retailing in vietnam

RETAILING IN VIETNAM

Euromonitor International

July 2014

R E T A I L I N G I N V I E T N A M P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1

Retailing Records Good Growth in 2013 .................................................................................. 1 Internet Retailing Achieves the Highest Growth Rate ............................................................... 1 Grocery Retailers Records Better Performance Than Non-grocery Retailers ........................... 1 Intense Competition Between Domestic Players and International Players .............................. 1 Positive Prospect for Retailing .................................................................................................. 1

Key Trends and Developments .................................................................................................... 2

Signs of Economic Recovery Bolsters Retailing Growth Rate .................................................. 2 Internet Retailing Records the Highest Growth Against Other Retailing Categories ................. 3 Vietnam’s Retailing Environment Attracts Foreign Investments ............................................... 4 Government Policies Support Retailing .................................................................................... 5

Market Indicators .......................................................................................................................... 6

Table 1 Employment in Retailing 2008-2013............................................................. 6

Market Data .................................................................................................................................. 6

Table 2 Sales in Retailing by Channel: Value 2008-2013 ......................................... 6 Table 3 Sales in Retailing by Channel: % Value Growth 2008-2013 ......................... 6 Table 4 Sales in Store-Based Retailing by Channel: Value 2008-2013 .................... 6 Table 5 Store-Based Retailing Outlets by Channel: Units 2008-2013 ....................... 7 Table 6 Sales in Store-Based Retailing by Channel: % Value Growth 2008-

2013 ............................................................................................................. 7 Table 7 Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013 ........ 7 Table 8 Sales in Non-store Retailing by Channel: Value 2008-2013 ......................... 7 Table 9 Sales in Non-store Retailing by Channel: % Value Growth 2008-2013 ........ 8 Table 10 Sales in Retailing by Grocery vs Non-Grocery: 2008-2013 .......................... 8 Table 11 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2008-

2013 ............................................................................................................. 8 Table 12 Sales in Non-Grocery Retailers by Channel: Value 2008-2013 .................... 8 Table 13 Non-Grocery Retailers Outlets by Channel: Units 2008-2013 ...................... 9 Table 14 Sales in Non-Grocery Retailers by Channel: % Value Growth 2008-

2013 ............................................................................................................. 9 Table 15 Non-Grocery Retailers Outlets by Channel: % Unit Growth 2008-2013 ..... 10 Table 16 Retailing Company Shares: % Value 2009-2013 ....................................... 10 Table 17 Retailing Brand Shares: % Value 2010-2013 ............................................. 10 Table 18 Store-Based Retailing Company Shares: % Value 2009-2013 .................. 11 Table 19 Store-Based Retailing Brand Shares: % Value 2010-2013 ........................ 12 Table 20 Store-Based Retailing Brand Shares: Outlets 2010-2013 .......................... 12 Table 21 Non-store Retailing Company Shares: % Value 2009-2013 ....................... 13 Table 22 Non-store Retailing Brand Shares: % Value 2010-2013 ............................ 14 Table 23 Non-Grocery Retailers Company Shares: % Value 2009-2013 .................. 14 Table 24 Non-Grocery Retailers Brand Shares: % Value 2010-2013 ....................... 15 Table 25 Non-Grocery Retailers Brand Shares: Outlets 2010-2013 ......................... 15 Table 26 Non-Grocery Retailers Brand Shares: Selling Space 2010-2013 ............... 16 Table 27 Forecast Sales in Retailing by Channel: Value 2013-2018 ........................ 17 Table 28 Forecast Sales in Retailing by Channel: % Value Growth 2013-2018 ........ 17 Table 29 Forecast Sales in Store-Based Retailing by Channel: Value 2013-

2018 ........................................................................................................... 17

R E T A I L I N G I N V I E T N A M P a s s p o r t I I


Table 30 Forecast Store-Based Retailing Outlets by Channel: Units 2013-2018 ...... 18 Table 31 Forecast Sales in Store-Based Retailing by Channel: % Value Growth

2013-2018 .................................................................................................. 18 Table 32 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth

2013-2018 .................................................................................................. 18 Table 33 Forecast Sales in Non-store Retailing by Channel: Value 2013-2018 ........ 18 Table 34 Forecast Sales in Non-store Retailing by Channel: % Value Growth

2013-2018 .................................................................................................. 19 Table 35 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling

Space 2013-2018 ....................................................................................... 19 Table 36 Forecast Sales in Non-Grocery Retailers by Channel: Value 2013-

2018 ........................................................................................................... 19 Table 37 Forecast Non-Grocery Retailers Outlets by Channel: Units 2013-2018 ..... 20 Table 38 Forecast Sales in Non-Grocery Retailers by Channel: % Value

Growth 2013-2018 ..................................................................................... 20 Table 39 Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth

2013-2018 .................................................................................................. 20

Appendix .................................................................................................................................... 21

Operating Environment ........................................................................................................... 21

Summary 1 Standard Opening Hours by Channel Type 2013 ....................................... 21

Cash and Carry....................................................................................................................... 22 Definitions ................................................................................................................................... 23 Sources ...................................................................................................................................... 24

Summary 2 Research Sources ...................................................................................... 24

R E T A I L I N G I N V I E T N A M P a s s p o r t 1


RETAILING IN VIETNAM

EXECUTIVE SUMMARY

Retailing Records Good Growth in 2013

The economy demonstrated several signs of recovery with better GDP growth and inflation

rate control in 2013, which led to retailing’s positive performance. Regarding the view of the

overall retailing category, it achieved strong double-digit growth in comparison with 2013.

Except for a minority of categories such as jewellery and watch specialist retailers which

declined, major channels such as supermarkets and hypermarkets accomplished good

performance.

Internet Retailing Achieves the Highest Growth Rate

Emerging as a fairly novel retailing category, internet retailing recorded rampant growth during

the review period. 2013 witnessed deceleration in internet retailing’s growth rate. Nevertheless,

it maintained spectacular double-digit growth. In addition to the rising popularity of independent

consumer-to-consumer stores, business-to-consumer internet retailing witnessed strong

competition among key players in 2013 with an ambition to increase their sales by exploring the

potential of internet retailing in Vietnam.

Grocery Retailers Records Better Performance Than Non-grocery Retailers

While grocery retailers continued to record significant growth in 2013, non-grocery retailers’

growth rate was rather humble. Although non-grocery retailers’ growth rate remained at a

moderate level, it showed some improvement compared to the slower growth rate of 2012. With

stronger performance, grocery retailers continued to gain share in terms of retail value of total

retailing industry in Vietnam and remained the most important channel.

Intense Competition Between Domestic Players and International Players

Since Vietnam joined the World Trade Organization in 2007, the competition between

domestic players and international players became increasingly intense in Vietnam. In 2013,

both of them spent their efforts in expanding their presence in order to gain share. For example,

local player Saigon Union of Trading Cooperatives consistently planned to expand its network

coverage; for example, it launched a new hypermarket chain in partnership with NTUC Fairprice

Co-operative in 2013. As such, Saigon Union of Trading Cooperatives was successful in

maintaining its leadership of retailing. Regarding the international players, Casino Guichard-

Perrachon SA has proved its success since its penetration of retailing in Vietnam, which helps

position it as the second biggest retailer in the country. In addition, The Lion Group from

Malaysia has a wide distribution network of Parkson department store chain across the country.

Positive Prospect for Retailing

The economy is expected to further recover over the forecast period. The real GDP growth

rate is expected to improve, and as a result, retailing can expect a good performance in the

future. After very strong growth during the review period, grocery retailers is expected to slow



down over the forecast period. In contrast, non-grocery retailers will show a tendency to

accelerate due to the improvement of forecast GDP.

KEY TRENDS AND DEVELOPMENTS

Signs of Economic Recovery Bolsters Retailing Growth Rate

After economy difficulties during 2011-2012, Vietnam’s economy witnessed several signs of

recovery in 2013. The real growth GDP in 2013 is predicted to achieve a value of 5.6% against

5% of 2012’s GDP. According to General Statistics Office of Vietnam, while GDP growth for

agriculture is relatively low at 2.5%, GDP growth for services and industries is quite good

ranging from 5.5% to 6.6%.

Another optimistic sign is the lower inflation rate. The inflation rate in 2013 was recorded at

7% which was lower than 2012 (9%). The lower inflation rate contributed to the more stable

stage of retailing since retailers did not need to increase their prices to cope with the rising price

levels in the country.

Due to a decline in the inflation rate in addition with the marginal increase in GDP growth,

retailing overall was able to record good current value growth of 18% in 2013 in comparison with

14% in 2012. While grocery retailers continued to grow by 24% in 2013 in current value terms,

non-grocery retailers’ growth rate reached just 5%. Even though the latter’s growth rate was not

very high against grocery retailers, it showed improvement compared to 2012.

In terms of non-grocery retailers, during the period 2011-2012, Vietnam’s economy

experienced some difficulties such as frozen real estate, high inflation rate, and slowdown in

GDP growth. Firstly, even though the Vietnamese economy was able to demonstrate some

signs of recovery, local consumers experienced difficulties, struggling with high living costs and

unemployment rate for a long time. They had got used to the habit of saving on expenditure.

Thus, consumers tended to limit their spending to daily necessities such as groceries and cut

down on goods for leisure purposes. For example, jewellery and watch specialist retailers

together with leisure and personal goods are two retailing channels to record a poor

performance in 2013. IN addition to a decrease in gold price, reducing the budget was also one

of the main reasons contributing to its worse performance in 2013. Secondly, the GDP growth

rate was still not strong enough as opposed to the very high inflation rate during the review

period to be able to revive non-grocery retailers.

On account of grocery retailers’ high growth, the category attributed its good performance

partly to the high consumer price index. CPI of the first 10 months of 2013 was still quite high

with a value of 7% according to the General Statistics Office of Vietnam. In addition, a series of

floods affected Vietnam in 2013 which resulted in a significant increase in prices of agricultural

products. In contrast to non-grocery retailers, grocery retailers is not much influenced by the

rising prices. No matter how much consumers reduce their budgets, their purchases of grocery

products remained intact as they are daily necessities.

Outlook

Over the forecast period, the economy is expected to continue recovering with a moderate

pace. According to Vietnam Government Portal, the State will focus on regulating consumer

prices, particularly items under the state’s supervision such as education, electricity, fuel and

healthcare services in order to better regulate inflation rate in the country. In addition, it appears

to be a difficult task for the Vietnamese government. As a result, the real GDP growth rate is still

expected to increase to reach 10% in 2018.



The bright economic outlook promises a positive prospect for retailing, especially non-grocery

retailers which is much more vulnerable to income fluctuations. Over the forecast period, the

predicted constant value CAGR for overall retailing is 18%.

Over the forecast period, non-grocery retailers is estimated to predicted to record a constant

value CAGR of 4%. As the economic situation improves, GDP is expected to grow, which will

stimulate consumer expenditure. Apart from budget for daily necessities, consumers will tend to

have more excess money to buy more goods for leisure purposes. After strong growth during

the review period, grocery retailers’ growth is likely to slow down with a constant value CAGR of

9%.

Internet Retailing Records the Highest Growth Against Other Retailing Categories

After its peak performance in 2011 with current value growth of 182%, internet retailing’s

value growth rate dropped down to 75% in 2012 and 50% in 2013. Even though there was a

rapid slowdown, internet retailing still managed to records the highest current value growth rate

against the rest of the retailing channels. The main reason for the slowdown was because many

consumers became accustomed with online shopping and becoming more fastidious in their

purchasing decisions. Instead of trying services and products from different retailers, they tend

to be loyal to a few trusted stores.

The difficult economic situation, in addition with the emerging popularity of social networks

such as Facebook during the review period, many retailers particularly electronic and specialist

retailers such as Mobile World JSC, and Nguyen Kim Trading JSC tried to increase their value

sales of internet retailing in 2013 by continuously launching special promotions for online

purchases. By doing this, they aimed to seek for more profits as well as to provide convenience

for their consumers

In terms of an internet retailing business model, there are two in the form of consumers-to-

consumers and business-to consumers, which are quite popular in the country. Although the

consumers-to-consumers model outperforms the business-to-business model in terms of the

number of stores, it fails to compete with business-to-consumer in terms of product quality and

diversity of products. The major reason is because business-to-consumer retailers are more

powerful in capital and brand awareness. In addition, consumers tend to trust business-to-

consumer retailers more since the increase of online fraud cases over the review period.

In general, the potential of internet retailing was still not fully exploited by 2013. According to a

statistic conducted by Vietnam E-commerce and Information Technology Agency, among the

36% of the population who had access to the internet, 57% of them experienced online

shopping transactions. In general, Vietnamese have a tendency to purchase smaller money

online items. Moreover, according to the Ministry of Industry and Trade of Vietnam, 20% - 50%

of Vietnamese companies have official websites. Within this group, only 3% have operations in

online shopping.

Outlook

The number of internet users will increase over the forecast period as a result of the country’s

progress in urbanisation and modernisation, which will encourage more potential online

customers. In addition, internet retailing will have a stronger presence with more players,

especially those from supermarkets, hypermarkets and producers of organic food and drink.

Furthermore, the legal framework for internet retailing will be further consolidated due to the

Decree 52/2013/ND-CP published in 2013, which fills the regulatory gaps in the e-commerce

laws of the former 57/2006/ND-CP.

Accordingly, internet retailing is expected to continue growing strongly over the forecast

period with a constant value CAGR of 22%. However, despite the slowdown, the predicted



constant value rate is still very strong. In addition, internet retailing demonstrated its peak

performance with already very high value growth during the review period. It is expected to slow

down in the future.

The new Decree 52/2013/ND-CP will present a fairer online retailing environment for both

internet retailers and consumers. Its regulations include internet retailers’ responsibilities in

providing customers with transparent information about the products and purchasing agreement.

It will contribute to build up forecast growth for the channel.

Vietnam’s Retailing Environment Attracts Foreign Investments

According to the Association of Vietnam Retailers, by the first nine months of 2013, there

were approximately 168 new FDI projects being registered with a total investment of US$380

million. FDI of the first nine months of 2013 gained growth of 6.4% against 2012. In terms of

value, foreign direct investments of the entire year of 2013 is expected to reach US%16.2 billion

to surpass the government target of US$10.5 billion.

In retailing in particular, foreign direct investment activities witnessed spectacular attraction. In

February 2013, Takashimaya started construction of its first shopping centre in the hectic centre

of District 1 of Ho Chi Minh City. The centre is expected to commence operations in 2015 with

an area of 15,000 sq m. Aeon is another investor from Japan, the country with the leading FDI

share in Vietnam. Its first shopping centre targeting middle-income consumers was built in 2013

Tan Phu, Ho Chi Minh City with a tremendous investment of US$109 million. Also in May 2013,

NTUC Fairprice Co-operative Ltd cooperated with Saigon Union of Trading Cooperatives to

build its first Coop Xtra hypermarket in Thu Duc, Vietnam. With a 25,000 sq m area, it became

the biggest hypermarket in Vietnam by the end of 2013.

As an inevitable consequence, retailing in Vietnam witnessed fierce competitions among

foreign retailing giants and domestic retailing companies to win a lucrative slice of retailing in

Vietnam. The local players have mutual advantages with better understanding of local cultures

and consumer behaviour. On the other hand, multinational retailers have stronger capital

mobilisation potential and perennial experiences in the international retailing marker. Meanwhile,

the new Co.opExtra hypermarket chain of Saigon Union of Trading Cooperatives and NTUC

Fairprice Co-operative Ltd seems to benefit from both its local and foreign co-owners.

In response to the massive investments in retailing, Casino Guichard-Perrachon SA opened

our new Big C hypermarkets in Binh Duong, Ninh Binh, Phu Tho, and Lam Dong. The

expansion is meant to not only increase net sales but also retain the company’s share in such

an environment with fast growing numbers of players.

In addition, a strong growth in FDI projects invested in retailing resulted in a rise in the

number of new retail goods imported to Vietnam. According to the General Department of

Customs, by the first nine months of 2013, total imports of Vietnam grew at a rate of 15%

against the previous year. The import growth provides the market with more new import

products, which gives consumers with more choices and stimulates purchasing of new products

for trials. Consequently, the trend partly contributes to retailing’s growth in 2013.

Outlook

Over the forecast period, Vietnam is likely to see more FDI poured into retailing. Emart aims

for a long-term goal in Vietnam to reach a coverage network of 52 outlets with its total

investment rising up to US$1 billion by 2020. In addition, Auchan, a French retailer with outlets

in 15 different countries, is planning to come back to Vietnam with a commitment of US$500

million in investments in Vietnam over the next ten years. Current foreign retailing players also

plan to expand their outlet networks in the future. Lotte Mart will have two more hypermarkets

while Lion Group will open four more department stores.



An increase in FDI specifically in retailing will partly contribute to the industry’s growth in sales

value over the forecast period. Total selling space is also expected to increase since most of the

new investment projects are big shopping centres or hypermarkets. Many of the constructions

are to be finished over the forecast period. Thus, retailing in Vietnam will continue to face strong

competitions.

In order to overcome the intense competition, local retailers need to give careful consideration

in the decision of store location to be compatible with the target segments that the companies

are targeting. Having outlet coverage at prime locations is an advantage. Yet rental costs in

Vietnam are very high. Thus, strategic decisions in choosing rental locations, especially in terms

of costs and target customers, remain key to the success of local retailers.

Government Policies Support Retailing

The government has strived to curb the inflation rate by proactive consumer price control

measures. The State is putting efforts in deploying flexible adjustments to prices and supplies of

important product categories such as gasoline, water and electricity. In addition, with the

agricultural production’s being dramatically reduced by continuous storms and floods in 2013,

the government applied many methods to stabilise prices of agricultural products through

solutions for credit system supporting farmers and temporary storage of agricultural goods.

Another policy from the State which bolsters growth for retailing is Decree 92/2013/ND-CP

issued in August 2013. According to the decree, certain businesses can benefit from a decrease

in tax. In detail, a declining tax rate of 20% is applied for companies with total revenues of

VND20 million or less.

Towards supportive policies from the government, the inflation rate was under better control in

2013, which assisted non-grocery retailers’ performance. From negative growth in 2012, the

category recovered in 2013 with a current value growth rate of 5%. Ever since the economic

difficulties in 2011-2012, many consumers particularly from middle and lower incomes adopted

a frugal spending habit to refrain from buying unnecessary products due to their limited

incomes. The lower inflation rate resulted in consumer prices at stable levels, which helped

stimulate purchasing power, especially for non-grocery products.

Due to the State’s incentives for tax rate imposed on businesses with limited revenues, many

companies returned to operations in 2013. According to the report about economic and social

status of Vietnam at the parliament meeting XIII held in 2013, by the first nine months of 2013,

4,060 companies running businesses in retailing and motorbikes – car maintenance, which

ceased to operate in 2012 returned to business. The recovering conditions boosted production

and retailing activities, which accounted for retailing’s growth in 2013.

Outlook

In 2013, the Department of Trading and Investment introduced a development plan for

supermarkets and a shopping centre network in Vietnam. According to the plan, by 2020

Vietnam will have coverage of 1,200 – 1,300 supermarkets and 180 shopping centres across

the country. In addition to encouraging companies from many different kinds of businesses to

join retailing, the State also predicts sales from supermarkets and shopping centres will account

for 45% of total retailing sales by 2020.

In November 2013, the Department of Finance proposed recommendations on import tax

reduction. Accordingly, certain products in foods such as salmon, butter, and health and beauty

including hairspray and hair care will experience a decline in the import tax rate.

As a result, Vietnam’s modern retailing will be witness more shopping centres and

supermarkets over the forecast period, which will contribute to growth of overall retailing.

Reduction in the tax rate for some grocery and beauty products will likely witness partially

reduced prices, which will hopefully stimulate retail sales in these categories.



MARKET INDICATORS

Table 1 Employment in Retailing 2008-2013

2008 2009 2010 2011 2012 2013 Total employment ('000 40,886.9 41,849.0 43,353.4 44,610.8 45,504.8 46,331.2 people) Employment in retailing 4,900.0 5,000.0 5,075.0 5,190.0 5,325.0 5,450.0 ('000 people) Employment in retailing 12.0 11.9 11.7 11.6 11.7 11.8 (%) (% of total employment)

Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews

MARKET DATA

Table 2 Sales in Retailing by Channel: Value 2008-2013

VND tn, retail value rsp excl sales tax 2008 2009 2010 2011 2012 2013 Store-based Retailing 658.0 779.3 946.4 1,169.3 1,333.5 1,574.0 Non-Store Retailing 1.9 3.0 4.5 7.3 10.6 14.3 Retailing 659.9 782.3 950.8 1,176.6 1,344.1 1,588.2

Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources

Table 3 Sales in Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax 2012/13 2008-13 CAGR 2008/13 Total Store-based Retailing 18.0 19.1 139.2 Non-Store Retailing 34.4 50.1 661.3 Retailing 18.2 19.2 140.7


Table 4 Sales in Store-Based Retailing by Channel: Value 2008-2013

VND tn, retail value rsp excl sales tax 2008 2009 2010 2011 2012 2013 Grocery Retailers 399.9 470.7 573.5 739.0 917.6 1,138.2 Non-Grocery Retailers 258.1 308.6 372.9 430.3 415.9 435.7



Luxury Retail - - - 1.0 1.1 1.9 Store-based Retailing 658.0 779.3 946.4 1,169.3 1,333.5 1,574.0


Table 5 Store-Based Retailing Outlets by Channel: Units 2008-2013

'000 outlets 2008 2009 2010 2011 2012 2013 Grocery Retailers 594.3 606.1 616.4 621.9 630.1 636.3 Non-Grocery Retailers 130.1 134.4 138.9 142.2 142.9 144.2 Luxury Retail - - - 0.0 0.0 0.0 Store-based Retailing 724.4 740.4 755.3 764.1 773.0 780.5


Table 6 Sales in Store-Based Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax 2012/13 2008-13 CAGR 2008/13 Total Grocery Retailers 24.0 23.3 184.6 Non-Grocery Retailers 4.8 11.0 68.8 Luxury Retail 74.7 - - Store-based Retailing 18.0 19.1 139.2


Table 7 Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013

% unit growth 2012/13 2008-13 CAGR 2008/13 Total Grocery Retailers 1.0 1.4 7.1 Non-Grocery Retailers 1.0 2.1 10.8 Luxury Retail 12.5 - - Store-based Retailing 1.0 1.5 7.7


Table 8 Sales in Non-store Retailing by Channel: Value 2008-2013

VND billion, retail value rsp excl sales tax 2008 2009 2010 2011 2012 2013 Direct Selling 1,869.4 2,970.8 3,400.0 4,267.0 5,231.2 6,259.8 Homeshopping - - 60.0 172.0 443.1 576.3 Internet Retailing - - 997.3 2,816.7 4,938.9 7,427.1 Vending 4.0 1.9 - - - - Non-Store Retailing 1,873.4 2,972.8 4,457.2 7,255.7 10,613.2 14,263.2




Note: Vending data captures vending systems installed in public and semi-captive environments only. For further details refer to definitions.

Table 9 Sales in Non-store Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax 2012/13 2008-13 CAGR 2008/13 Total Direct Selling 19.7 27.3 234.9 Homeshopping 30.1 - - Internet Retailing 50.4 - - Vending - - - Non-Store Retailing 34.4 50.1 661.3



Table 10 Sales in Retailing by Grocery vs Non-Grocery: 2008-2013

% retail value rsp excl sales tax 2008 2009 2010 2011 2012 2013 Grocery 58.0 56.5 54.5 53.0 52.0 51.0 Non-Grocery 42.0 43.5 45.5 47.0 48.0 49.0 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 11 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2008-2013

2008 2009 2010 2011 2012 2013 Value sales VND billion 258,094.7 308,637.2 372,896.9 430,307.0 415,922.3 435,742.9 Outlets 130,132.0 134,387.0 138,934.0 142,202.0 142,859.0 144,219.0 Selling Space '000 sq m 8,720.6 9,555.0 10,676.8 11,532.0 11,530.9 11,742.6


Table 12 Sales in Non-Grocery Retailers by Channel: Value 2008-2013

VND billion, retail value rsp excl sales tax 2008 2009 2010 2011 2012 2013 Apparel and Footwear 20,327.4 26,159.3 32,803.8 37,921.2 35,835.5 38,852.9 Specialist Retailers Electronics and 59,061.2 74,816.6 96,289.9 107,805.0 116,429.3 126,219.7 Appliance Specialist Retailers Health and Beauty 35,678.7 41,262.1 47,930.1 55,239.8 61,591.1 68,422.2 Specialist Retailers



Home and Garden 71,659.8 81,913.9 96,870.0 115,470.3 98,768.0 96,655.3 Specialist Retailers Leisure and Personal 22,972.8 34,025.5 46,367.6 59,358.8 48,738.0 47,104.5 Goods Specialist Retailers Mixed Retailers 1,580.7 2,007.1 2,438.6 2,625.9 3,165.3 4,045.7 Other Non-Grocery 46,814.1 48,452.6 50,196.9 51,886.2 51,395.0 54,442.5 Retailers Non-Grocery Retailers 258,094.7 308,637.2 372,896.9 430,307.0 415,922.3 435,742.9


Table 13 Non-Grocery Retailers Outlets by Channel: Units 2008-2013

outlets 2008 2009 2010 2011 2012 2013 Apparel and Footwear 8,210 8,800 9,381 9,921 10,095 10,328 Specialist Retailers Electronics and 6,061 6,356 6,647 6,639 6,386 6,495 Appliance Specialist Retailers Health and Beauty 36,344 37,561 38,690 39,587 39,900 40,269 Specialist Retailers Home and Garden 8,466 9,336 10,620 11,504 11,364 11,479 Specialist Retailers Leisure and Personal 9,865 10,592 11,334 11,952 12,318 12,650 Goods Specialist Retailers Mixed Retailers 36 62 82 98 113 118 Other Non-Grocery 61,150 61,680 62,180 62,501 62,683 62,880 Retailers Non-Grocery Retailers 130,132 134,387 138,934 142,202 142,859 144,219


Table 14 Sales in Non-Grocery Retailers by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax 2012/13 2008-13 CAGR 2008/13 Total Apparel and Footwear Specialist 8.4 13.8 91.1 Retailers Electronics and Appliance Specialist 8.4 16.4 113.7 Retailers Health and Beauty Specialist Retailers 11.1 13.9 91.8 Home and Garden Specialist Retailers -2.1 6.2 34.9 Leisure and Personal Goods Specialist -3.4 15.4 105.0 Retailers Mixed Retailers 27.8 20.7 155.9 Other Non-Grocery Retailers 5.9 3.1 16.3 Non-Grocery Retailers 4.8 11.0 68.8




Table 15 Non-Grocery Retailers Outlets by Channel: % Unit Growth 2008-2013

% unit growth 2012/13 2008-13 CAGR 2008/13 Total Apparel and Footwear Specialist 2.3 4.7 25.8 Retailers Electronics and Appliance Specialist 1.7 1.4 7.2 Retailers Health and Beauty Specialist Retailers 0.9 2.1 10.8 Home and Garden Specialist Retailers 1.0 6.3 35.6 Leisure and Personal Goods Specialist 2.7 5.1 28.2 Retailers Mixed Retailers 4.4 26.8 227.8 Other Non-Grocery Retailers 0.3 0.6 2.8 Non-Grocery Retailers 1.0 2.1 10.8


Table 16 Retailing Company Shares: % Value 2009-2013

% retail value rsp excl sales tax Company 2009 2010 2011 2012 2013 Saigon Union of Trading 1.1 1.3 1.4 1.4 1.4 Cooperatives Casino Guichard- 0.5 0.6 0.7 0.7 0.7 Perrachon SA Nguyen Kim Trading JSC 0.5 0.7 0.7 0.7 0.7 Saigon Jewelry Co Ltd 1.4 1.7 1.7 1.0 0.6 Mobile World JSC 0.3 0.3 0.5 0.6 0.6 Phu Nhuan Jewelry JSC 1.0 1.2 1.2 0.5 0.3 Pico JSC 0.2 0.2 0.2 0.2 0.2 Lion Group, The 0.2 0.2 0.2 0.2 0.2 Vien Thong A Import 0.2 0.2 0.2 0.1 0.2 Export Trading Production Corp Tran Anh Digital World 0.1 0.1 0.1 0.1 0.1 JSC DOJI Gold & Gems Group 0.0 0.1 0.1 0.1 0.1 Ho Chi Minh City Book 0.1 0.1 0.1 0.1 0.1 Distribution Co FPT Corp 0.1 0.0 0.1 0.1 0.1 TCT Group 0.1 0.1 0.1 0.1 0.1 Various franchisees 0.2 0.0 0.0 - - Ben Thanh Marketing Co 0.1 0.1 - - - Bourbon Groupe - - - - - Others 93.8 93.0 92.6 94.0 94.6 Total 100.0 100.0 100.0 100.0 100.0


Table 17 Retailing Brand Shares: % Value 2010-2013

% retail value rsp excl sales tax



Brand Company 2010 2011 2012 2013 Co.opMart Saigon Union of Trading 1.2 1.3 1.4 1.3 Cooperatives Big C Casino Guichard- 0.6 0.7 0.7 0.7 Perrachon SA Nguyenkim - Saigon Nguyen Kim Trading JSC 0.7 0.7 0.7 0.7 Shopping Center SJC Saigon Jewelry Co Ltd 1.7 1.7 1.0 0.6 Mobile world Mobile World JSC 0.3 0.5 0.6 0.5 PNJ Phu Nhuan Jewelry JSC 1.2 1.2 0.5 0.3 Pico Pico JSC 0.2 0.2 0.2 0.2 Parkson Lion Group, The 0.2 0.2 0.2 0.2 Vien Thong A Vien Thong A Import 0.2 0.2 0.1 0.2 Export Trading Production Corp Tran Anh Tran Anh Digital World JSC 0.1 0.1 0.1 0.1 Doji DOJI Gold & Gems Group 0.1 0.1 0.1 0.1 Fahasa Ho Chi Minh City Book 0.1 0.1 0.1 0.1 Distribution Co FPT Shop FPT Corp 0.0 0.1 0.1 0.1 G7mart Various franchisees 0.0 0.0 - - Best Carings Ben Thanh Marketing Co 0.1 - - - Carings Ben Thanh Marketing Co - - - - Big C Bourbon Groupe - - - - Others 93.1 92.8 94.3 94.9 Total 100.0 100.0 100.0 100.0


Table 18 Store-Based Retailing Company Shares: % Value 2009-2013

% retail value rsp excl sales tax Company 2009 2010 2011 2012 2013 Saigon Union of Trading 1.1 1.3 1.4 1.5 1.5 Cooperatives Casino Guichard- 0.5 0.6 0.7 0.7 0.7 Perrachon SA Nguyen Kim Trading JSC 0.5 0.7 0.7 0.7 0.6 Saigon Jewelry Co Ltd 1.4 1.7 1.8 1.0 0.6 Mobile World JSC 0.3 0.3 0.5 0.6 0.5 Phu Nhuan Jewelry JSC 1.0 1.2 1.2 0.5 0.3 Pico JSC 0.2 0.2 0.2 0.2 0.2 Lion Group, The 0.2 0.2 0.2 0.2 0.2 Vien Thong A Import 0.2 0.2 0.2 0.1 0.1 Export Trading Production Corp Tran Anh Digital World 0.1 0.1 0.1 0.1 0.1 JSC DOJI Gold & Gems Group 0.0 0.1 0.1 0.1 0.1 Ho Chi Minh City Book 0.1 0.1 0.1 0.1 0.1 Distribution Co FPT Corp 0.1 0.0 0.1 0.1 0.1 TCT Group 0.1 0.1 0.1 0.1 0.1 Lotte Shopping Co Ltd 0.0 0.1 0.1 0.1 0.1 Viet Tien Garment Co 0.1 0.1 0.1 0.1 0.1 (VTEC) Various franchisees 0.2 0.0 0.0 - -



Ben Thanh Marketing Co 0.1 0.1 - - - Bourbon Groupe - - - - - Others 93.6 92.8 92.5 93.9 94.5 Total 100.0 100.0 100.0 100.0 100.0


Table 19 Store-Based Retailing Brand Shares: % Value 2010-2013

% retail value rsp excl sales tax Brand Company 2010 2011 2012 2013 Co.opMart Saigon Union of Trading 1.2 1.3 1.4 1.3 Cooperatives Big C Casino Guichard- 0.6 0.7 0.7 0.7 Perrachon SA Nguyenkim - Saigon Nguyen Kim Trading JSC 0.7 0.7 0.7 0.6 Shopping Center SJC Saigon Jewelry Co Ltd 1.7 1.8 1.0 0.6 Mobile world Mobile World JSC 0.3 0.5 0.5 0.5 PNJ Phu Nhuan Jewelry JSC 1.2 1.2 0.5 0.3 Pico Pico JSC 0.2 0.2 0.2 0.2 Parkson Lion Group, The 0.2 0.2 0.2 0.2 Vien Thong A Vien Thong A Import 0.2 0.2 0.1 0.1 Export Trading Production Corp Tran Anh Tran Anh Digital World JSC 0.1 0.1 0.1 0.1 Doji DOJI Gold & Gems Group 0.1 0.1 0.1 0.1 Fahasa Ho Chi Minh City Book 0.1 0.1 0.1 0.1 Distribution Co FPT Shop FPT Corp 0.0 0.1 0.1 0.1 Lotte Mart Lotte Shopping Co Ltd 0.1 0.1 0.1 0.1 Viet Tien Viet Tien Garment Co 0.1 0.1 0.1 0.1 (VTEC) G7mart Various franchisees 0.0 0.0 - - Best Carings Ben Thanh Marketing Co 0.1 - - - Carings Ben Thanh Marketing Co - - - - Big C Bourbon Groupe - - - - Others 93.0 92.7 94.2 94.8 Total 100.0 100.0 100.0 100.0


Table 20 Store-Based Retailing Brand Shares: Outlets 2010-2013

sites/outlets Brand Company 2010 2011 2012 2013 Viet Tien Viet Tien Garment Co 420 495 504 502 (VTEC) Mobile world Mobile World JSC 80 210 207 207 SJC Saigon Jewelry Co Ltd 160 186 175 158 PNJ Phu Nhuan Jewelry JSC 138 165 153 145 Vien Thong A Vien Thong A Import 52 71 75 86 Export Trading Production Corp Co.opMart Saigon Union of Trading 50 56 62 69



Cooperatives FPT Shop FPT Corp 8 14 39 60 Fahasa Ho Chi Minh City Book 52 58 58 58 Distribution Co Doji DOJI Gold & Gems Group 17 23 24 35 Big C Casino Guichard- 14 18 21 24 Perrachon SA Nguyenkim - Saigon Nguyen Kim Trading JSC 3 10 17 18 Shopping Center Tran Anh Tran Anh Digital World JSC 3 3 4 9 Parkson Lion Group, The 6 7 8 8 Pico Pico JSC 3 4 5 5 Lotte Mart Lotte Shopping Co Ltd 2 2 3 4 G7mart Various franchisees 312 33 - - Best Carings Ben Thanh Marketing Co 4 - - - Carings Ben Thanh Marketing Co - - - - Big C Bourbon Groupe - - - - Others 754,020 762,742 771,623 779,085 Total 755,344 764,097 772,978 780,473


Table 21 Non-store Retailing Company Shares: % Value 2009-2013

% retail value rsp excl sales tax Company 2009 2010 2011 2012 2013 Amway Vietnam Ltd 4.8 14.6 15.6 12.5 10.5 Aloe Trading Co Ltd 12.0 11.0 9.7 8.4 6.6 Mobile World JSC - 4.6 5.5 5.4 5.1 Tahitian Noni 4.3 6.3 5.3 4.6 3.7 International Inc Tiens Vietnam Co Ltd 6.9 5.5 3.9 2.9 2.5 Nguyen Kim Trading JSC - 1.2 2.1 2.5 2.5 Vien Thong A Import - - 1.0 1.8 2.2 Export Trading Production Corp Oriflame Vietnam Ltd 9.4 7.2 5.4 3.6 2.1 Herbalife Vietnam Ltd - 0.9 2.0 1.6 1.5 Pico JSC - - 1.4 1.2 1.1 Avon Cosmetics Vietnam 4.4 3.8 2.8 1.7 1.1 Ltd bHIP Vietnam Co Ltd - - 0.1 0.3 1.0 Sophie Martin Vietnam - 0.9 1.6 1.2 0.8 Co Ltd Nu Skin Enterprises - - - 0.2 0.3 Vietnam Co Ltd Savico Automatic Retail 0.0 - - - - & Service Co Ltd ESQ Co Ltd 0.0 - - - - Others 58.2 44.2 43.6 52.0 58.8 Total 100.0 100.0 100.0 100.0 100.0





Table 22 Non-store Retailing Brand Shares: % Value 2010-2013

% retail value rsp excl sales tax Brand Company 2010 2011 2012 2013 Amway Amway Vietnam Ltd 14.6 15.6 12.5 10.5 Forever Living Aloe Trading Co Ltd 11.0 9.7 8.4 6.6 Mobile world Mobile World JSC 4.6 5.5 5.4 5.1 Tahitian Noni Tahitian Noni 6.3 5.3 4.6 3.7 International Inc Tiens Tiens Vietnam Co Ltd 5.5 3.9 2.9 2.5 Nguyenkim - Saigon Nguyen Kim Trading JSC 1.2 2.1 2.5 2.5 Shopping Center Vien Thong A Vien Thong A Import - 1.0 1.8 2.2 Export Trading Production Corp Oriflame Oriflame Vietnam Ltd 7.2 5.4 3.6 2.1 Herbalife Herbalife Vietnam Ltd 0.9 2.0 1.6 1.5 Pico Pico JSC - 1.4 1.2 1.1 Avon Avon Cosmetics Vietnam Ltd 3.8 2.8 1.7 1.1 bHIP bHIP Vietnam Co Ltd - 0.1 0.3 1.0 Sophie Paris Sophie Martin Vietnam 0.9 1.6 1.2 0.8 Co Ltd Nu Skin Nu Skin Enterprises - - 0.2 0.3 Vietnam Co Ltd ESQ ESQ Co Ltd - - - - Savico Savico Automatic Retail - - - - & Service Co Ltd Others 44.2 43.6 52.0 58.8 Total 100.0 100.0 100.0 100.0



Table 23 Non-Grocery Retailers Company Shares: % Value 2009-2013

% retail value rsp excl sales tax Company 2009 2010 2011 2012 2013 Nguyen Kim Trading JSC 1.3 1.7 1.9 2.2 2.3 Saigon Jewelry Co Ltd 3.4 4.3 4.8 3.2 2.3 Mobile World JSC 0.6 0.8 1.4 2.0 1.9 Phu Nhuan Jewelry JSC 2.6 2.9 3.4 1.5 1.2 Pico JSC 0.5 0.6 0.6 0.7 0.7 Lion Group, The 0.5 0.5 0.5 0.6 0.6 Vien Thong A Import 0.6 0.6 0.6 0.4 0.5 Export Trading Production Corp Tran Anh Digital World 0.3 0.4 0.4 0.4 0.5 JSC DOJI Gold & Gems Group 0.1 0.1 0.2 0.3 0.4 Ho Chi Minh City Book 0.3 0.3 0.3 0.4 0.4 Distribution Co FPT Corp 0.1 0.1 0.2 0.3 0.4 Viet Tien Garment Co 0.2 0.2 0.2 0.2 0.2 (VTEC) AA Corp 0.2 0.2 0.2 0.2 0.2 Vietnam National 0.2 0.1 0.1 0.2 0.2



Textile & Garment Corp (VINATEX) Imex Pan Pacific Group - - - - 0.2 Inc Bblue Co Ltd 0.1 0.1 0.1 0.1 0.1 Viet Fashion Co Ltd 0.1 0.1 0.1 0.1 0.1 Medicare Co Ltd 0.1 0.1 0.1 0.1 0.1 Shiseido Cosmetics 0.1 0.1 0.1 0.1 0.1 Vietnam Co Ltd G T Co Ltd 0.0 0.1 0.1 0.1 0.1 Ben Thanh Marketing Co 0.4 0.3 - - - Others 88.2 86.3 84.8 86.9 87.4 Total 100.0 100.0 100.0 100.0 100.0


Table 24 Non-Grocery Retailers Brand Shares: % Value 2010-2013

% retail value rsp excl sales tax Brand Company 2010 2011 2012 2013 Nguyenkim - Saigon Nguyen Kim Trading JSC 1.7 1.9 2.2 2.3 Shopping Center SJC Saigon Jewelry Co Ltd 4.3 4.8 3.2 2.3 Mobile world Mobile World JSC 0.8 1.2 1.7 1.6 PNJ Phu Nhuan Jewelry JSC 2.9 3.4 1.5 1.2 Pico Pico JSC 0.6 0.6 0.7 0.7 Parkson Lion Group, The 0.5 0.5 0.6 0.6 Vien Thong A Vien Thong A Import 0.6 0.6 0.4 0.5 Export Trading Production Corp Tran Anh Tran Anh Digital World JSC 0.4 0.4 0.4 0.5 Doji DOJI Gold & Gems Group 0.1 0.2 0.3 0.4 Fahasa Ho Chi Minh City Book 0.3 0.3 0.4 0.4 Distribution Co FPT Shop FPT Corp 0.1 0.2 0.3 0.4 Electronic World Mobile World JSC - 0.1 0.3 0.2 Viet Tien Viet Tien Garment Co 0.2 0.2 0.2 0.2 (VTEC) Vinatex Vietnam National 0.1 0.1 0.2 0.2 Textile & Garment Corp (VINATEX) Trang Tien Plaza Imex Pan Pacific Group Inc - - - 0.2 Blue Exchange Bblue Co Ltd 0.1 0.1 0.1 0.1 Medicare Medicare Co Ltd 0.1 0.1 0.1 0.1 Shiseido Shiseido Cosmetics 0.1 0.1 0.1 0.1 Vietnam Co Ltd Gia Thanh Trading G T Co Ltd 0.1 0.1 0.1 0.1 Nha Xinh AA Corp 0.1 0.1 0.1 0.1 Best Carings Ben Thanh Marketing Co 0.3 - - - Others 86.4 85.0 87.1 87.6 Total 100.0 100.0 100.0 100.0


Table 25 Non-Grocery Retailers Brand Shares: Outlets 2010-2013



sites/outlets Brand Company 2010 2011 2012 2013 Viet Tien Viet Tien Garment Co 420 495 504 502 (VTEC) Mobile world Mobile World JSC 80 210 207 207 Blue Exchange Bblue Co Ltd 80 86 171 173 Nha Be Nha Be Corp 72 110 157 169 SJC Saigon Jewelry Co Ltd 160 186 175 158 PNJ Phu Nhuan Jewelry JSC 138 165 153 145 Pierre Cardin An Phuoc Garment Co Ltd 88 85 89 90 Vien Thong A Vien Thong A Import 52 71 75 86 Export Trading Production Corp Ninomaxx Viet Fashion Co Ltd 70 73 73 73 Vinatex Vietnam National 55 56 72 72 Textile & Garment Corp (VINATEX) FPT Shop FPT Corp 8 14 39 60 Fahasa Ho Chi Minh City Book 52 58 58 58 Distribution Co Doji DOJI Gold & Gems Group 17 23 24 35 Nguyenkim - Saigon Nguyen Kim Trading JSC 3 10 17 18 Shopping Center Shiseido Shiseido Cosmetics 40 28 15 15 Vietnam Co Ltd Medicare Medicare Co Ltd 12 11 10 14 Electronic World Mobile World JSC - 7 12 12 Tran Anh Tran Anh Digital World JSC 3 3 4 9 Parkson Lion Group, The 6 7 8 8 Nha Xinh AA Corp 5 4 5 6 Others 137,573 140,500 140,991 142,309 Total 138,934 142,202 142,859 144,219


Table 26 Non-Grocery Retailers Brand Shares: Selling Space 2010-2013

surface area '000 sq m Brand Company 2010 2011 2012 2013 Parkson Lion Group, The 111.0 131.8 160.3 160.3 Viet Tien Viet Tien Garment Co 49.9 68.9 71.2 70.5 (VTEC) Nguyenkim - Saigon Nguyen Kim Trading JSC 10.4 21.1 38.3 40.1 Shopping Center Nha Be Nha Be Corp 15.5 21.2 28.7 30.2 PNJ Phu Nhuan Jewelry JSC 24.1 29.0 26.6 24.4 Mobile world Mobile World JSC 12.1 24.0 23.7 23.7 Pico Pico JSC 12.0 16.5 20.5 20.5 Medicare Medicare Co Ltd 13.4 12.6 12.1 16.6 Electronic World Mobile World JSC - 8.4 16.0 16.0 SJC Saigon Jewelry Co Ltd 18.0 20.0 18.0 15.7 Blue Exchange Bblue Co Ltd 8.0 8.6 15.4 15.5 FPT Shop FPT Corp 2.5 4.3 10.1 15.0 Trang Tien Plaza Imex Pan Pacific Group Inc - - - 14.2 Ninomaxx Viet Fashion Co Ltd 12.9 13.5 13.5 13.5 Fahasa Ho Chi Minh City Book 11.9 12.9 12.9 13.0 Distribution Co



Vien Thong A Vien Thong A Import 6.0 10.4 11.3 12.5 Export Trading Production Corp Nha Xinh AA Corp 9.4 7.5 8.2 10.6 Vinatex Vietnam National 7.7 7.8 9.6 9.6 Textile & Garment Corp (VINATEX) Tran Anh Tran Anh Digital World JSC 2.5 3.1 4.2 8.2 Diamond Plaza International Business 8.0 8.0 8.0 8.0 Center Corp Best Carings Ben Thanh Marketing Co 9.6 - - - Others 10,331.8 11,102.2 11,022.3 11,204.4 Total 10,676.8 11,532.0 11,530.9 11,742.6


Table 27 Forecast Sales in Retailing by Channel: Value 2013-2018

VND tn, retail value rsp excl sales tax 2013 2014 2015 2016 2017 2018 Store-based Retailing 1,574.0 1,706.4 1,842.8 1,980.7 2,117.7 2,250.9 Non-Store Retailing 14.3 17.0 20.0 23.3 26.9 30.8 Retailing 1,588.2 1,723.4 1,862.8 2,004.0 2,144.6 2,281.7

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Note: Forecast value data in constant terms

Table 28 Forecast Sales in Retailing by Channel: % Value Growth 2013-2018

% constant value growth, retail value rsp excl sales tax 2013-18 CAGR 2013/18 TOTAL Store-based Retailing 7.4 43.0 Non-Store Retailing 16.6 115.8 Retailing 7.5 43.7


Table 29 Forecast Sales in Store-Based Retailing by Channel: Value 2013-2018

VND tn, retail value rsp excl sales tax 2013 2014 2015 2016 2017 2018 Grocery Retailers 1,138.2 1,262.4 1,385.8 1,505.3 1,617.4 1,718.7 Non-Grocery Retailers 435.7 444.0 457.0 475.4 500.3 532.2 Luxury Retail 1.9 - - - - - Store-based Retailing 1,574.0 1,706.4 1,842.8 1,980.7 2,117.7 2,250.9





Table 30 Forecast Store-Based Retailing Outlets by Channel: Units 2013-2018

'000 outlets 2013 2014 2015 2016 2017 2018 Grocery Retailers 636.3 642.7 648.6 653.9 658.5 662.6 Non-Grocery Retailers 144.2 145.8 147.6 149.5 151.6 153.8 Luxury Retail 0.0 - - - - - Store-based Retailing 780.5 788.5 796.1 803.4 810.2 816.4


Table 31 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2013-2018

% constant value growth, retail value rsp excl sales tax 2013-18 CAGR 2013/18 TOTAL Grocery Retailers 8.6 51.0 Non-Grocery Retailers 4.1 22.1 Luxury Retail - - Store-based Retailing 7.4 43.0


Table 32 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2013-2018

% unit growth 2017/18 2013-18 CAGR 2013/18 Total Grocery Retailers 0.6 0.8 4.1 Non-Grocery Retailers 1.5 1.3 6.7 Luxury Retail - - - Store-based Retailing 0.8 0.9 4.6


Table 33 Forecast Sales in Non-store Retailing by Channel: Value 2013-2018

VND billion, retail value rsp excl sales tax 2013 2014 2015 2016 2017 2018 Direct Selling 6,259.8 6,917.1 7,622.7 8,369.7 9,156.4 9,998.8 Homeshopping 576.3 626.1 679.0 733.9 789.1 842.8 Internet Retailing 7,427.1 9,415.7 11,700.2 14,218.0 16,937.5 19,938.7 Vending - - - - - - Non-Store Retailing 14,263.2 16,958.8 20,001.8 23,321.6 26,883.1 30,780.3


Note 1: Vending data captures vending systems installed in public and semi-captive environments only. For further details refer to definitions



Note 2: Forecast value data in constant terms

Table 34 Forecast Sales in Non-store Retailing by Channel: % Value Growth 2013-2018

% constant value growth, retail value rsp excl sales tax 2013-18 CAGR 2013/18 TOTAL Direct Selling 9.8 59.7 Homeshopping 7.9 46.2 Internet Retailing 21.8 168.5 Vending - - Non-Store Retailing 16.6 115.8


Note: Vending data captures vending systems installed in public and semi-captive environments only. For further details refer to definitions

Table 35 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2013-2018

2013 2014 2015 2016 2017 2018 Value sales VND billion 435,742.9 443,977.1 456,985.4 475,409.1 500,311.5 532,222.5 Outlets 144,219.0 145,837.0 147,580.0 149,529.0 151,614.0 153,849.0 Selling Space '000 sq m 11,742.6 12,009.7 12,303.3 12,627.8 12,983.9 13,371.4



Table 36 Forecast Sales in Non-Grocery Retailers by Channel: Value 2013-2018

VND billion, retail value rsp excl sales tax 2013 2014 2015 2016 2017 2018 Apparel and Footwear 38,852.9 40,300.2 42,344.9 45,127.5 48,306.6 51,842.7 Specialist Retailers Electronics and 126,219.7 128,958.7 132,814.5 137,742.0 144,821.9 153,856.7 Appliance Specialist Retailers Health and Beauty 68,422.2 70,702.2 73,433.3 76,676.5 80,453.5 84,830.7 Specialist Retailers Home and Garden 96,655.3 97,549.4 100,745.3 106,418.7 114,926.4 126,842.2 Specialist Retailers Leisure and Personal 47,104.5 47,986.4 49,632.9 52,020.4 55,194.5 59,222.3 Goods Specialist Retailers Mixed Retailers 4,045.7 4,586.6 5,174.1 5,804.8 6,474.0 7,175.8 Other Non-Grocery 54,442.5 53,893.7 52,840.5 51,619.2 50,134.5 48,452.2 Retailers Non-Grocery Retailers 435,742.9 443,977.1 456,985.4 475,409.1 500,311.5 532,222.5





Table 37 Forecast Non-Grocery Retailers Outlets by Channel: Units 2013-2018

outlets 2013 2014 2015 2016 2017 2018 Apparel and Footwear 10,328 10,643 10,983 11,384 11,846 12,341 Specialist Retailers Electronics and 6,495 6,619 6,760 6,918 7,092 7,277 Appliance Specialist Retailers Health and Beauty 40,269 40,720 41,254 41,877 42,589 43,389 Specialist Retailers Home and Garden 11,479 11,642 11,837 12,063 12,321 12,616 Specialist Retailers Leisure and Personal 12,650 12,997 13,338 13,674 13,993 14,303 Goods Specialist Retailers Mixed Retailers 118 123 130 137 145 155 Other Non-Grocery 62,880 63,093 63,278 63,476 63,628 63,768 Retailers Non-Grocery Retailers 144,219 145,837 147,580 149,529 151,614 153,849


Table 38 Forecast Sales in Non-Grocery Retailers by Channel: % Value Growth 2013-2018

% constant value growth, retail value rsp excl sales tax 2013-18 CAGR 2013/18 TOTAL Apparel and Footwear Specialist Retailers 5.9 33.4 Electronics and Appliance Specialist Retailers 4.0 21.9 Health and Beauty Specialist Retailers 4.4 24.0 Home and Garden Specialist Retailers 5.6 31.2 Leisure and Personal Goods Specialist Retailers 4.7 25.7 Mixed Retailers 12.1 77.4 Other Non-Grocery Retailers -2.3 -11.0 Non-Grocery Retailers 4.1 22.1


Table 39 Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018

% unit growth 2017/18 2013-18 CAGR 2013/18 Total Apparel and Footwear Specialist 4.2 3.6 19.5 Retailers Electronics and Appliance Specialist 2.6 2.3 12.0 Retailers Health and Beauty Specialist Retailers 1.9 1.5 7.7 Home and Garden Specialist Retailers 2.4 1.9 9.9



Leisure and Personal Goods Specialist 2.2 2.5 13.1 Retailers Mixed Retailers 6.9 5.6 31.4 Other Non-Grocery Retailers 0.2 0.3 1.4 Non-Grocery Retailers 1.5 1.3 6.7


APPENDIX

Operating Environment

Informal retailing

There are no agreed statistics on the percentage of informal retailing in Vietnam, but it is a

major part of the country’s retailing landscape. Informal retailing includes various formats.

Street vendors and consumer-to-consumer websites are some of the most popular forms of

informal retailing in Vietnam. Consumers can easily find street vendors in every residential

area across the country, including urban and rural areas. Street vendors usually sell tobacco,

newspapers, packaged food and soft drinks at very affordable prices. Consumer-to-consumer

websites are further establishing their presence in the country meanwhile, due to the rapid

development of the internet. Facebook is a commonly used channel for sellers to upload,

advertise and contact the buyers. Consumers who want to purchase products contact sellers

to learn more about the products and make a business transaction.

During the review period, street vendors reached maturity. Consumer-to-consumer internet

retailing is however experiencing strong growth. Cash-on-delivery is the most popular method

of payment for consumer-to-consumer websites. Therefore, consumers can decide whether or

not to purchase products if they are not satisfied with the quality at the time of delivery.

Due to higher sophisticated demand and disposable income, together with stronger

awareness for food safety and health issues, informal retailing of food and drinks marginally

declined over the review period. Many people shifted to formal retailing for more trusted

quality. However, other products, such as apparel and footwear, through informal retailing are

still selling well as they pose no direct harm to the user’s health and wellbeing.

In 2013, the Vietnamese government did not have any significant regulations or laws covering

street vendors or consumer-to-consumer websites. Therefore, consumers had to find ways to

protect themselves from issues such as counterfeit products, low-quality products or fraud

when purchasing from informal retail channels.

Opening hours

Summary 1 Standard Opening Hours by Channel Type 2013

Channel 24 hour present?

Monday-Friday

Saturday Sunday Public holidays

Supermarket Yes 08.00-23.00 hrs

08.00-22.00 hrs

11.00-17.00 hrs

Closed

Source: Euromonitor International



Due to consumer habit, retailers in suburban and rural areas open and close earlier than

those in urban area. For instance, in rural areas, shops can open during 07.00-17.00 hrs,

while in urban areas it is usually 09.00-21.00 hrs.

There are no restrictions on the number of days a store can open each year. Most retail

outlets open on Sundays so that retailers can attract more shoppers. The number of hours

that stores can open on Sundays is not restricted by law.

Some retail outlets open on a 24-hour basis. Most of these are convenience stores, such as

Red Circle's Circle K. The trend towards 24-hour retailing is increasing, especially in central

areas of cities.

The trend towards expanded opening hours is however only obvious in convenience stores.

Department stores and shopping centres are only extending their opening hours on Sunday.

The trend of outlets extending their opening hours is also mainly witnessed in urban areas,

because there is no demand for extended opening hours in rural areas.

Retail landscape

Location is considered one of the most significant contributors to the success of grocery and

non-grocery retailers in the country. A good retail store location is typically in the central area

of a large city, such as Ho Chi Minh, Hanoi, Da Nang and Hai Phong, where there is good

infrastructure and high traffic. Moreover, these cities are home to many consumers with high

purchasing power. As a result, the importance of location contributed significantly to soaring

rental prices for urban retail premises over the review period.

Retailers of luxury brands are typically located in department stores and shopping centres.

Diamond Plaza, Trang Tien Plaza, Vincom Shopping Mall, and Parkson are among the most

popular department stores and shopping centres in the country. Consumers can easily find

well-known brands in apparel, cosmetics and jewellery. As there is not much space available

within cities, retailers that are not offering luxury brands increasingly opened new outlets on

the outskirts of small cities during the review period in order to reduce rental costs and to

avoid increasingly intense competition in large cities. Furthermore, retailers can also enhance

their position by expanding their retail outlet network into untapped areas.

Over the review period, traditional retailers remained dominant in retailing. Shopping centres

had little impact. In addition, traditional retailers and shopping centres do not compete directly

with each other, as they target different consumer groups. While traditional retailers target

low-income consumers, shopping centres aim at middle- and high-income consumers.

Cash and Carry

In 2013, the presence of cash and carry remained low in Vietnam. Metro Cash & Carry,

operated by Metro, was the only player operating in this channel.

The key purchasers in cash and carry outlets are companies, restaurants and hotels, which

usually purchase in large quantities. The core concept of cash and carry is wholesaling.

Consequently, individual consumers are not encouraged to shop in this channel. Metro thus

offers a diverse product range in terms of grocery and non-grocery products that aims to

satisfy sophisticated demand from companies and small retailers.

During the review period, the cash and carry format encountered strong competition from

other retail channels, especially supermarkets and hypermarkets. At the beginning of its

operations, cash and carry was popular amongst small retailers and companies, due to

offering a wide range of products at the cheapest available price in a pleasant atmosphere.

However, players in grocery retailing such as Saigon Union of Trading Cooperatives and

Casino Guichard-Perrachon continuously reduced their prices during the review period as



they sought to increase their strong foothold in retailing. Consequently, some small retailers

and companies slowly switched from cash and carry to supermarkets and hypermarkets, due

to the latter channels offering attractive promotions and close proximity to residential areas.

In order to purchase from Metro Cash & Carry a membership card is necessary. Each

company is allowed to register up to three membership cards. The procedure for obtaining a

membership for Metro Cash & Carry is fairly complicated. It requires several legal documents,

including the company’s licence, VAT code registration and letter of introduction and a list of

the company’s staff. Self-employed individuals meanwhile need to show their tax receipt or

the VAT registration of their business. Due to the complicated process involved in obtaining a

membership card, small retailers and companies are showing less interest in the cash and

carry channel, especially as grocery retailers are offering products at increasingly competitive

prices.

In 2013, there were 19 Metro Cash & Carry outlets in Vietnam, with these located mostly in

large cities and their provinces, such as Ho Chi Minh City, Hanoi, Can Tho, Hai Phong, Da

Nang and Binh Duong. The company is expected to continue increasing its outlet volume over

the forecast period. In cash and carry, Metro Cash & Carry is likely to continue to hold a

monopoly position.

Over the forecast period, Metro Cash & Carry is likely to increase its marketing and

advertising activities as it seeks to attract consumers’ attention to this format. The company is

also expected to simplify its application process as the company seeks to increase its number

of members. It will also focus on developing private label in order to better compete with the

widening range of private label products offered by grocery retailers such as Casino

Guichard-Perrachon.

DEFINITIONS This report analyses the market for Retailing in Vietnam.

For the purposes of the study, the market has been defined as follows:

Store-based retailing:

Grocery retailers

Modern grocery retailers

Convenience stores

Discounters

Forecourt retailers: chained forecourt retailers; independent forecourt retailers

Hypermarkets

Supermarkets

Traditional grocery retailers

Independent small grocery retailers

Food/drink/tobacco specialist retailers

Other grocery retailers

Non-grocery retailers

Apparel and footwear specialist retailers

Electronics and appliance specialist retailers

Health and beauty specialist retailers

Chemists/pharmacies

Drugstores/parapharmacies

Beauty specialist retailers

Other healthcare specialist retailers

Home and garden specialist retailers



Furniture and homewares stores

Home improvement and gardening stores

Leisure and personal goods specialist retailers

Jewellery and watch specialist retailers

Media product stores

Pet shops and superstores

Sports goods stores

Stationers/office supply stores

Traditional toys and games stores

Other leisure and personal goods specialist retailers

Mixed retailers

Department stores

Variety stores

Mass merchandisers

Warehouse clubs

Other non-grocery retailers

Non-store retailing:

Vending

Homeshopping

internet retailing

Direct selling

Other terminology:

GBO refers to global brand owner, which is the ultimate owner of a brand.

NBO refers to national brand owner, which is the company licensed to distribute a brand on

behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely separate

company. Share tables at both GBO and at NBO level are provided in the report. Reference

to shares in the report analysis is at NBO level.

SOURCES Sources used during the research included the following:

Summary 2 Research Sources

Official Sources Agro Info

American Chamber of Commerce in Vietnam

Department of Animal Health of Vietnam

General Department of Vietnam Custom

General Statistics Office of Vietnam

Hanoi Department of Trade

Ho Chi Minh Department of Trade

Investment & Trade Promotion Centre (ITPC)

Ministry of Health of Vietnam (MOH)

Ministry of Trade (MOT)

Trade Associations Association of Vietnam Retailers

Hanoi Supermarket Association



Vietnam Agriculture Portal

Trade Press Binh Duong Newspaper

Dan Tri Newspaper

Doanh Nghiep

Economics & Development

Embassy of Denmark, Vietnam

Enterprise Forum newspaper

Hanoi Trade

Ho Chi Minh City Law News

Ho Chi Minh City People's Committee

Hue City

Industry & Commerce Newspapaer

International Herald Tribune

Landtoday

New Hanoi

People Newspapaer

People's Police

Portal of Vietnam High Quality Goods

Press

Sai Gon marketing

Saigon Marketing

Saigon Times

SGTT

TBIC - Trade & Business Information Centre

Thanh Nien News

The Saigon Times

The World & Vietnam report

Thehetre.vn

Trading Market

Tuoi Tre Online

Vietnam Branding

Vietnam Express

Vietnam Investment Review

Vietnam Net

Vietnam News

Vietnam Newspaper

Vietnamnet

Vn Business News



VN Economy

VN Media

Vneconomy newspaper

Vnexpress.net

VTC news

Women Online

Source: Euromonitor International

retailing in vietnam

Documents

store retailing

retailing categories

value sales

storebased retailing

internet retailing records

value growth

retailing records good

vietnams retailing environment