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Last updated: 21:52 - May 1, 2006 Hot retail market attracts distributors http://www.nhandan.com.vn/english/business/010506/business_retail.htm With the Vietnamese retail market ranked one of the world's seven most attractive to 2020, local and foreign distributors are lining up to secure a piece of the cake. Foreign distributors are reaping the fruits of the ripe retailing market in Vietnam, namely Germany's Metro Cash and Carry, France's Bourbon and Malaysia's Parkson, while other biggies from the US, Europe, Hong Kong and Singapore are giving attention. According to the Trade Ministry, US-based Wal-Mart and French retailer Carrefour, two of the world's leading distributors have included Vietnam in their plans as a key market for expansion. Opening up the distribution service is not only a must for the country to join WTO but also a requirement set by the US, EU, and the Association of Southeast Asian Nations (ASEAN), said an official recently. Pham Chi Lan, member of the Prime Minister's Research Institute, made the statement at a seminar on current conditions of Vietnam's retail market, held by the HCM City Investment and Trade Promotion Programme on April 19. Domestic distributors and retailers are doing their utmost to expand market share in their own playground, bracing for increased foreign competition. Ngo Van Binh, sales manager of the G7 mart store chain, said that plans for 10,000 convenience stores across the nation is a move to counterpoise against incoming foreign giants. "The best approach to compete effectively with the world's leading retailers is to connect local producers with distributors for the best market price," said Phu Thai Group sales manager Doan Xuan Khuong. Nguyen Thi Tranh, Saigon Co-opMart Deputy General Director, agreed with the idea, saying that stores would organise a meeting with all of its regular vendors in preparation for a "Quality Changing Strategy" next May. Participants to the gathering also said that it was essential to invest in building strong local brand names while closely controlling the retail market to cope with foreign retail giants in the post-WTO period. "Vietnamese enterprises can form their own position both in the traditional and modern distribution system. What matters here is to create a solid link-up between manufacturers and service providers, and among regions to build up strength and efficiency," said Mrs Lan. She added that it was crucial to sharpen competitiveness and flexibility of Vietnamese enterprises against a backdrop of an ever-changing business environment. To deal with rising competition from foreign distribution groups, the Ministry of Trade is working on a mega-project to develop local commerce over the 2006-10 period and through to 2020. The ministry plans to select and provide incentives to some 15 to 20 distributors of various economic sectors to become key distributors. Priority will be given to the establishment of a competitive corporation specialising in cement, iron and steel, and petroleum that will make use of the distribution system to regulate supply-demand, and thus market prices. (VNA) © All rights, including design and copyright are owned by NhanDan Online. We hope to receive your opinions and for advertisement, please contact: [EMAIL PROTECTED]
