IndiaRetailBiz

We came across an interesting report on how retail sector in Vietnam is going to witness a paradigm shift, two years from now, in 2009, when retail sector in that country is opened to MNC retailers. Except for clarity on road map for allowing FDI, the situation appears no different than what is being experienced in India. ‘We only wish that our policy makers like Vietnamese were more forthcoming on what could be expected, and more importantly when, in future:

Domestic supermarket chains in Vietnam, which is third fastest growing retail markets in the world after China and India, are accelerating pace to open new stores, ahead of opening of the sector for foreign retailers, in 2009. Vietnam will allow FDI in retail in 2009 pursuant to the commitments made to WTO, reports Vietnam Economic Times.

Experts estimate supermarkets in Vietnam to garner up to 20% in retail share by 2010. Viet Nam is expected to experience rapid changes between 2007 and 2011, making it one of the seven most profitable retail markets in the world, predicts a research reports. Recent surveys indicate plenty of room for growth in the retail sector.

“The boom in new supermarkets in major cities and provinces reflected a race against time to grab market share before the Government allowed foreign-invested enterprises to open supermarkets and increase competition in goods distribution and retail, said Dong Hung, Deputy Director Ngo Van Hai.

With foreign investors already knocking on the doors, domestic retailers are worried about the shortage of viable store sites in urban areas that are suitable for developing supermarkets and shopping centres as they may find it difficult to match their MNC counterparts in terms of price, size, or rent

Land lease rents for prime building sites, over the next three years, are predicted to increase more than two-fold.