Vietnamese marke - fertile land for foreign brands

This makes Viet Nam become an extremely attractive market for foreign brands

With the great attraction from a market with nearly 100 million people, the food and consumer goods sector is expected to continue attracting foreign investors.

As predicted by the Colliers International Research in Viet Nam, the number of middle and high-class consumers will see a 1.7-fold increase by 2020, and grow rapidly in many big cities. This makes Viet Nam become an extremely attractive market for foreign brands.

Currently, Viet Nam is a fast growing market and consumers feel easy to accept new products, which has led an increasing number of foreign brands from the Republic of Korea, Japan and European countries to come to Viet Nam to seek opportunities to expand the market towards a modern shopping model.

Particularly, more and more international retailers, such as H&M, Zara, 7-Eleven, Walmart, Ikea and Forever 21, are planning to enter the domestic market.

In addition, a series of famous food brands in the world have “massively penetrated” into the Vietnamese market.

Viet Nam’s retail market has great development potential thanks to a large population size (more than 93.7 million people) and a young population structure (60% of the population aged between 18-50).

It is forecasted that household spending will increase by 10.5% on average annually and will reach US$714 per month by 2020, while the coverage of the modern retail system in Viet Nam is much lower than many countries in the region, at only 25% (compared to 33% in the Philippines, 34% in Thailand, 60% in Malaysia and 90% in Singapore).

It can be seen that over recent times, the domestic retail market has been growing strongly as the economy has recovered and has been on track to regain a high growth rate.

Miyake Junya, Co-founder of Japan’s Miniso retail company, said: “The Vietnamese market has a strategic position in the region and in the world, and is seen as a bridge for manufacturers to penetrate into the Southeast Asian market.”

Currently, many stores of the Miniso retail brand have already been present in Ha Noi and Ho Chi Minh City.

According to experts of the retail industry, the market share of foreign investors now accounts for 50% of modern retail channels, and is on an upward trend.

 By Vien Nhu