Sunday, June 17, 2012

Vietnam no longer a retail hotspot, new rankings show | Look At Vietnam

Vietnam no longer a retail hotspot, new rankings show

June 16, 2012

Vietnam is no longer ranked in the top 30 most attractive retail markets

Vietnam has fallen out of the annually compiled list ofÂ top 30 most attractive retail markets,Â aÂ result that belies great expectations raised when it officially openedÂ to foreign retailers in 2009.
The country topped A.T. Kearney’s list of developing countries that retailers should enter in 2008, only to fall to 6th, 14th and then 23rd in the following years. The global management consulting firm last year said the country remained attractive, thanks to its growing population.
But now, Vietnam is no longer ranked in the top 30.
According to A.T. Kearney, many developing countries have become more competitive this year, with smaller markets that deliver new growth opportunities rising in the rankings, including Georgia, Oman and Mongolia. The three markets cracked the top 10 this year.
Brazil is the number one market for the second year in a row, “driven by a growing middle class economy, high consumption rates, a large, urban population, and reduced political and financial risk,” the company said. It is followed by Chile and China.
News website VnExpress cited local experts as saying the new result was not a surprise since market conditions have deteriorated in recent years, with consumption falling and business closures rising.
“Last year Vietnam’s retail market posted a growth of only 5 percent, a very humble figure compared to the usual 20 percent in previous years,” said economist Pham Chi Lan.
Vu Dinh Phu, chairman of a local supermarket association, said many retailers, both foreign and local, have complained about complicated investment procedures and high rentals.
There has to be a "large-scale overhaul" to revive the market, he said.
Even though the market has been open for more than three years andÂ several foreign retailers have already made their presence felt in Vietnam, many foreign business groups continue to say that they are still being treated differently than locals.
In particular, they have called for elimination of the Economic Needs Test,Â which restricts the number of outlets that a foreign retailer can open in Vietnam.

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They say "

“I can’t say what made me fall in love with Vietnam - that a woman’s voice can drug you; that everything is so intense. The colors, the taste, even the rain. Nothing like the filthy rain in London. They say whatever you’re looking for, you will find here. They say you come to Vietnam and you understand a lot in a few minutes, but the rest has got to be lived. The smell: that’s the first thing that hits you, promising everything in exchange for your soul. And the heat. Your shirt is straightaway a rag. You can hardly remember your name, or what you came to escape from. But at night, there’s a breeze. The river is beautiful. You could be forgiven for thinking there was no war; that the gunshots were fireworks; that only pleasure matters. A pipe of opium, or the touch of a girl who might tell you she loves you. And then, something happens, as you knew it would. And nothing can ever be the same again.”
― Graham Greene, The Quiet American

Tips on Travel to Vietnam

It's always warm in Southeast Asia apart from high mountains, so leave the heavy clothing at home. Cotton and breathable fabrics are always better than synthetics -- although cotton does wrinkle a lot when traveling! December through April is roughly the dry season in that region, although it can still rain a little. December is a good time to go in terms of temperature -- cooler than in the humid summertime. Either way, wearing more clothing (shirt sleeves and long pants) is always more respectful towards the Asian culture, especially when visiting temples and rural areas.