“Top 10 Reputable Retail Companies in 2024” is built on 3 main criteria: Financial capacity shown in the most recent financial report; Media reputation assessed by Media Coding method; Survey of research subjects and stakeholders in August - September 2024.

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Source: Vietnam Report
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Source: Vietnam Report
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Source: Vietnam Report

Retail market and expectations of improvement

In 2024, the retail market is showing positive signs although the recovery rate is not too fast. According to the General Statistics Office, final consumption in the first half of the year increased by 5.78% over the same period last year. Retail sales of goods in the first 8 months of the year are estimated at VND 3,199.7 trillion; although positive growth was recorded (up 7.3% over the same period in 2023), it was not equal to the same period in 2022 - 2023, showing that the market needs more efforts and breakthrough solutions to promote the recovery process.

According to a recent study by Vietnam Report, 74.6% of businesses in the industry said their revenue was equal to or higher, and 66.3% of businesses maintained and improved their profits compared to the same period last year.

In the coming months, the retail market is forecast to make a breakthrough thanks to the prospect of economic recovery, the impact of policies and measures to stimulate consumption, and increased purchasing power during the peak period at the end of the year. In the medium and long term, rapid urbanization, increasing income levels, the number of people of working age and the growing and increasingly diverse middle class... are important driving forces for the growth of the consumer market, paving the way for the development of the retail industry.

A survey by Vietnam Report shows that the majority of consumers are confident that the Vietnamese economy is moving in a positive direction. The percentage of consumers who assess their financial situation as better in the next 12 months is 69.9% and this optimism is expected to lead to improved consumption in the future.

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Retail consumer survey September 2024. Source: Vietnam Report

5 Factors Shaping the Retail Market from a Business Perspective

The modern retail market is an ecosystem influenced by many factors that are interrelated and interact with each other. Therefore, businesses need to keep up with new trends, adapt to changes and create sustainable competitive advantages based on understanding the market landscape.

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Retail business survey August 2024. Source: Vietnam Report

In 2024, Vietnam's economy will be in a period of gradual recovery with marked improvements in many indicators, which is expected to create a favorable environment, stimulating consumption and the retail industry.

Besides, legal regulations and policies from the Government play an important role in stimulating consumer market growth.

Vietnam Report's survey results recorded a number of policy recommendations from businesses, including: Completing the legal corridor system, making information transparent, creating a fair competitive environment (83.3%); Simplifying administrative procedures (66.7%); Supporting and consulting businesses in the digital transformation process (63.8%); Supporting consumer demand stimulation (54.2%); Promoting investment in construction and development of commercial infrastructure (50.0%); Strengthening market control, combating counterfeit and fake goods (33.3%); Providing additional support through credit support packages, investment incentives, and tax incentives (33.3%).

In addition, fierce competition between businesses and the explosion of technology are accelerating the process of shaping an increasingly diverse and complex retail environment. Today's consumer shopping trends also require a wide range of products, transparent origins, reasonable prices and added value from incentive programs, while business reputation and geographical factors still play an important role.

Retail business priority strategy

Keeping up with market conditions and shifts in consumer trends, retail businesses have also put forward priority strategies to reposition their operations and build a foundation for sustainable success, such as: Promoting multi-channel sales (79.25%); Improving shopping space, improving service quality (60.4%); Diversifying products, suppliers and controlling input quality (58.3%); Improving human resource quality (45.8%); Increasing digitalization (45.8%); Enhancing corporate image, promoting marketing (41.7%)...

Notably, product and supplier diversification and input quality control saw the strongest increase (+22.6%). In a competitive market, businesses need to constantly seek reputable products and suppliers to ensure quality; at the same time, strengthen links with members in the supply chain, manufacturers and logistics service providers towards sustainable development.

As an important link in the supply chain of goods and a bridge between production and consumption, the retail industry is one of the pillars that shape the national economic structure. Despite many challenges and risks, retail businesses have been making strategic decisions to improve their business operations, regain growth momentum and invest in the foundation for sustainable success.

(Source: Vietnam Report)