Vietnam’s retail market is becoming less attractive, with its global ranking downgrade to 23rd place in the 2011 Global Retail Development Index (GRDI) released by A.T. Kearney.
This is the third consecutive year Vietnam’s retail market has lost its attractiveness, sliding down from its first position in 2008 to 6th in 2009 and 14th in 2010. The 2011 survey involved the top 30 developing countries in the field of retail market expansion.
Although consumer confidence is high in Vietnam, poor distribution networking and expensive rent for retail space (about US$94 per square metre in the centre and US$48 per square metre outside the centre) remain barriers for foreign retailers to entry into the ASEAN country, A.T. Kearney says in the report.
However, with such advantages as young population, high speed of urbanization and income growth make Vietnam’s retail market still attractive to many domestic and international retailers.
Hanoi now has 4.3 million people aged between 15 and 65, and the number of households having an annual income of over US$5,000 increases sharply, according to the General Statistics Office.
Besides, women between 17 and 45 years old make up 70 percent of shoppers and they spend US$200 on each shopping for high-end products, mainly footwear, perfume, fashion clothes, etc.
In particular, women aged between 26 and 35, with a stable career and high income, tend to go shopping at commercial centres. Meanwhile, women above 46 usually buy high-end products, they spend US$2,500 on average each time going shopping.