The Vietnamese retail sector is valued at USD 170 Billion in 2020 and is projected to register CAGR more than 10% during the forecast period, 2021 to 2026. While the Covid-19 crisis remains complicated globally, Vietnam’s effective control of the pandemic has led to recovery of retail sales of consumer goods and services in the final months of the year.
New York, May 14, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Vietnam Retail Sector - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06062819/?utm_source=GNW
The growth rate, while remaining lower compared to the 12.7% recorded the previous year, was an encouraging sign for the business community amid global retail market suffering plunge in revenue during the pandemic. A high growth rate in retail sales by year-end was due to retailers and shopping malls offering sales promotion programs to stimulate domestic consumption. Vietnam is seeing ongoing urbanisation and evolving demand trends amongst young urban consumers drive strong growth in modern retailing channels such as convenience stores, as well as the rapid expansion of e-commerce. Indeed, the growing influence of such factors can be seen in the emergence of formats such as mini supermarkets, which target demand for grocery shopping that fits into the flow of busy urban lifestyles.
Modern retail outlets offer private brands/products that can be exclusively purchased in their stores. One key factor involved in Vietnamese consumers choosing to shop in traditional markets is that they can buy ingredients in smaller portions. Supermarkets are offering products that are better suited for the daily needs of an average consumer. Food products, non-food products, and home appliances are also offered in supermarkets, which makes shopping easier, as they offer everything needed for the customer under one roof. To further improve the shopping experience, some stores have in-house bakeries and cafés where consumers can hang out and enjoy with family or friends. The local population’s inclination to make their purchases in the traditional outlets are hinged owing to factors, such as high availability of these outlets everywhere in the country posing convenience and ease of access for consumers, comparatively lower prices of goods and products (which consumers can still bargain), fresh produce supply source that is better at wet markets, and traditional retailers offering flexible package sizes for day-to-day consumption.
Key Market Trends
Rapid Growth in Consumer Spending is a Driving Factor
Vietnam’s disposable income per capita is expected to grow quickly and reach USD 3,062 in 2023 . Vietnam’s total consumer spending is growing at the highest rate in the region ore than 8% a year— rising from USD 118 billion in 2013 to USD 185 billion in 2019. The private-consumption rate also is high, more than 67% of GDP. This is the second highest in the region, behind the Philippines (73.8 %) and ahead of Malaysia and Indonesia (57.0 and 57.3 %, respectively).
Low Urbanization with High Potential for Growth
Vietnam’s urbanization rate is still low when compared across the region, at 36.63% of the population, compared with rates between 47% and 76 % in other Southeast Asian countries. This represents an area of high potential and expected growth. In fact, the Vietnamese urban population is expected to grow at a CAGR of about 3% up to 2025, while this growth rate is between 1% and 2 % for Indonesia, Malaysia, the Philippines, and Thailand. Analysis of urbanization rates in comparable Southeast Asian countries indicates that the early stage of urbanization is likely to be rapid. Vietnam’s growth follows a similar trajectory, urbanization will reach 55% in 2030.
The report covers major international players operating in the Vietnamese retail market. In terms of market share, few major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.
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Read the full report: https://www.reportlinker.com/p06062819/?utm_source=GNW
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