LookAtVietnam – While supermarkets have been unceasingly expanding,
traditional markets have been narrowed, while many small merchants have given up
business.
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Supermarkets expanding
The Vietnamese retail market is considered a fertile land for investors. It is
expected that from now to 2015, the growth rate in the retail market would
maintain at 23-25 percent per annum, while this would still be one of the five
most lucrative markets.
However, analysts say they can see two opposite trends in the market: while the
modern retail systems have been increasing rapidly, traditional markets have
become gloomier.
After three years of opening the retail market to foreign distributors, retail
chains have been mushrooming. The retail market witnessed a boom in late 2011
when retailers continuously opened more retail points in big provinces and
cities.
Nguyen Kim, the electronics and home appliance retailers, for example, has spent
100 billion dong to open five retail points in four big provinces and cities,
namely HCM City, Da Nang, Vung Tau and Bien Hoa. A representative of the retail
chain has revealed that Nguyen Kim would open 12 new retail points in 2012 and
raise the total number of retail points to 50 by 2015.
Vinatex Mart, the distribution chain belonging to the Vietnam Textile and
Garment Group (Vinatex) also opened five supermarkets within the last month in
HCM City, Hoa Binh, An Giang, Tay Ninh and Gia Lai with the total investment
capital of 100 billion dong. The chain plans to obtain 200 supermarkets and
shops by 2015.
General retail chains, both domestic and foreign invested, like Big C, Co-op
Mart, Metro, Crescent Mall and convenience store chains such as 24h, Shop and
Go, Parkson and Vincom shopping malls have also been expanding their networks.
Supermarkets have become the choice of many housewives instead of traditional
markets. Supermarkets can bring more convenient services, while they provide
more diversified products. At some moments, especially on Tet days, the food
prices at supermarkets are even cheaper that at traditional markets. Besides,
modern retain chains also can satisfy the amusement demand of families. This
explains why parents usually bring their children to supermarkets on weekends to
do shopping and relax.
Small merchants give up traditional markets
The convenience of the modern retail chains has lured a lot of consumers and
made traditional markets gloomy. A lot of small merchants have given up
traditional markets and set up kiosks right on the pavement of streets.
According to the HCM City Trade Department, at the four biggest wholesale
markets of An Dong, Soai Kinh Lam, Binh Tay and Nhat Tao alone, more than 1500
small merchants have stopped business. The same situation has been reported for
other long lasting traditional markets such as Ba Chieu, Pham Van Hai, Go Vap,
Hoang Hoa Tham and Tan Dinh.
Tran Thi Nhieu, Head of the Ba Chieu Market Management Board in Binh Thanh
Street, admitted that more than 50 small merchants have left their kiosks,
especially gold, fabric and food kiosk owners.
Nhieu said that merchants have given up traditional markets because they find
unable to compete with modern retail networks. At least three modern chains are
located near the Ba Chieu Market. It is estimated that the number of people
going to the market dropped by 30-40 percent last Tet in comparison with the
2011 Tet.
She also said that only clothes, footwear and spice kiosks still can attract
buyers, because the sellers can give consultancy to buyers, while supermarkets
cannot do that.
Tin Tuc