Vietnam’s retail sales have grown dramatically over a long period of time, maintaining a 5-year CAGR of 17.6% (2010-2015) despite the economic slowdown in these years, to reach almost US$110bn in 2015.
In particular, modern retail is growing extremely fast, though notably in big urban areas, and is taking up an increasing portion of total retail sales. The emergence of the modern retail formats and the participation of foreign retailers have brought a breath of fresh air and greatly changed the face of retail in Vietnam, bringing more choice and convenience for consumers.
Although the modern retail channels have many advantages in attracting customers and is forecast to grow strongly in the future but in general, shopping at traditional retail market still accounts high proportion until 2015 (at least 70%). Under competitive pressure from modern retail channels, local market systems and other forms of traditional retail in Vietnam have been renewing and upgrading infrastructure as well as enhancing customer service to bring more benefits to consumers.
The role of retail flooring to retailers around the world as well as in Vietnam is obviously vital. Retail flooring has always been top a “hot” topic. The retail flooring market in Vietnam is even more difficult when not only the supply is limited but also the available ones are at high rent prices.
Since 1 Jan 2009, Vietnam has opened its doors for the retail business with 100% foreign ownership. They are authorized distributors of all products made in Vietnam and other products legally imported into Vietnam; excluding a number of long-term limits as prescribed by the Government.