The country unveils the allure and strategies for success in its dynamic retail landscape
Vietnam has gained favour among multinational corporations for its stable production during the pandemic, making it an attractive investment destination. Hanoi Times reported startup numbers in the country have doubled since the pandemic’s start till mid-2022. Vietnam’s e-commerce sector is set to reach a value of VND1.16 quadrillion (USD49 billion) by 2025, aided by better logistics. A 6.2 percent GDP growth is predicted in 2023 positions Vietnam to be Southeast Asia’s fastest-growing digital economy.
A McKinsey survey showed 70 percent of young Vietnamese millennials are optimistic about the country’s economic future. Vietnamese consumers prefer local brands, pushing companies to engage youth and local communities. The 2023 Asia Shopper Forecast suggests dual retail spending focuses: instant gratification and savings. Businesses should blend online and in-store experiences, emphasise digital payments, and foster loyalty programs to align with evolving Vietnamese spending patterns.
Rubik Top on Linked In focused on the illuminating of emerging markets for business advantage, zooming into Vietnam’s burgeoning retail sector and spotlighting its allure for expansion. Vietnam’s flourishing economy, bolstered by steady politics and infrastructure, magnetises foreign investment. A vibrant populace with rising incomes shapes an enticing consumer realm.
Urbanisation spurs evolving buying patterns, favouring modern and traditional retail. E-commerce surges due to tech-savvy, smartphone-wielding consumers. Government proactiveness through eased regulations and infrastructure improvements beckons retail growth. Vietnam’s retail sphere holds vast potential, fueled by economic robustness, demographic dividends, urbanisation, and e-commerce surge. Businesses must innovate and grasp trends to excel, with Rubik Top offering expertise for navigating Vietnam’s vibrant retail realm.
The Vietnamese retail market, led by Nguyen Anh Duc, Chair of the Association of Vietnam Retailers, is poised to align with global trends through digitalization, automation, and cashless payments. According to Tuoi Tre News, Big Data, AI, and data analytics are expected to bolster the industry. Foreign investment is attracted by Vietnam’s large population and the underdeveloped modern retail sector.
Despite challenges such as the lack of major retailers and foreign competition, the government’s support and favourable policies are urged to be utilised. Encouragement for consumption through VAT reduction and nationwide promotions is advised. Local retailers are advised to enhance skills and technology for sustainable growth.
The Property Report editors wrote this article. For more information, email: [email protected].
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