Vietnam’s retail market is growing quickly with the annual purchasing power increasing by 23%. Being ranked fourth among 30 attractive countries for foreign retailers, the domestic retail market is promising to draw many great businesses in the retail sector.
According to CBRE Vietnam, Vietnam’s total retail sales of goods and services in the first half of 2010 gained an impressive figure at growth of 16%, a twofold increase compared to the same period of 2009. The impressive growth came from the increase of the average income per capital in Vietnam and Vietnamese customers’ optimism on labor market and economy.
Big C Vietnam, a major retailer in the country, has so far developed 10 supermarkets directly trading and distributing customer goods in big cities like HCM city, Ha Noi…Duong Thi Quynh Trang, director of foreign affairs of Big C :“We will open one more supermarket in Vinh city in the central Nghe An province by the end of this year. Currently, Big C’s business activities are very good and will gain better growth in the future…”. Also according to her, Vietnam’s retail market has great potential that has not yet been exploited fully by businesses.
Currently, Vietnam absorbs around 30 foreign retailers in many scopes of business. It is predicted that Vietnam’s retail market will attract many top retailers because of many reasons, including young population, sharp growth on urbanization…, according to Marc Townsend, general director of CBRE Vietnam.
Along with the sharp growth of the domestic retail market, Vietnam now faces the “space fever” for retail trading. Although the leasing price of space at HCM city-based Vincom Center is very high, but it has basically reached 90% of the tenancy ratio after four-month operation. Space at many other trade centers in HCM city like Diamond, Sai Gon Square, Parkson…have also been hired by businesses for the long term.
It is known that the supply of space for retail trading in HCM city is about 381,000sq.m at 24 trade centers with the tenancy ratio of over 95%. It is expected that the space supply source in HCM city by 2013 will increase threefold compared to the current period…, contributing to meeting retailers’ demand for space.
Reported by Thien Khiem-Translated by K.T
