Domestic retailers being threatened?
06/08/2010 - 145 Lượt xem
According to the Ministry of Planning and Investment, many foreign huge retailers are setting up plan to penetrate into the Vietnam market when the country becomes a member of the trade body.
Those include 3 world leading retailers namely Wal-Mart (US), Carefour (France) and Tesco (UK) and several Asian huge corporations like Dairy Farm (Hong Kong), South Investment Pte (Singapore), etc. Meanwhile, the domestic retail system has not been mature enough to compete with such giants. Moreover, there is a lack of incentives for development of this system.
Though the market has not been fully open, many big retailers in the world have set foot in Ho Chi Minh City like Metro Cash & Carry (Germany), Big C (France), Parkson (Malaysia), Zen Plaza (Japan) and Diamond Plaza (South Korea). They have been carrying out their plan to develop a supermarket system covering every part of the country. It is the presence of these giants that makes competition in the retail market in Ho Chi Minh City in particular and Vietnam in general much tougher.
Meanwhile the retail system of Vietnam is still young, lacking experiences, resources, expertise, capital and brand. There is just a handful of capable retailers.
In a recent meeting between retailers in Ho Chi Minh City, they all agreed that they needed to cooperate with each other for better competitiveness. The local authorities should also provide incentives to the retail system. In accordance with local planning, there would be 70 supermarkets in the city by the year of 2005. However, there are only 51 now as a result of resource shortages. There has been so far no location planning for supermarkets, too. According to Mr. Vo Van Quyen, Deputy Director of the Ministry of Trade’s Policy and Market Department, the market opening roadmap will be suitable so that domestic firms can be well-prepared for competition. However, what domestic retailers should do now is to improve themselves.
Source: Người Lao động 26/05/2006
