HA NOI (VNS)— Foreign and domestic retailers plan to open more shops and supermarkets in Viet Nam this year and beyond, buoyed by the potential market of 88 million population.
|People shop at a Big C supermarket.The country currently has 636 supermarkets, 120 shopping centres and more than 1,000 convenience stores. — VNA/VNS Photo Tran Viet
Big C plans to increase its supermarkets from 19 to 30 this year and Metro hopes to open 16 new supermarkets to make it 35 nation-wide, according to Sai Gon Dau Tu newspaper.
Significant investment plans by South Korean and Japanese retailers also showed confidence in the market's potential.
South Korea's Lotte Mart had secured investment capital of US$50 million for its plan to open 60 supermarkets in the country by 2020.
Japan's Aeon retail group was due to open its 82ha shopping complex in HCM City, the $109 million "Celadon City", early next year, another later in the year and one in Ha Noi a year later. The group planned to open 20 shopping centres nation-wide by 2020.
New player to Viet Nam, C.T Group opened its first S.Mart in Ha Noi in December.
Maximark representative Nguyen Phuong Thao said the retail industry was attractive because consumers still needed goods and services.
Association of Viet Nam Retailers general secretary Dinh Thi My Loan said difficulties anticipated would not discourage investors in the retail industry because of the potential in a population of roughly 90 million, most of which were young and preferred modern retail shops.
Loan said opportunities were significant because modern retail outlets currently accounted for only 20 per cent of the country's potential. The figure was expected to increase to 45 per cent by 2020. The country currently has 636 supermarkets, 120 shopping centres and more than 1,000 convenience stores, but experts said this figure still did not meet demand.
Total retail sales last year surged 16 per cent against the previous year to VND2,324 trillion ($110.7 billion). — VNS