Wednesday, September 27, 2023 6:38:10 AM - Markets open
VN-INDEX 1,137.96 -15.24/-1.32%
HNX-INDEX 229.75 -1.75/-0.76%
UPCOM-INDEX 88.43 -0.27/-0.30%
Việt Nam's retail market proves attractive for foreign investors
Vietnam News - 3/27/2023 2:59:42 PM
 (0 ratings. You must sign in to rate.)

Việt Nam is becoming an attractive retail market for companies all over the world with many regional and global FDI investors recently announcing plans to increase capital and expand distribution networks here.

According to the Ministry of Industry and Trade, the Vietnamese retail market is worth US$142 billion and is expected to increase nearly 2.5 times to $350 billion by 2025.

In January, total retail sales of consumer goods and services decreased by 6 per cent on-month to more than VNĐ481.8 trillion (US$20.4 billion) due to weaker demand as many commodities were purchased ahead of the Lunar New Year. People spent more on festival activities post Tết, said the General Statistics Office.

However, it still rose 13 per cent year-on-year.

For the first two months of the year, the country’s total retail sales of consumer goods and services advanced 13 per cent over the same period of 2022 to over VNĐ994.1 trillion.

With stable and positive growth, the Vietnamese retail market has always been appreciated by foreign enterprises.

Thailand’s Central Retail Corporation (CRC) has recently announced a capital increase of $1.45 billion in Việt Nam. This is the largest investment ever announced by CRC with the goal of doubling the number of stores to 600 in 57 of 63 provinces. In 2023, the company spent more than VNĐ4.1 trillion in the market, focusing on developing essential foods businesses, stabilising prices, and restructuring electronic stores.

Việt Nam is the market, besides Thailand, that brings the largest revenue for the group, about 21-22 per cent of total revenue. Last year, the number was 25 per cent, said Olivier Langlet, CEO of Central Retail Vietnam.

One of the biggest Japanese retail companies, Aeon Co., Ltd is also accelerating the opening of shopping malls in the country to nearly three times to about 16 by 2025, focusing on the food segment.

Last month, Aeon Mall in Huế City was constructed on an area of 8.62 hectares, with a total investment capital of about $169 million. This is the biggest complex of trade centres and services in the region.

FDI is one of the important elements to help Việt Nam transform itself into one of the most open economies in the region and grow quickly, according to a representative of HSBC Việt Nam. Currently, regional and global FDI investors or multinational corporations contribute to more than 80 per cent of total export turnover from Việt Nam and about 25 per cent of domestic investment value.

Research from HSBC shows that, by 2030, the Vietnamese domestic consumer market will outstrip Thailand, the UK and Germany.

“In 2023, we will see some multinational corporations in Asia showing their interest in Việt Nam, engaging in retail, semiconductors, electronics, mobile components, plastic, renewable energy, and logistics industries. They are looking for ways to expand or make new investments in Việt Nam,” said the representative. — VNS

Read original article here

Newer News
25/09 New challenges and opportunities for Việt Nam's rice exports
20/09 PM suggests Việt Nam, US create cooperation breakthroughs
20/09 Fertiliser imports reach two-year high in August
18/09 Most annual growth targets are on track: MPI
15/09 Forum promotes Việt Nam–US trade, investment relations
15/09 SOEs should take the lead in promoting innovation, enhancing competitiveness, PM urges
13/09 Việt Nam wants to join in consumer goods supply chain: Deputy PM
11/09 Market expected to perform positively on Biden's visit
06/09 PM urges efforts to ensure power, petroleum supply
31/08 VN's macro-economic indices in August released
Older News
24/03 Steel price rises despite falling demand
24/03 Health and vehicles to be main growth drivers for non-life insurers in 2023
24/03 Conference to promote trade and cooperation between Việt Nam and Mexico
22/03 Investors voice concerns over unresolved pricing for renewable projects
21/03 US businesses exploring investment, business opportunities in Việt Nam
21/03 Imported cars should be included in registration fee reduction scheme
20/03 US businesses exploring investment, business opportunities in Việt Nam
17/03 Trade recovers strongly since reopening
17/03 Dual opportunity for Việt Nam in offshore wind industry development
16/03 Tra fish exports predicted to recover from third quarter
Newsletter Signup
Top Stories
SSC to prohibit the use of automated order placement
Shares gain ground on the back of large-caps
Market expected to perform positively on Biden's visit
Stock market to regain growth momentum in H2
CPI increases 0.88 per cent in August
Market Update
Last updated at 3:05:04 PM
VN-INDEX 1,137.96 -15.24/-1.32%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.