According to the Ho Chi Minh City Department of Industry and Trade, foreign firms accounted for more than 50% of the total retail sector.
This supermarket is one of the biggest domestic retailers, with 1.1 billion USD in annual revenue. However, this figure is modest compared to foreign companies.
"We’ll continue to strategise with major investors and suppliers to offer favourable promotions and good prices, and we'll change our product labels to better attract consumers." - Diep Dzung, Chairman, Co-op Mart.
Connecting retailers is another possible solution. According to a representative from the Department of Industry and Trade, retailers should be more actively connected.
"In addition to investment, businesses can expand through franchising, which is quite suitable for small-scale retailers." - Nguyen Ngoc Hoa, Vice director, Ho Chi Minh City Dept. of Industry & Trade.
The city department of industry and trade also proposed a series of measures, including the equitisation of commercial firms, especially focusing on building schemes for the domestic retail sector.
"We focus on implementing projects to develop Vietnam's retail sector, and forming businesses to participate in mergers and acquisitions." - Nguyen Ngoc Hoa, Vice director, Ho Chi Minh City Dept. of Industry & Trade.
Experts say that the firms themselves are key in this competition. Domestic retailers will have to compete with product quality, design, and prices in order to make the most of the market.
