Retail market motivates e-commerce gain momentum​

A customer at a WINCOMMERCE shopping mall (Photo: VNA)

Vietnam’s retail market has seen positive signs of recovery, especially domestic demand, after COVID-19.

In the new context of the market, many businesses and retailers in Ho Chi Minh City have carried out plans to improve e-commerce infrastructure in both online and offline channels.

Statistics showed that in 2022, the retail sector’s net leasing area in the southern metropolis remained unchanged compared to the same period in 2021 with 1.5 million sq.m.

According to the Vietnam Association of Realtors (VARs), demand for retail space in shopping centres in big cities such as Ho Chi Minh will continue to strongly grow thanks to brand expansion.

Experts said, growth momentum for 2023 was based on economic bright spots like Ho Chi Minh City’s retail turnover in 2022 of 626 trillion VND (roundly 26.5 billion USD), up 21% year on year.

The total retail sales of consumer goods and services in Ho Chi Minh City in January 2023 increased by 5.7% compared to the same period last year. The growth of retail sales has contributed greatly to rental capacity in the southern hub.

In addition, consumers are increasingly interested in brands in the health care setor, sports and outdoor activities, leading to the increasing demand for premises of these industries.

Deputy Managing Director of Savills Vietnam Troy Griffiths said that the COVID-19 pandemic also changed consumers' shopping habits to online shopping, making retailers to reach clients through e-commerce.

Vietnam's e-commerce activities have become an important distribution channel, as they help retailers approach loyal and potential customers faster and more conveniently. With a growth rate of about 20% per year, Vietnam is ranked among the top five countries with the world's top e-commerce growth.

The growth of e-commerce has motivated businesses and retailers to make an effort to boost offline sales and logistic services.

Many units operating in the logistics industry believe that Asia in general and Southeast Asia and Vietnam in particular have great opportunities in logistics. There is opportunity for delivery businesses to catch up with trends in a timely fashion, build long-term competitive advantages and strengthen market position.

Stakeholders in the industry are asked to pay more attention to investing in technology and warehousing systems, expanding the number of post offices and connecting multi-party businesses, and creating a complete ecosystem to bring more benefit for businesses, traders and consumers./.