The retail sector is showing impressive growth figures and the market is expected to have a total turnover of USD 85 billion by 2012, of which one fourth can be considered “modern trade” comparable to the level in Denmark. This provides good opportunities for Danish companies.
The Vietnamese retail and service sector is growing fast. Annual growth rates of 20 percent driven by a growing middle-class changing their consumption habits indicate that the sector will continue expanding. Growth topped in 2009 with 26.9 percent according to Ministry of Industry and Trade, and for the first six months of 2010 it is expected to reach USD 39.34 billion. It is estimated that the retail and service sector will reach a revenue of USD 75.8 billion in 2010 and grow to USD 85 billion in 2012. The numbers are impressive, but it should be noted that only 20-25 percent of this can be considered “modern trade” comparable to the level and quality found in Denmark.
At least 15 major foreign retailers including Wal-Mart, Carrefour, Tesco, Metro Cash&Carry and CASINO have either set up businesses or plan to do so in HCMC, but also Vietnamese retailers as Citimart, Fivimart and Sai Gon Co-op are on the market and expanding these years. Sai Gon Co-op is planning on opening ten new stores, and Citimart have recently expanded its capacity. Supermarkets are becoming a bigger part of Hanoi and HCMC’s commerce, but also Danang, Haiphong, Hue and Can Tho are steadily having major retailers enter the market.
Not only supermarkets, but also specialized retail shops are needed in Vietnam’s many skyscrapers being built in HCMC and Hanoi. An example is Bitexco Financial Tower opening in HCMC in October 2010 who are presently looking for retailers. Other big shopping malls are popping up in both Hanoi and HCMC.
Danish companies both producing for supermarkets, Danish design and fashion producers, and various producers of consumer goods seem to have good opportunities to establish themselves on the Vietnamese market in the near future, especially in the major cities that continue to drive the growth.