2018 RETAIL ASIA-PACIFIC TOP 500
put a limit on spending on premium and luxuri-
ous goods, but could also increase consumption
among lower-income consumers. Affordable basic
goods will therefore see higher demand once this
tax reform takes place.
— Jocelyn Cheung,
Senior Analyst
VIETNAM
Retailing records stable growth in
Vietnam
Thanks to the positive economic environ-
ment and several trade agreements signed in
the last five years, retailing continued its sustainable growth in
Vietnam in 2017. The rising number of foreign players in the
Vietnamese retail market encouraged many local companies to
put more investment into their product portfolios and opera-
tional processes in order to compete. Consequently, consumers
benefited from various promotional campaigns and wide product
portfolios, leading to the stable performance of the market in
2017. Internet retailing and convenience stores continued to
see the fastest growth. This indicates changes in consumers’
purchasing behaviour; they are moving towards more convenient
services as a result of busier lifestyles in urban areas. Moreover,
many retailers also expanded their distribution networks, not
only to key cities but also to other provinces to target different
consumers and generate more profits.
Mergers and acquisitions continue
As in 2016, retailing saw many mergers and acquisitions between
local and foreign companies in 2017. VinGroup, for example,
acquired Maximark supermarket, while AEON Group bought
the shares of Dong Hung Trading Service, which owns Citimart
supermarket. This was thanks to a recent foreign investment policy,
which allowed foreign organisations to own 100% shares of busi-
nesses in Vietnam, and the numerous trade agreements which
reduced import tariffs. Moreover, higher disposable incomes
The Vietnamese competitive landscape is predicted to be more
intense, with a number of international entrants and newly
established local companies.
OV E R V I E W
and the expansion of the middle-income group also encouraged
foreign investment in the Vietnamese market. Besides political
and economic factors, Vietnamese lifestyles and behaviours also
had an effect, as more people were aware of foreign brands and
were willing to spend on new products and services.
Retailing in Vietnam attracts more international
players
During 2017, more and more international players gained a
stronger foothold in retailing in Vietnam across different retail
channels. While in 2016, the growth of foreign grocery players
such as AEON Group and Central Group was seen in retailing
in Vietnam, in 2017 the country welcomed more non-grocery
retailers in apparel and footwear specialist retailers, such as Zara
and H&M. Although retailing in the Vietnamese market is
influenced by international players, local retailers remained the
key contributors to retail value sales in Vietnam at the end of
the review period. Over the forecast period, domestic companies
are expected to improve their product portfolios and operational
processes in order to compete with global retailers.
The potential of Internet retailing
In 2017, non-store-based retailing, mainly Internet retailing,
continued to show the potential to play an essential role in re-
tailing in Vietnam. This is thanks to the high penetration of the
Internet nationwide, along with the increasing number of 4G
users, enabling consumers to access online retailing. Catching up
with this trend, many key players are pursuing an omni-channel
strategy to optimise the approaches to consumers and generate
better value sales. Despite the limited use of financial cards for
online payment, e-commerce is still a growing trend, as most
players offer cash on delivery as the core payment method, besides
offering solid delivery systems with flexible policies on returns,
and pre-orders. Hence, Internet retailing continued to record
stable growth during 2017 and will lead to growth in retailing
over the forecast period.
Retailing in Vietnam is expected to see a positive
performance
Over the forecast period, the Vietnamese retail market is expected
to see a positive outlook in terms of foreign investment and
value sales. This is due to the combination of supportive politi-
cal and economic factors, which will encourage consumption
by Vietnamese consumers over the next five years. Besides the
expansion of middle-income consumers and the rising young
population, the government policy towards foreign investment
will also contribute to stable growth, with the
entry of several global brands. The Vietnamese
competitive landscape is predicted to be more
intense, with a number of international entrants
and newly established local companies.
— Ivan Uzunov,
Research Manager
DISCLAIMER: While every effort has been made to ensure the reli-
ability and accuracy of information presented in the Retail Asia-Pacific Top 500,
Euromonitor International cannot be held responsible for omissions or errors. In
some instances, the classification of a fascia may have changed from past editions
of the Retail Asia-Pacific Top 500 due to changes in application of outlet type
definitions, based on feedback received from the industry in terms of how these
fascias compete in their local markets.
All sales figures and sales area have been rounded for ease of review.
Retail Asia June/July 2018
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