HA NOI — Retail sales value of goods and services in July surged 0.12 per cent to VND189.18 trillion (US$9.10 billion), according to the General Statistics Office (GSO).
|Customers shop at a Fivimart Supermarket on Doi Can Street in the capital city. Retail sales value in the first seven months of the year reached VND1,327 trillion (US$63.2 billion). — VNA/VNS Photo Ngoc Tiep
The increase, though modest, has helped lift the total retail revenue in the first seven months of 2012 to above VND1,327 trillion ($63.22 billion). This number represents an increase of 6.8 per cent from 2011, and the rate is the highest level since the beginning of this year, the GSO said.
GSO expert Vu Manh Ha attributed the rebound in domestic purchasing power to the State's influential policies- which encourage local consumption, facilitate promotion programmes and bring goods to rural areas - as well as the ongoing efforts of retailers and supermarkets to slash prices, cutting items' cost as much as 70 per cent.
The seven-month rebound in retail trade has also had an impact on the nation's Index of Industrial Production (IIP) which rose by 4.8 per cent year-on-year during the period, with increases of 4.2 per cent in the six months and 4.1 per cent in the first quarter.
As of July 1, the stockpile index surged by only 20.2 per cent against the same time last year, far lower than 29-35 per cent recorded in the first three months and four months respectively.
However, the index was still double what it would be in a more stable economic context, Ha said.
Viet Nam's total retail revenue will increase by 23 per cent per year between now and 2014, according to a report by AT Kearney. This means the Vietnamese retail market will offer many opportunities for both domestic and foreign retail businesses.
The report, "Viet Nam Retail Market Forecast to 2014," said that modern retail channels will play a crucial role in future growth, improving their position in the market. Increasing purchasing power and changing lifestyles have been some of the key growth drivers in the country's modern retail market, it said.
The modern retail market will be the key distribution channel in Viet Nam in the near future due to its huge market of nearly 90 million consumers, AT Kearney's report predicted. Vietnamese consumers' shopping habits are changing, with more spending in modern retail outlets due to consumer concerns about convenience and health issues. Many consumers said that modern retail outlets gave them good access to new products, more confidence in food safety, and clean facilities.
The country currently has 636 supermarkets, 120 commerce centres and over 1,000 convenience stores. Experts said this figure still does not meet the demand. As a result, Viet Nam's retail market holds many opportunities for both foreign and domestic investors. — VNS