Consumer goods’ strong growth in 2011
Dec 28, 2011
- From ANT Consulting
It is estimated that total retailed sales business from Jan to Nov 2011 gained USD 68 billion, up 23.6% from the same period last year according to Vietnam General Statistics Office. Total retail sales of 2011 would reach USD 80 billion, contributing 15-16% of GDP, with 80-85% of the total domestic product. This is a promising figure despite the difficult situation which the country is facing with budget deficit and high inflation. The large and growing consumer market is the strong force behind this. According to AT Kearney, an American Consulting firm, Vietnam topped the list of attractive emerging market for retail in 2008. The 2011 report shows Vietnam’s downfall to 23rd position. The infrastructure poor condition and expensive retail space are blamed to be barriers for foreign retailers entering the country. The current challenging economic situation in US and EU are also factors that make foreign retailers hesitant to make further investment in Vietnam. However, according to RNCOS, an American Market Research firm, in its Vietnam Retail Analysis (2008 – 2012) report, Vietnam retail market is considered small in comparison with other developing Asian countries but has strong fundamentals. It is expected the retail industry revenue would surpass USD 113 billion by 2012.
The retail market has been opened to foreigners since 2009 and modern retail formats are growing more popular in the country since then. With the GDP growth rate in Vietnam at the level of 5.8 % in 2011 (World Bank), and the government’s changing position in creating a more favourable conditions for investment, more and more shoppers now favour convenience stores and supermarkets over street shops and that the outlook for retailer will be positive.
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