according to global market research firm RNCOS. Numerous international brands are flocking to the market, it added.
AVR has reported that Vietnam’s total retail value in the 2006-2008 period increased 25 percent per year, compared to 11 percent prior to those years.
In 2008 alone, Vietnam’s total retail value is estimated at 970 trillion VND.
The country now has nearly 140 supermarkets, 20 trade centres, and nearly one million sq.m retail shops.
vietnamplus
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