Hanoi (VNA) - An influx of foreigninvestment, the rise of e-commerce, and the sound containment of COVID-19 arebelieved to have driven growth in Ho Chi Minh City’s retail sector despite the considerableimpact of the pandemic, according to the Cong Thuong (Industry & Trade)newspaper.

Total retail and service revenue in the southerneconomic hub has bounced back compared to the same period last year, though hasyet to return to pre-pandemic levels.

The city recorded more than 366.23 trillion VND(15.8 billion USD) in total retail and service revenue between January andApril, up 7.9 percent year-on-year. Retail sales of key commodities such as food,garments, household appliances, and automobiles rose some 10 percent year-on-year.

Despite certain difficulties regarding space supply, itsstable and diverse retail network and booming e-commerce have becomegrowth drivers for the service sector in the city and the country as a whole.

Tu Thi Hong An, Director of Commercial Leasingat Savills Vietnam, said the pandemic has created numerous difficulties forretailers, noting that a number of businesses have been forced to shut down orscale down their operations, but added that this is normal.

However, she went on, HCM City’s retail market isseeing a steady inflow of foreign investment, with several food and fashionchains opening new outlets, indicating that international brands have spottedthe potential Vietnam’s retail market possesses.

In early March, Uniqlo opened its fourth shop inHCM City, at the Van Hanh Mall in District 10, while Decathlon opened its secondstore at the Thao Dien Mega Mall in Thu Duc city. Other international fashionbrands, from the mid- to high-end segments, such as Balenciaga and Tiffany& Co, are also planning to make inroads into Vietnam, the newspaper reported.

An predicted that in the time ahead, clothingand accessory brands will continue to be the main lessees of retail space atshopping centres in the city’s outlying areas. In populous areas, meanwhile,food and convenience stores are expected to develop further.

Total retail sales will continue to rise as moree-commerce and international brands enter the market, she added.

Echoing this view, Lai Viet Anh, Deputy Directorof the Vietnam E-Commerce and Digital Economy Agency at the Ministry ofIndustry and Trade, said the ongoing growth in e-commerce will continue to supportthe retail market, especially in major cities like Hanoi and HCM City.

With 67.6 points, HCM City retained its leading positionin the Vietnam E-Business Index 2021, released by the Vietnam E-CommerceAssociation (VECOM), followed by Hanoi with 55.7 points.

The Trading Economics platform, meanwhile, forecastthat retail sales in Vietnam will grow 11 percent this year, outpacing otherSoutheast Asian countries, and household spending up 9.6 percent, whichwill contribute to growth in the retail market./.