Outlook positive for Vietnam’s retail market

Economy

Outlook positive for Vietnam’s retail market

Wednesday, February 17, 2021

Despite a raft of difficulties facing Vietnam’s retail market, economists and insiders are still optimistic about the outlook for the sector in the time ahead, according to the Vietnam Report JSC.

Many consumers have opted for online shopping, convenience stores, shopping centres, and supermarkets, rather than traditional markets.

Despite a raft of difficulties facing Vietnam’s retail market, economists and insiders are still optimistic about the outlook for the sector in the time ahead, according to the Vietnam Report JSC.

In a recent survey, Vietnam Report found that nearly 42 percent of Vietnamese retail companies have been seriously impacted by COVID-19, while half said the impact has not been too serious and 8 percent experienced only minor effects.

Many people have had to cut their spending after becoming jobless or having their wages reduced due to the pandemic. Retail companies, meanwhile, have had to face a shortage of capital and disrupted supply chains.

However, Vu Dang Vinh, General Director of Vietnam Report, said economists and insiders remain optimistic about the sector’s outlook.

In following COVID-19 prevention and control regulations, many consumers have opted for online shopping, convenience stores, shopping centres, and supermarkets, rather than traditional markets.

Vinh pointed to the increased popularity of multi-channel marketing, both online and in-person, while adding that thanks to quick changes, many retail businesses, including giants like Lotte Mart, have posted online sales growth of 100 to 200 percent, especially in Hanoi and HCM City.

Mergers and acquisitions (M&As) are also expected to boom in Vietnam’s retail market in the time ahead, he said, explaining that more than 60 percent of local retailers are of small and medium-size and have significant demand for capital, so are ready to enter into partnerships.

Analysts also said the mini-supermarket model has proven superior amid the pandemic, as it can limit large gatherings.

Retailers have therefore poured more investment into this model while introducing more changes to better meet customer demand.

VNA

Other news

Yen Bai invests over 600 billion VND in digital transformation

Viettel Yen Bai assists highland residents in utilizing digital platforms and applications.

Since 2021, Yen Bai Province has allocated over 600 billion VND from its budget and socialized resources to implement digital transformation initiatives, focusing on information technology infrastructure and related projects.

Yen Bai strives to improve investment environment

In May 2024, Yen Bai provincial leaders handed over the Decision on Investment Policy Approval to Honna Hitoshi, Chairman and CEO of Erex Group.

As a mountainous province located deep inland, Yen Bai boasts significant potential for development. The province is rich in mineral resources with hundreds of mining sites, complemented by breathtaking natural landscapes. Additionally, Yen Bai has planned several concentrated commodity production zones.

Yen Bai City completes digital transformation indicators for 2024

Youth union members assist residents of Nam Cuong Ward, Yen Bai City, in scanning QR codes for the AI digitalization project of historical sites, including temples, pagodas, and communal houses in the area.

According to the self-assessment results for the 2024 Digital Transformation Index, Yen Bai City achieved a total score of 909.5 out of 1,000 points based on the Digital Transformation Evaluation Index for provincial departments, agencies, districts, towns, and cities in Yen Bai Province.

Hoang Lien Son Technical Porcelain JSC produces and distributes over 3,400 tons of insulating porcelain products

Hoang Lien Son Technical Porcelain JSC surpasses its revenue target, achieving over 126 billion VND.

In 2024, despite facing numerous challenges due to rising input material costs, Hoang Lien Son Technical Porcelain joint Stock Company successfully produced and distributed over 3,400 tons of insulating porcelain products of various types, achieving 112% of its annual plan.

Economy