Changing retail scene in Vietnam

Over the last couple of years, the Vietnamese retail market has seen considerable changes. Neighbourhoods in Ho Chi Minh City and Hanoi have experienced transformation as Vietnamese shoppers demand more from their retailers and retail experience. More international brands are hitting the Vietnamese shore. In the 2007 and 2012 period, Vietnam’s retail industry is forecasted to increase by 10%-12% in revenues as a result of the growth in spending of Vietnamese people and the Government’s strong commitment on retail market expansion to foreign investors.

Nevertheless, Vietnam’s retail industry will still need to overcome many hurdles for change. These include inexperienced sales staff, poor infrastructure facilities, lack of stable goods supply areas, and local companies lagging behind in information technology. In fact, with relatively cheap labour, many companies are reluctant to invest in information technology which is a crucial element for bringing the retail sector up to another level. Despite the hurdles, the retail sector is expected to continue to grow as Vietnamese consumers search for a more specialized shopping experience.