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Number of retailers soars in first five months
The domestic retail market's spectacular growth in the first five months of the year has encouraged major retailers to launch new investment projects.
According to the Ministry of Industry and Trade, the national total retail sales of consumer goods and services in the last five months reached VND620 trillion (US$32.6 billion), a year-on-year increase of 26.9 per cent. The figure is estimated to increase by 20 per cent to VND1.44 trillion (US$75.8 billion) by the year-end.
Dinh Thi My Loan, Vice Chairwoman of the Viet Nam Retailers Association, said the domestic retail market had grown rapidly, as shown through the number of new trade centres and supermarkets opening every year in cities and provinces nationwide.
The country is expected to have about 850 trade centres and supermarkets as well as thousands of convenience stores by the year-end.
At least 15 major foreign retailers, including Wal-Mart, Carrefour, Tesco, Circile, Metro Cash&Carry, and Casino, have set up business or plan to do so in HCM City.
The US-based A.T. Kearney Alliance said the market was expected to have a turnover of US$85 billion by 2012, with many domestic and foreign retail firms intensifying investments in hope of expanding market share.
The Citimart chain owned by the Dong Hung Company typifies the trend. The company has just bought four Family Mart supermarkets from Parkson Viet Nam, increasing its total supermarkets to 30. This is the first time in Viet Nam that a domestic retail company was a franchise buyer from a foreign company.
Citimart General Director Nguyen Anh Hoa said Citimart decided to buy the Family Mart supermarkets of Parkson since most customers of the latter are high-income earners.
Many other retail enterprises have also focused their investments and expanded retail systems. Sai Gon Co.op plans to open 10 new supermarkets this year, increasing its total number to 50, with a yearly turnover of about VND11.5 trillion ($605 million).
Metro Cash&Carry will construct two new supermarkets in the provinces of Binh Duong and An Giang. Parkson Viet Nam also plans to open two new trade centres in Ha Noi and Da Nang. Japan's Family Mart retail company is due to increase its network to 100 in Viet Nam, with the first five new convenience stores in HCM City.
The VND1.8 trillion Crescent Trade Centre of the Phu My Hung Joint-Venture Corporation will make its debut with about 200 stores by the end of 2011.
The strong development of retail systems in the country has led to higher prices for retail space in HCM City, where the price has risen by 3 per cent downtown and 4 per cent in District 7 and Binh Thanh and Tan Binh districts.
A.T. Kearney Alliance said Viet Nam's modern retail system accounted for only 18-20 per cent of the domestic retail market's structure.
World Cup fever
Once every four years, the FIFA World Cup, the globe's biggest sporting event, enraptures football fans in Viet Nam, including the business community.
This year's World Cup, which lasts for 30 days, offers an opportunity for electronics shops and those in the restaurant and food and beverage industry to rack up sales.
Many bars, cafes and restaurants in HCM City have purchased new television sets to serve guests, and some have bought projectors to show matches on large screens.
The Seventeen Saloon and Lodge Bull Bar&Cafe on Pham Ngoc Thach Street, for example, have attracted many fans of the Mexican team thanks to their big screens. Both bars are decorated in Latin American designs.
A group of Japanese restaurants on Le Thanh Ton and Thi Sach streets, where many Japanese live, have also begun promotions.
Luxury hotels are also taking advantage of the opportunity for more sales. For instance, Rex Hotel's Rooftop Garden has installed a large screen TV and offers two beers for the price of one.
Electronics centres in the city have launched promotions as well.
Phan Khang Trade Centre on Tan Binh District's Hoang Van Thu Street has displayed a big ball at its front door to attract customers, and Nguyen Kim Company has two cars displayed at its centres that will be given as prizes.
Customers who make purchases at Nguyen Kim shopping centres and guess the correct winners of the games will win the cars, each worth VND6 billion ($315,000).
In Ha Noi, televisions have also been installed in many luxury venues, and electronic shops like Viet Long in Giang Vo Street, Top Care in Lang Ha and Cau Giay streets, and Nguyen Kim on Trang Thi Street, are advertising banners for new LCD TVs at discounted prices.
To attract foreigners, many shops in the city are selling flags and costume kits of teams that pass the qualifying round.
Tourism companies are also profiting from the World Cup, but the number of bookings is lower than four years ago because the trips are expensive.
Vietravel reported that it received bookings from some 80 guests in June, mostly in the form of Free and Easy tours (Combined air ticket and accommodation). Saigontourist said 120 people had booked tours to South Africa.
Wood products face tariffs
Many leading experts from the
wood processing industry have expressed concern over the possibility of punitive tariffs in major export markets. They have asked the Government and businesses to help prevent such trade barriers.
The industry said the tariffs were coming at a time when the industry was recovering from the global recession. It is now receiving a high number of overseas orders, especially from the US and Europe. But now antidumping lawsuits are a possibility.
Thien Ly
vietnamnews
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