Fast, strong, developed and fierce are the adjectives that best describe the situation of retail industry in Vietnam in recent years, especially the period of 2018 and the first half of 2019. VIPREMIUM exhibition takes place on May 30 – 2/6/2019 will bring a panoramic view to this issue.
According to A.T.Kearney’s Market Research, Vietnam ranked 6th in the global market for development index in the retail industry. That is why Vietnam is being called the “golden land” to attract foreign investment.
In 2018, total retail sales of consumer goods and services are estimated at nearly VND4.4 million, up 11.7% compared to 2017, becoming the highest and highest growth rate in the last 5 years. here. Particularly, the country’s retail sales of goods in 2018 was estimated at 3,306.1 trillion dong, accounting for 75.2% of the total and increasing by 12.4% over the previous year. In the first quarter, in 2019, retail sales of goods were estimated at 910.4 trillion VND, accounting for 76.8% of the total and increasing by 13.4% compared to the same period in 2018. This growth rate was from the increase of water distributors out. Therefore, the retail market in Vietnam has become more “thrilling” than ever before the participation of foreign enterprises and domestic retailers.
At the end of 2018, Sumitomo Group from Japan successfully cooperated with BRG Group to bring the FujiMart brand into Vietnam with the first supermarket in Hanoi. Auchan Group from France also strongly deployed Simply supermarket chain in the North. The southern area with the investment of Central Group (the managing unit of Big C Vietnam) also quickly opened the door of Go! My Tho area in the Southwest region.
In a trend of “occupying” the market by foreign enterprises at the present time, domestic enterprises have also made specific moves to win investment opportunities.
Domestic retail businesses can include Saigon Co.op with Co.opXtra and Co.opXtra Plus through retail channels: Co.op Food and Co.op Smile convenience store, trade center, supermarkets and hypermarkets, especially cooperating with HTV to open online sales channel Coophomeshopping.vn.
Another big one is VinGroup with VinCommerce General Services Trading Joint Stock Company, which owns more than 1700 convenience stores Vinmart + and this number increased rapidly after the acquisition of Shop & Go convenience store chain. for the price of 1USD recently. In addition, there are 66 Vincom Center trade centers and electronics stores Vinpro / Vinpro +. Vingroup also invests in Adayroi.vn e-commerce site to develop diversified distribution channels…
According to the latest market report from Nielsen about the level of wealth of Vietnamese consumers, 69% of Vietnamese consumers are still choosing traditional stores such as shopping centers, supermarkets and hypermarkets, shops. … to buy high-end products. In modern distribution channels such as e-commerce, online shops … up to 48% of consumers approach this method. And 27% chose to buy from online retailers abroad. The survey also indicated that 23% of Vietnamese consumers choose to buy high-end products through foreign tourism.
According to the report, Nielson pointed out the top 5 product groups that Vietnamese consumers are willing to pay for high-end products, including: cosmetics (46%), clothing / footwear (44%), electronics individuals (43%), body care products (41%) and meat / seafood (38%). Notably, more than half of the respondents are willing to pay high prices for products with environmentally friendly materials (55%) or natural / organic ingredients (52%).
Thus, the retail situation of high-end products is achieving growth expectation in the near future.
The trend of market development as analyzed above is the reason for Vietnam to attract investment from other countries. Annual organization with a remarkable result, the VIPREMIUM exhibition in 2018 attracted 117 businesses with 205 booths from 5 countries. Especially, there were 6150 attendees including 3200 commercial customers.
From the achieved figures, COEX company with KITA and VINEXAD continue to hold an International Exhibition Supply of High-end Products for Vietnam market 2019 at SECC exhibition center, 799 Nguyen Van Linh, District 7, HCMC. The program takes place at 10:00 – 17:00 from May 30, 2019 to June 2, 2019. Exhibition VIPREMIUM 2019 is expected to bring a high result in the development trend to deserve the “golden land” in the current investment village of Vietnam.