Retail market in Binh Duong: Domestic investors need to exploit the advantages

Update: 04-04-2018 | 11:58:30

With the advantage of being an industrial province, attracting a large number of laborers from other provinces, Binh Duong is an attractive retail market for investors.

An attractive retail market

More than 10 years after joining World Trade Organization (WTO), the retail market in Vietnam has flourished. In 2017, Vietnam's retail market attractiveness index rose 5 grades, was ranked sixth among global attractive retail markets. Hoang Anh Tuan, Deputy Director of Domestic Market Department, Ministry of Industry and Trade, said that in 2017, Vietnam was in the top 30 countries with the most dynamic retail market in the world. Currently, the wholesale and retail of our country account for 14% of GDP. Retail sector is also one of the six largest sectors attracting foreign investments. Moreover, IGD market research firm predicted that convenience stores in Vietnam would grow at double digits in the next four years and reach 37.4% by 2021 - the highest among surveyed countries.

Customers do shopping at Binh Duong Co.op Mart Supermarket.

With this attraction, the current competition between mini supermarkets, convenience stores attracts not only foreign names with experiences but also many domestic enterprise; and Binh Duong has been an attractive destination for retailers both inside and outside the country. According to provincial Department of Industry and Trade, there are 9 convenience stores in the province belonging to 3 big brands: Family Mart, Vin-Mart and Co.opFood managed by the Department. Other small convenience stores registered under the form of household businesses under the management of local Economic Chambers.

According to a representative of Department of Industry and Trade, total retail sales of goods and services in the province in 2017 reached VND161,357 billion, up 19% over 2016. This explained why many big brands of foreign and domestic retailers had quickly found this attractive market. For example, Family Mart, a long-standing Japanese retailer, opened many convenience stores in Binh Duong.

Domestic investors need rational strategies

At present, people in the province still have the habit of shopping at traditional markets. Nowadays, there are many retailers in the form of household businesses. According to many economists, this was a good signal of the market capturing ability of small investors. However, in order to have a sustainable direction as proposed by the Government, by 2020, the modern retail sector in Vietnam should account for 40% of the market, this requires great efforts from all concerned parties.

Economic experts judged that it was time for local retailers to change, to increase their competitiveness and to make the right investment strategy in the face of fierce competition with big names in retail sector.

The concern of customers doing shopping in mini supermarkets or convenience stores is high-quality source of goods, goods management, warehouse management, good customer services. Therefore, small retail stores need to have an rational investment strategy to retain existing customers and attract new customers. Tran Van Ha, in Phu Hoa ward, Thu Dau Mot City, shared that in some local small convenience stores still had items had not been priced; customers had to wait for price checking. Besides, the price of some items in these stores is higher than the market price but very little promotion...

With the growth of big brands having a systematic and well-funded business model in terms of strategy and advertising, both small and medium retailers are facing a number of challenges. Experts suggested that a chain linking could be also a way for retailers to take into account; at the same time, small retailers need to invest in technology and management, customer services...

Reported by Tieu My – Translated by Ngoc Huynh

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Retail market in Binh Duong: Domestic investors need to exploit the advantages

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