Retail

Vietnamese retail sector to strongly bounce back in 2022

08 Jan '22

2 min read

Pic: Pindiyath100 | Dreamstime.com

Large Vietnamese retail firms will gain more market share in 2022 as smaller competitors have been forced to exit the game due to COVID-induced problems, say experts. The ministry of industry and commerce forecast that by 2025, domestic sales will account for 13.5 per cent of the gross domestic product (GDP) with sales of products and services to rise by 9-9.5 per cent annually.

Sales of products and services for 2021 reached nearly 4,800 trillion VND, a 3.8 per cent fall from the previous year.

According to a recent report by the ministry of planning and investment, the number of newly-established firms in November last year saw a sharp decline of 15 per cent compared to the same period the previous year, at just over 105,000. Meanwhile, nearly 40,000 firms were shut down during the period, according to a news agency.

The figure indicated lower competition overall during 2021's fourth quarter, which in turn, gave larger players an advantage in gaining market share.

The industry's three major driving forces have been said to include digital commerce, electronics for work and study from home, and a shift in consumer behaviour from traditional shopping to digital shopping.

A recent paper released by Facebook and Bain & Company said consumers had been spending more money on digital commerce, a trend associated with increased time spent on browsing and studying products online before purchases.

According to iPrice, during the third quarter last year, 77.8 million visits were recorded on Shopee and 21.4 million visits on Lazada, two of the most popular digital commerce sites in Vietnam, making them the most effective platforms for retailers to reach consumers, especially those who have well established their online sales.

The pandemic has also pushed consumers to move away from traditional shopping to online shopping.

Fibre2Fashion News Desk (DS)

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