Vietnam no longer a preferred venue for retailers
By Tran Thu - The Saigon Times Daily
HCMC – Vietnam is no longer in the list of top 30 most attractive emerging markets for retail investment while it topped the list in 2008, according to latest report on the 2012 Global Retail Development Index (GRDI) by the U.S.-based consulting firm A.T. Kearney announced on Monday.
Under the report, Vietnam has continuously lost its attractiveness in the ranking. The country topped the list in 2008 but fell to the 6th place in 2009, 14th in 2010 and 30th place in 2011.
This year, it is no longer one of the top 30 emerging markets attractive to global retailers in A.T. Kearney’s annual GRDI.
In the 2011 report, Vietnam’s retail market was considered less attractive given weak distribution infrastructure and high real estate costs. Despite the index downgrade, total retail revenue reached US$80 billion in 2010 and was expected to surge to US$113 billion in 2012.
Meanwhile, Brazil and Chile remain the top two among 30 attractive destinations for retail investment for the second time. China this year jumps three places to the third position in the list when its 2012 retail revenue is expected to grow at a double-digit rate.
Malaysia, the Philippines and Indonesia are three ASEAN members that are still present in the list.
GRDI, a study of retail investment attractiveness among 30 emerging markets, was first published in 2002. The index is based on a set of 25 variables including economic and political risks, retail market attractiveness, retail saturation, infrastructure quality, and legal framework among others.
It aims to help retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries.