Vietnam’s rich retail potential is being tapped with many firms pocketing healthy profits. Nguyen Thi Oanh, a senior DFDL legal and tax advisor, reviews Vietnam’s legal system and emphasises the need to perfect current regulations.
With a young population and bright long-term economic prospects, Vietnam remains an attractive destination for foreign retailers. One sign is how familiar names such as Parkson, BigC and Lotte have been continuously expanding their activities in Vietnam, while other large international chains like Aeon (Japan) and BerliJucker (Thailand) have been preparing to enter Vietnam.
For the first six months of 2012, foreign investment in wholesale, retail and maintenance ranked third highest in investment capital contributions among foreign-invested sectors, after manufacturing-processing and real estate sectors.
The Vietnamese retail market remains appealing to foreign investors because of Vietnam’s demographics – a population of about 90 million people, 60 per cent of whom are in the high-consuming ages from 20 to 59. Along with rich demographics, comes an accelerating change in consumer habits, as shoppers move from traditional outlets to commercial centers or more convenient stores.
Moreover, the lower capability of domestic investors, both in terms of financial capacity and experience, represents a significant advantage for foreign investors in this sector.
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Note: Article extracted from DFDL Vietnam publication in Vietnam Investment Review (VIR), 13 November 2012
For any further advice, please contact:
Nguyen Thi Oanh
Senior Legal Adviser, DFDL Vietnam
Mobile: +84 989 062 019