Final consumption expenditure in Vietnam was estimated at 70 percent last year by the World Bank, making the country among Asia’s top 5 retail markets.
Locals shop at Co.op mart in Ho Chi Minh City. (Photo: VNA)
Hanoi (VNA) – Final consumption expenditure (percent of GDP) in Vietnam was estimated at 70 percent last year by the World Bank with household consumption accounting for 90 percent, making the country among Asia’s top 5 retail markets.
The information was heard at the 2015 Vietnam Retail Forum in Hanoi on December 9.
The country’s middle class, the most promising consumers of retailers, is forecast to triple by 2020.
Speaking at the forum, Duong Duy Hung, deputy head of the Department of Domestic Market under the Ministry of Industry and Trade, said Vietnam has opened its door to dozens of multinational retail groups since the country joined the World Trade Organisation (WTO) five years ago.
Domestic retailers, despite previous concern over their passive acts amid fierce competition, has tailored themselves to the new context and gradually improved their competitiveness, he noted.
He warned that huge investment waves from foreign firms are posing numerous challenges to the local ones, which was urged to foster innovation to survive.
President of the Vietnam Retailers Association DinhThi My Loan agreed, stressing that domestic retailers still lag behind foreign peers as they lack long-term strategies and financial resources.
She called on the local firms to learn from international practices, especially in Japan, the Republic of Korea, Singapore and Thailand, while restructuring themselves and set up chains of shops, small- and medium-sized supermarkets, and convenient stores to regain market share in the home playground.
Echoing these opinions, Chau Ngoc Hanh, head of Retailer Service at Nielsen Vietnam said big fish eating little fish is only a has-been, it’s time for the fast fish to eat the slow one.
More and more consumers in Vietnam prefer online shopping and getting their orders brought to the door thanks to its convenience, she explained, saying that today any firm which can serve it faster will have competitive edges.
About 22 percent of responded consumers in the country said they would rather go shopping in conv⛦enient stores than s🐓hopping malls.-VNA
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Mergers and acquisitions are churning the Vietnamese retail market, with large domestic players buying out rivals and massive investment by foreign retailers.
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A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
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The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
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A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
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This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
Locals shop at Co.op mart in Ho Chi Minh City. (Photo: VNA)
