Vietnam food retail to witness skyrocketing growth

Rising affluence along with increasing awareness about branded food products will trigger food retail sales in Vietnam to grow above 20% CAGR during 2010-2012, predicts RNCOS.
 
According to research firm RNCOS' latest industry research report “Vietnam Retail Analysis (2008-2012)”, the retail sector in Vietnam is much smaller as compared to other developing economies in Asia, but it has shown strong fundamentals and buoyant expansion in comparison of its neighbors like India and China. Government’s support and increasing consumer confidence have resulted in positive outlook for retailers in Vietnam over the previous years.The report further identifies that food retail industry, in particular, will continue to post extraordinary growth during 2010-2012 on the basis of strong market fundamentals.

The study reveals that food is the most important component of retail sales in the country, accounting for about two-thirds of the total sales. Traditional food retail channels are dominating the market at present, but government’s decision to allow 100% entry to foreign players under WTO commitment will lead modern retail to realize unrealistic growth in the food retail segment which is poised for around 20.3% CAGR during 2010-2012.

Apart from food products, non-food retailing is also growing fast in the country, representing nearly one-third of the total retail sales. We anticipate that increasing consumer expenditure on non-essential items such as clothing, electrical and DIY (Do-It-Yourself) goods along with various other factors, the non-food retail will register double-digit CAGR during RNCOS' forecast period.