Vietnam is experiencing its highest inflation in more than a decade, but consumer confidence in the country is still relatively high. Although inflationary pressure will directly impact consumer behaviour within some product and service categories, mid-to long-term prospects in Vietnam are still very encouraging. Vietnam is the fourth most attractive retail market in the world in terms of potential growth owing to both increasing demand for consumer goods and rising disposable incomes, behind India, Russia and China. The retail market of the country has expanded rapidly over the past few years and will accelerate further on the back of rising disposable income, growing consumer spending and sector's liberalization in the coming years, according to new REUTERS market research report, "Vietnam Retail Analysis (2008-2012)".
Consumer Profile and Purchasing Power
Retail sales in Vietnam are forecasted to grow at a CAGR of about 13.6% during 2008-2012.
- Food is the most important component of Vietnam's retail sector and accounts for nearly two-third of total retail sales.
- Non-food sector is expected to grow at a faster pace than food, because of the rise in income and consumer spending on non-essential items such as clothing, electrical and DIY goods.
- Demand for international brands and luxury products will rise as income level move upwards in the country.
- Modern retailing formats like air-conditioned mini-marts, supermarkets and small shopping complexes will become more prevalent in the coming years and will lure consumers away from traditional outdoor markets.
Consumers Associations
VINASTAS, Vietnam Standards and Consumers Association
Markets and small retailers are popular canals of distribution in Vietnam. But today the supermarkets network is increasingly open and have the confidence of consumers with regards to the quality and the availability of goods. The leading supermarkets in Vietnam are Saigon Coop, Maxi Max, Big C, Metro Cash and Carry.
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
The classification of import and export goods must be based on: - Vietnam ’s Classification List of Import and Export Goods; Preferential Import Tariff Nomenclature; Export Tariff Nomenclature; - Six (6) general rules of HS Convention; - Obligatory explanatory notes of HS Convention; - Making references to supplementary explanatory notes of ASEAN Harmonized Tariff Nomenclature and detailed explanatory notes of the Harmonized Commodity Description and Coding System (HS).
Import Procedures
When carrying out customs procedures for importing goods, the customs declarers must submit and present a customs dossier at the headquarters of Customs Sub-branch and be responsible for legality and lawfulness of customs dossiers and accurateness of declared contents on customs declaration form. Click here for more information.
Industry contributes to about 40% of the Vietnamese GDP. Vietnam has a competitive advantage regarding labor costs, and natural resources. The main sectors of productions are: Rice, Food processing, Garment and Textile, Crude Oil, Cigarettes and Tobacco, Chemicals and Electrical goods. As a result of several land reform measures, Vietnam is now the largest producer of cashew nuts with the-third of global market share and second largest rice exporter in the world after Thailand. Vietnam has the highest percent of land use for permanent crops, 6.93%, of any nation in the Greater Mekong Subregion. Besides rice, key exports are coffee, tea, rubber, and fishery products.
Vietnam: Selling and Buying
