Vietnam has become a promising destination for international retailers as the size of the market has surpassed US$180 billion.

Việt Nam has become a promising destination for international retailers as the size of the market has surpassed US$180 billion, according to industry experts and insiders at a forum organised by the Ministry of Industry and Trade (MoIT) on Monday in Hà Nội.

Lê Việt Nga, deputy head of the Domestic Market Department under the MoIT, said that 14 years after the debut of the campaign “Vietnamese Prioritise Using Vietnamese Goods”, domestic goods, especially essential and consumer goods, have proven popular and widely distributed through traditional and modern distribution channels across the country. 

A report from the MoIT showed a large portion of Vietnamese goods are shelved in big domestic supermarkets, ranging from 80-90 per cent, Co.opmart 90 per cent, Winmart 90 per cent, and BRG Retail 80-90 per cent.

In supermarkets with foreign investments such as Aeon, Central Retail, MM MegaMarket and LotteMart, Vietnamese goods also make up a significant portion, especially local products and regional specialities including those listed in ”One Commune, One Product” programme. 

Trương Văn Cẩm, deputy chairman and secretary-general of the Vietnam Textile and Apparel Association (VITAS), said Vietnamese textile products play an important role in helping made-in-Vietnam brands enter international markets, contributing over US$40 billion in export in 2023 alone. 

“We can find many made-in-Vietnam products today in developed countries around the world,” he said.

Nguyễn Thị Thu Thủy, deputy chairman of the Vietnam Association of Consumer Goods Development, said there have been well-coordinated efforts by Vietnamese companies in recent years to improve product quality and diversify business models.

For example, this year 519 businesses have been awarded certifications of high-quality Vietnamese goods based on consumer votes and usage. A paper from Cimigo, a market research company based in Việt Nam, showed 82 per cent of Vietnamese consumers, when asked, said they would prioritise buying Vietnamese goods if it’s available. 

As the country’s middle class grows, along with improved income and living standards, demand for goods and services has been on the rise. According to the World Bank, average income growth per capita in Việt Nam from 2017 to 2022 was 8.5 per cent, the highest in Southeast Asia and nearly double the world’s average growth rate. 

The Southeast Asian economy’s retail market was ranked 9th out of 35 countries in the Global Retail Development Index (GRDI) in 2021, according to ATKearney, an international management consulting firm based in the US.

Data for the first nine months of 2023 from market research firm Euromonitor said brands and product quality remain crucial factors in the purchasing decisions of Vietnamese consumers with 26.1 per cent of participants saying they often make purchases from well-known brands and 35.8 per cent from high-quality brands. The company said such factors make Việt Nam an attractive destination for international retailers.

Viet Nam News