Vietnam’s retail market expected to recover in 2023

Consumers are projected to spend liberally from now till the Lunar New Year (Tet) Festival, which is celebrated in late January.

With several signs of return of investors and higher demand, Vietnam’s retail sector is expected to recover this year after the problems witnessed due to the COVID-19 pandemic, experts say. The domestic retail market is worth $142 billion, and is expected to reach $350 billion by 2025, contributing 59 per cent to the gross domestic product (GDP).

The retail sales growth is being backed by a rise in income and the strong recovery of a few sectors as well as the effectiveness of inflation control measures, a domestic news agency reported.

The revenue from retail sales of goods and services rose by 21 per cent last year, 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.

Many foreign investors too have announced plans to return to Vietnam after the pandemic. Thailand’s Central Retail has said it will pump additional $852.87 million into the Vietnamese market in the next five years. Japan’s Aeon Group plans to build another megamall in Hanoi, raising its total trade centres in the country to 20.

Four trade centres are scheduled to be launched  this year in Vietnam: Central Premium Plaza, Vincom Megamall Grand Park, Sunrise City Central and Emart 2.

Fibre2Fashion News Desk (DS)