Thai retailers should adapt their businesses and tap into the fast-growing Vietnam market, which shows a highly promising growth trend, Thailand’s Department of International Trade Promotion (DITP) has said.
Vietnam’s retail sales are estimated to reach up to US$3.5 trillion by 2068.
Retailers should utilise online channels to target the young consumer group. By leveraging online platforms, Thai retailers can effectively reach and engage with the young consumer demographic in Vietnam. This strategy will enable them to capitalise on the significant growth potential of the Vietnamese market, the department said.
Phusit Ratanakul Sereroengrit, the department director-general, revealed that they have looked into the potential for expanding the Thai retail market in Vietnam by using online platforms. Thailand’s Trade Ambassador in Ho Chi Minh City has been providing imputs on this matter.
Vietnam’s retail market is expected to reach $350 billion in 2025, which will account for 59% of total domestic product sales.
Retailers in Vietnam have adjusted their distribution networks domestically and improved them for exports. They have also invested in e-commerce to accommodate the expanding consumer group of young people, who account for over 50% of the population of nearly 100 million people.
Currently, retailers in Vietnam have transitioned from traditional to modern retail formats, particularly investing in networked stores and supermarkets. They are also collaborating to develop new retail formats, such as online platforms, to create favourable conditions for retailers and increase sales opportunities, the department chief said.
Thai retailers investing in Vietnam must adapt their business models and focus on developing clean and environmentally friendly production, as well as aim for a circular economy and green labelling. These efforts will contribute to their growth in the Vietnamese market, Phusit said.
Thai retailers should also give attention to social media platforms in Vietnam, such as selling their products through Facebook Live and TikTok, making it easier to reach Vietnamese customers.
E-commerce is an interesting channel for businesses looking to expand their trade into the Vietnamese market, as it requires lower costs compared to opening physical stores and also allows access to the target consumers, he said. However, the government has been making improvements to laws related to online commerce. Businesses seeking to enter the online market in Vietnam should study the laws and regulations related to e-commerce in the country, he said.
The department's activities in Vietnam include promoting Thai product sales in collaboration with retail chains in Vietnam, such as Go! and Tops Market, from August 1-14. Additionally, the Office of Trade Promotion in Bangkok will participate in delivering lectures on the 5th batch of the ITP programme, "Sustainable Growth for Exporters”, which aims to promote sustainable growth for Thai SMEs in collaboration with Siam Commercial Bank.
Source THE NATION THAILAND
June 21, 2023
