Retail market predicted to recover in 2023

Customers shop at a Co.opmart supermarket in HCM City. — Photo courtesy of Saigon Co.op

Although 2023 is forecast to see many difficulties, experts expect it will be a recovery year for the retail sector after the COVID-19 pandemic as there are many signs showing the return of investors and higher demand.

According to the Ministry of Industry and Trade (MoIT), the scale of the Vietnamese retail market is US$142 billion, which is expected to reach $350 billion in 2025, with contributions of 59 per cent to total GDP.

Last year, the total revenue from retail sales of goods and services rose 21 per cent, exceeding the target of 8 per cent.

A survey by Vietnam Report showed that over 53.8 per cent of total retail firms enjoyed similar and higher business results compared to the pre-pandemic level.

Experts held that the growth of retail sales is being supported by a rise in incomes and the strong recovery of the tourism sector as well as relevant sectors such as transport and accommodation, as well as the effectiveness of inflation control measures.

Additionally, there are signs of vibrant retail activities as many foreign investors have announced their plans to return after the pandemic.

Recently, Thailand's Central Retail said that it will pump additional VND20 trillion ($852.87 million) into the Vietnamese market in the next five years, pushing its investments in Viet Nam in the 2022-2026 period to VND65 trillion. With this plan, Central Retail will raise their coverage from 40 localities currently to 55.

Meanwhile, Japanese giant retailer Aeon Group plans to build another megamall in Ha Noi, raising its total trade centres in Viet Nam to 20.

Phung Trung Kien, Founder of Vietnam Holdings Inc, said that retail businesses will see good growth in early 2023, especially those trading consumer goods thanks to the Lunar New Year Festival.

In 2023, four trade centres are scheduled to be launched – Central Premium plaza, Vincom Megamall Grand Park, Sunrise City Central and Emart 2 with total area of over 116,000 sq.m.

Many experts predicted that this year, retailers will expand their selling channels, bringing their products to different trading platforms to optimise online retail channels. — VNS