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Retail still awaits foreign takeover
Six months after being thrown open to foreign investors, the retail market has not seen much change, according to a senior Government official.
Vo Van Quyen, deputy director of the Ministry of Industry and Trade’s Domestic Market Policy Department, said many people had feared foreign retailing groups would take over the market, building large and modern malls, leaving small Vietnamese retailers in the lurch.
"But nothing like that has happened," he said, adding not many new foreign retailers had sought to enter the country while existing players had been wary of expanding.
The one obvious reason for the hesitation is the ongoing global financial crisis.
Only FamilyMart, a leading Japanese convenience store, plans to open an outlet in Viet Nam this year in co-operation with local distribution company Phu Thai Group.
Despite being licensed to open 15 outlets, South Korea’s Lotte Mart has not gone ahead after opening its first in HCM City.
The hesitation among foreigners is offering local retailers an ideal opportunity to grab a larger market share.
Sai Gon Co.op, one of the leading domestic retailers, opened two supermarkets in Binh Phuoc and Ba Ria –Vung Tau provinces last month, raising its total number of outlets to 37.
Citimart, Hapro, Intimex and Vinatex also plan to open more outlets.
Together with the expansion, local players have also enhanced service quality to attract customers.
Foreign expansion
Foreign retailers already with a presence in the country, like Metro Cash & Carry, Big C, and Parkson, all have plans to expand.
The German-based Metro said it planned to open two more outlets in Dong Nai and An Giang provinces, raising its total number to ten.
France’s Big C Group is set to open its ninth outlet in Hue City next month.
Vu Vinh Phu, chairman of the Ha Noi Supermarkets Association, said domestic retailers should focus more on improving their distribution and management, training their sales team, building brands, and developing distribution networks in rural areas to strengthen their position.
Despite the economic situation, revenue in the retail sector rose 21 per cent year-on-year in the first five months, according to the General Statistics Office.
There are now around 400 supermarkets, 60 shopping centres and close to 2,000 convenience stores in the country, and the number of supermarkets is expected to increase by 62.5 per cent by next year and shopping centres by 150 per cent.
vietnamnews
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