Retail Sales in Vietnam to Double by 2012

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Aug. 5 – Retail sales in Vietnam are forecast to more than double by 2012 as more foreign retailers enter the market, says a report from India-based RNCOS.

The industry is expected to post more than US$85 billion in revenues by 2012.“The retail sector market is much smaller compared to other developing economies in Asia, but it has shown strong fundamentals and buoyant expansion in comparison to its neighbors like India and China,” according to a RNCOS Vietnam Retail Analysis 2008-2012 released this month.

Vietnam’s retail industry still has promising prospects for growth despite the global financial crisis because of a strong largely untapped consumer base and the government’s commitment to reform.

The report said: “We also expect a short wave of consolidation in the next four years as foreign retailers try to consolidate their position and deepen their market penetration.”

The government has promised to allow retailers to set-up 100 percent foreign-owned businesses in accordance to its membership to the World Trade Organization.