Vietnam has been ranked sixth among the world's most attractive retail markets and named in the top 30 most lucrative retail markets this year, said Hoang Anh Tuan, deputy head of the Ministry of Industry and Trade (MoIT)'s Domestic Market Department. Tuan made the remarks at the Vietnam Retail Forum 2017 which was held by the Association of Vietnam Retailers (AVR) in Hanoi on December 12. Tuan said that according to the Global Retail Development Index (GRDI), released by the US-based A.T. Kearney in June this year, Vietnam's retail market has increased significantly in recent years and attracted a large number of foreign merchants. A series of giant retailers from Japan, Thailand, the Republic of Korea, and France have boosted their investments in Vietnam, showing the allure of Vietnam's retail market with a large and youthful population of more than 90 million. However, Tuan stated that Vietnam's retail market has become more competitive, creating huge opportunities and … [Read more...] about Vietnam Listed among Top Six Most Attractive Retail Markets
Retail
Logistics infrastructure insufficient for retail sector
Logistics infrastructure insufficient for retail sectorBy Thu Nguyet -The Saigon Times Daily HCMC – Vietnam’s retail industry is forecast to post stronger growth but it is facing challenges as inadequate infrastructure is obstructing the flow of goods from retail sites to the customer.The report says the industry is set for double-digit growth. The modern distribution system is seen making up 40% or 60% of the marketplace by 2010 and 2020 respectively. Many foreign retailers and distributors have also unveiled plans to expand operations or enter Vietnam, including Carrefour and Wal-Mart. A convenience stores system is expected to develop strongly. Sectors such as food, beverage and fashion may achieve the highest annual growth in the retail industry. Mega Lifesciences Pty Ltd, a Thai medicine and functional food distributor, came to Vietnam since the early 1900s and saw 15% annual growth. The company, however, found challenges in Vietnam’s … [Read more...] about Logistics infrastructure insufficient for retail sector
Retail sector searches for common ground
Against global recession and financial crisis, Viet Nam’s retail industry has cemented its position in the economy as an effective bridge between producers and consumers, actively orienting buyers towards domestic products.Remarks from the Vietnam Retail Forum (VRF) on Tuesday showed that the country’s modern retail industry had come a long way since the Association of Vietnam Retailers (AVR)’s establishment a decade ago.In 10 years as a World Trade Organisation member, Viet Nam’s retail sector braved many challenges on the domestic market that the AVR considered insurmountable without enterprises’ determination to implement the Government’s action plan, said Dinh Thi My Loan, AVR president.Pham Dinh Doan, CEO of the Phu Thai Group, spoke on the national retail and distribution system at the forum, including challenges and solutions under the influence of global economic integration and foreign competition.Doan said Viet Nam certainly had a potential … [Read more...] about Retail sector searches for common ground
Youth, high-income people to drive retail growth
Youth, high-income people to drive retail growthBy Mong Binh - The Saigon Times DailyZoya Vassilieva, director of advisory services at PricewaterhouseCoopers Thailand, pointed out at the function that the high percentage of young consumers would be one of the factors that helped Vietnam stand out in the list of emerging retail markets including China and Russia.Rik Mekkelholt, director for shopping malls of Big C Vietnam, underscored the potential of Vietnam’s retail market, saying around 60% of Vietnamese were less than 30 years old.The young consumers, Mekkelholt said, are able to earn more money and spend more as one of the good fundamentals for the further growth of the retail sector. Young people are also better informed of happenings in this market, he added.So, the fundamentals for the country itself triggered modern retail to grow to meet the demand, Mekkelholt told the Daily after the luncheon.Vassilieva said that since modern retail in Vietnam was in its infancy, it was … [Read more...] about Youth, high-income people to drive retail growth
Fuel trading firms await ministries to cut retail prices
Fuel trading firms await ministries to cut retail pricesMinh Tam By Minh Tam - The Saigon Times Daily HCMC – Fuel wholesale traders are still waiting for a decision of the ministries of industry-trade and finance to revise down their retail prices despite sharp crude oil prices on global markets. A representative of a small petroleum firm in the south told the Daily that fuel prices in Singapore have fallen significantly these days. For example, on November 4, the prices of RON92 petrol and diesel oil dropped to US$91.5 per barrel and US$97.5 per barrel respectively, down by US$1.5-3 per barrel against the previous day. The prices were much lower than the levels of US$95.03 per barrel and US$97.72 per barrel on October 27 in Singapore, which is a major fuel supplier of Vietnam. Therefore, the base price, which is constituted by the world’s average 30-day price plus taxes and costs and used to set local retail prices, is VND1,000 per liter lower than current retail prices on … [Read more...] about Fuel trading firms await ministries to cut retail prices
Retail rent down on Q2 woes
Retail rent down on Q2 woesBy Dinh Dung - The SaigonTimes DailyHCMC – Like the residential and office segments, the retailmarket in HCMC saw occupancy and rent slightly falling in the second quarter ofthis year, especially facilities in non-central business districts givencurrent tough economic conditions. Savills Vietnam’squarterly report shows occupancy of the whole market reached 85%, down by fivepercentage points from the first quarter. Meanwhile, the average rent in thesector also decreased by 4% from the previous quarter.As compared with other retail types, department stores werethe best performers in the quarter. Five of the seven stores were fullyoccupied and most of them achieved high turnover.According to Savills, tenants in modern retail centers mighttry to lower their costs by seeking other locations or street-front stores,whose rents are more reasonable.Sharing the same view, Knight Frank Vietnam, a propertyservices provider, recorded the market beat in the … [Read more...] about Retail rent down on Q2 woes
Retailers demand compensation from Shiseido
By Ngoc Hung - The Saigon Times DailyHCMC – Fifteen local retail shops have demanded Shiseido Cosmetic Vietnam to pay them VND97 billion in compensations, saying the company’s unfair treatment towards agents in promotion programs have resulted in big losses for them.Lawyer Nguyen Thanh Tung, legal representative of these retail shops, said if Shiseido declined the compensation of VND97 billion, a lawsuit would be lodged at the HCMC court. Then the compensation might reach US$20 million, or VND420 billion.“With their evidence on hand, owners of these retail shops have a 90% probability of winning,” said Tung.The retailers complained since the management rights were transferred to Shiseido Vietnam, their profits have been falling while labor costs and land rents keep rising. Speaking to the Daily last Sunday, Nguyen Thanh Duc, legal consultant of Shiseido Vietnam, said the cosmetics firm does not reject the demands but whether to satisfy them or not depends on the … [Read more...] about Retailers demand compensation from Shiseido
Retailers join technology race to snag more customers
VietNamNet Bridge - Retailers are rushing to develop online sales by offering technological solutions to attract more customers. Retailers are rushing to develop online sales Analysts say that investing in technology is the only choice for retailers who want to attract more customers in a market with 95 million people, with half of them at a young age and fond of technology. Investing in technology is the only choice for retailers who want to attract more customers in a market with 95 million people, with half of them at a young age and fond of technology. General director of Saigon Co-op Nguyen Thanh Nhan said the retail chain cannot ignore technological solutions as it wants to expand business. RELATED NEWS Vietnam’s retail market: convenience stores mushroom Logistics FDI rises in the face of retail expansion Mai Chi … [Read more...] about Retailers join technology race to snag more customers
Saigon tax man slaps Facebooker with $400,000 bill in rare online retail management victory
Ho Chi Minh City's tax department has handed a bill of VND9.1 billion ($401,300) to a Facebook retailer in a rare successful attempt to levy sales on social media.A source from the department said that the tax declaration submitted by the cosmetics retailer was millions of dollars short compared to information acquired from the retailer's banks.Le Thi Thu Huong, deputy director of the department, said the sum was the biggest amount ever to be claimed by her agency from an online retailer for tax evasion.The department contacted nearly 13,800 Facebook accounts earlier this year asking them to pay tax for businesses they were running on the social network, but few complied.Facebook is the most popular social network in Vietnam with more than 52 million active accounts, and is also used as an e-commerce platform that tax authorities have struggled to keep track of.Vietnam levies a 0.5 percent income tax and a 1 percent value added tax on sales of more than VND100 million ($4,400) per … [Read more...] about Saigon tax man slaps Facebooker with $400,000 bill in rare online retail management victory
C&W: Retail space in demand despite soaring e-commerce
Vietnam’s retail market is maturing and will add around 400,000 sq m of retail space around the country in 2018 and double the stock by 2020, reaching 4 million sq m, according to Cushman & Wakefield’s “Main Streets Across the World” report.Food and beverages (F&B), fashion, and wellbeing / healthcare are the main sectors predicted to continue to see the strongest growth. Vingroup, Vietnam’s largest developer, has become a major retailer, having marked another milestone in expanding its shopping center network to 44 locations in 23 cities and provinces in the country.“In the next ten years, a new high-income class will appear,” said Ms. Mai Vo, Head of Retail Services at Cushman & Wakefield Vietnam. “According to the Ministry of Foreign Affairs, this class is currently only 1 per cent of the total population but will account for at least 10 per cent in 2020. This new class is expected to be the driving force behind the … [Read more...] about C&W: Retail space in demand despite soaring e-commerce