With an expanding middle class and a sizeable young population, along with flourishing tourism, Vietnam’s retail market has thrived and attracted a host of international brands eager to grab a slice of the growing market.
As of 2013, Vietnam’s retail sales continue to increase by almost two-digit percentage, while its inflation eased from 18% to mere 9% over two years. Vietnam’s ease of foreign-owned retail enterprices drives modern growth in terms of retail. It allows international brands to be found in main districts and cities within the country.
100% Foreign-Owned Retail Businesses
Vietnam approved the law to permit 100% foreign ownership of retail enterprises in 2009. This resulted to the localization of international brands from other countries. Many electronic brands can be found within the major shopping centres or department stores. Fashion brands such as Chanel, Dior, Hermès and Mango can be found in the central business districts of big cities.
While retail is only in low percentage compared to other ASEAN countries, for foreign retailers, shopping malls or department stores are the most common entry points to establish a foothold in Vietnam. In fact, there are already more than a hundred shopping centres and supermarkets as of year 2011. Majority of these are concentrated in major cities such as Ho Chi Minh, Hanoi and Da Nang. Supported by a growing number of well off consumers and higher living standards, Vietnam has seen new shopping malls and department stores flourish in recent years, with some operators from overseas including Hong Kong.
The Nature of Vietnamese Consumers
Vietnamese consumers are open-minded and keen to try new things, creating ample business opportunities for foreign companies, ranging from smartphones and tablets to fashion and accessories. In the five years to end-2011, retail sales on many non-grocery items chalked up double-digit compound annual growth rate (CAGR). Particularly, the growth in demand for electronics, leisure and personal care items has increased dramatically.
The growing influence of western, Japanese and Korean is especially important among young professionals and teenagers in Vietnam. As consumers are demanding more sophisticated goods and enhanced shopping experience, modern retail is expected to keep growing fast and spread from bigger cities to smaller cities. Although there will be a long way for Vietnam’s retail market to transform into a substantially modernised environment, the purchasing power of the middle-and-up income segment of the country’s consumer market is sufficiently immense to create numerous business opportunities for trendy and sophisticated products, as well as lifestyles services, in particular food and beverages.
Localization for The Growing Retail Market
With robust economic development and living standards rising in recent years, Vietnamese consumers are increasingly looking for sophisticated products with good quality. To establish a solid Vietnamese customer base, many foreign businesses and retailers localize their products. Native Vietnamese translators are hired in order to incorporate the Vietnamese culture and language through good quality products and services. To ensure a Vietnamese customer base, add a Vietnamese translation to your website.
Many Vietnamese cannot read English. Providing a Vietnamese translation lets you reach a wider audience in a profitable market.
Get Your Documents Translated – Call Now – Vietnamese Translation Service
(632) 505-0902 | 0917-301-1705 | Makati@plusev-solutions.com
(located at 3F 170 Salcedo Street, Legaspi Village, Makati, Metro Manila, Philippines)
Plus EV Solutions, only experienced native translators to get you where you want to be.
Translation Services in
Korean | Japanese | Chinese | Mandarin | German | French | Spanish | Portuguese | Norwegian | Turkish | Dutch | Danish | Italian | Arabic | Russian | Finnish | Cambodian | Vietnamese | Malaysian | Indonesian | Thai