Retail losses raise taxing questions The Vietnamese retail market is growing rapidly and is considered one of the retail and distribution markets in Asia with the highest potential due to the young labour force, high-speed urbanisation, and the development of industrial production and services. According to the Global Retail Development Index 2017 (GRDI) by consultancy firm A.T. Kearney, which evaluates emerging markets, Vietnam has climbed five steps to claim the sixth place in the overall rankings, trailing only the large markets of India, China, Malaysia, Turkey, and the United Arab Emirates. However, some retail giants have been reporting negative business results in the country over the past years. Specifically, Big C Thang Long’s revenue has decreased over the last two years, from VND2.81 trillion ($124.3 million) in 2015 to VND2.72 trillion ($120.4 million) in 2016 and VND2.7 trillion ($119.5 million) in 2017, while its profit also declined sharply from VND164 billion … [Read more...] about Retail losses raise taxing questions
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Deal to help offline to online businesses discover latest retail trends
The Viet Nam E-Commerce Association and Reed Tradex Co., Ltd on July 5 in HCM City sign an agreement to organise offline to online events at “OnlineBiz Vietnam” to be held next year. — VNS Photo The Viet Nam E-Commerce Association (VECOM) and Thailand-based Reed Tradex Co., Ltd on July 5 signed an agreement to organise offline to online events at “OnlineBiz Vietnam” to be held next year. “OnlineBiz Vietnam 2019” is a special feature of “Shop & Store Vietnam 2019,” which will showcase advanced e-commerce platforms and solutions for retail and consumer goods. Nguyen Ngoc Dung, vice president of VECOM, said Viet Nam’s e-commerce revenue is expected to grow by 35 per cent this year. With a young, tech-savvy population with high consumption demand, e-commerce in Viet Nam has plenty of potential to grow, he said. Suttisak Wilanan, deputy managing director of Reed Tradex, said the launch of OnlineBiz Vietnam would complement … [Read more...] about Deal to help offline to online businesses discover latest retail trends
Local retailers urged to raise competitiveness
Local retailers urged to raise competitivenessThe Saigon Times Daily A staffer arranges goods at a Co.opMart supermarket in HCMC. Local retailers are urged to raise their competitiveness - PHOTO: THANH HOA HCMC - The penetration of large international retail firms into the Vietnamese market and the rising popularity of online shopping sites such as Shopee, Sen Do and Lazada have forced local retailers to make full use of their home-ground advantages to raise their competitiveness, according to news site Vietnamplus. Vietnam is an attractive market for investors in the retail sector, but given the intense competition, experts suggest that local retailers with a better understanding of customer habits and the local market should raise quality standards and map out detailed and effective competition strategies. According to a survey on the retail sector in 30 developing countries worldwide, conducted by consulting firm A.T. Kearney, Vietnam is one of the most attractive retail … [Read more...] about Local retailers urged to raise competitiveness
Vietnam retailers bristle at coercive rules
A draft law requiring all supermarkets in Vietnam to open through holidays and provide online sales and delivery services has angered retailers. They say rules cannot set for marketing strategies that are decided by businesses based on their own assessment of market conditions. The provision in the Decree of Development and Distribution Management, proposed by the Ministry of Industry and Trade, will apply to retail outlets that have an area of at least 250 square meters (2,690 square feet), and malls with more than 10,000 square meters (over 107,600 square feet). The new rules also say supermarkets and malls can only have a maximum of three discount events a year, with 30 days at the most for each event, and 70 percent of all items must be discounted at such events. Supermarkets and malls also need to open from 10 a.m. to 10 p.m. every day, including holidays. They must offer delivery service and online shopping to customers, the bill says. Whether a supermarket offers delivery … [Read more...] about Vietnam retailers bristle at coercive rules
The rise of social network retailers in Vietnam
Like many urban Vietnamese women, Nguyen Thu Trang never lets her smartphone out of reach. The first thing she does every morning is checking Facebook on her phone to see what her friends are up to and what items are for sale. “Social networks help me keep in touch with friends and stay up to date with latest trends. It is also a very effective shopping channel,” said the 32-year old office worker in Hanoi. Trang prefers Facebook to local e-commerce sites because she can directly inquire sellers for the specific information she needs. For fashion products such as clothing items or shoes, she can decline to buy the items when they are delivered if they don’t fit or their quality doesn’t match what she expects. Trang is just one of millions of Vietnamese social media savvy users who regularly shop on channels like Facebook, Instagram and homegrown Zalo. They buy everything, from groceries and homemade products, to cosmetics, clothes and household items from … [Read more...] about The rise of social network retailers in Vietnam
Retail goods, services gross 1.4 quadrillion VND in four months
Customers at a supermarket in Hanoi (Photo: VNA) Hanoi (VNA) – Retail goods and services generated revenues of nearly 1.4 quadrillion VND (63 billion USD) in the first four months of 2018, a year-on-year rise of 9.85 percent. Tourism recorded the strongest growth of 26.1 percent thanks to economic recovery, increasing tourism demand, and the increasing number of foreign tour packages in Vietnam, according to the Ministry of Industry and Trade. Other groups saw a year-on-year increase ranging from 8 to 12.7 percent. In April alone, the total sales of retail goods and services reached over 350.5 trillion VND (15.3 billion USD), up 1.7 percent against the previous month and 9.54 percent over the same period last year. The total revenue from retail sales and services reached 3.93 quadrillion VND (174.85 billion USD) in 2017, surging 10.9 percent year-on-year, according to the General Statistics Office (GSO). In 2016, Vietnam was listed in the top 30 most lucrative emerging … [Read more...] about Retail goods, services gross 1.4 quadrillion VND in four months
Cuban cigar sales hit record as China demand surges
HAVANA -- A surge in sales of Cuba’s legendary cigars in China helped manufacturer Habanos S.A.’s global revenue rise 12 percent to hit a record of around $500 million last year, the company said on Monday at the start of Cuba’s annual cigar festival. Habanos S.A., a 50-50 joint venture between the Cuban state and Britain’s Imperial Brands Plc, said sales in China, its third export market after Spain and France, jumped 33 percent in value in 2017. “Without doubt, there is potential for China to become the biggest market at a global level,” Habanos Vice President of Development Jose María Lopez told Reuters after the company’s annual news conference, while puffing on a smoke. The Cuban monopoly cigar company’s hand-rolled cigars, which include brands such as Cohiba, Montecristo and Partagas, are considered by many as the best in the world, and the festival attracts wealthy tobacco aficionados and retailers from all over for a week of … [Read more...] about Cuban cigar sales hit record as China demand surges
Vietnam mall operator debut helps entice world’s record stake sale in 2017: data
A Mexican tequila maker, a Vietnamese mall operator and Indian life insurers were just some of the stockmarket debuts that enticed sovereign investors to take chunky stakes in record numbers last year, and the trend shows no sign of stalling. In data just released, the Sovereign Wealth Fund Institute data put the number of initial public offerings (IPOs) "anchored" by SWFs at a record 26 in 2017, with some $826 million committed, up from $196.7 million in 2016. Taking an anchor or cornerstone stake means investors commit to a hefty investment in advance of the listing, de-risking the process. The upsurge in interest from SWFs, which hold some $6 trillion in assets globally, could encourage more emerging market companies to list after a strong 2017 in which the Asia-Pacific dominated global activity by both number of deals and proceeds according to EY. Funding database PitchBook, which also tracks the market, identified SWF participation in a record 28 IPOs in 2017, worth some … [Read more...] about Vietnam mall operator debut helps entice world’s record stake sale in 2017: data
Stronger competition forecast for retail market next year
Stronger competition forecast for retail market next yearBy Hoang Phi - The Saigon Times DailyHCMC – With retailers making a foray into the local market this year, the competition is expected to grow fiercer next year as the market is getting crowded.Nguyen Anh Duc, deputy director of Saigon Union of Trading Co-operatives (Saigon Co.op), the owner of the famous Co.opMart store chain, said the retail market next year would become an interesting playing field for local and foreign retailers.But there might be less newcomers next year, Duc said, citing the Global Retail Development Index (GRDI) which was released last month by A.T. Kearney Consultancy Group. Vietnam has become less attractive, dropping to the 23rd from the 14th place last year and far from the first position four years ago, according to GRDI.With criteria such as attractiveness, level of risk, saturation and time pressure of markets, the GRDI ranks the top emerging countries for retail development and shows that the … [Read more...] about Stronger competition forecast for retail market next year
21st century retail gets local
Increased consumption and consumer demand have in recent years made Vietnam a more desirable destination for several international retailers – one which is expected to see giant retailers embracing the omnichannel approach to retail in 2018. A lucrative year Thanks to new retail experience, South Korean retail giant Emart recorded a healthy performance following its local debut in Vietnam in late 2015. Le Huu Tinh, marketing manager of Emart Vietnam, said that the retailer fared well in 2017, with business results surpassing the previous year’s figures by 30 per cent. Emart Go Vap in Ho Chi Minh City attracted 10 million visitors in 2017, up 25 per cent against 2016. “With the aim of becoming the number-one hypermarket, Emart is planning to open another outlet in Ho Chi Minh City in 2019. If all goes as planned, the number of new outlets will not stop at one,” he said. In 2017, Lotte Mart Vietnam also achieved high marks, with sales … [Read more...] about 21st century retail gets local