The retail industry shows potential to make up the majority of Vietnam’s GDP once again
On 26 January, the Ministry of Industry and Trade told Vietnam+ that Vietnam’s retail market is currently valued atf USD 142 billion, making up 59 percent of the country’s GDP. By 2025, this scale is expected to grow to USD 350 billion due to the growth in retail revenue surpassing the initial target.
The growth of sales revenue could be credited to the fact that there is an abundance of retailers of different degrees in Vietnam. According to Vietnam Investment Review, smaller retailers in particular have been trying to expand through business ventures and expansion into different markets. This would boost, as well as spark competition within the retail industry.
With the improved state of the retail sector, foreign retailers have been trying to penetrate the Vietnamese market as well, competing with local retailers through different shop formats. The abundance of retailers is well accommodated by the rise of demand for convenience food as the pandemic and newer generations have been looking for quicker and more efficient ways to prepare their meals daily.
Other changes occurred as well within the retail industry due to urbanisation in the time of the pandemic. E-commerce became a priority, especially with it being more convenient rather than going to a store personally. The accessibility would mean growth for the market.
B2B marketplace Fibre2Fashion also noted that another factor for the growth of retail sales revenue is the income increase and the growth of the country’s tourism sector and other sectors affected by it. Tourists and visitors have been purchasing local goods that are native to Vietnam to complete their visiting experience, thus boosting retail sales.
The Property Report editors wrote this article. For more information, email: [email protected].
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