Vietnam's retail market is growing steadily and becoming increasingly attractive to foreign investors, with nominal GDP forecast to reach €248.8 billion by 2020. Traditional retail currently dominates Vietnam's retail sector, accounting for 68% of the market, but the country is witnessing a shift towards modern retail formats such as convenience stores, supermarkets, hypermarkets, and shopping centers. The convenience store segment in particular is booming, with an outstanding compound annual growth rate of 66.2% from 2014 to 2017, demonstrating significant opportunities for investors in Vietnam's expanding retail industry.
Cee fashion e commerce in 2020 by glami[11]Daniel Szalay
This document summarizes fashion e-commerce trends in Central and Eastern Europe (CEE) in 2020. It provides an overview of the CEE fashion e-commerce market, which reached €4 billion in 2020 and represented 23% of total fashion sales. It then discusses 5 key trends that shaped 2020: 1) Digital acceleration from COVID-19 doubling e-commerce's share of fashion sales, 2) Top fashion trends like loungewear increasing and swimwear/pumps decreasing, 3) Sustainability becoming more important, 4) Growth of social commerce, and 5) Increased use of artificial intelligence. The document analyzes fashion e-commerce growth and trends in specific CEE countries.
LAWYER IN VIETNAM DR. OLIVER MASSMANN - EU-VIETNAM FREE TRADE AGREEMENTDr. Oliver Massmann
The EU-Vietnam Free Trade Agreement (EVFTA) was concluded in 2015 after 14 rounds of negotiations. It aims to eliminate over 99% of tariffs between the EU and Vietnam, providing significant opportunities for trade and investment. The EVFTA was later split into separate trade and investment agreements, and its ratification is still pending. Once in effect, it will boost Vietnam's GDP by 10-15% and exports by 30-40% over 10 years by opening EU markets of over 500 million consumers to Vietnamese goods and services. The EVFTA also commits Vietnam to reforms improving market access for EU firms in areas like government procurement, services, and investment dispute settlement. It establishes a new standard for comprehensive free trade
Europe B2C Ecommerce report 2013 - light versionMarja Ruigrok
European B2C e-commerce grew 19% in 2012 to reach €311.6 billion. The top three markets - UK, Germany, and France - accounted for 61% of total European e-commerce sales. Growth rates varied significantly across regions, with more mature markets like the UK and Netherlands seeing 10-15% growth while emerging Eastern and Southern European markets like Russia, Poland, Ukraine, Turkey and Greece experienced 30-40% or more annual growth. Western Europe remained the largest region for e-commerce in Europe at €160.8 billion, followed by Central Europe at €76.3 billion and Southern Europe at €32.4 billion, which saw the fastest 29.3% growth of any region.
Facts, Figures, Markets, Trends and Forecast of European B2C Ecommerce 2012
Including Infographics and Country Profiles of Leading and Emerging Ecommerce Markets in Europe
Ecommerce Europe
Rue d’Accolay 15 box 6 B-1000 Brussels - Belgium Tel: +32 (0) 2 502 31 34
Website: www.ecommerce-europe.eu
Contact us at: info@ecommerce-europe.eu For reports: research@ecommerce-europe.eu Twitter: @Ecommerce_eu
The document discusses the impact of Brexit on UK eCommerce businesses that sell to customers in the EU. Key points:
- Post-Brexit, the UK will no longer be part of the EU VAT system, adding complexity for sales to EU customers. Customers will have to pay import VAT and deal with paperwork for returns.
- This will negatively impact the customer experience and put EU governments between UK businesses and their customers.
- The obvious solution for UK businesses is to move warehouses and jobs to the EU to continue serving EU customers seamlessly.
- Losing access to the EU's single market will significantly disadvantage UK eCommerce businesses compared to their EU competitors.
Vietnam has a fast growing digital economy and ICT sector, driven by strong GDP growth, increasing FDI, and government initiatives. The report identifies opportunities in fintech, e-commerce, smart cities, agriculture technology, and skills development to address workforce shortages as Vietnam prepares for Industry 4.0. However, Vietnam faces challenges around infrastructure investment, regulatory reforms, and developing technical skills to fully capitalize on these opportunities by 2025.
This document is an annual report by Ecommerce Europe on B2C e-commerce in Eastern Europe. It provides facts, figures, trends and forecasts on the e-commerce market in Eastern Europe. In 2012, total B2C e-commerce turnover in Eastern Europe, including online retail goods and services, reached €13.1 billion, a growth of 35.6% compared to the previous year. The report estimates growth in 2013 of 47% to €19.3 billion. It focuses on the e-commerce markets and key metrics of Russia, Ukraine and Romania, the largest countries in the region.
Cee fashion e commerce in 2020 by glami[11]Daniel Szalay
This document summarizes fashion e-commerce trends in Central and Eastern Europe (CEE) in 2020. It provides an overview of the CEE fashion e-commerce market, which reached €4 billion in 2020 and represented 23% of total fashion sales. It then discusses 5 key trends that shaped 2020: 1) Digital acceleration from COVID-19 doubling e-commerce's share of fashion sales, 2) Top fashion trends like loungewear increasing and swimwear/pumps decreasing, 3) Sustainability becoming more important, 4) Growth of social commerce, and 5) Increased use of artificial intelligence. The document analyzes fashion e-commerce growth and trends in specific CEE countries.
LAWYER IN VIETNAM DR. OLIVER MASSMANN - EU-VIETNAM FREE TRADE AGREEMENTDr. Oliver Massmann
The EU-Vietnam Free Trade Agreement (EVFTA) was concluded in 2015 after 14 rounds of negotiations. It aims to eliminate over 99% of tariffs between the EU and Vietnam, providing significant opportunities for trade and investment. The EVFTA was later split into separate trade and investment agreements, and its ratification is still pending. Once in effect, it will boost Vietnam's GDP by 10-15% and exports by 30-40% over 10 years by opening EU markets of over 500 million consumers to Vietnamese goods and services. The EVFTA also commits Vietnam to reforms improving market access for EU firms in areas like government procurement, services, and investment dispute settlement. It establishes a new standard for comprehensive free trade
Europe B2C Ecommerce report 2013 - light versionMarja Ruigrok
European B2C e-commerce grew 19% in 2012 to reach €311.6 billion. The top three markets - UK, Germany, and France - accounted for 61% of total European e-commerce sales. Growth rates varied significantly across regions, with more mature markets like the UK and Netherlands seeing 10-15% growth while emerging Eastern and Southern European markets like Russia, Poland, Ukraine, Turkey and Greece experienced 30-40% or more annual growth. Western Europe remained the largest region for e-commerce in Europe at €160.8 billion, followed by Central Europe at €76.3 billion and Southern Europe at €32.4 billion, which saw the fastest 29.3% growth of any region.
Facts, Figures, Markets, Trends and Forecast of European B2C Ecommerce 2012
Including Infographics and Country Profiles of Leading and Emerging Ecommerce Markets in Europe
Ecommerce Europe
Rue d’Accolay 15 box 6 B-1000 Brussels - Belgium Tel: +32 (0) 2 502 31 34
Website: www.ecommerce-europe.eu
Contact us at: info@ecommerce-europe.eu For reports: research@ecommerce-europe.eu Twitter: @Ecommerce_eu
The document discusses the impact of Brexit on UK eCommerce businesses that sell to customers in the EU. Key points:
- Post-Brexit, the UK will no longer be part of the EU VAT system, adding complexity for sales to EU customers. Customers will have to pay import VAT and deal with paperwork for returns.
- This will negatively impact the customer experience and put EU governments between UK businesses and their customers.
- The obvious solution for UK businesses is to move warehouses and jobs to the EU to continue serving EU customers seamlessly.
- Losing access to the EU's single market will significantly disadvantage UK eCommerce businesses compared to their EU competitors.
Vietnam has a fast growing digital economy and ICT sector, driven by strong GDP growth, increasing FDI, and government initiatives. The report identifies opportunities in fintech, e-commerce, smart cities, agriculture technology, and skills development to address workforce shortages as Vietnam prepares for Industry 4.0. However, Vietnam faces challenges around infrastructure investment, regulatory reforms, and developing technical skills to fully capitalize on these opportunities by 2025.
This document is an annual report by Ecommerce Europe on B2C e-commerce in Eastern Europe. It provides facts, figures, trends and forecasts on the e-commerce market in Eastern Europe. In 2012, total B2C e-commerce turnover in Eastern Europe, including online retail goods and services, reached €13.1 billion, a growth of 35.6% compared to the previous year. The report estimates growth in 2013 of 47% to €19.3 billion. It focuses on the e-commerce markets and key metrics of Russia, Ukraine and Romania, the largest countries in the region.
The latest information on e-commerce trends in Europe. An important consideration for fitness sector businesses evaluating a push into digital transformation.
Product Brochure: Europe Cross-Border B2C E-Commerce 2015yStats.com
Product Brochure with summarized information of our publication "Europe Cross-Border B2C E-Commerce 2015" .
Find more here:https://www.ystats.com/product/europe-cross-border-b2c-e-commerce-report-2015/
This report provides an overview of B2C e-commerce in Central Europe in 2012-2013. It covers 8 countries - Austria, Czech Republic, Germany, Hungary, Poland, Slovakia, Slovenia, and Switzerland. In 2012, total B2C e-commerce (including online retail and services) in Central Europe reached €75 billion, growing nearly 20% year-over-year. Germany was the largest market with €50 billion in e-commerce sales. The report includes statistics on population, internet usage, and e-commerce trends for each country as well as an overall comparison of the region.
The EU is Vietnam's second largest trading partner after China. Bilateral trade between the EU and Vietnam has grown substantially over the past decade, with Vietnam's exports to the EU averaging annual growth of 13-15% and reaching over $30 billion in 2015. The EU is also an important export market for many of Vietnam's key commodities such as phones, coffee, footwear, and textiles. The EU-Vietnam Free Trade Agreement aims to further strengthen economic ties by reducing trade barriers and encouraging two-way investment between the regions.
European b2c e commerce report 2015 light 20150615.pdfNikolay Komarov
This document provides a summary of the European B2C E-commerce Report 2015 published by Ecommerce Europe. Some key points:
- It analyzes B2C e-commerce trends and statistics across European countries and regions in 2014 and provides forecasts for 2015.
- Total B2C e-commerce sales in Europe reached €423.8 billion in 2014, up 14.3% from the previous year, with the largest markets being Western Europe, Central Europe, and Southern Europe.
- Mobile commerce and cross-border e-commerce are growing significantly. National regulations and payment methods still present barriers to cross-border trade within Europe.
- The report was produced by the Ecommerce Foundation in
Product Brochure: Europe M-Commerce Snapshot 2015yStats.com
Product Brochure with summarized information of our publication " Europe M-Commerce Snapshot 2015".
Find more here: https://www.ystats.com/product/europe-m-commerce-2015/
Sample Report: Eastern Europe B2C E-Commerce Market 2015yStats.com
This document provides a methodology and table of contents for a report on B2C e-commerce in Eastern Europe. The methodology describes how data is collected from secondary sources and cross-referenced to ensure validity. It also outlines the structure and elements that will be included in each country chapter of the report, such as overviews, trends, sales/shares, users/shoppers, products, payment methods, delivery methods, and key players. The table of contents previews the topics and data that will be covered in the regional section and individual country sections of the report on Russia, Poland, Turkey, Greece, Czech Republic, and Ukraine.
Sample Report: Europe B2C E-Commerce Market 2016yStats.com
Free Report Samples for our publication "Europe B2C E-Commerce Market 2016".
Find the full report available for purchase at: https://ystats.com/shop/europe-b2c-e-commerce-market-2022/
Birmingham's economy has remained strong despite a slowing global economy. Key factors driving growth include continued increases in business startups and house prices, strength in the automotive industry, record levels of inward investment and infrastructure projects, and strong growth in the visitor economy. Unemployment has fallen significantly but some residents still face barriers to employment. The economy is forecast to be one of the strongest performing in the UK over the next decade.
The document provides an overview of Vietnam's socioeconomic situation one year after the start of the COVID-19 pandemic. Some key points:
- Vietnam's GDP grew by 2.91% in 2020, making it one of three Asian countries with positive growth despite the pandemic.
- Unemployment increased to 2.26% but underemployment decreased slightly to 2.51%. The number of newly registered businesses fell by 2.3% but average registered capital increased by 32.3%.
- Imports and exports increased in 2020, with exports rising 6.5% and imports up 3.6%, resulting in a trade surplus of $19.1 billion. Foreign direct investment reached $28.5
Masan Holding phân tích và chia sẻ về thị trường đầu tư Việt Nam 2014Duy, Vo Hoang
This document provides an analysis of the Vietnamese retail market conducted by Phuong Nguyen for her thesis at Helsinki Metropolia University of Applied Sciences. The analysis focuses on the retail strategies of Vinmart, the supermarket chain owned by Vietnamese conglomerate Vingroup. The document provides an overview of Vietnam's growing retail market, describes Vingroup's expansion into the retail sector, and analyzes Vinmart's competitive strategies and opportunities in competing with other domestic and international retailers in Vietnam.
Following the Government’s implementation of effective COVID-19 containment measures, in the first half of 2020, Vietnam economy witnessed GDP growth falling to 1.81%, the lowest first-half growth for the last 10 years. The pandemic has disrupted global trade and supply chains leading to deterioration in corporate earnings and individual income, which eventually weakens credit demand and asset quality of the banking sector in Vietnam.
Access to our FULL REPORT: http://fiinresearch.vn/Reports/2125D-vietnam-banking-report-2020-.html
In this Banking Report 2020, we provide in-depth analysis of the impact of COVID-19 on every aspect of the banking sector and individual banks, including credit growth, asset quality, earning quality, liquidity, profitability, and operation efficiency. Development trends and regulations in response to the pandemic are also covered.
The survey found that Vietnamese consumers are optimistic about the future economic outlook and their own financial situations. Most plan to increase spending in the coming year. While consumers across cities spend 40-50% of monthly household expenses on basic necessities, there are some differences in spending patterns between cities. Consumer electronics account for 10-13% of spending, while recreational goods and welfare/leisure each make up 4-6% on average. Overall, Vietnamese consumers displayed confidence in continued economic and personal income growth in the near future.
The document discusses the development of e-commerce in Vietnam. It notes that e-commerce has grown rapidly in Vietnam in recent years, but still faces challenges. While opportunities exist to expand e-commerce to local areas and rural provinces, issues like infrastructure gaps, consumer awareness, and foreign platform dominance present obstacles to further growth. The government has initiatives to boost e-commerce and increase its share of domestic retail, but fully realizing this potential will require addressing the challenges outlined in the paper.
This document discusses the development of e-commerce in Vietnam. It finds that e-commerce is growing rapidly in Vietnam, but foreign platforms dominate the market. While e-commerce presents opportunities, it also faces challenges like low consumer confidence, underdeveloped delivery services, and lack of regulation for cross-border platforms. The document proposes solutions are needed to improve infrastructure, skills, and competitiveness to fully realize the potential of e-commerce in Vietnam.
The retail market in Vietnam has grown strongly after recovering from the global crisis in 2007-2008. In 2010, the retail goods and services market grew 24.5% to over 1.5 trillion VND. Modern retail channels in Vietnam are still underdeveloped compared to traditional markets, providing opportunities for further local and foreign investment. Large retail brands have expanded but not fully met consumer demand, especially in rural areas where living standards are improving. Retailers from Japan and Korea are establishing new shopping centers and hypermarkets. E-commerce is also developing as a modern retail channel that is well-suited to urban consumers. The retail market is expected to continue strong growth in 2011, with large supermarkets growing dramatically and small supermarkets
The document provides a market report for Q4 2021, summarizing key economic indicators and real estate trends in Vietnam. It finds that while Vietnam's GDP grew by 5.22% in Q4 2021, the country faced challenges from COVID-19 lockdowns. Real estate prices increased slightly for apartments, offices, and retail across major cities. The report expects modest continued growth in 2022 as vaccination rates increase and the economy reopens further.
This document discusses Vietnam's promising retail market opportunities. It begins by outlining Vietnam's strong macroeconomic outlook, including forecast GDP growth of 6.5% annually, the fastest growing middle class in Southeast Asia at a 9.2% CAGR, and potential for rapid future urbanization. Vietnam also has high levels of private consumption, FDI inflows, and political stability compared to other Southeast Asian countries. The retail market is growing rapidly due to Vietnam's young population and rising disposable incomes. Modern trade is expanding while e-commerce remains in early stages but shows significant long-term potential.
This document is the table of contents for the EuroCham Whitebook 2020 report. It lists the 17 sector committees that contributed recommendations covering various cross-sectoral and sector-specific issues. It also includes introductory remarks from EuroCham leadership and partner business associations. The table of contents provides an overview of the report's structure, with sections on contextual introduction, recommendations for economic recovery, and specific issues addressed by each sector committee.
EU-VIETNAM FREE TRADE AGREEMENT AND INVESTMENT PROTECTION AGREEMENT – MOST LI...Dr. Oliver Massmann
The document summarizes key aspects of the EU-Vietnam Free Trade Agreement (EVFTA) and Investment Protection Agreement (EVIPA). It discusses the following key points:
1) The EVFTA was signed in 2019 and provides for the elimination of over 99% of tariffs between the EU and Vietnam. This will significantly increase market access for goods and services.
2) The EVIPA establishes an investment tribunal for settling disputes between investors and states and ensures fairness and independence in the dispute resolution process.
3) Once ratified, the agreements are expected to boost economic growth in both the EU and Vietnam through increased trade and investment opportunities across various sectors.
Ngành Bán lẻ | Báo cáo ngành Bán lẻ Việt Nam 2019Jackie Nguyen
Trong những năm gần đây, Việt Nam đã trải qua sự tăng trưởng bán lẻ nhanh chóng. Từ 2013-2018, ngành bán lẻ ghi nhận tốc độ tăng trưởng kép hàng năm (CAGR) là 10,97%. Tổng doanh thu bán lẻ cũng dự kiến sẽ đạt 180 tỷ USD vào năm 2020, tương đương mức tăng 26,6% từ năm 2018. Với dòng vốn đầu tư vào lĩnh vực này, nó đã sẵn sàng để chứng kiến sự tăng trưởng hơn nữa trong tương lai gần...
---
https://smartretail.vn/
https://smartretail.com.vn/
StoxPlus is pleased to introduce our first issue of Vietnam Bank Card report. This issue is expected to be released annually, covering most up-to-date card data on the market.
This issue details how the card market has developed exponentially since 2002, after the introduction of card system in Vietnam. The competitive dynamics have been thoroughly ratified. This picture with domination of debit card has not changed, but is expected to gradually shift with the changes in consumer behavior. Technology and infrastructure have become more critical, therefore, the report also highlights the rise of infrastructure and technology advancement and its applications in bank card market. To gain a deeper understanding of the attributes that customers value, we surveyed the products offered by selected financial institutions.
Below are the most critical findings in our first issue:
1) The number of bank cards in circulation in Vietnam has recorded a double-digit growth rate in the past 6 years, and reached 90.4 million at YE2015. Total card number is growing exponentially at CAGR of 26.56%, with debit card being the dominant type. State-owned commercial banks (SOCBs) make up 66% of total cards circulating in Vietnam. Among SOCBs, Vietinbank is the most popular card issuer with over 19.3million cards by all types.
2) ATM and POS systems have been growing extensively at two-digit in the past 5 years. The growth rate of ATM and POS system has been 25 – 30% in the past 5 years, reaching 16,855 ATM and over 217,000 Point of Sales (“POS”) by YE2015. However, the distribution and coverage of ATM and POS system are still far below our peer countries.
See more at: https://biinform.com/Reports/185-vietnam-bank-card-report-2016-8350.html
The latest information on e-commerce trends in Europe. An important consideration for fitness sector businesses evaluating a push into digital transformation.
Product Brochure: Europe Cross-Border B2C E-Commerce 2015yStats.com
Product Brochure with summarized information of our publication "Europe Cross-Border B2C E-Commerce 2015" .
Find more here:https://www.ystats.com/product/europe-cross-border-b2c-e-commerce-report-2015/
This report provides an overview of B2C e-commerce in Central Europe in 2012-2013. It covers 8 countries - Austria, Czech Republic, Germany, Hungary, Poland, Slovakia, Slovenia, and Switzerland. In 2012, total B2C e-commerce (including online retail and services) in Central Europe reached €75 billion, growing nearly 20% year-over-year. Germany was the largest market with €50 billion in e-commerce sales. The report includes statistics on population, internet usage, and e-commerce trends for each country as well as an overall comparison of the region.
The EU is Vietnam's second largest trading partner after China. Bilateral trade between the EU and Vietnam has grown substantially over the past decade, with Vietnam's exports to the EU averaging annual growth of 13-15% and reaching over $30 billion in 2015. The EU is also an important export market for many of Vietnam's key commodities such as phones, coffee, footwear, and textiles. The EU-Vietnam Free Trade Agreement aims to further strengthen economic ties by reducing trade barriers and encouraging two-way investment between the regions.
European b2c e commerce report 2015 light 20150615.pdfNikolay Komarov
This document provides a summary of the European B2C E-commerce Report 2015 published by Ecommerce Europe. Some key points:
- It analyzes B2C e-commerce trends and statistics across European countries and regions in 2014 and provides forecasts for 2015.
- Total B2C e-commerce sales in Europe reached €423.8 billion in 2014, up 14.3% from the previous year, with the largest markets being Western Europe, Central Europe, and Southern Europe.
- Mobile commerce and cross-border e-commerce are growing significantly. National regulations and payment methods still present barriers to cross-border trade within Europe.
- The report was produced by the Ecommerce Foundation in
Product Brochure: Europe M-Commerce Snapshot 2015yStats.com
Product Brochure with summarized information of our publication " Europe M-Commerce Snapshot 2015".
Find more here: https://www.ystats.com/product/europe-m-commerce-2015/
Sample Report: Eastern Europe B2C E-Commerce Market 2015yStats.com
This document provides a methodology and table of contents for a report on B2C e-commerce in Eastern Europe. The methodology describes how data is collected from secondary sources and cross-referenced to ensure validity. It also outlines the structure and elements that will be included in each country chapter of the report, such as overviews, trends, sales/shares, users/shoppers, products, payment methods, delivery methods, and key players. The table of contents previews the topics and data that will be covered in the regional section and individual country sections of the report on Russia, Poland, Turkey, Greece, Czech Republic, and Ukraine.
Sample Report: Europe B2C E-Commerce Market 2016yStats.com
Free Report Samples for our publication "Europe B2C E-Commerce Market 2016".
Find the full report available for purchase at: https://ystats.com/shop/europe-b2c-e-commerce-market-2022/
Birmingham's economy has remained strong despite a slowing global economy. Key factors driving growth include continued increases in business startups and house prices, strength in the automotive industry, record levels of inward investment and infrastructure projects, and strong growth in the visitor economy. Unemployment has fallen significantly but some residents still face barriers to employment. The economy is forecast to be one of the strongest performing in the UK over the next decade.
The document provides an overview of Vietnam's socioeconomic situation one year after the start of the COVID-19 pandemic. Some key points:
- Vietnam's GDP grew by 2.91% in 2020, making it one of three Asian countries with positive growth despite the pandemic.
- Unemployment increased to 2.26% but underemployment decreased slightly to 2.51%. The number of newly registered businesses fell by 2.3% but average registered capital increased by 32.3%.
- Imports and exports increased in 2020, with exports rising 6.5% and imports up 3.6%, resulting in a trade surplus of $19.1 billion. Foreign direct investment reached $28.5
Masan Holding phân tích và chia sẻ về thị trường đầu tư Việt Nam 2014Duy, Vo Hoang
This document provides an analysis of the Vietnamese retail market conducted by Phuong Nguyen for her thesis at Helsinki Metropolia University of Applied Sciences. The analysis focuses on the retail strategies of Vinmart, the supermarket chain owned by Vietnamese conglomerate Vingroup. The document provides an overview of Vietnam's growing retail market, describes Vingroup's expansion into the retail sector, and analyzes Vinmart's competitive strategies and opportunities in competing with other domestic and international retailers in Vietnam.
Following the Government’s implementation of effective COVID-19 containment measures, in the first half of 2020, Vietnam economy witnessed GDP growth falling to 1.81%, the lowest first-half growth for the last 10 years. The pandemic has disrupted global trade and supply chains leading to deterioration in corporate earnings and individual income, which eventually weakens credit demand and asset quality of the banking sector in Vietnam.
Access to our FULL REPORT: http://fiinresearch.vn/Reports/2125D-vietnam-banking-report-2020-.html
In this Banking Report 2020, we provide in-depth analysis of the impact of COVID-19 on every aspect of the banking sector and individual banks, including credit growth, asset quality, earning quality, liquidity, profitability, and operation efficiency. Development trends and regulations in response to the pandemic are also covered.
The survey found that Vietnamese consumers are optimistic about the future economic outlook and their own financial situations. Most plan to increase spending in the coming year. While consumers across cities spend 40-50% of monthly household expenses on basic necessities, there are some differences in spending patterns between cities. Consumer electronics account for 10-13% of spending, while recreational goods and welfare/leisure each make up 4-6% on average. Overall, Vietnamese consumers displayed confidence in continued economic and personal income growth in the near future.
The document discusses the development of e-commerce in Vietnam. It notes that e-commerce has grown rapidly in Vietnam in recent years, but still faces challenges. While opportunities exist to expand e-commerce to local areas and rural provinces, issues like infrastructure gaps, consumer awareness, and foreign platform dominance present obstacles to further growth. The government has initiatives to boost e-commerce and increase its share of domestic retail, but fully realizing this potential will require addressing the challenges outlined in the paper.
This document discusses the development of e-commerce in Vietnam. It finds that e-commerce is growing rapidly in Vietnam, but foreign platforms dominate the market. While e-commerce presents opportunities, it also faces challenges like low consumer confidence, underdeveloped delivery services, and lack of regulation for cross-border platforms. The document proposes solutions are needed to improve infrastructure, skills, and competitiveness to fully realize the potential of e-commerce in Vietnam.
The retail market in Vietnam has grown strongly after recovering from the global crisis in 2007-2008. In 2010, the retail goods and services market grew 24.5% to over 1.5 trillion VND. Modern retail channels in Vietnam are still underdeveloped compared to traditional markets, providing opportunities for further local and foreign investment. Large retail brands have expanded but not fully met consumer demand, especially in rural areas where living standards are improving. Retailers from Japan and Korea are establishing new shopping centers and hypermarkets. E-commerce is also developing as a modern retail channel that is well-suited to urban consumers. The retail market is expected to continue strong growth in 2011, with large supermarkets growing dramatically and small supermarkets
The document provides a market report for Q4 2021, summarizing key economic indicators and real estate trends in Vietnam. It finds that while Vietnam's GDP grew by 5.22% in Q4 2021, the country faced challenges from COVID-19 lockdowns. Real estate prices increased slightly for apartments, offices, and retail across major cities. The report expects modest continued growth in 2022 as vaccination rates increase and the economy reopens further.
This document discusses Vietnam's promising retail market opportunities. It begins by outlining Vietnam's strong macroeconomic outlook, including forecast GDP growth of 6.5% annually, the fastest growing middle class in Southeast Asia at a 9.2% CAGR, and potential for rapid future urbanization. Vietnam also has high levels of private consumption, FDI inflows, and political stability compared to other Southeast Asian countries. The retail market is growing rapidly due to Vietnam's young population and rising disposable incomes. Modern trade is expanding while e-commerce remains in early stages but shows significant long-term potential.
This document is the table of contents for the EuroCham Whitebook 2020 report. It lists the 17 sector committees that contributed recommendations covering various cross-sectoral and sector-specific issues. It also includes introductory remarks from EuroCham leadership and partner business associations. The table of contents provides an overview of the report's structure, with sections on contextual introduction, recommendations for economic recovery, and specific issues addressed by each sector committee.
EU-VIETNAM FREE TRADE AGREEMENT AND INVESTMENT PROTECTION AGREEMENT – MOST LI...Dr. Oliver Massmann
The document summarizes key aspects of the EU-Vietnam Free Trade Agreement (EVFTA) and Investment Protection Agreement (EVIPA). It discusses the following key points:
1) The EVFTA was signed in 2019 and provides for the elimination of over 99% of tariffs between the EU and Vietnam. This will significantly increase market access for goods and services.
2) The EVIPA establishes an investment tribunal for settling disputes between investors and states and ensures fairness and independence in the dispute resolution process.
3) Once ratified, the agreements are expected to boost economic growth in both the EU and Vietnam through increased trade and investment opportunities across various sectors.
Ngành Bán lẻ | Báo cáo ngành Bán lẻ Việt Nam 2019Jackie Nguyen
Trong những năm gần đây, Việt Nam đã trải qua sự tăng trưởng bán lẻ nhanh chóng. Từ 2013-2018, ngành bán lẻ ghi nhận tốc độ tăng trưởng kép hàng năm (CAGR) là 10,97%. Tổng doanh thu bán lẻ cũng dự kiến sẽ đạt 180 tỷ USD vào năm 2020, tương đương mức tăng 26,6% từ năm 2018. Với dòng vốn đầu tư vào lĩnh vực này, nó đã sẵn sàng để chứng kiến sự tăng trưởng hơn nữa trong tương lai gần...
---
https://smartretail.vn/
https://smartretail.com.vn/
StoxPlus is pleased to introduce our first issue of Vietnam Bank Card report. This issue is expected to be released annually, covering most up-to-date card data on the market.
This issue details how the card market has developed exponentially since 2002, after the introduction of card system in Vietnam. The competitive dynamics have been thoroughly ratified. This picture with domination of debit card has not changed, but is expected to gradually shift with the changes in consumer behavior. Technology and infrastructure have become more critical, therefore, the report also highlights the rise of infrastructure and technology advancement and its applications in bank card market. To gain a deeper understanding of the attributes that customers value, we surveyed the products offered by selected financial institutions.
Below are the most critical findings in our first issue:
1) The number of bank cards in circulation in Vietnam has recorded a double-digit growth rate in the past 6 years, and reached 90.4 million at YE2015. Total card number is growing exponentially at CAGR of 26.56%, with debit card being the dominant type. State-owned commercial banks (SOCBs) make up 66% of total cards circulating in Vietnam. Among SOCBs, Vietinbank is the most popular card issuer with over 19.3million cards by all types.
2) ATM and POS systems have been growing extensively at two-digit in the past 5 years. The growth rate of ATM and POS system has been 25 – 30% in the past 5 years, reaching 16,855 ATM and over 217,000 Point of Sales (“POS”) by YE2015. However, the distribution and coverage of ATM and POS system are still far below our peer countries.
See more at: https://biinform.com/Reports/185-vietnam-bank-card-report-2016-8350.html
The following extract, compiled by China Intelligence Online, is a brief overview of the main trade indicators and port industry.
For more information on trade or logistics industry performance in Vietnam please contact:
info@chinaintelligenceonline.com
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Vietnam Consumer Finance Report 2020: Challenges and opportunities for getting ahead
The 2019 has been particularly eventful, with the revival of at least two previously inactive FinCos to the market (PTFinance, FCCOM), putting pressure on the market shares of the incumbents. CF increased its contribution to national loan book to 20.5% in 2019, up from the 19.6% in 2018. Given the current market size, CF penetration in Vietnam is currently considered slow compared to its regional peers, signifying an attractive growth prospect.
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2. EVBN The Retail Channels in Vietnam 2
USEFUL CONTACTS MORE INFORMATION
EU-Vietnam Business Network (EVBN)
15th Floor, 5B Ton Duc Thang, District 1
Ho Chi Minh City, Vietnam
T: +84 (0)28 38239515
www.evbn.org
The Landmark, 15th floor, 5B Ton Duc Thang St., District 1,
Ho Chi Minh City, Vietnam
Tel. +84 (0)28 3823 9515 Fax +84 (0)28 3823 9514
www.evbn.org
This publication was produced with the assistance of the European
Union.
The content of this publication is the sole responsibility of EVBN
and can in no way be taken to reflect the views of the European
Union.
General Statistics Office of Vietnam:
http://www.gso.gov.vn
Vietnam Customs Statistics:
http://www.customs.gov.vn/
Vietnam Trade Promotion Agency (Vietrade):
en.vietrade.gov.vn
3. EVBN The Retail Channels in Vietnam 3
Contents
List of Abbreviations
Currency Exchange
List of figures
Executive Summary
Chapter 1: Vietnam Overview
Geo-demographics
Vietnam’s Economy
Structure of consumption expenditures
Chapter 2: Vietnam’s Retail Sector
Overview of the Retail Market in Vietnam
Market size
Structure of Vietnam’s retail sector
Franchising
Market trends
Market drivers
Opportunities and challenges
Chapter 3: Competitive Landscape
Traditional market
Convenience store
Supermarket and Hypermarket
Shopping centre
Chapter 4: Profile of End Consumer
and Distribution Channels
Profile of end consumer
Distribution channels
Summary
List of Trade Fairs and Exhibitions
Main Online and Printed Publications
Useful Contacts
References
Chapter 5: Regulatory and Legal
Framework
Regulatory and Legal Framework for
investors in the Retail sector
Relevance and impact of EVFTA
Regulatory and Legal Framework for
franchising activities
3
4
4
5
6
8
10
12
36
37
40
41
42
44
45
46
47
48
29
29
31
32
14
14
15
19
24
26
27
CONTENTS
4. EVBN The Retail Channels in Vietnam 4
ASEAN Association of Southeast Asian Nations
CAGR Compound Annual Growth Rate
CIT Corporate Income Tax
CVS Convenience store
DOIT Department of Industry and Trade
ENT Economic Needs Testing
EU European Union
EVFTA EU-Vietnam Free Trade Agreement
FDI Foreign Direct Investment
FIE Foreign-invested enterprise
FMCG Fast-moving consumer goods
FOE Foreign Owned Enterprise
FTA Free Trade Agreement
GDP Gross Domestic Product
GRDI Global Retail Development Index
GT Traditional grocery store
H1 First Half of Financial Year
HCMC Ho Chi Minh City
MOIT Ministry of Industry and Trade
POS Point-of-Sale
SOE State Owned Enterprise
VAT Value Added Tax
WTO World Trade Organisation
EUR/US$ 0.81
EUR/VND 27,998.64
EUR/YEN 132.53
LIST OF ABBREVIATIONS
CURRENCY EXCHANGE
5. EVBN The Retail Channels in Vietnam 5
Figure 1: Map of Vietnam with key cities 8
Figure 2: Vietnam’s population 2013-20f 9
Figure 3: Forecast of rural and urban population in Vietnam and Asia Pacific, 2030 9
Figure 4: Nominal GDP and Real GDP growth, 2013-20f 10
Figure 5: Nominal GDP per capita, 2013-20f 10
Figure 6: Total registered FDI capital, 2010-2017 11
Figure 7: Total registered FDI capital by provinces, 2017 11
Figure 8: Structure of consumption expenditure, 2013-22f 12
Figure 9: 2017 Global Retail Development Index 14
Figure 10: Vietnam’s retail value, 2013-20f 15
Figure 11: Structure of retail market in Vietnam 15
Figure 12: Value contribution of retail channels in Vietnam, 2015-20f 16
Figure 13: Number of traditional markets in Vietnam, 2013-16 16
Figure 14: Number of supermarkets and hypermarkets in Vietnam, 2013-16 17
Figure 15: Number of shopping centres in Vietnam, 2013-17 18
Figure 16: Number of convenience stores in Vietnam, 2014-20 18
Figure 17: List of key domestic franchisees in Vietnam 20
Figure 18: List of key franchised brands in Vietnam 21
Figure 19: Maison JSC’s logo and online homepage 22
Figure 20: List of some current EU fashion brands distributed by Maison JSC 23
Figure 21: Maison JSC’s Timeline 23
Figure 22: Key convenience stores chains in Vietnam and their operations 29
Figure 23: Distribution of stores of key convenience store chains as of February 2017 30
Figure 24: Key supermarkets/hypermarkets in Vietnam and their operations 31
Figure 25: Key shopping centres in Vietnam and their operations 32
Figure 26: Takashimaya online shopping homepage and Takashimaya Ho Chi Minh 33
Figure 27: Percentage of share value in retail channels 36
Figure 28: Distribution structure of imported products in Vietnam 37
Figure 29: Key retail chains and their purchasing type 38
Figure 30: Economic Needs Testing Timeline 40
Figure 31: Franchise registration timeline 42
LIST OF FIGURES
6. Vietnam is considered one of the region’s most attractive markets for foreign
investors with a steadily increasing GDP and booming foreign direct investment, a
pattern that is forecasted to remain stable in the upcoming years. Nominal GDP in
2018 is estimated to reach €208.1 billion, recording a nominal y-o-y growth rate of
6.7%. The country’s nominal GDP is forecasted to attain €248.8 billion in 2020.
Since Vietnam joined the WTO and allowed 100% foreign-owned retailers, the country’s
retail market has become increasingly lucrative. Traditional retail will remain Vietnam’s
dominant retail channel in the near future, currently accounting for 68% of the retail
market. However, the country is witnessing a shift from traditional retail to modern
retailers such as convenience stores, supermarkets/hypermarkets, and shopping
centres. While the shopping centre and the supermarket/hypermarket segments are
growing at a gradual and steady pace, with a CAGR of 4.7% (2013-16) and 6.2% (2013-17)
respectively, the convenience stores chain segment is vigorously booming in the recent
years, with an outstanding CAGR of 66.2% from 2014 to 2017. With Vietnam’s increasing
effort to open up its trade policies and its strong participation in FTA agreements,
including the EVFTA agreement, the market is just at the beginning stage of its
development and offers numerous opportunities for investors.
Some investors choose to enter the Vietnamese market though franchising, especially
in the F&B industry. With an increasing income per household, Vietnamese people
spend more on the F&B goods and services. In addition, with an increasing fondness
for Western products and concern for health, in addition to clearer government
requirements, franchising is expected to grow steadily in the next few years.
First, this report will look at the potential for growth of Vietnam’s retail market over
the next five years focusing on four segments: traditional retail, convenience store
chains, supermarkets/hypermarkets, and shopping centres. It will also provide an
overview on Vietnam’s current franchising landscape, and assess what impact the
EU-Vietnam Free Trade Agreement (EVFTA) has had on the industry.
Executive
Summary
8. EVBN The Retail Channels in Vietnam 8
Hanoi
Da Nang
Ho Chi Minh City
Can Tho
Nha Trang
I. Geo-demographics
Vietnam comprises a landmass of 330,972.4 km2,
a vast sea area including a large continental
shelf and a string of archipelagos stretching
from the Gulf of Tonkin in the North to the Gulf
of Thailand in the South. In 2017, Vietnam’s
population was 95.54 million people and is
projected to reach 98.4 million in 2020, an
increase of 1% on average between 2015-2020.
MajorcitiesinVietnam,namelyHanoi,HaiPhong,
Danang, Nha Trang, Ho Chi Minh City, and Can
Tho, are well-dispersed geographically. Hanoi,
the capital of Vietnam, is the second largest city
in Vietnam and is the country’s political and
administrative centre. Hanoi is known for its
rich culture characterised by South East Asian,
Chinese and French influences. Ho Chi Minh City,
commonly known as Saigon, is the country’s
largest city and the commercial hub of Vietnam.
By 2030, Ho Chi Minh City will continue to be the
largest city in Vietnam by population with over
10 million inhabitants accounting for 23% of
Vietnam’s total urban population.
Imagefromwww.vietnamtourism.gov.vnImagefromwww.wikipedia.org
Figure 1: Map of Vietnam with key cities
9. EVBN The Retail Channels in Vietnam 9
AlthoughVietnamremainspredominantly
rural, it is expected to undergo significant
urbanisation in the next 14 years. By
2030, the urban population is forecasted
to increase by 37% from 2017, reaching
45.66 million people, or 43% of the
total population of Vietnam. This rapid
urbanisation is caused predominantly
by the growth of urban cities and the
expansion of the urban-based industrial
and services sectors. Moreover, high
urbanisation rate causes a pressure on
the construction sector to increase the
number of high-rise apartment buildings
and office buildings.
2013
2014
2015
2016e
2017f
2018f
2019f
2020f
91.50
92.54
93.57
94.57
95.54
96.49
97.43
98.36
Figure 2: Vietnam's population 2013-20f
Source: D&B
Figure 3: Forecast of rural and urban
population in Vietnam and
Asia Pacific, 2030
Source:UNDP
*Unit:millionpeople
44%RURAL
56%
URBAN
Asia
Pacific
Vietnam
57%RURAL
43%
URBAN
10. EVBN The Retail Channels in Vietnam 10
II. Vietnam’s Economy
Gross Domestic Product
In 2017, Vietnam’s nominal GDP
per capita reached €2,029, an
increase of 5.4% compared to
2016. Nonetheless, the country has
been recognised for its effort to
increase the GDP per capita, and
expects to reach a GDP per capita
of €2,529 in 2020. A solid increase
in GDP per capita suggests that an
average Vietnamese will have more
disposable income to spend on
more goods than just basic needs.
0
50
100
150
200
250
0
1
2
3
4
5
6
7
8
2020f2019f2018e20172016201520142013
128.4
5.4
6.0
6.7
6.2
6.8 6.7
140.0
172.5
182.0 193.9
208.1
228.6
248.8
(€bn)
(%)
Nominal GDP (EUR bn) Real GDP growth (%)
Real gross domestic product (GDP) growth is expected to accelerate at 6.7% in 2018, reaching €208.1
billion in value. With this growth rate, Vietnam remains one of the fastest-growing economies in Asia. The
solid increase pace is foreseen to continue until 2020, to reach €248.8 billion. The outlook is underpinned
by ongoing Government policies regarding the privatisation of state-owned enterprises (SOEs), the
maintenance of price stability, the lowering of trade barriers and reduced tax rates.
0
500
1000
1500 1,403
1,512
1,843
1,924
2,029
2,156
2,346
2,529
2000
2500
3000
2020f2019f2018e20172016201520142013
(€)
Figure 4: Nominal GDP and Real GDP growth, 2013-20f
Source: BMI
Figure 5: Nominal GDP per capita, 2013-20f
Source: BMI
11. EVBN The Retail Channels in Vietnam 11
In 2017, Vietnam received a
record €24 billion of foreign
direct investment (FDI). This is a
reflection of the increase in trade
and production in Vietnam as more
global manufacturing giants have
decided to move their production
facilities to Vietnam to reap the
benefits from the numerous
incentives to attract investments
from the government.
Ho Chi Minh City, Vietnam’s commercial centre, continued to receive the most FDI in 2017 with a total
registered capital of nearly EUR 2.7 billion. Provinces such as Binh Duong and Bac Ninh, where LG and
Samsung established their manufacturing centres, also received large amounts of FDI at EUR 2.0 and EUR 2.6
billion, respectively. Thanh Hoa and Khanh Hoa are two provinces receiving the highest number of newly
registered capital, respectively, due to mega Build – Operate – Transfer Japan’s thermal power projects.
Foreign Direct Investment
20172016201520142013201220112010
15,066
11,904
10,530
17,577
16,378
18,436
19,761
24,041
(€ mn)
Other
Binh Duong
Khanh Hoa
Thanh Hoa
Bac Ninh
Ho Chi Minh City 2,684.4
2,640.6
2,563.8
2,104.7
2,003.5
12,054.1
(Unit: EUR mn)
Figure 6: Total registered FDI
capital, 2010-2017
Source: GSO
Figure 7: Total registered FDI capital by provinces, 2017
Source: GSO
12. EVBN The Retail Channels in Vietnam 12
III. Structure of consumption expenditures
With this GDP growth and increase in disposable income, consumption expenditure is expected to grow
at a rate of 9% during 2016-22f. The increase in the standard of living will likely also raise the price and the
quality of goods purchased by Vietnamese consumers.
20142013 2015 2016 2017 2018 2019 2020 2021 2022
Other
Leisure & education
Transport & communications
Health spending
Furnishing and home
Housing and utilities
Clothing & footwear
Food, beverages & tobacco
624 669 715 754 815 883 967
212 228 244 258 279 303 332 365 401 441
515 551 588 618 667 721 787 862 944
69 74 79 84 91 98 108 118 130 143
149 160 171 180 195 211 231 253 277 305
396 422 450 472 508 548 598 653 714 782
74 80 85 90 97 105 114 125 137 151
588 629 671 706 761 823 899 984
0
EURperyearperhousehold
1,000
2,000
3,000
4,000
5,000
6,000
1,060 1,163 1,278
1,035
1,078 1,183
Figure 8: Structure of consumption expenditure, 2013-22f
Source: BMI
13. CHAPTER 2
VIETNAM RETAIL SECTOR
Overview of the Retail Market in Vietnam
Market trends
Market drivers
Opportunities and challenges
ImagecreatedbySuksao-Freepik.com
14. EVBN The Retail Channels in Vietnam 14
I. Overview of the Retail Market in Vietnam
Vietnam’s retail sector is booming. In 2017, the country ranked sixth in the Global Retail Development
Index (GRDI), up five ranks from the previous year. Within the ASEAN region, Vietnam is the market with the
second highest index (after Malaysia). With a relatively small size and a retail market attractiveness index of
26.7, Vietnam is considered a prime market with low saturation.
1. Market size
GRDI 2017
Ranking
2017
GRDI
score
Market
attractiveness
Market
saturation Time pressure
National retail
sales
(in EUR billion)
Malaysia 4 60.9 77.1 23.3 56.2 95.0
Vietnam 6 56.1 26.7 72.4 100 104.9
Indonesia 8 55.9 49.3 52.1 76.7 432.1
Philippines 18 48.4 33.2 39.9 73.5 94.9
Thailand 30 47.8 47.4 5.8 47.8 146.9
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0
25 30 35 40 45 50 55 60 65 70 75 80
Countryrisk(economicandpolitical)
(0=highrisk,100=lowrisk)
Country Potential
(0= low potential, 100 = high potential)
Thailand
Philippines
Malaysia
Indonesia
Remark: Size of the bubble indicates national retail sales. Country potential is a weighted score of
market attractiveness, market saturation and time pressure.
Figure 9: 2017 Global Retail Development Index
Source: A.T. Kearney, Statistical Office from ASEAN countries
15. EVBN The Retail Channels in Vietnam 15
Vietnam’s retail value reached EUR104.9
billion in 2017, a 9.7% increase from the
previous year. This growth has been
consistent over several years and is
expected to keep accelerating at a 10.3%
growth rate per annum until 2020 when
the retail market is anticipated to reach
EUR140.7 billion.
Multinational retailers such as Lotte, Big C,
Aeon, Circle K, and 7-Eleven are taking
advantage of Vietnam’s emerging retail
market and have already established
their footprints. Their presence in
Vietnam creates more competition for
domestic retailers, while diversifying
the offering for Vietnamese consumers
whose disposable income is increasing
and whose taste for foreign brands is
expanding.Wewillexploreinmoredetails
the profile and competitive landscape of
those key players in Chapter 4.
The retail industry in Vietnam comprises three main channels: traditional, modern and online. The
characteristics of the online retail channel will not be discussed here since there is a dedicated report on
the topic, available for download on the EVBN website. We will discuss below Vietnam’s traditional and
modern retail channels.
2. Structure of Vietnam’s retail sector
0
30
60
90
120
150 Unit: EUR billion
2013 2014 2015 2016 2017 2020f
70.2
78.2
85.9
95.3
104.9
140.7
TRADITIONAL
RETAIL
Wet
markets
Grocery
stores
R E T A I L I N D U S T R YR E T A I L I N D U S T R Y
Hypermarkets
Supermarkets
Department stores/
Shopping Centers
Convenience
Specialty Stores
E-commerce
MODERN
RETAIL
ONLINE
RETAIL
Figure 10: Vietnam's retail value, 2013-20f
Source: GSO
Figure 11: Structure of retail market in Vietnam
Source: Speeda
16. EVBN The Retail Channels in Vietnam 16
Wet markets and grocery stores
remain the most common retail
channels as Vietnamese consumers
still rely on these outlets to make
their day-to-day purchases.
Nevertheless, modern retail is
gaining popularity, especially in
urban cities such as Hanoi or Ho Chi
Minh City. The value contribution
of the modern retail channels has
been increasing in recent years, and
according to the Ministry of Trade,
may account for up to 45% of the
total sector value by 2020.
The traditional retail sector, i.e., wet markets and
grocery stores, is well integrated into the daily life of
Vietnamese consumers. Since fresh ingredients are
central to the local cuisine, Vietnamese consumers
still satisfy their everyday needs at these traditional
retail venues because of their convenience and
their competitive prices.
Although the traditional retail sector has the largest
market share, this channel enjoys a modest growth
since the number of outlets has remained stable in
the last few years with around 8,500 wet markets
and 1.3 million grocery stores. This is due to the
increasing presence of modern retail stores as well
as changes in consumer behaviour. As income per
capita increases, Vietnamese consumers become
less price sensitive and, especially in urban areas,
more willing to pay a premium for a pleasant décor
and a wider variety of products.
$
55%
55%
68%
75%
32%
45%
25%
Traditional retail
Modern retail
Remark:
Inner circle: 2015
Middle circle: 2017
Outer circle: 2020
TRADITIONAL RETAIL
0
2000
4000
6000
8000
10000
2013
8,546 8,568 8,660 8,513
2014 2015 2016
CAGR 2013-16 = -0.1%
Figure 12: Value contribution of retail channels in Vietnam, 2015-20f
Source: Speeda, Ministry of Trade
Figure 13:
Number of traditional markets in Vietnam, 2013-16
Source: GSO
17. EVBN The Retail Channels in Vietnam 17
The modern retail sector has seen significant developments in recent years, with the value contribution
of this channel expected to account for 45% of the total retail value by 2020. Currently, modern retailers
are concentrated in urban cities such as Hanoi and Ho Chi Minh City. However, the penetration of modern
retailers is expected to continue as both foreign and domestic companies have plans to expand their
coverage in Vietnam.
In 2016,Vietnam had nearly 870 supermarkets and
hypermarketsconcentratedmostlyinHoChiMinh
City and Hanoi. This figure is forecasted to exceed
1,200 by 2020 due to increased urbanisation and
the adoption of modern retail outlets as a one-
stop shops for commodities. Supermarkets and
hypermarkets carry a wide range of products, with
groceries, food, and beverages accounting for the
majority of the items. Imported products are more
common in response to the higher demand for
foreign products and the increasing number of
expatriates and tourists in Vietnam.
The major challenges for supermarkets/
hypermarkets in Vietnam are the high rents and
the administrative red tape. Land and properties
are owned by the Vietnamese government who
charges high rents, especially in the central
business districts of major cities. Statistics show
that supermarkets can takes more than five years
to breakeven in Vietnam, twice the time needed
in Indonesia, Malaysia, and Singapore.
SUPERMARKETS AND HYPERMARKETS
MODERN RETAIL
0
200
400
600
800
1000
2013 2014 2015 2016
CAGR 2013-16 = 4.7%
724
762
812
869
Figure 14:
Number of supermarkets
and hypermarkets in Vietnam, 2013-16
Source: GSO
18. EVBN The Retail Channels in Vietnam 18
The number of shopping centres
is on the rise and is forecasted to
reach over 300 centres in 2020.
Located mostly in major cities,
shopping centres house renowned
international brands. These centres
have changed their model from
department stores to shopping
malls in response to the demand
for a destination where consumers
can not only shop but also enjoy a
variety of entertainment attractions
such as movie theatres and food
courts. This change in consumer
behaviour caused the withdrawal
of several players that were unable
to adapt.
SHOPPING CENTRES
CONVENIENCE STORES
Convenience stores and mini-marts are growing
rapidly, from 350 stores in 2014 to over 2,600 stores
in 2017. Generally located in residential areas,
convenience stores compete with traditional
grocery stores. Supermarkets and hypermarkets
are also occupying this market by leveraging their
position and expertise in the retail sector. Based on
the fact that the population per store in Vietnam
(69,000) is still high compared to other countries
such as Thailand (37,000) and China (29,000), the
convenience store market is expected to maintain
a double-digit growth in the next five years.
Similarly to supermarkets, the main challenge for
convenience stores is land capital. Nevertheless,
certain players are willing to operate at a loss
for a few years to secure ideal venues in central
business districts or residential areas.
0
50
100
150
200
2013 2014 2015 2016 2017
130 139
162 170 177
CAGR 2013-17 = 6.2%
0
500
1000
1500
2000
2500
3000
2014 2015 2016 2017
348
520
~1,600
>2,650
CAGR 2014-17 = 66.2%
Figure 15: Number of shopping centres in Vietnam, 2013-17
Source: GSO
Figure 16:
Number of convenience stores in Vietnam, 2014-20
Source: VIR
19. EVBN The Retail Channels in Vietnam 19
3. Franchising
Franchising has been around since the 1990s
and is no longer a novelty in Vietnam. According
to a report by the MOIT, over 190 foreign brands
(predominantly from the US, South Korea, EU
and Australia) will have been granted franchising
rights in Vietnam in 2018, up from 150 brands in
2015. A wide range of industries use franchises,
such as food and beverages (McDonald’s, Baskin
Robbins, Pizza Hut, KFC, Burger King), education
(Cleverlearn, Dale Carnegie), fashion and
cosmetics (BVLGARI, Bottega Veneta, The Body
Shop), and convenience stores (7-Eleven, Circle K).
According to the International Franchise
Association, Vietnam’s franchise market places
Vietnamese consumers associate Western brands
with reliability, quality, and lifestyle, which may be
why they are quick to adopt high-end or premium
products and services.
Most franchises are fast food restaurant chains
and retail stores, two sectors that possess high
potential for foreign investors. The fast food
market is a competitive one, with well-established
Vietnamese brands. Key players are Americans
companies for the most part, and include KFC,
Subway, McDonald’s, Starbucks, Burger King, Carl’s
Jr, Domino’s, Pizza Hut, Hard Rock Café, Popeye’s
Chicken, Dunkin’ Donuts, Z Pizza, Coffee Bean &
Tea Leaf, and Baskin-Robbins.
The food and beverage industry has witnessed a
strong franchising growth, with total food sales
set to maintain a double-digit growth throughout
eighth among the twenty most potential markets
in the world. Vietnam is, therefore, attractive for
foreign brands looking to expand their business
through franchising.
The franchising market is expected to welcome
more international brands in the next three years
while small to medium domestic companies
struggle to scale. According to Vietnamese
franchising experts, foreign franchisors generally
favour the master franchise model, or first-tier
franchises. It is of note that foreign franchisors
usually require their franchisees to use the
imported materials even when these materials
can be found in Vietnam.
2017-2021,equally11.3%peryearonaverage,and
to reach nearly EUR26 billion in 2018. Additionally,
over 20% of Vietnam’s household income is now
spent on food and beverages.
Domestic restaurants are also jumping on
the franchising bandwagon. The Golden Gate
Restaurant Group, for instance, owns 22 franchise
restaurant concepts and over 220 restaurants
across the country. Another example is Huy
Vietnam, which has around 140 restaurants and 4
brands specialising in Vietnamese cuisine. Trung
Nguyen, Pho 24 and Highlands Coffee are also
popular local brands that experience significant
growth in both domestic and foreign markets.
Trung Nguyen Coffee has the largest franchising
network in Vietnam with more than 1,200 outlets
opened since 1998.
LEADING SECTORS
20. EVBN The Retail Channels in Vietnam 20
No. Company
Year of
entering
Brand Description
1
Golden Gate
Restaurant
Group
2005
Sumo BBQ,
Vuvuzela,
Cowboy Jack’s,
Ashima, Kichi-
kichi, isushi,
Magic Pan, Ba
Con Cuu, Gogi,
iCook, and
others.
The Golden Gate Restaurant Group currently
operates 22 restaurant concepts with over 220
restaurants nationwide. The Golden Gate
Restaurant Group is recognized as the leading
restaurant chain operator in Vietnam in terms of
sales, number of concepts, outlets and
professionalism.
2 VietThai
International
Joint Stock Co.
1998
Highlands
Coffee, Pho24,
Hard Rock Café,
ALDO,My Mart,
Thai Kien,
Swarovski
Viet Thai has become one of the largest consumer
marketing and multi-unit retail operators in
Vietnam
3
Trung Nguyen
Group
1996 Trung Nguyen
The Trung Nguyen Group is involved in the
production, processing and distribution of coffee.
Trung Nguyen is the largest domestic coffee brand
in Vietnam and exports its products to more than
60 countries, including major markets such as G7
countries.
Trung Nguyen Coffee has the largest franchising
network in Vietnam with more than 1,200 outlets
opened since 1998.
Convenience stores are another popular concept for franchising, with a variety of brands such as Circle K,
Family Mart, and Shop & Go expanding quickly in major cities. It is expected that franchising will also grow
in the education and training sector, along with brands such as Mathnasium, Cleverlearn, Crestcom, Dale
Carnegie (US), and Kumo (Japan).
The franchise sector is poised for continued growth not only in the fast food, retail and education sectors,
but also in entertainment, healthcare, beauty-care, and lifestyle businesses.
Figure 17: List of key domestic franchisees in Vietnam
Source: Ipsos Business Consulting analysis
21. EVBN The Retail Channels in Vietnam 21
No. Brand
Year of
entering
Orgin Description
KFC
Kentucky
Fried
Chicken
Lotteria
The first KFC restaurant opened in HCMC in 1997.
Today, KFC has more than 140 restaurants in 19
cities/provinces across Vietnam and employs
more than 3,000 people.
Lotteria is a leading fast-food chain in Vietnam
with more than 210 restaurants in 30 cities/prov-
inces throughout the country.
3 Jollibee Philippines
1
2
1997 US
US1998
Jollibee has more than 80 stores in Vietnam
4 Pizza Hut US2005
2005
The first Pizza Hut opened in HCMC. Currently,
there is more than 60 stores throughout the
country.
5 McDonald’s US2014
Entering Vietnam in 2014, McDonald’s is now
operating over 20 restaurants in Ho Chi Minh City
and Hanoi.
Figure 18: List of key franchised brands in Vietnam
Source: Ipsos Business Consulting analysis
22. EVBN The Retail Channels in Vietnam 22
CASE STUDY
Maison Joint Stock Company
(Maison JSC)
Established in 2002, Maison Joint Stock Company
(Maison JSC) is currently one of the three biggest
fashion distributors in Vietnam and represents 23
world-renowned international brands. Maison JSC’s
first-ever brand was Mango, a famous clothing
brand from Spain.The first Mango store was opened
in HCMC in 2002 and was an immediate success. In
2004, Mango was praised by the Vietnam Economic
Times asVietnam’s number one fashion brand. Since
then, Maison JSC has worked tirelessly to acquire
franchising rights from a number of other EU brands,
including Versace (Italian), Max Mara (Italian), and
Christian Louboutin (French).
http://www.maisonjsc.com/en/
Figure 19:
Maison JSC's logo
and online homepage
23. EVBN The Retail Channels in Vietnam 23
According to Ms. Mai Son Pham, Maison JSC’s
CEO, the company focuses on bringing mass
and high-end brands to Vietnam, and not luxury
brands. In order to gain franchising rights from
a particular brand, she explains, a franchisee has
to prepare a thorough business plan, including a
detailed market analysis and a 3-year plan for the
development and opening of a store. If the plan is
approved, the franchisee can be confident about
the success of the brand in Vietnam, ensures Ms.
Mai Son Pham.
In 2016, Maison JSC’s revenue was EUR 48.6
million, ranking first among the three largest
fashion distributors in Vietnam. Maison JSC plans
to continue to expand its portfolio of brands
with the mission to “blow life into the Vietnam’s
fashion scene.”
Brand Country of origin Year of entering Vietnam
Number of stores
(2018)
Mango Spain 2004 2
Christian Louboutin France 2011 2
Max Mara Italy 2016 1
Max&Co. Italy 2015 3
2002 2004 2007
20082011
20172014
Maison Company Limited
was founded
Reached
44 retail outlets in Vietnam
Name change to
Maison & Partners
Name change to
Maison Joint Stock Company
Currently distributing
23 worldwide fashion brands
Figure 20: List of some current EU fashion brands distributed by Maison JSC
Source: Maison JSC
Figure 21: Maison JSC's Timeline
24. EVBN The Retail Channels in Vietnam 24
II. Market trends
Traditional retail is still the main channel,
but modern retail is gaining popularity
Health is amongst the top concerns for
Vietnamese consumers
MostVietnamesestillfrequentwetmarketsandothertraditionalretailoutletstomaketheirdailypurchases.
This can be explained by four factors:
Wetmarketsandgrocerystoresaregenerallyfoundnearpopulousresidentialareas,whichmakesthemconvenient;
Prices at traditional retail outlets tend to be lower, and bargaining is widely practised;
Vietnamese consumers tend to shop daily for food items to ensure freshness;
Wet markets and grocery stores allow consumers to purchase goods in smaller quantities, which is better
suited to their day-to-day consumption habit.
Simultaneously, modern retailers are gaining popularity, especially in urban areas. On one side, the rise
of living standards in major cities has made consumers more willing to pay a premium on products and
services offered by modern retailers. On the other side, modern retailers can offer a wider selection of
products and a convenient shopping experience. Moreover, modern retailers are responsive to their
shoppers’ preferences. For instance, modern outlets have started to offer prepared meals that appeal to
the daily shopper looking for fresh products. Together, these factors explain why modern retailers are
gaining ground.
As a consequence of recent epidemic disease outbreaks and the rise of medical and healthcare costs,
Vietnamese consumers are increasingly concerned about food safety and quality.They pay more attention
to products’ origin, indicators of quality, ingredients and nutritional information. Concerns about food
hygiene has made consumers willing to pay more for quality products, with the tendency to associate a
premium with higher quality, especially for imported products. Another emerging trend is organic food,
which is sold mainly in modern retail outlets and is hard for traditional retailers to compete with.
25. EVBN The Retail Channels in Vietnam 25
The Food and Beverage sector continues to lead
the fast-moving consumer goods (FMCG) industry
The food and beverages sector continues to account for the largest portion of Vietnamese consumers’
spending, with an 11% growth rate during the 2017-19 period. Beverages account for 45% of all FMCG
sales, putting it in first place.
Urbanisation have impacted Vietnamese consumers’ lifestyles and behaviours. With microwaves and
refrigerators now being ubiquitous, Vietnamese consumers, and particularly urban youth, have started to
consume packaged and processed food (mostly foreign).
Payment with credit/debit cards
as opposed to cash
Though cash remains the predominant method of payment in Vietnam, bank payments are becoming
more widespread. Most modern retail outlets are equipped with POS machines that provide quick and
easy payment processing. Mobile payment has also been introduced in Vietnam, although it is still in its
early stages.
Photo by Fancycrave from Pexels
26. EVBN The Retail Channels in Vietnam 26
III. Market drivers
1. Growth of the middle-class
2. Consumer confidence supports
the positive outlook for consump-
tion in Vietnam
3. More expats and foreign tour-
ists are coming to Vietnam
It is forecasted that Vietnam will have around
44 million middle-class earners in 2020. The
middle class growth rate stood at 14% per annum
during 2005-15 and is expected to accelerate at
18% per annum during 2016-20.
This middle-class group is expected to spend
more for high-quality products and to demand
better shopping experiences. Based on these
assumptions, specialised outlets, supermarkets,
convenience stores and shopping malls are
expected to gain popularity in the future.
Consumer confidence has been on an upward
trend since its lowest in H1 2013 at 58.4, peaking
in H1 2016 at 94.9. The index is anticipated
to remain high in 2018 and short-term and
indicates that propensity to consume is strong,
offering tremendous opportunities for the retail
sector.
As a favourite destination for multinational
companies, Vietnam receives more and
more expatriates every year, in addition to
experiencing a solid growth in its international
tourist arrivals. In response to this trend, the
retail sector, and more particularly the modern
retail sector, is introducing a wider variety of
foreign products.
Source: pixabay.com
27. EVBN The Retail Channels in Vietnam 27
IV. Opportunities and challenges
The retail industry in Vietnam is flourishing,
resulting in tremendous opportunities for EU
businesses. With a growing economy, increased
living standards and more disposable income,
Vietnamese consumers gravitate towards a
wide range of branded products that are of
quality and safe. The increasing presence of
modern retail chains offer opportunities for
foreign products to reach consumers’ hands.
Franchising is also a viable option for EU
companies seeking to expand their business
in Vietnam as Vietnamese consumers as
increasingly interested in consuming foreign
brands.
On the flip side, the Vietnamese market has
distinctivefeaturesthatEUcompanies shouldbe
aware of. First, traditional retail stores dominate
the retail sector since the majority ofVietnamese
shoppers still visit those outlets on regular basis.
Moreover, these stores are, by nature, not suited
for foreign-imported brands. Second, it would
be challenging for EU businesses to operate in
rural areas since the modern retail market has
not yet been developed there.
29. EVBN The Retail Channels in Vietnam 29
I. Traditional market
II. Convenience store
Despite the growing presence of modern
retailers, traditional retailers still dominate the
market. Currently, 85% of the total volume
of commodities is sold through different
traditional retail channels, such as wet markets,
groceries and small, individual stores.
While some assume that the rapid rise of the
modern convenience store will lead to the
demise of the traditional grocery store, the
The competition among convenience store chains in Vietnam is extremely fierce, and securing the
right locations in the initial phase of operation can be vital to the chain’s success. Numerous players,
both domestic (e.g., Co.op Food, Vinmart+) and foreign (e.g., Circle K, 7-Eleven, GS25), are lured by
this lucrative market:
latter remains one of the main retail channels of
Vietnam. Vietnamese consumers still prefer the
convenience of stop-and-go grocery stores. To
meet this demand, Saigon Co.op partnered with
variousgrocerystorestocreateanewchainofsmall
grocery stores by franchising the Co.op Smile and
sharing Saigon Co.op’s expertise in management,
supply chain, and services. As of September 2017,
Co.opSmilehas70storesnationwideandislooking
to open more in the future.
Brief introductionName
Year of
entering
Coverage
No. of
outlets
Product portfolio Expansion plan
Vinmart+
Bach Hoa
Xanh
Circle K
Co.op Food
Specialized in fresh
products and goods.
Specializedinfreshproducts
andgoods;organicproducts
fromVinEco.
General goods and fast
food services.
Specialized in fresh
products and goods.
Circle K initially planned to
have 500 stores in Vietnam by
2018, but has yet to achieve
this goal.
Saigon Co.op plans to have
277 stores nationwide in 2018.
Vinmart+ plans to have 4000
stores nationwide in 2020.
Bach Hoa Xanh plans to have
1000 stores in HCMC in 2018.
Vinmart+ belongs to Vingroup - the
largest multi-industry private corpora-
tion in Vietnam, working in real estate,
retail, education, hospitality, healthcare,
agriculture and heavy industry.
Bach Hoa Xanh belongs to the Mobile
World Group (MWG) – one of Vietnam’s
top retailers, spanning over various retail
markets.
Established in 1951 in Texas, Circle K is
one of the top convenience store chains
in the world, with over 11,000 stores
worldwide. Circle K was also the first
international convenience store chain to
enter Vietnam.
Co.opFoodbelongstoSaigonUnionof
TradingCooperatives(SaigonCo.op).Started
outin1996,SaigonCo.ophasbecome
Vietnam'sbiggestretailer,participatingin
allsegmentsoftheretailsector.
2014
2015
2008
2008
+1000
365
264
177
Nationwide
Nationwide
Nationwide
Nationwide
B’s Mart
Generalgoodsandfastfood
services.
N/A
B’smartbelongstoBJCCorporation–a
multi-industrycorporationfromThailand.
2013 166 Nationwide
30. EVBN The Retail Channels in Vietnam 30
Brief introductionName
Year of
entering
Coverage
No. of
outlets
Product portfolio Expansion plan
Family Mart
Vietnam
MINISTOP
Vietnam
Shop & Go
7-Eleven
General goods and fast
food services; specialized
in Japanese goods.
Generalgoodsandfastfood
services.
General goods and fast
food services.
General goods and fast
food services.
N/A
7-Eleven plans to have 100
stores nationwide in 2020.
Family Mart plans to have 700
stores nationwide in 2020.
MINISTOP plans to have 800
stores nationwide in 2025.
Family Mart is Japan’s second largest
convenience store chain, with 24,243
stores worldwide.
MINISTOP belongs to AEON Group,
established in 1758. It is one of the oldest
corporation in Japan, with approximately
16,500 stores and centres across multiple
countries worldwide.
Shop & Go is a convenience store chain
from Singapore.
7-Elevenisaworld-renownedconvenience
chainstore,whichwasestablishedin1927
inDallas,Texas.
2009
2008
2005
2017
160
116
119
13
Nationwide
Southernregions
Nationwide
Southernregions
Nationwide
Nationwide
HCMC
GS25
Generalgoodsandfastfood
services;specializedin
Koreangoods.
GS25 plans to have 2,500
stores nationwide in 2028.
GS25isoneofthetopconveniencestore
chainsinKorea,anditchoseVietnamas
itsfirstinternationalmarketin2018.
2018 4
Nationwide
HCMC
Vinmart+ is currently the leading convenience store chain with more than 1000 stores spreading across 30
provinces of Vietnam, aiming for 4000 stores in 2020. With a growth rate of more than 50 new stores per
month, Vinmart+ proves to be a strong rival for both domestic and foreign players upon entering Vietnam’s
retail market. Similarly, other convenience store chains have revealed ambitious plans to increase their
number of stores in the near future. In addition, new foreign players are looking to enter the market, the most
notable being 7-Eleven, a world-renowned convenience store chain who entered Vietnam in June 2017.
The growing presence of convenience stores is felt most strongly in Ho Chi Minh City and Hanoi. With
its large population and openness to foreign brands, Ho Chi Minh City is generally the first destination of
foreign retailers before expanding their operations elsewhere in Vietnam. Ho Chi Minh City also boasts the
highest number of convenience stores, nearly double that of Hanoi in 2017, due to higher demand.
Company name HCMC stores Hanoi stores
Stores in other
cities Total
Family Mart 122 0 11 133
Vinmart+ 400 400 150 950
MINISTOP 71 0 0 71
Circle K 153 54 4 211
Shop & Go 31 15 0 46
B’s Mart 150 0 0 150
Total 927 469 165 1561
Figure 22: Key convenience stores chains in Vietnam and their operations
Source: Ipsos Business Consulting analysis
Figure 23: Distribution of stores of key convenience store chains as of February 2017
Source: Q&Me Vietnam Market Research
31. EVBN The Retail Channels in Vietnam 31
III. Supermarket and Hypermarket
SinceVietnamaccededtotheWTOin2007,many
foreign retailers have been eyeing Vietnam’s
retail market. Although domestic player like
Saigon Co.op still dominate the market, there
is increasing pressure from foreign firms (e.g.,
Big C, owned by Central Group). Other foreign
retailers such as Aeon, Auchan, and Emart are
also planning to invest millions of dollars to
set up their operations in Vietnam. Another
emerging domestic player is Vinmart which,
despite having been in operations for only 4
years, has achieved impressive feats by opening
several hundred locations.
Supermarkets and hypermarkets are land
intensive and at the moment only Saigon
Co.op, Big C and Vinmart+ seem to have found
effective ways to address this hurdle. Saigon
Co.op has a separate business entity, Saigon
Coop Investment Development, dedicated to
finding and securing land capital, as well as
negotiating with local authorities. Big C uses
a variety of strategies including collaborating
with local firms, building and maintaining good
relationships with local authorities, and setting
up 100% foreign capital or 100% domestic
capital business entities that are subsequently
franchised. Finally, Vinmart takes advantage of
Vingroup’s real estate holdings to secure land.
Unfortunately, for most other foreign firms, the
inability to secure land capital constitutes a
barrier to entry in Vietnam.
Strategic mergers and acquisitions (M&A) is
another way to enter the market in Vietnam.
Vinmart, for example, established its presence in
Vietnam by purchasing Oceanmart, Vintexmart
and Maximark.
Brief introductionName
Year of
entering
Coverage
No. of
outlets
Product portfolio Expansion plan
Saigon
Co-op Mart
Vinmart
Big C
Super
-market
AEON Citimart
Over 40,000 necessities
and fresh, organic goods
from VinEco
Generalnecessitiesand
freshgoods;90-95%goods
aredomesticproducts.
Generalnecessitiesand
freshgoods;90-95%goods
aredomesticproducts.
General necessities and
foods; products from
AEON's TopValue Brand.
Big C plans to have 55
supermarkets /hypermarkets
in 2018.
AEON plans to have 500
supermarkets in 2025.
Saigon Co.op Mart plans to
have 116 supermarkets
nationwide in 2018.
Vinmart plans to have 200
supermarkets nationwide in
2020.
Saigon Co.op Mart belongs to Saigon
Union of Trading Cooperatives (Saigon
Co.op). Starting out in 1996 with one
supermarket, Saigon Co.op has become
Vietnam's biggest retailer, participating
in all markets of the retail sector.
Vinmart belongs to Vingroup - the
largest multi-industry private corpora-
tion in Vietnam, working in real estate,
retail, education, hospitality, healthcare,
agriculture and heavy industry.
Originallyadomesticfirm,BigCjoined
CentralGroup(Thailand)in2016andis
nowoneofthelargestretailersinVietnam.
Startedoutasadomesticcompanyin1994,
Citimarthasrisentobecomeoneof
Vietnam’smajorretailers.AfterAEON
purchased49%ofCitimart’sshares,thetwo
rebrandedasAEONCitimart.
1996
2014
1998
1994
(as Citimart)
2014
(as AEON
Citimart)
96
75
35
29
Nationwide
Nationwide
Nationwide
Nationwide
Figure 24: Key supermarkets/hypermarkets in Vietnam and their operations
Source: Ipsos Business Consulting analysis
32. EVBN The Retail Channels in Vietnam 32
IV. Shopping centre
The shopping centre scene in Vietnam is
transitioning,shiftingawayfromthedepartment
store model like Parkson to a shopping complex
modelthatprovidesaone-stop-shopexperience,
such as Vincom and AEON. This transition can
be attributed to the rising income and change
in shopping behaviour of consumers. Currently,
Vincom – a domestic shopping centre brand –
is the undisputed leader in this space, owning
46 shopping centres nationwide and with over
1.1 million square meters in retail area for lease.
The other major players are AEON, Lotte and
Parkson. While AEON and Lotte are planning
to further expand their operations in Vietnam,
Parkson is in decline due to the inadequacy of
its business model.
Brief introductionName
Year of
entering
Coverage
No. of
outlets
Product portfolio Expansion plan
Vincom
Parkson
AEON mall
Department store model,
mainly mid to high-end
branded goods.
Shoppingcomplexwith
one-stop-shopexperience;
sellingmainlymidto
high-endbrandedgoodsplus
otherservicessuchasfood
court,movietheatres,etc
All-in-oneexperience:
AEONhasproductsfor
everyoneregardlessofage
orgender;Japanesegoods
playaconsiderablepart.
AEON plans to build another
shopping centre in Hanoi, one
in Da Nang and one in HCMC in
the near future.
Vincom plans to have 50
shopping centres in 2018.
Parkson has shut down four
shopping centres in recent
years, including all of their
stores in Hanoi.
Vincom belongs to Vingroup - the largest
multi-industry private corporation in
Vietnam, working in real estate, retail,
education, hospitality, healthcare,
agriculture and heavy industry.
AEONwasestablishedin1758,andisone
oftheoldestcorporationinJapan,with
approximately16,500storesandcentres
acrossmultiplecountriesworldwide.
ParksonisamemberofTheLionGroup,an
internationalconglomeratewhichwas
establishedinthe1930sinMalaysia.
Parksoniscurrentlyoperatinganetworkof
123departmentstoresacrossmultiple
countries,spanning2.1millionsqmof
retailspaceandservingover100million
2004
2005
2011
46
6
7
Nationwide
Nationwide
Nationwide
Figure 25: Key shopping centres in Vietnam and their operations
Source: Ipsos Business Consulting analysis
Big C has a balanced coverage in all three regions (North, South and Central) of Vietnam. Saigon Co.op
Mart is mostly concentrated in the South despite being the largest retailer. In the North, Vinmart
competes fiercely with Big C for market share in Hanoi. By taking advantage of its real estate holdings
in the inner city, Vinmart implemented a “ring strategy” by which seeks to intercept Big C customers
on their way to the stores located in the outskirts of the city.
33. EVBN The Retail Channels in Vietnam 33
CASE STUDY
Takashimaya
Takashimaya Company Limited is one of the oldest and
biggest retail business in Japan. The first Takashimaya store
wasopenedinKyotoin1831asasoleproprietorshipowned
by Shinshichi Iida, a merchant from present-day Fukui
Prefecture. In order to build a successful business, Iida laid
down four principles, which Takashimaya’s management
maintains to this day: high-quality goods, fair prices,
honesty in sales, and care and courtesy to all customers.
http://www.takashimaya-vn.com/en
Source: www.travel-to-vietnam.net
Figure 26: Takashimaya online shopping homepage and Takashimaya Ho Chi Minh
34. EVBN The Retail Channels in Vietnam 34
Throughout almost two centuries and two major
wars, Takashimaya has managed to maintain its
legacyofexcellenceanddedicationtoitscustomers,
and at the same time keep on diversifying its
products and services in order to compete and
thrive while others have risen and failed.
At the end of July 2016, Takashimaya officially
opened its first flagship department store in
Vietnam, locating on Le Loi Boulevard in the middle
of the bustling city of Ho Chi Minh, with a capital
investment of approximately EUR 45.3 million.
Takashimaya Ho Chi Minh differentiates itself
by providing its world-renowned superior
customer experience (a standardised bow for
every employee, sophisticated paper-wrapped
products,andspaciousaislesdesignedforcomfort
when moving) to the Vietnamese consumers.
Furthermore, the company has brought with its
arrival numerous Japanese brands that have never
been to Vietnam before, such as Ike Ike Maru
restaurants and Oedo restaurants, alongside with
other international luxury brands.The department
store also provides free additional services such
as free charging stations, free wheelchairs, and
free parking services after 5PM in order to attract
customers. With Takashimaya Ho Chi Minh, the
company is also adhering to its Machi-duruki
strategy by aiming to become the anchor tenant
for Ho Chi Minh City and positioning itself very
near to the upcoming first-ever metro urban
railway of the city.
The department store no doubt takes Vietnamese
shopping to a new level and marks a turning
point for quality retail in Vietnam. Yet, due to
huge investments, Takashimaya President Shigeru
Kimoto remains conservative about their success:
“I cannot say when it (Takashimaya department
store in Vietnam) will climb into the black”.
35. CHAPTER 4
PROFILE OF END CONSUMER
AND DISTRIBUTION CHANNELS
ImageCreatedbyFreepik
36. EVBN The Retail Channels in Vietnam 36
I. Profile of end consumer
While modern trade is accelerating its expansion
in urban areas, in rural areas consumers are still
relying heavily on traditional trade channels such
as small street shops and wet markets.
Nielsen surveyed 1500 consumers across big
cities such as Ho Chi Minh, Hanoi, Da Nang and
Can Tho and found that 92% of people enjoy
grocery shopping and do not regard it as a chore.
Furthermore, 82% of shoppers actually plan their
shopping list beforehand but 83% usually end
up buying additional goods. For 84% of them,
browsing the store and seeing other products’
advertisements persuades them to buy more.
HealthhasbecomeatoppriorityinVietnamforthe
past few years as people are now more concerned
about their well-being. 67% of shopping expenses
are fresh products, and those with less additives
and preservatives are generally preferred. Though
many Vietnamese still frequent wet markets, their
increased awareness about food safety and food
adulteration, consumers are gradually shifting to
supermarkets and minimarts with the belief that
Remark:
Inner circle: Q4, 2016
Outer circle: Q4, 2017
URBAN RURAL
Minimarket / CVS Hypemarket/Supermarket Specialty Store Wet Market
Small Street Shop Medium-sized Street Shop Others
24%
3%
13%
13%
8%7%
10%10%
9%9%
26%
27%
33%
33%
7%
7%
0%
21
2
16%16%
66%
69%
10%
18%
4%
4%
0%
(4cities)
% %
%%
16%16%
Figure 27: Percentage of share value in retail channels
Source: Kantar Worldpanel
37. EVBN The Retail Channels in Vietnam 37
II. Distribution channels
The distribution of imported products in Vietnam generally follows one of the four models below:
Exporters => Importers/Distributors => Big Modern Retailers
Exporters => Importers/Distributors => Wholesalers => Retailers
Exporters => Local Agent => Importers/Distributors/Wholesalers => Retailers
Exporters => Big Modern Retailers
The first two models are the most common in Vietnam because they involve of fewer intermediaries.
Relying on importers/distributors presents two more advantages for overseas exporters: they do
not need to be concerned with the import procedures, and they can rely on the network of their
Vietnamese partners.
Exporters
Agent
Local importers / Distributor / Importing wholesalers
Modern retail channelsTraditional retail channels
Wholesalers Wholesalers
Figure 28: Distribution structure of imported products in Vietnam
Source: USDA
38. EVBN The Retail Channels in Vietnam 38
Whilst all convenience store chains rely on their domestic partners for imports, supermarkets and
hypermarkets often take advantage of their scale to carry out their own importing activities. The
figure below illustrates the purchasing type of key modern retail chains in Vietnam:
Name Purchasing type
Saigon Co-op Mart
Mainly from local producers/importers/distributors and wholesalers
Small proportion of direct imports for foods and beverages
Strong in doing private labelled products
AEON Mall
Mainly from local producers/importers/distributors and wholesalers
Direct imports of fresh and frozen products (perishable food products)
Big C supermarket
Mainly from local producers/importers/distributors and wholesalers
Direct imports of fresh and frozen products (perishable food products)
Strong in doing private labelled products
Lotte
Mainly from local producers/importers/distributors and wholesalers
Direct imports of fresh and frozen products (perishable food products)
Vinmart
Mainly from local producers/importers/distributors and wholesalers
Direct imports of fresh and frozen products (perishable food products)
Figure 29: Key retail chains and their purchasing type
Source: USDA
39. CHAPTER 5
REGULATORY
AND LEGAL FRAMEWORK
Regulatory and legal framework for investors in the E-commerce industry
Relevance and impact of the EVFTA
ImagecreatedbyMrsiraphol-Freepik.com
40. EVBN The Retail Channels in Vietnam 40
I. Regulatory and legal framework for investors in the
Retail sector
Since January 2015, thanks to its accession to the
WTO, Vietnam’s retail sector has been liberalised.
The country now allows retailers with up to
100% foreign capital to set up a business entity
in Vietnam. However, the country still maintains
two entry barriers, which are the Economic Needs
Testing (ENT) process and a list of nine goods that
foreign companies are not permitted to distribute.
With regards to the establishment of its first
outlet in Vietnam, FIEs have to comply with these
conditions to obtain a store establishing license:
Have a financial plan to set up the first retail outlet.
No overdue tax debts if they have been established
inVietnam for one or more years.
Location of the retail outlet should comply with the
local planning schemes.
However, when establishing the second and
subsequent retail outlet in Vietnam, besides from
the above conditions, foreign companies are also
subjecttoanEconomicNeedsTesting(ENT)process.
ENT criteria include:
The effect of the retail outlet on the scale of the
geographical market area.
Number of retail outlets operating in the
geographical market area.
Impact of the outlet on the market stability and
operation of other retail outlets and traditional
markets in the geographical area.
Impact on traffic, environmental sanitation and
fire prevention in the geographical market area;
Contributions of the retail outlet to the region’s
socio-economic development in creating local jobs,
developmentoftheregion’sretailsector,improvement
ofenvironmentandlivingconditionsforlocalpeople,
and contributions to the State budget.
It is noteworthy that the ENT process does not
apply to retail outlets that have an area under
500sqm, located within commercial centres
and not categorized as mini-supermarket or
convenience store.
Request for ENT
by retail establishment
ENT Committee set up
by local people’s committee
7 days
30 days
3 days
3 days
10 days
ENT Committee gives out results
Local DoIT submits the results to MoIT
MoIT responds
Store establishment license is granted.
Remark
MoIT: Ministry of Industry and Trade
DoIT: Department of Industry and Trade
Days: Working days only
Figure 30: Economic Needs Testing Timeline
Source: Clause 29, Chapter 3, Decree 09/2018/ND-CP
41. EVBN The Retail Channels in Vietnam 41
II. Relevance and impact of EVFTA
According to the timeline, the whole ENT process
takes a minimum of 10-11 weeks, provided there
is no national holidays and no objections at each
approval nodes.
The following list are goods that foreign capital
enterprises are not permitted to distribute in
Vietnam:
1. Rice
2. Cane or beet sugar
3. Cigarettes and cigars
4. Crude oil and processed oil
5. Pharmacy: Consist of medicine items pre
scribed in Clause 2, Article 2, Law on Pharmacy
No. 34/2005/QH11
6. Explosives
7. Books, newspapers and magazines
8. Precious metals and gemstones
9. Items recorded in any material form
In order to attract investments, the government
has made exhibition centres, logistics centres,
warehouses, supermarkets, shopping malls
eligible for investment incentives, according to
decree No. 118/2015/ND-CP. According to Decree
No.46/2014, these investments will be exempted
from land rental free for:
3 years since operation.
11 years since operation if invested into difficult
socio-economic areas.
15 years since operation if invested into especially
difficult socio-economic areas
With Vietnam being the sixth most attractive retail
market in the world in 2017, European retailers
are looking for ways to enter this lucrative market.
With the European-Vietnam FreeTrade Agreement
coming into effect in 2018, EU retailers can expect
to reap numerous benefits.
Following this agreement, Vietnam’s government
will continue to implement the ENT process
to assess the establishment of the second and
subsequent retail outlet units for foreign retailers.
However, the ENT process will be waived in 2023
for EU retailers. This presents a huge opportunity
for EU retailers to gain a competitive advantage
in the crowded retail landscape of Vietnam.
The government will still maintain its rights to
implement distribution planning.
In addition, imported EU goods will enjoy
numerous tax lifts, which will come into force in
stages. For instance, duty taxes for wines and spirits
will be liberalised after 7 years, and 10 years for
beers. Other tax lifts include frozen pork meat after
7 years, dairy products after 5 years, poultry after 10
years, and processed food after 7 years. With these
tax cuts, EU retailers will have the opportunity to
satisfy the demand from Vietnamese consumers
for high-quality products.
To see the complete tariff schedule under the
EVFTA, please follow this link: http://wtocenter.
vn/content/full-text-vietnam-eu-free-trade-
agreement-evfta
42. EVBN The Retail Channels in Vietnam 42
III.RegulatoryandLegalFrameworkforfranchisingactivities
Vietnam has adopted a legal framework defining and regulating franchising activities, as outlined in the
following four regulations:
Vietnam Commercial Law, adopted by the National Assembly on 14 June 2005.
Decree No. 35/2006/ND-CP of the Government (31 March 2006).
Decree No. 120/2011/ND-CP of the Government (December 16, 2011).
Circular No. 09/2006/TT-BTM of the Ministry of Trade (25 May 2006).
Firstly, in order to become a franchisor, the intended franchising business must have been in operation
for at least one year. The interested foreign franchisor must then submit a registration dossier containing
the following documents to the Ministry of Industry and Trade (MoIT) if it wishes to conduct franchising
activities in Vietnam:
a. Registration form of the franchise activity, made on a standard form provided in Circular No. 09/2006/TT-BTM;
b. Introduction of the Franchise Business, which must be prepared according to a standard form provided
by the MOIT in Circular No. 09/2006/TT-BTM
c. Certified copy of the franchisor’s business registration
d. Certified copy of patents and certificates of intellectual property rights of the prospective franchisor, if any.
Submission
to MoIT
Notifications from MoIT
if missing documents
Results
from MoIT
2 days
5 days
Remark
Days: Working days only
Figure 31: Franchise registration timeline
Source: Clause 20, Decree No.30/2006/ND-CP
43. EVBN The Retail Channels in Vietnam 4343
The franchise agreement between the two parties is not required, unless it is necessary for licensing
the intellectual property rights of the franchisor. Moreover, foreign franchisors only have to submit the
registration dossier once.The MoIT may take up to a month to register the franchising activity from the date
the registration dossier is submitted.
The Ministry of Finance regulates the registration fee as follow:
New registration: EUR 589.3
Amendment of a franchise registration: EUR 214.3
It is to be noted that all franchise agreements are required to be written in Vietnamese, especially when
involving SMEs. For the same reason, the “Introduction of the Franchise Business” must be translated into
Vietnamese if originally drafted in English.
Recently the Government has put forth Decree 08/2018/ND-CP, which seems to reduce the obligations
of foreign franchisors to one condition only: that the franchise system be in operation for at least one
year. However, other clauses such as the franchise registration requirement, remains untouched. It can be
understood that these amendments were aimed at easing the requirements for franchisees, not franchisors.
Franchisors still have to register with the MoIT before conducting any franchising activities in Vietnam.
44. As the hospitality industry in
Vietnam is flourishing and ex-
pecting to continue growing
healthily in the future, Europe-
an suppliers also eye Vietnam
Vietnam’s retail market is lucrative, but also highly competitive. With a low CVS/population
ratio compared to other countries in the region, coupled with rather loose set up rules, the
segment is the most attractive, but also the most competitive, with numerous firms
already in the market and more are looking to enter. As for the supermarket/hypermarket
segment, it is expected that the scene will become livelier in the future, as more and more
players are setting up their business in Vietnam. However, access to land capital will
remain an important barrier to entry for many foreign companies. Finally, with the
transition happening in the shopping centres segment, more research is needed before
entering the market in order to fully understand and react well to the changing landscape.
Growth in modern retailing is inevitable as household income keeps rising. With the rise of
the middle-class comes a higher awareness of health issues and more demand for high
quality product. Vietnamese consumers are willing to spend more on their daily products,
especially F&B goods and services. Also, as Vietnam is opening up, more and more expats
are choosing Vietnam as their destination to work, driving up even higher demands for
imported goods.
However, it should be noted that while the economy is rising and people's habits are
changing, traditional retail remains the preferred method of shopping for Vietnamese
consumers, due to its unrivalled convenience and familiarity. Also, a lucrative market
means an abundance of competitors, each backed with enormous financial capabilities.
Finally, the legal framework for retailers is still not completely transparent, as illustrated by
the ENT process and its rather ambiguous criteria.
Franchising in Vietnam is sure to increase in the future with its relatively low risk and the
success of numerous franchising businesses in Vietnam. The government’s franchising
legal framework is relatively clear, signifying its support for this business model. As the 8th
most attractive franchising market, Vietnam is likely to see more and more firms use this
method to enter the domestic market.
With the coming into force of the EVFTA, EU retailers will no longer have to go through the
ENT process to set up retail outlets in Vietnam. Furthermore, Vietnamese consumers have
associated Western brands with high quality and lifestyle, which European SMEs can use
to their advantage. EU’s presence in the Vietnam’s retail market is still low compared to
other regions. It is safe to say that with the EVFTA, the situation is likely to change in the
near future as there is no better time to enter the market than now.
Summary
45. EVBN The Retail Channels in Vietnam 45
Name & Content Time Venue Organiser
Vietnam International Retail &
Franchise Show
(http://vietrf.com)
Retail & Franchise
Annually, 1
year in June
and 1 year in
November
Saigon Exhibition
and Convention
Center - SECC
District 7, Ho Chi
Minh City
Coex, South Korea
VIETNAM EXPO
(http://vietnamexpo.com.vn/en)
Machinery and Electronics, Food and
Beverage.
Annually in
April
Saigon Exhibition
and Convention
Center - SECC
District 7, Ho Chi
Minh City
Ministry of Industry
and Trade
(Department of
Trade Promotion)
VIETNAM EXPO in HCMC
(http://hcm.vietnamexpo.com.vn/en)
Machinery and Electronics, Food and
Beverage.
Annually in
December
Saigon Exhibition
and Convention
Center - SECC
District 7, Ho Chi
Minh City
Vietnam National
Trade Fair &
Advertising
Company
(VINEXAD)
VIETFOOD & BEVERAGES
(http://hcm.foodexvietnam.com/en)
Food & Beverage, Food packing .
Annually in
August or
September
Saigon Exhibition
and Convention
Center - SECC
District 7, Ho Chi
Minh City
Vietnam National
Trade Fair and
Advertising
Company
Shop & Store Vietnam
(https://www.shopandstorevietnam.com)
Retail solutions & Franchise opportunities
Annually in
March
Saigon Exhibition
and Convention
Center - SECC
District 7, Ho Chi
Minh City
Reed Tradex
VIETNAM FOODEXPO
(https://foodexpo.vn/en/index.php)
Food & Beverage.
Annually in
November
Saigon Exhibition
and Convention
Center - SECC
District 7, Ho Chi
Minh City
Ministry of Industry
and Trade
(Department of
Trade Promotion)
LIST OF TRADE FAIRS AND EXHIBITIONS
46. EVBN The Retail Channels in Vietnam 46
MAIN ONLINE AND PRINTED PUBLICATIONS
European
Commission’s Reports
on Vietnam Food and
Beverage Market
Kantar Worldpanel’s Quarterly Report on
Vietnam FMCG Market
EuroAsia’s Reports on Vietnam Retail Industry
Dion’s Reports on Retail in Vietnam
BMI’s Reports on
Vietnam Food & Drink
Euromonitor’s Reports
on Vietnam Market
Opportunity
47. EVBN The Retail Channels in Vietnam 47
USEFUL CONTACTS
Ministry of Industry and Trade
54 Hai Ba Trung, Hoan Kiem District, Hanoi, Vietnam
Phone: +84
Website: http://www.moit.gov.vn
243 222 02210
Associations:
Association of Vietnam Retailers (AVR)
P309-310 E1, Trung Tu Diplomatic Quarter, 6 Dang Van Ngu, Dong Da Dist., Hanoi
Phone: +84 4 62753379
Website: http://hiephoibanle.com.vn/
Ministries and Administrations:
48. EVBN The Retail Channels in Vietnam 48
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49. EVBN The Retail Channels in Vietnam 49
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50. EVBN The Retail Channels in Vietnam 50
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52. This project is co-funded
by the European Union
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