Supermarts will hold up to 20% of retail market share by 2010

The Government has approved the strategy on domestic trade development by 2010 and 2020, which said that by 2010, modern distribution channels will amount to 20% of the market share.
Trade centres, supermarkets and convenient stores will have the turnover of 160 trillion VND (10 billion US$) by 2010, holding up to 20% of the total trade turnover, and 800 trillion VND (50 billion US$) (40%) by 2020.

This proves to be an ambitious plan if compared to the current modest figure of 5-6%.

The Government has also laid down the policy to develop big trade groups, powerful enough to compete and cooperate with foreign distributors when Vietnam fully opens its distribution market.

By 2010, Vietnam is expected to see growth rate of the total goods and service retail turnover at 11% per annum by 2010, and more than 10% in the next period. The total goods and service retail turnover is targeted to reach 800 trillion VND by 2010 and 2,000 trillion VND (125 billion US$).

By 2010, the domestic trade will contribute 14.5% to GDP (200,000 billion VND or 12.5 billion US$), and the figure is expected to rise to 15% (450,000 billion VND or 28.125 billion US$) by 2020.

It took the Ministry of Trade two years to compile the strategy on domestic trade development. This is considered a very important plan, which aims to build up a healthy domestic trade, which is based on the suitable structuring of distribution channels, in which modern distribution modes will play the key role.

Source: VNE