Summary

The rapid growth in Vietnam's retail market in the recent past has made the country an attractive destination for multinational retailers. Vietnam has continued its dominance in the top 10 emerging retail markets across the globe, as per Global Retail Development Index. However, Vietnam has moved down five places to sixth position in 2009 index from the topmost slot in 2008, but despite this Vietnam remains attractive destination for retail investment due to its strong GDP growth, changes in the country's regulatory structure favoring foreign investors, and increasing consumer demand for modern retail concepts, says "Vietnam Retail Analysis (2008-2012)".

The retail sector market in Vietnam is much smaller as compared to other developing economies in Asia, but it has shown strong fundamentals and buoyant expansion in comparison of its neighbors like India and China. The value of retail sales in Vietnam has expanded rapidly over the past few years. It reached nearly US$ 39 Billion in 2008 from around US$ 23.7 Billion in 2005 on account of rising consumer expenditure and changing market dynamics.

We expect that despite the 2008 financial turmoil, the retail industry turnover in Vietnam will continue growing. Government support and favorable consumer confidence will result in positive outlook for retailers in Vietnam. Traditional retail channels will continue to dominate the market, but government decision to allow 100% entry to foreign retailers under WTO commitment will lead modern retail to realize unrealistic growth.

With such strong fundamentals, we anticipate the retail industry to surpass US$ 85 Billion in revenues by 2012. Modern retail channels are expected to play crucial role in the future growth of the industry, improving their position in the market. We also expect a short wave of consolidation in the next four years as foreign retailers will try to consolidate their position and deepen their market penetration.

Our research report will help consultants, industry analysts and vendors to get in-depth knowledge on the current, past and future performance of the Vietnam retail industry. The future outlook mentioned in report has been derived by interacting with various industry veterans, developers, analyzing information from research papers, journals and our industry-specific in-house developed models.

Table of Contents

1. Analyst View
2. Vietnam-An Attractive Retail Market
3. Changing Market Dynamics
     3.1 No Entry Barrier
     3.2 Purchasing Power and Consumer Spending
     3.3 Economic Liberalization
     3.4 Developing Trend of Modern Retailing
     3.5 Online Retailing
     3.6 Non-food Retailers
     3.7 International Brands and Luxury Goods
4. Retail Market Performance
     4.1 Retail Sales
            4.1.1 Food
            4.1.2 Non-food
                      4.1.2.1 Clothing
                      4.1.2.2 Footwear
                      4.1.2.3 Cosmetics and Toiletries
                      4.1.2.4 Perfumes and Fragrances
                      4.1.2.5 Furniture
                      4.1.2.6 Household Cleaning Products
                      4.1.2.7 Consumer Electronics
                                   4.1.2.7.1 TV Sets
                                   4.1.2.7.2 Mobile Handsets
                                   4.1.2.7.3 Personal Computers
                                   4.1.2.7.4 Washing Machines
                                   4.1.2.7.5 Others
     4.2 By Province
            4.2.1 South East
            4.2.2 Red River Delta
            4.2.3 Mekong River Delta
            4.2.4 South Central Coast
            4.2.5 North Central Coast
            4.2.6 North East
            4.2.7 Central Highlands
            4.2.8 North West
     4.3 By Ownership
            4.3.1 State-owned Companies
            4.3.2 Non-state-owned Companies
            4.3.3 Foreign-owned Companies
     4.4 By Retail Format
            4.4.1 Traditional Market
            4.4.2 Supermarket
            4.4.3 Hypermarket and Warehouse Clubs
            4.4.4 Convenience Stores
5. Consumer Behavior Pattern
6. Product Affordability Analysis
7. Key Industry Hurdles
     7.1 Skilled Staff
     7.2 Retail Space and Cost
     7.3 Trade Barriers and State Subsidiaries
     7.4 Infrastructure
8. Competitive Landscape

List of Figures:

Figure 3-1: Per Head Personal Disposable Income (US$), 2004-2012
Figure 3-2: Consumer Spending (Billion US$), 2004-2012
Figure 3-3: Nominal GDP (Billion US$) and Real GDP Growth (%), 2004-2008
Figure 3-4: Share of Modern Retailing in Retail Sales (2007 & 2017)
Figure 3-5: Internet Users and Subscriptions (Million), 2008-2012
Figure 4-1:  Retail Sales (Million US$), 2005-2008
Figure 4-2: Forecast for Retail Sales (Billion US$), 2009-2012
Figure 4-3: Food Retail Sales (Million US$), 2005-2008
Figure 4-4: Forecast for Food Retail Sales (Billion US$), 2009-2012
Figure 4-5: Non-food Retail Sales (Million US$), 2005-2008
Figure 4-6: Share of Non-food Retail Sales by Segment (2008)
Figure 4-7: Clothing Sales (Million US$), 2005-2008
Figure 4-8: Forecast for Clothing Sales (Million US$), 2009-2012
Figure 4-9: Footwear Sales (Million US$), 2005-2008
Figure 4-10: Forecast for Footwear Sales (Million US$), 2009-2012
Figure 4-11: Cosmetics and Toiletries Sales (Million US$), 2005-2008
Figure 4-12: Forecast for Cosmetics and Toiletries Sales (Million US$), 2009-2012
Figure 4-13: Perfumes and Fragrances Sales (Million US$), 2005-2008
Figure 4-14:  Forecast for Perfumes and Fragrances Sales (Million US$), 2009-2012
Figure 4-15: Household Furniture Demand (Million US$), 2005-2008
Figure 4-16: Forecast for Household Furniture Demand (Million US$), 2009-2012
Figure 4-17: Soaps and Cleaners Demand (Million US$), 2005-2008
Figure 4-18: Forecast for Soaps and Cleaners Demand (Million US$), 2009-2012
Figure 4-19: TV Set Sales ('000 Units), 2005-2008
Figure 4-20: Forecast for TV Set Sales ('000 Units), 2009-2012
Figure 4-21:  Mobile Handset Sales (Million Units), 2006-2008
Figure 4-22: Personal Computer Sales (Million Units), 2006-2008
Figure 4-23: Washing Machine Sales ('000 Units), 2005-2008
Figure 4-24: Forecast for Washing Machine Sales ('000 Units), 2009-2012
Figure 4-25: South East-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-26: Red River Delta-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-27: Mekong River Delta-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-28: South Central Coast-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-29: North Central Coast-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-30: North East-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-31: Central Highlands-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-32: North West-Goods and Services Retail Sales (Trillion VND), 2004-2008
Figure 4-33: Goods and Services Retail Sales by State-owned Companies (Trillion VND), 2004-2008
Figure 4-34: Goods and Services Retail Sales by Non-state-owned Companies (Trillion VND), 2004-2008
Figure 4-35: Goods and Services Retail Sales by Foreign-owned Companies (Trillion VND), 2004-2008
Figure 4-36: Share of Traditional and Modern Retail Format in Retail Sales (2007)
Figure 4-37: Ho Chi Minh & Hanoi-Share of Traditional and Modern Trade (2005-2007)
Figure 4-38: Forecast for Share of Hypermarkets and Supermarkets in Food Retail Sales (2009 & 2012)

List of Tables:

Table 2-1: Top 10 Retail Markets by GRDI (2009)
Table 4-1: Number of Traditional Stores by Format (2004-2007)
Table 4-2: Number of Supermarkets (2004-2007)
Table 4-3: Number of Hypermarkets and Warehouse Clubs (2004-2007)
Table 4-4: Number of Convenience Stores (2004-2007)
Table 6-1: Price and Affordability Rank by Product (2008)