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Retail sales reach $45b in first seven months
Total retail sales reached VND877.5 trillion (US$45 billion) in the first seven months of this year, a rise of 26.4 per cent against the same period in 2009.
The General Statistics Office's seven-month retail report showed that foreign investment contributed VND25.2 trillion ($1.3 million) to the economy, 2.9 per cent of total retail sales, an increase of 43.4 per cent over the corresponding period in 2009.
State-run businesses saw an increase in retail sales of 41.5 per cent, while non-State firms' growth was 42.2 per cent.
Truong Quang Hoai Nam, Head of the Domestic Market Department at the Ministry of Industry and Trade, said foreign investors considered Viet Nam as a promising investment destination.
Meanwhile, global ratings agency AT Kearney predicted that Viet Nam's retail industry would grow over the next few years and that consumer spending would rise above its current level of 70 per cent of a household's income.
Nguyen Thi Hoang Thuy, Director of Mutrap III Programme, said the retail and distribution industry had contributed 14 per cent towards the country's gross domestic product since Viet Nam became a member of WTO .
However, Thuy said accession to the world trade body had not brought the anticipated influx of foreign retail investment. "A revision of [the retail] market is needed," Thuy said.
Nam said the legal framework governing the retail industry was insufficient and had resulted in investor hesitancy.
On the other hand, he said domestic investors were almost gung-ho in their approach.
"The development of the domestic retail industry seems spontaneous," he said.
Vo Tri Thanh, Deputy Head of the Central Institute for Economic Management, was optimistic about Viet Nam's retail sector, which he predicted would grow strongly over the next 10-15 years.
However, corporate competitiveness should be improved to achive this growth from securities companies by enhancing the flow of information and the skills of the work force."
In the first seven months of this year, retail sales from services were worth VND78.8 trillion ($4.04 billion), up 22.1 per cent over the same period in 2009. Retail turnover in the hotel and restaurant industry alone generated VND96.03 trillion (about $5 billion).
The Ministry of Industry and Trade said it expected retails sales this year to grow 22 per cent year on year to $78.9 billion.
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