We have been working on retail design projects in Vietnam since last year and what a pleasure it has been to see a buoyant retail market after years of slow growth in Australian retail sales, not to mention the numerous business failures and store closures.
The experts agree – retail growth in Vietnam is very good.
A.T.Kearney ranks Vietnam 6th in the world in their 2017 Global Retail Development Index.
Their view is that “Vietnam moves ahead and is emerging as an important market for retail expansion with its liberalized investment laws.”
Government sources report that retail sales in 2016 rose by 10.2% year on year.
Deloitte’s report Retail in Vietnam Emerging Market, Emerging Growth also has good news.
“With increasing disposable incomes, rapid urbanisation and rising living standards, Vietnam is one of the most dynamic emerging economies in the Southeast Asia region. Retailers, in particular, have also been drawn by its relatively young population of consumers – of which 70% are aged between 15 and 64 years – who promise to be a key driver of robust market growth. Potential aside, the retail sector has also demonstrated a resilience that, in today’s turbulent environment, is highly prized. Despite the recent global economic slowdown, Vietnam’s retail market grew at a healthy double-digit rate of approximately 10% year-on-year in 2013, beating the neighbouring economies of Malaysia (7%), Philippines (7%), Singapore (3%) and Thailand (1%).”
So we are enjoying working with our new retailer clients, discovering the great food Vietnam has to offer – and of course as Melburnians – we are really appreciating Ho Chi Minh City’s coffee culture.
We are under way with the establishment of our Vietnam design office – a demonstration of our confidence in this exciting and emergent market.
Watch this space!