Vietnam’s retail sales have grown dramatically over a long period of time, maintaining a 5-year CAGR of 17.6% (2010-2015) despite the economic slowdown in these years, to reach almost US$110bn in 2015.

In particular, modern retail is growing extremely fast, though notably in big urban areas, and is taking up an increasing portion of total retail sales. The emergence of the modern retail formats and the participation of foreign retailers have brought a breath of fresh air and greatly changed the face of retail in Vietnam, bringing more choice and convenience for consumers.

Although the modern retail channels has many advantages in attracting customers and is forecast to grow strongly in the future but in general, shopping at traditional retail market still accounts high proportion until 2015 (at least 70%). Under competitive pressure from modern retail channels, local market systems and other forms of traditional retail in Vietnam have been renewing and upgrading infrastructure as well as enhancing customer service to bring more benefits to consumers.

The role of retail flooring to retailers around the world as well as in Vietnam is obviously vital. Retail flooring has always been top a “hot” topic. The retail flooring market in Vietnam is even more difficult when not only the supply is limited but also the available ones are at high rent prices.

Since 1 Jan 2009, Vietnam has opened its doors for the retail business with 100% foreign ownership. They are authorized distributors of all products made in Vietnam and other products legally imported into Vietnam; excluding a number of long-term limits as prescribed by the Government.

 

01Mar 2012

Vietnam pharmaceuticals market is still underdeveloped and suffers from poor regulatory and intellectual property standards. Low-cost, locally produced generic drugs as well as counterfeit products accounts for a sizeable proportion of drug consumption due to low consumer purchasing power and an under-funded healthcare system.

13Jun 2015

Education always plays a central role in Vietnamese culture and society. Vietnamese people believe that virtues are attained through learning. More parents sacrifice to ensure that their children obtain the good education. With the Vietnam’s increasing well-being, rising disposable income, young population, and the expanding emergence of high-income and middle-income classes, the demand of a […]

30Jul 2015

Vietnam’s retail sales have grown dramatically over a long period of time, maintaining a 5-year CAGR of 17.6% (2010-2015) despite the economic slowdown in these years, to reach almost US$110bn in 2015. In particular, modern retail is growing extremely fast, though notably in big urban areas, and is taking up an increasing portion of total […]

10Jun 2016

  Vietnam’s growing economy has greatly strengthened the development of the ICT (Information Technology & Communication) sector, especially as Vietnamese firms are increasingly integrated into the global economy. The ICT sector continues to be a key growth priority of the Vietnamese Government. Access to and adoption of ICT has been considerably high in Vietnam over the past decade. Improved telecommunications […]

15Jun 2016

The success story of Metro shows that aligning a good strategy with good market timing is the best way to establish and expand a new FDI business in an emerging market. The giant European retailer successfully entered Vietnam market by capturing an emerging trend in the country. The trend started about 15 years ago when the Vietnam retail market began changing from the traditional trade model to modern trade model.

16Jun 2016

A city of more than 10-million population. A unique start-up culture, great value, a fine climate and a solid entrepreneur community; yet the hiring process can come with many pitfalls, which may put your managerial skills to the test. A real city for bootstrappers, getting your business up and running comes with limited overheads. A young, fast and vibrant country with a fierce work ethic and a strong motorbike culture.

17Jun 2016

The rapid growth of Vietnam’s export-oriented manufacturing sector has boosted demand for logistics services. However, the local logistics sector has largely failed to fully meet demand. As a result, many enterprises are now looking for the opportunities to join the sector.The Word Bank in late 2015 forecast economic growth of 12 percent by 2020 with […]

17Jun 2016

A couple of years ago, foreign investors expected a surge in healthcare demand in Vietnam. This was because Vietnam has a growing population and rising incomes. However, this surge didn’t really materialize. Part of the problem was that the Vietnamese weren’t willing to spend a lot of money on healthcare, there was a lack of […]

17Jun 2016

Agribusiness in Vietnam Agriculture continues to play a considerable role in Vietnam’s transition to a market-based economy, despite its shrinking portion in GDP (18.1% in 2015, compared to 16.1% in 2014). Vietnam’s strength in agricultural output is built upon a large rural base where farm and agribusiness labor accounts for 44.3% of the workforce and […]

04Jul 2016

In Vietnam’s taxation system, tax administration is regulated the Law on Tax Administration enacted in 2007, and overseen by the National Department of Taxation, which operates under the Ministry of Finance. Tax affairs are more commonly handled by local provincial (municipality) tax departments and district tax departments. All foreign-invested companies are supervise by provincial tax […]

04Jul 2016

In an endeavor to avoid the double taxation of international income and therefore promote foreign direct investment (FDI), Vietnam tax treaties on Double Taxation Avoidance (DTAs) have been concluded with about 65 countries to date, including most major countries. Latest DTA pacts Vietnam concluded are with Estonia, United States, and Kazakhstan. For an exhaustive list of countries, […]

04Jul 2016

Foreign contractors (or any corporate parties deriving income in Vietnam) are subject to taxes on payments for work done in Vietnam based on the contracts signed between them and a Vietnamese partner(s) in the form of the foreign contractor tax (FCT), value added tax (VAT) and corporate income tax (CIT). CIT-liable income is determined on […]

06Jul 2016

Vietnam is set to meet its target of 6.7 percent economic growth this year inspite of encoutering severe natural disasters, and expects to see the same rate of expansion next year. At the National Assembly’s opening session in Hanoi, Vietnam’s prime minister Nguyen Xuan Phuc highlighted the country’s fast growing economy. Manufacturing output rose 12.8 percent in […]

28Sep 2016

Health Supplements in Vietnam The health supplements (also known as functional foods or dietary supplements) sector is one of the fastest growing food sectors over the past decade, with an average annual growth rate of 20%. In 2015 total market value was approximately $1.1 billion. Foreign brands tend to be positioned in the premium segment […]

13Feb 2017

If you are doing business in Vietnam (with or without a legal entity), tax compliance matters deserve your due attention. Do also note that the legislation and practice at times develop in different directions, which can be very confusing. Many taxpayers find it difficult to ensure that all compliance requirements are satisfied and have to […]

20Dec 2017

Vietnam seems to have found a more comfortable position by balancing between China and the United States. In his keynote speech at this year’s Asia-Pacific Economic Cooperation meeting (APEC), U.S. President Donald Trump sent a clear message to the Asia-Pacific nations, asking them to take care of themselves by putting their countries first, just like he is “always going to put […]