Vietnamese retail market to face challenges
22/12/2008 16:06
Vietnam's retail market will face up a number of opportunities and
challenges when it completely opens the distribution market in Jan. 1, 2009
pursuant to the World Trade Organization's commitments, the local newspaper
Vietnam Economic Times reported today.
The opening of the Vietnamese retail
market is seen as an impetus for the further development of the country's
distribution systems when foreign distributors who possess greater financial
muscle and modern distribution methods penetrate deeper into the country's
market, said Tran Quoc Khanh, director general of Multilateral Trade Policy
Department under the Ministry of Industry and Trade.
However, domestic
businesses will also face an increasing number of difficulties and challenges as
foreign groups will be permitted to establish wholly foreign-invested companies,
increase their investments and open new branches and outlets in Vietnam, said
the newspaper.
Currently, foreign firms including Big C (France), Metro (
Germany), Parkson (Malaysia), and Lotte Mart (the Republic of Korea) have
already established its operation in Vietnam on a case- by-case basis. Other
foreign firms are actively expanding their networks in Vietnam, said the
newspaper.
The country's domestic businesses have been discussing a range of
measures to rapidly improve their competitiveness and formulate suitable and
effective business strategies.
Vietnam's retail market has developed rapidly
over recent years with total revenue reaching over US$45 billion in 2007. The
2008's figure is expected to reach over 54 billion USdollars, said the
newspaper.
Xinhua
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