Vietnamese businesses are urged to pay due attention to developing retail systems for domestic goods amid the global economic downturn-triggered the sharp drops of exports to major export markets including the U.S., the EU and Japan, local economists at a seminar held in Hanoi Jan. 7.
Speaking at the event, Deputy Industry and Trade Minister Nguyen Cam Tu stressed that the domestic market will act as a fulcrum for locally-made products during 2009.
Tu added though local producers have made great efforts to improve the competitiveness of domestic products, they still have weaknesses in market research and product marketing and distribution, which hinder the sales of locally-made commodities.
Meanwhile, domestic goods are facing severe competition on home soil from goods manufactured abroad, with Chinese goods offering the greatest threat, said Vu Thi Kim Hanh, director of the Business Supporting Associates (BSA).
In order to promote domestic goods consumption, participants at the seminar suggested that the rural market should be focused upon, as it now accounts for 70 per cent of the country’s goods consumption.
According to the Vietnam Retailers’ Association, the country’s retail sales rose 25 per cent in the 2006-08 period, more than doubling the figure in the previous period. In 2008, retail sales reached VND968.067 trillion (US$57.282 billion) in 2008, up 31 per cent on year.
Vietnam now has around 400 supermarkets and 60 trade centers, and 2,000 convenient stores nationwide. It is expected that the number of supermarkets and trade centers will rise 62.5 per cent and 150 per cent in 2010, respectively.
The nation has been become the most attractive emerging market for retail investment, lifting from the fourth in 2007, said the 2008 Global Retail Development Index (GRDI), an annual study conducted by AT Kearney of retail investment attractiveness among 30 emerging markets. (VNS Jan 8 p16, Youth Jan 8 p3, Vietnam Economic Times Jan 8 p5)
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