AT Kearney ranks Vietnam the most attractive emerging market destination 2008
According to the GRDI (Global Retail Development Index), Vietnam is among 30 emerging markets the most attractive one for retail investment in 2008. No competition, 8% GDP growth and the youngest consumer in Asia.
In comparison to India and China (2007 leaders) Vietnam’s retail market amount to only $20 billion but the absence of competition and 8% GDP growth make it an attractive expansion opportunity for global retailers. Moreover Vietnamese consumers are among the youngest in Asia (79 million below the age of 65) and increased their spending by more than 75% between 2000 and 2007.
Pushing foreign direct investment the government is expected to remove controls on 100% foreign ownership of retailers and has established a program to develop wholesale and retail real estate by 2010.
A combination of rapidly growing per capita income of Vietnamese consumers and the relaxing of regulations sets the perfect time to get involved. Certainly difficulties may arise but considering that currently the top five retailers, including Saigon Co-op, G7 and Casino, have less than 3% of the market share, foreign companies can be pioneers in the market and find great opportunities for economic growth.
Ranking 2008: 1. Vietnam 2. India 3. Russia 4. China 5. Egypt
A.T. Kearney is a global strategic management consulting. The GRDI is based on 4 major categories: economic/political risk; market attractiveness; market saturation; time pressure (difference/addition between GDP and modern retail area growth).
(Source: Vietnam Tops A.T. Kearney’s Annual List of Most Attractive Emerging Market Retail Destinations)