National retail sales up 10.2% in 2016

Total retail sales in Vietnam were estimated to hit VND 2,670 trillion (roughly US$118 billion) in 2016, up 10.2% compared to the previous year, the General Statistics Office (GSO) has announced.

A convenience store in Ho Chi Minh City.

According to the GSO, some groups of commodities recorded high revenues over 2015 including food and produce with an increase of 13%, household appliances up 11.4%, and garment and textiles up 10.6%.

The statistics demonstrate the growth of the domestic retail market with a much higher revenue than previous forecasts.

The year of 2016 continued to witness the expansion of the retail network, the diversification of business models and the merger and acquisition of retailers, particularly with the involvement of foreign investors including Thailand's Central Group, Japan's Aeon and the Republic of Korea's Lotte, among others.

The model of convenience stores is growing quickly in Vietnam which is mainly held by foreign enterprises such as Circle K, Shop & Go, Family Mart, and Ministop.

Vietnam's retail market is said to have enormous potential as a majority of supermarkets and commercial centres are located in big cities.

It is forecast that, the proportion of modern retail channels will increase from 25% to 45% of total retail sales by 2020 and the number of supermarkets, commercial centres and convenience stores will rise quickly across the country.

(Source: NDO)