Domestic retailers face challenges

Illustrative image (Source: VNA)

Hanoi (VNA) – Domestic retailers are facing a lot
of challenges and losing market share to foreign rivals due to limited capital,
scale and governance skills.

With a market value of 110 billion USD by 2016 which is
expected to soar to 180 billion USD by 2020, Vietnam is considered one of the
30 most attractive retail markets worldwide. Well-known retail chains such as
Japan’s Aeon, the Republic of Korea’s Lotte and Thailand’s Central Group are
not unfamiliar to consumers in major urban areas.

Statistics from the Ministry of Industry and Trade’s
Domestic Market Department showed that retail sales in foreign-invested sector was
7-8 times higher than those in domestic one.

In order to improve domestic retailers’ competitiveness, Hanoi
has offered preferential loans and courses on improving governance skills and
adopting advanced technologies.

Deputy Director of the municipal Department of Industry and
Trade Tran Thi Phuong Lan said the city is striving to accelerate the progress
of building shopping malls and supermarkets, working closely with departments,
agencies and authorities of communes and districts to step up investment
attraction, and develop logistics services, mostly in Soc Son and Phu Xuyen

The department will continue with bank-business community
programme to facilitate firms’ access to preferential loans, and offering
corporate training courses to improve management, sales and brand development

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