Jan-Jun retail sales grow 10%

Jan-Jun retail sales grow 10%

Quoc Hung

Shoppers are seen at the first 7-Eleven convenience store in Vietnam. Vietnam’s retail market kept strong growth momentum in the first half of 2017 – PHOTO: QUOC HUNG

HCMC – Vietnam’s retail market kept strong growth momentum in the first half of 2017, with sales revenue estimated to expand 10.2% year-on-year to US$64.3 billion.

Data of the General Statistics Office indicates the country’s retail revenue in June edged up 10.3% against the same period last year to VND243.5 trillion (about US$10.85 billion).

Market watchers said the domestic retail market had gained higher growth than other markets. According to U.S. consulting firm A.T. Kearney, Vietnam jumped five places to sixth in the Global Retail Development Index (GRDI) which came out in early June.

The GRDI report showed Vietnam trailed behind big markets like India, China, Malaysia, Turkey and the United Arab Emirates but outdid some others such as Indonesia, Thailand, the Philippines, Kazakhstan and Saudi Arabia.

Some sectors in the retail market posted strong growth in January-June, including food and foodstuffs with growth of 10.6%, textiles and garments (9.5%), home appliances (8.7%), vehicles (8.7%) and stationery and educational goods (5.7%).

Early this month, Thai retailer Central Group opened a B2S (business to school) stationery store in HCMC, its first in Vietnam. B2S is the leading stationery retail brand in Thailand. Seeing growth potential here, leaders of B2S are planning 30 B2S stores in Vietnam in the next five years.

According to A.T. Kearney, convenience stores and minimarts are the fastest-growing market segments in the nation. In mid-June, the first 7-Eleven store was opened with great fanfare in HCMC, becoming a new rival of existing players such as Shop&Go, Circle K, B’s Mart, FamilyMart and MiniStop with extensive convenience store networks.

All of the convenience store chains in Vietnam are owned by foreign firms.

With this growth momentum, Vietnam’s retail revenue is projected to jump to nearly US$130 billion this year, compared to US$118 billion in 2016 and US$110 billion in 2015.

The country’s retail market still has room for more growth as modern retail channels account for 25% of total retail revenue, and are located in major cities.

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