Magazines Archives - 2007 April
Vietnam to modernise in hopes of generating higher retail sales
VIETNAM has announced aggressive plans to revamp its retail market in a bid to entice shoppers to spend more,especially in the supermarkets.
According to local reports,Prime Minister Nguyen Tan Dung has approved a plan to make the states commercial markets more modern. The Ministry of Trade is projecting that the modern sales systems in place under the programme will generate up to 20% of total retail sales by 2010, and 40% by 2020.
Although the target is seen as ambitious, with current modern systems accounting for only 5%-6% of overall sales, the government is positive that modernisation will help build a strong and stable domestic economy, and has forecast revenues of VND160 trillion (US$10.4 billion) in 2010 and VND800 trillion in 2020 from the segment.
The new plan, which includes the modernisation of infrastructure around trade centres, supermarkets, industrial zones and border areas, is expected to register an 11% annual sales growth until 2010, the local media reported.
The government is also confident that domestic trade will form 14.5% of Vietnams GDP in three years, and reach 15% by 2020. It also plans to develop conglomerates strong enough to compete with foreign companies as the country opens its doors to the world economy,said local reports.