Vietnam Retail Analysis (2008-2012)

Vietnam Retail Analysis (2008-2012)
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Edition 1.0
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About the Report

Vietnam is the fourth most attractive retail market in the world in terms of potential growth
owing to both increasing demand for consumer goods and rising disposable incomes, behind
India, Russia and China. The retail market of the country has expanded rapidly over the past
few years and will accelerate further on the back of rising disposable income, growing
consumer spending and sectors liberalization in the coming years, according to new market
research report, Vietnam Retail Analysis (2008-2012), by RNCOS.
The detailed data and analysis given in the report will help the client to evaluate the leading-
edge opportunities critical to the success of the retail market in Vietnam. The report gives
rational forecast and estimations that are intended as a rough guide to the direction in which
the Vietnamese retail market is likely to move.
Key Findings
Retail sales in Vietnam are forecasted to grow at a CAGR of about 13.6% during 20082012.
Food is the most important component of Vietnams retail sector and accounts for
nearly two-third of total retail sales.
Non-food sector is expected to grow at a faster pace than food, because of the rise in
income and consumer spending on non-essential items such as clothing, electrical and
DIY goods.
Demand for international brands and luxury products will rise as income level move
upwards in the country.
Modern retailing formats like air-conditioned mini-marts, supermarkets and small
shopping complexes will become more prevalent in the coming years and will lure
consumers away from traditional outdoor markets.
Key Issues & Facts Analyzed

Where Vietnam stands in terms of products affordability index?
What is the consumer behavior?
Which are the fastest growing products?

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What are the key driving factors to the market?

How the market is likely to move in future?
What are the key challenges for the market?

Who are the key players in the market?
Research Methodology Used
Information Sources
Information has been sourced from books, newspapers, trade journals, and white papers,
industry portals, government agencies, trade associations, monitoring industry news and
developments, and through access to more than 3000 paid databases.
Analysis Methods
The analysis methods include ratio analysis, historical trend analysis, linear regression
analysis using software tools, judgmental forecasting, and cause and effect analysis.
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Table of Content
1.
2.
3.
4.
5.
6.
7.
Analyst View ..................................................................................................................................... 10

Vietnam - An Attractive Retail Market ............................................................................................ 11
Growing Retail Market - An Analysis.............................................................................................. 12
3.1
Purchasing Power & Consumer Spending ................................................................................ 12
3.2
Population.................................................................................................................................. 15
3.3
Urbanization............................................................................................................................... 17
3.4
Employment............................................................................................................................... 18
3.5
Tourism ...................................................................................................................................... 20
3.6
Consumer Financing.................................................................................................................. 22
3.7
Economic Liberalization............................................................................................................. 23
3.8
Economic Stability ..................................................................................................................... 24
Retail Market Performance .............................................................................................................. 26
4.1
Retail Sales................................................................................................................................ 26
4.1.1 Food ...................................................................................................................................... 28
4.1.2 Non-food................................................................................................................................ 29
4.1.2.1
Clothing......................................................................................................................... 31
4.1.2.2
Footwear ....................................................................................................................... 33
4.1.2.3
Cosmetics & Toiletries .................................................................................................. 35
4.1.2.4
Perfumes & Fragrances................................................................................................ 37
4.1.2.5
Furniture........................................................................................................................ 38
4.1.2.6
Household Cleaning Products ...................................................................................... 40
4.1.2.7
Consumer Electronics................................................................................................... 42
4.1.2.7.1 TV Sets.................................................................................................................... 42
4.1.2.7.2 Mobile Handsets...................................................................................................... 43
4.1.2.7.3 Personal Computers ............................................................................................... 44
4.1.2.7.4 Video Recorders...................................................................................................... 45
4.1.2.7.5 Washing Machines .................................................................................................. 45
4.1.2.7.6 Others...................................................................................................................... 47
4.2
By Province................................................................................................................................ 48
4.2.1 South East ............................................................................................................................. 48
4.2.2 Red River Delta ..................................................................................................................... 49
4.2.3 Mekong River Delta ............................................................................................................... 50
4.2.4 South Central Coast .............................................................................................................. 51
4.2.5 North Central Coast............................................................................................................... 52
4.2.6 North East.............................................................................................................................. 53
4.2.7 Central Highlands .................................................................................................................. 54
4.2.8 North West............................................................................................................................. 55
4.3
By Ownership ............................................................................................................................ 56
4.3.1 State-owned Companies ....................................................................................................... 56
4.3.2 Non-state-owned Companies................................................................................................ 57
4.3.3 Foreign-owned Companies ................................................................................................... 58
4.4
By Retail Format ........................................................................................................................ 59
4.4.1 Traditional Market.................................................................................................................. 61
4.4.2 Supermarket .......................................................................................................................... 62
4.4.3 Hypermarket & Warehouse Clubs......................................................................................... 63
4.4.4 Convenience Stores .............................................................................................................. 64
Consumer Behavior Pattern ............................................................................................................ 65
Product Affordability Analysis ........................................................................................................ 68
Future Growth Prospects ................................................................................................................ 69
7.1
Developing Trend of Modern Retailing ...................................................................................... 69
7.2
Online Retailing ......................................................................................................................... 70
7.3
Non-food Retailers..................................................................................................................... 71
7.4
POS Terminal ............................................................................................................................ 71
7.5
International Brands & Luxury Goods........................................................................................ 72
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7.6
IT in Retailing............................................................................................................................. 72
7.7
High-tech Retailers .................................................................................................................... 73
7.8
Hotel & Restaurants................................................................................................................... 74
8.
Key Industry Hurdles ....................................................................................................................... 75
8.1
Skilled Staff................................................................................................................................ 75
8.2
Consumer Price Index ............................................................................................................... 76
8.3
Retail Space & Cost................................................................................................................... 77
8.4
Trade Barriers & State Subsidiaries .......................................................................................... 78
8.5
Infrastructure.............................................................................................................................. 78
9.
Competitive Landscape ................................................................................................................... 79
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List of Figures:
Figure 3-1: Vietnam - Per Head Personal Disposable Income (in US$), 2002-2007E ............................... 12
Figure 3-2: Vietnam - Forecast for Per Head Personal Disposable Income (in US$), 2008-2012 ............. 13
Figure 3-3: Vietnam - Consumer Spending (in Million US$), 2002-2007E ................................................. 13
Figure 3-4: Vietnam - Forecast for Consumer Spending (in Million US$), 2008-2012 ............................... 14
Figure 3-5: Vietnam - Population (in Million), 2002-2007E ......................................................................... 15
Figure 3-6: Vietnam - Forecast for Population (in Million), 2008-2012 ....................................................... 16
Figure 3-7: Vietnam - Urban Population (in Million), 2001-2006P .............................................................. 17
Figure 3-8: Vietnam - Employment (in Million), 2002-2007E ...................................................................... 18
Figure 3-9: Vietnam - Forecast for Employment (in Million), 2008-2012 .................................................... 19
Figure 3-10: Vietnam - Tourist Arrivals (in 000), 2003-2007E ................................................................... 20
Figure 3-11: Vietnam - Forecast for Tourist Arrivals (in 000), 2008-2012 ................................................. 21
Figure 3-12: Vietnam - Credit/Debit Cards (in Million Units), 2004-2006 ................................................... 22
Figure 3-13: Vietnam - Nominal GDP (in Million US$), 2002-2007E .......................................................... 24
Figure 3-14: Vietnam - Forecast for Nominal GDP (in Million US$), 2008-2012 ........................................ 25
Figure 4-1: Vietnam - Retail Sales (in Million US$), 2002-2007E............................................................... 26
Figure 4-2: Vietnam - Forecast for Retail Sales (in Million US$), 2008-2012............................................. 27
Figure 4-3: Vietnam, China & Thailand - Share of Retail Sales in Nominal GDP (%), 2007 ...................... 27
Figure 4-4: Vietnam - Food Retail Sales (in Million US$), 2002-2007E ..................................................... 28
Figure 4-5: Vietnam - Non-food Retail Sales (in Million US$), 2002-2007E............................................... 29
Figure 4-6: Vietnam - Non-food Retail Sales by Segment (%), 2007E....................................................... 30
Figure 4-7: Vietnam - Clothing Sales (in Million US$), 2002-2007E........................................................... 31
Figure 4-8: Vietnam - Forecast for Clothing Sales (in Million US$), 2008-2012......................................... 32
Figure 4-9: Vietnam - Footwear Sales* (in Million US$), 2002-2007 .......................................................... 33
Figure 4-10: Vietnam - Forecast for Footwear Sales (in Million US$), 2008-2012 ..................................... 34
Figure 4-11: Vietnam - Cosmetics & Toiletries Sales (in Million US$), 2002-2007E .................................. 35
Figure 4-12: Vietnam - Forecast for Cosmetics & Toiletries Sales (in Million US$), 2008-2012 ................ 36
Figure 4-13: Vietnam - Perfumes & Fragrances Sales (in Million US$), 2002-2007E................................ 37
Figure 4-14: Vietnam - Forecast for Perfumes & Fragrances Sales (in Million US$), 2008-2012.............. 37
Figure 4-15: Vietnam - Furniture Sales (in Million US$), 2002-2007E........................................................ 38
Figure 4-16: Vietnam - Forecast for Furniture Sales (in Million US$), 2008-2012...................................... 39
Figure 4-17: Vietnam - Household Cleaning Product Sales (in Million US$), 2002-2007E ........................ 40
Figure 4-18: Vietnam - Forecast for Household Cleaning Product Sales (in Million US$), 2008-2012 ...... 41
Figure 4-19: Vietnam - TV Set Sales (in 000 Units), 2002-2007E ............................................................. 42
Figure 4-20: Vietnam - Forecast for TV Set Sales (in 000 Units), 2008-2012 ........................................... 43
Figure 4-21: Vietnam - Mobile Handset Sales* (in Million Units), 2006 & 2007 ......................................... 44
Figure 4-22: Vietnam - Personal Computer Sales (in Million Units), 2006*-2008F .................................... 44
Figure 4-23: Vietnam - Video Recorder Sales (in 000 Units), 2002-2005 ................................................. 45
Figure 4-24: Vietnam - Washing Machine Sales (in 000 Units), 2002-2007E ........................................... 46
Figure 4-25: Vietnam - Forecast for Washing Machine Sales (in 000 Units), 2008-2012 ......................... 46
Figure 4-26: South East - Goods & Services Retail Sales (in Trillion VND), 2002-2006P ......................... 48
Figure 4-27: Red River Delta - Goods & Services Retail Sales (in Trillion VND), 2002-2006P ................. 49
Figure 4-28: Mekong River Delta - Goods & Services Retail Sales (in Trillion VND), 2002-2006P ........... 50
Figure 4-29: South Central Coast - Goods & Services Retail Sales (in Trillion VND), 2002-2006P .......... 51
Figure 4-30: North Central Coast - Goods & Services Retail Sales (in Trillion VND), 2002-2006P ........... 52
Figure 4-31: North East - Goods & Services Retail Sales (in Trillion VND), 2002-2006P .......................... 53
Figure 4-32: Central Highlands - Goods & Services Retail Sales (in Trillion VND), 2002-2006P .............. 54
Figure 4-33: North West - Goods & Services Retail Sales (in Trillion VND), 2002-2006P ......................... 55
Figure 4-34: Vietnam - Goods & Services Retail Sales by State-owned Companies (in Trillion VND),
2002-2006P................................................................................................................................................. 56
Figure 4-35: Vietnam - Goods & Services Retail Sales by Non-state-owned Companies (in Trillion VND),
2002-2006P................................................................................................................................................. 57
Figure 4-36: Vietnam - Goods & Services Retail Sales by Foreign-owned Companies (in Trillion VND),
2002-2006P................................................................................................................................................. 58
Figure 4-37: Vietnam - Share of Sales by Traditional & Modern Retail Format (%), 2007......................... 59
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Figure 4-38: Ho Chi Minh & Hanoi - Share of Traditional & Modern Trade (%), 2004-2006 ...................... 60
Figure 4-39: Vietnam - Share of Hypermarkets & Supermarkets in Food Retail Sales (%), 2007E & 2020F
.................................................................................................................................................................... 63
Figure 5-1: Vietnam - Main Shoppers* & Key Influencers** (%), 2005....................................................... 66
Figure 7-1: Vietnam - Share of Modern Retailing in Retail Sales (%), 2007 & 2017F................................ 69
Figure 7-2: Vietnam - Forecast for Internet Users (in 000), 2008-2012 ..................................................... 70
Figure 7-3: Vietnam - Forecast for Consumer Expenditure on Hotel & Restaurants (in Million US$), 20082012 ............................................................................................................................................................ 74
Figure 8-1: Vietnam - Consumer Price Inflation (%), Sep 2007 to Mar 2008 ............................................. 76
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List of Tables:
Table 2-1: Top 10 Retail Markets by Global Retail Development Index, 2007........................................... 11
Table 4-1: Vietnam* - Number of Modern Retail Outlets by Brand (2004-2006) ........................................ 60
Table 4-2: Vietnam* - Number of Traditional Stores by Format (2004-2006)............................................. 61
Table 4-3: Vietnam* - Number of Supermarkets (2004-2006) .................................................................... 62
Table 4-4: Vietnam* - Number of Hypermarkets & Warehouse Clubs (2004-2006)................................... 63
Table 4-5: Vietnam* - Number of Convenience Stores (2004-2006) .......................................................... 64
Table 6-1: Vietnam - Price & Affordability Rank by Product, 2007 ............................................................. 68
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1. Analyst View
Retail market in Vietnam has expanded significantly over the past few years, but it is still
fragmented and underdeveloped, with small family-owned businesses (based on traditional
formats) dominating the sector. The government also retains a tight control over the entrance
of new foreign players into the market. But despite a slow start, the sector has expanded
quickly and recently seen a greater degree of foreign investment. Moreover, the market has
experienced consolidation, leading to the creation of large shops and shopping centers. In
view of rapidly expanding retail market, foreign-owned retailers too have expanded their
operations in the country.
However, there is a wide gap between big cities and rural provinces in terms of retailing
infrastructure. Less-developed cities and provinces, which account for about 80% of the
population, have a large number of retail businesses, especially traditional retail outlets and
markets. It is only few big cities, such as Ho Chi Minh City and Hanoi, which have recorded a
significant increase in the number of new modern retail outlets, including both local and
foreign.
Segment-wise, the demand for consumer goods has been strong, particularly in urban areas.
White goods and consumer electronics sectors have seen a number of foreign-invested joint
ventures that manufacture their brands locally. Most of the output is exported. Clothing
sector is well-developed and export-oriented while the cosmetics and toiletries sector does
not possess well-developed local manufacturing facilities.
As expected from a developing market, food is the most important component of retail sales,
accounting for about two-thirds of the total sales. However, this share has begun declining as
income rise and consumers spend more on non-essential items such as clothing, electrical and
DIY goods.
In rural areas, the development of modern form of retailing will be slow compared to the fast
pace development in urban centers. Therefore, the traditional retailing sector will remain
dominant in rural areas in coming few years.
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2. Vietnam - An Attractive Retail Market

The rapid growth in Vietnamese retail market in the recent past has made the country an
attractive destination to multinational retailers. The World Bank ranked Vietnam fourth after
India, Russia and China in terms of Global Retail Development Index (GRDI). The retail sales in
the country grew 18-22% annually during 2003-2007. Moreover, Vietnam currently houses
around 140 supermarkets and hypermarkets, 20 trade centers, and nearly 1 Million Square
Meter of floor area is under construction for retail business.
Table 2-1: Top 10 Retail Markets by Global Retail Development Index, 2007
Rank
1
2
3
4
5
6
7
8
9
10
Country
India
Russia
China
Vietnam
Ukraine
Chile
Latvia
Malaysia
Mexico
Saudi
Arabia
Region
Asia
Eastern
Europe
Asia
Asia
Eastern
Europe
Americas
Eastern
Europe
Asia
Americas
Middle
East
Country
Risk
(25%)
67
Market
Attractiveness
(25%)
42
Market
Saturations
(30%)
80
Time
Pressure
(20%)
74
62
75
57
52
46
34
53
46
76
90
84
59
89
86
74
41
80
43
51
44
42
88
43
69
69
77
70
83
32
44
58
21
46
33
86
54
33
68
68
64
65
40
66
35
64
Source: Euromoney, World Bank, Global Competitiveness Report 2005-06 & AT Kearney Analysis
Note: *Global Retail Development Index
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GRDI*
Score
92
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3. Growing Retail Market - An Analysis

3.1
Purchasing Power & Consumer Spending
Per head personal disposable income has gone up at a CAGR of about 7.3% during 2002-2007
and further it is forecasted to grow at a CAGR of about 10.3% during 2007-2012. Increase in
per head personal disposable income resulted in a rise in the purchasing power and in turn,
growth in consumer spending on retail products. Thus, rise in disposable income has been the
main driver for the growth in Vietnamese retail market and will continue to drive the market
in coming years too.
Figure 3-1: Vietnam - Per Head Personal Disposable Income (in US$), 2002-2007E
376
400
350
in US$
300
264
282
306
317
2004
2005
341
250
200
150
100
50
0
2002
2003
Source: Euromonitor & EIU Calculations
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2006E
2007E
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Figure 3-2: Vietnam - Forecast for Per Head Personal Disposable Income (in US$), 2008-2012
700
615
560
600
in US$
500
512
426
468
400
300
200
100
0
2008
2009
2010
2011
2012
Source: Euromonitor & EIU Calculations
Consumer spending, in line with disposable income, grew at a CAGR of about 14.5% during
2002-2007 and is projected to hit a CAGR of about 14.8% during 2007-2012 to reach US$ 89.7
Billion by 2012 end.
Figure 3-3: Vietnam - Consumer Spending (in Million US$), 2002-2007E
in Million US$
50,000
45,000
44,935
38,814
40,000
35,000
30,000
25,000
20,000
15,000
10,000
33,618
29,575
26,206
22,825
5,000
0
2002
2003
2004
Source: International Financial Statistics
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2005
2006E
2007E
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Figure 3-4: Vietnam - Forecast for Consumer Spending (in Million US$), 2008-2012
100,000
89,685
90,000
78,769
80,000
69,511
in Million US$
70,000
60,733
60,000
53,102
50,000
40,000
30,000
20,000
10,000
0
2008
2009
2010
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2011
2012
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3.2
Population
Rapid growth in population is one of the main drivers for growth in Vietnamese retail market.
As the population increases, demand for retail products too increases. The population grew at
a constant rate with an increment of one million each year to estimated figure of 86 Million at
the end of 2007.
Figure 3-5: Vietnam - Population (in Million), 2002-2007E
87
86
86
85
in Million
85
84
84
83
83
82
82
81
81
80
79
78
2002
2003
2004
2005
2006E
2007E
Source: General Statistical Office, Statistical Yearbook; World Bank, 1997 Country Economic
Memorandum; World Bank, Rising to the Challenge, 1998
The population of the country is further is anticipated to grow by 5 Million in 2012 over the
population of 87 Million in 2008 to reach 92 Million.
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Figure 3-6: Vietnam - Forecast for Population (in Million), 2008-2012
93
92
in Million
92
91
90
90
89
88
87
89
88
87
86
85
84
2008
2009
2010
2011
2012
Source: General Statistical Office, Statistical Yearbook; World Bank, 1997 Country Economic
Memorandum; World Bank, Rising to the Challenge, 1998
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3.3
Urbanization
Most of the modern retail formats in Vietnam are concentrated in urban areas and urban
population has comparatively easy asses to various retail formats as compared to their rural
counterparts. Thus, increase in urbanization gives a big boost to the Vietnamese retail
market. Urban population increased at a CAGR of about 3.2% during 2001-2006 to reach a
preliminary figure of 22.8 Million at the end of 2006.
Figure 3-7: Vietnam - Urban Population (in Million), 2001-2006P
24
22.8
23
22.3
21.7
in Million
22
20.9
21
20
20
19.5
19
18
17
2001
2002
2003
Source: General Statistical Office

Note: P = Preliminary
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2004
2005
2006P
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3.4
Employment
Employment is increasing in Vietnam, making it an attractive market for retailing. Employed

population has source of regular income and they keep buying retail products regularly.
Hence, employed population is more loyal and regular to their retailers. The employment
level has increased at a CAGR of about 2.88% for the period spanning from 2002 to 2007.
Figure 3-8: Vietnam - Employment (in Million), 2002-2007E
45
43.8
44
42.6
43
in Million
42
41.3
41
40.1
40
39
39
38
38
37
36
35
2002
2003
2004
2005
2006E
2007E
Source: International Labor Organization & Economic Intelligence Unit (EIU)
The country is expected to witness rising employment in future. It is forecasted that

employed population will grow at a CAGR of 2.42% during 2008-2012 to reach 49.4 Million by
the end of 2012.
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Figure 3-9: Vietnam - Forecast for Employment (in Million), 2008-2012
50
49.4
49
48.3
in Million
48
47.2
47
46.1
46
45
44.9
44
43
42
2008
2009
2010
Source: International Labor Organization & EIU
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3.5
Tourism
Vietnam is fast emerging as a preferred tourism destination. Tourist arrivals in Vietnam
increased at a CAGR of 15% during 2003-2007 to reach an estimated figure of 4.25 Million at
the end of 2007. Seeing this concrete growth, the Vietnamese government, as part of its
economic plans, has earmarked the tourism industry as a key provider of growth in retail
market. The expected increase in the number of tourists will boost retailing in Vietnam. With
the local populace growing sophisticated and disposable incomes are rising, industry experts
view the coming period as a good time to set up international standard retailing outlets,
especially in leading cities such as Ho Chi Minh City and Hanoi.
Figure 3-10: Vietnam - Tourist Arrivals (in 000), 2003-2007E
4,248
4,500
4,000
3,500
in '000
3,000
2,500
3,468
3,583
2005
2006E
2,972
2,429
2,000
1,500
1,000
500
0
2003
2004
Source: World Development Indicators & World Tourism Organization
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2007E
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Further, tourist arrivals are expected to keep the Vietnamese retail industry in motion.
Tourist arrivals are anticipated to grow at a CAGR of about 8% during 2008-2012.
Figure 3-11: Vietnam - Forecast for Tourist Arrivals (in 000), 2008-2012
7,000
6,103
6,000
in'000
5,000
4,797
5,157
6,522
5,607
4,000
3,000
2,000
1,000
0
2008
2009
2010
Source: World Development Indicators & World Tourism Organization
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3.6
Consumer Financing
Easy consumer financing through credit cards and other related products in Vietnam make the
country attractive destination for the retailers. Spending by cards is on the rise, which shows
that Vietnamese people have a positive attitude toward the use of cards as a payment
method. Consumers can easily afford the retail products, particularly consumer electronic
products like Televisions and mobile handsets by using credit cards and other mode of
financing. Thus, the availability of easy consumer financing is fueling growth of retailing in
Vietnam. In 2006, total number of credit/debit cards increased by 50% annually.
Figure 3-12: Vietnam - Credit/Debit Cards (in Million Units), 2004-2006
3.5
3
in Million
2.5
2
1.5
1
0.6
0.5
0
2004
2005
Source: Vietnam Economic Times - No.157 [2007-03-01]
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2006
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3.7
Economic Liberalization
Although the government continues to exercise tight control over retailing, the sector has
been liberalized under the conditions of Vietnam's membership of the World Trade
Organization (WTO). Foreign investors are permitted to contribute up to 49% of capital in

joint ventures from early 2008. From January 1, 2009, Vietnam's retail markets will be open
to foreign investors, and wholly foreign-owned firms will be allowed to operate independent
outlets. Owing to competitive pricing structures and modern operating methods, the
popularity of large foreign firms will increase, putting intense pressure on domestic retailers
to modernize. Foreign-owned retailers that have already been permitted to establish a

presence are expected to expand their market shares in the coming years.
Vietnamese retailers have recently established the Vietnam Distribution Association Network
Development and Investment Joint-Stock Company to enhance co-operation between
members in anticipation of increased competition resulting from the WTO membership. The
government believes that enhanced co-operation as well as mergers and acquisitions will help
to modernize the retail market.
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3.8
Economic Stability
Economic stability of Vietnam is also one of the key drivers of the retail market. Global
retailers feel risk-free and confident to penetrate and expand in Vietnam. Vietnams nominal
GDP recorded growth at a CAGR of 14.8% during 2002-2007 to reach an estimated value of US$
69.9 Billion at the end of 2007.
Figure 3-13: Vietnam - Nominal GDP (in Million US$), 2002-2007E
80,000
69,892
in Million US$
70,000
61,707
60,000
52,832
45,445
50,000
40,000
35,064
39,553
30,000
20,000
10,000
0
2002
2003
2004
2005
2006E
2007E
The nominal GDP of Vietnam is expected to grow at a CAGR of about 15.5% during 2008-2012
to reach US$ 147.3 Billion by 2012 end.
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Figure 3-14: Vietnam - Forecast for Nominal GDP (in Million US$), 2008-2012
160,000
147,277
in Million US$
140,000
125,877
108,893
120,000
100,000
95,585
82,855
80,000
60,000
40,000
20,000
0
2008
2009
2010
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4. Retail Market Performance

4.1
Retail Sales
The value of retail sales in Vietnam has expanded rapidly over the past few years. It reached
nearly US$ 30 Billion in 2007 from US$ 16 Billion in 2002 on account of increasing disposable
income, improving living standard and growing urban population. Food is the most important
component of retail sales and accounts for about two-third of the total sales.
Figure 4-1: Vietnam - Retail Sales (in Million US$), 2002-2007E
35,000
29,699
in Million US$
30,000
26,224
23,701
25,000
20,000
16,167
18,420
20,691
15,000
10,000
5,000
0
2002
2003
2004
2005
2006
2007E
Source: Planet Retail
Further, the retail sales are forecasted to grow at a CAGR of approximately 13.6% during
2008-2012. The liberalization of retail sector under the conditions of Vietnam's WTO
membership (foreign investors have been permitted to contribute up to 49% of capital in joint
ventures from early 2008. From January 1, 2009, Vietnam's retail market will be opened for
foreign investors and wholly foreign-owned firms will be allowed to operate independent
outlets), continuous rise in income level, growing urbanization and continuous cultural shift
towards the western markets will drive the retail industry in Vietnam.
RNCOS
Page 26 of 81
RNCOS
Figure 4-2: Vietnam - Forecast for Retail Sales (in Million US$), 2008-2012
70,000
57,487
in Million US$
60,000
50,391
44,334
50,000
40,000
34,528
39,011
30,000
20,000
10,000
0
2008
2009
2010
2011
2012
Source: EIU
The total retail sales in Vietnam during 2007 were equal to 42% of nominal GDP - a value
much higher than that recorded in many other Asian countries, including China and Thailand.
However, the retail sector officially accounted for just 12% of total employment in the same
year.
Figure 4-3: Vietnam, China & Thailand - Share of Retail Sales in Nominal GDP (%), 2007
45
42
40
35
35
33
30
25
20
15
10
5
0
Vietnam
China
Source: EIU
RNCOS
Page 27 of 81
Thailand
RNCOS
4.1.1
Food
Food is the most important component of retail industry. In terms of sales, it accounts for
about two-third of the total retail sales in the country. Food retail sales in Vietnam grew at a
CAGR of around 11.6% from 2002 to 2007, reaching an estimated value of US$ 19.8 Billion at
the end of 2007. Food retailers account for around 80% of the overall retailing sector in terms
of the number of outlets. Moreover, food retailing is dominated by wet markets and
independent grocers, with more than 80% of food retailers being independent grocers.
In addition, wet markets are extremely popular in Vietnam and more than 2,500 of them are
located in Ho Chi Minh City alone. Although the proportion of overall food sales accounted for
by modern retail outlets is low, there has been some growth in the size of supermarket chains
and the number of hypermarkets. This is especially the case with Hanoi and Ho Chi Minh City,
where consumers are increasingly moving away from traditional grocers and wet markets due
to lack of air-conditioning, cramped atmosphere and unhygienic spaces.
Figure 4-4: Vietnam - Food Retail Sales (in Million US$), 2002-2007E
25,000
19,814
in Million US$
20,000
17,696
16,191
14,300
15,000
12,880
11,453
10,000
5,000
0
2002
2003
2004
RNCOS
Page 28 of 81
2005
2006
2007E
RNCOS
4.1.2
Non-food
Apart from food retail sales in Vietnam, non-food sales have grown at a rapid pace. Non-food
retail sales surged at a CAGR of nearly 16% during 2002-2007. Non-food retailers mainly
consist of small-scale businesses focused on selling white goods, consumer electronics,
clothes and cosmetics & toiletries. However, a large number of modern shopping complexes
has been opened in the main urban centers and they are attracting wealthy urbanites.
Presently, non-food retailing represents nearly one-third of the total retail sales in Vietnam,
but this share has started to increase, as high income consumers spend more on non-essential
items such as clothing, electrical and DIY (Do-It-Yourself) goods.
Figure 4-5: Vietnam - Non-food Retail Sales (in Million US$), 2002-2007E
12,000
9,885
in Million US$
10,000
8,528
7,510
8,000
6,000
6,391
5,540
4,714
4,000
2,000
0
2002
2003
2004
2005
2006
2007E
Non-food retailing is basically driven by clothing, footwear and cosmetics & toiletries
segments. With rising income, consumers are becoming more fashion and look conscious and
spending more on their clothing and cosmetic products. These three sub-segments together
account for over 40% of the total non-food retail sales. For example - in 2007, clothing,
footwear, and cosmetics & toiletries had a share of 16.5%, 17.7% and 6.9% respectively,
making up for over 41% of the total non-food retail sales.
RNCOS
Page 29 of 81
RNCOS
Figure 4-6: Vietnam - Non-food Retail Sales by Segment (%), 2007E
16.5%
17.7%
54.5%
6.9%
4.0%
0.3%
0.2%
Clothing
Footwear
Cosmetics & Toiletries
Perfumes & Fragrances
Furniture
Household Cleaning Products
Others*
Source: Planet Retail, Euromonitor & RNCOS
Note: *Includes sales of products like Home Appliances, Personal Computers and Mobile Handsets etc.
RNCOS
Page 30 of 81
RNCOS
4.1.2.1
Clothing
Although the domestic garment sector in Vietnam is strongly export-oriented, local demand
for better quality garments has grown in line with rising brand-consciousness and consumer-
oriented society. The domestic textile/garment industrys clothing sales has been recording
annual growth of over 15% per year, absorbing one-fourth of its manufacturers' production.
Famous brand names, like Mango, Bossini, Gucci, Giordano, D&G, and Valentino, are now
available in the country but genuine label products are very expensive for most people.
Moreover, popular brand goods, produced in China, for example - Bossini, Mango and
Giordano, sell well in Vietnam's big cities as the prices are not very high.
In the wholesale markets of Tan Binh and Binh Tay in Ho Chi Minh City, one will find about
70% of Chinese-made textiles and garments in medium to low in quality at relatively cheaper
rates.
Clothing sold in Tan Binh market ships to Central Vietnam, the Mekong Delta, Cambodia, Laos
and Thailand. Local clothing retailers say that the Chinese garments are the cheapest and
those with a nice design sell very well. A Chinese shirt or T-shirt sells for VND 30,000-40,000,
while a pair of jeans or khaki trousers sells for VND 70,000-90,000. Seconds are also available
and they come from China, selling at the cheapest rates - perhaps VND 5,000-10,000/item.
These seconds are often sold in remote, rural areas and industrial zones and sell very well
because of attractive prices.
Figure 4-7: Vietnam - Clothing Sales (in Million US$), 2002-2007E
in Million US$
2000
1632.1
1394.5
1500
1000
790.7
925.0
1033.0
2003
2004
1192.9
500
0
2002
Source: Euromonitor
RNCOS
Page 31 of 81
2005
2006E
2007E
RNCOS
In view of rising brand and fashion consciousness, increasing demand for quality clothes and
high consumption, it is forecasted that clothing sales will grow at a CAGR of around 15%
during the period spanning from 2008 to 2012.
Figure 4-8: Vietnam - Forecast for Clothing Sales (in Million US$), 2008-2012
4,000
3,396.6
3,500
2,957.2
in Million US$
3,000
2,583.9
2,500
2,000
2,235.1
1,946.1
1,500
1,000
500
0
2008
2009
2010
Source: EIU
RNCOS
Page 32 of 81
2011
2012
RNCOS
4.1.2.2
Footwear
Footwear retail sales in Vietnam rose to US$ 1.75 Billion in 2007 at a CAGR of approximately
15.6% from 2002. The domestic footwear market is fragmented with many small retailers,
thus making it hard for producers who typically fill medium or large orders to accumulate
profits. However, the domestic demand for footwear is increasing and it needs around 160
Million pairs of shoes a year, assuming each Vietnamese requires two pairs, according to the
Vietnam Leather and Footwear Association (VLFA).
Figure 4-9: Vietnam - Footwear Sales* (in Million US$), 2002-2007
2000
1748.8
1800
1494.1
in Million US$
1600
1400
1278.1
1106.9
1200
1000
991.1
847.2
800
600
400
200
0
2002
2003
2004
2005
2006
2007
Source: Euromonitor
Note: *Values are estimated
With rising demand, footwear sales are expected to reach US$ 3.6 Billion by 2012, up from
US$ 2.0 Billion in 2008, growing at a CAGR of nearly 15%. Impetus from the current
modernization drive and a more streamlined logistical pattern will make the Vietnamese
market more attractive to local and foreign players.
RNCOS
Page 33 of 81
RNCOS
Figure 4-10: Vietnam - Forecast for Footwear Sales (in Million US$), 2008-2012
4,000
3,639.4
3,500
3,168.6
2,768.6
in Million US$
3,000
2,500
2,394.9
2,085.1
2,000
1,500
1,000
500
0
2008
2009
2010
Source: EIU
RNCOS
Page 34 of 81
2011
2012
RNCOS
4.1.2.3
Cosmetics & Toiletries
Retail sales of cosmetics & toiletries rose at a CAGR of 16.5% during 2002-2007 to an
estimated value of US$ 683.4 Million. The market for cosmetics and skincare products is
expanding on the back of fast improving living standards and extensive advertising campaigns.
But the growth is still centered in urban areas and rural consumers are demanding for basic
and affordable toiletries.
Realizing the attractiveness and potential of the market, international brands have begun to
developing the domestic market. For example - Lancme, a luxury cosmetics brand, opened a
beauty counter in a department store in Ho Chi Minh City in mid-2006, and has plans to
expand further. Considering the increasing brand-awareness among people, foreign cosmetics
producers are keen to embark on joint ventures. Firms, with established joint ventures, such
as an Anglo-Dutch company Unilever, which operates through its subsidiary, Unilever
Vietnam, dominate the local market. However, smuggling and fake goods make it difficult to
judge the true size of the cosmetics and skincare products market.
Figure 4-11: Vietnam - Cosmetics & Toiletries Sales (in Million US$), 2002-2007E
800
683.4
in Million US$
700
582.3
600
496.1
500
400
429.8
374.7
318.9
300
200
100
0
2002
2003
2004E
2005E
2006E
2007E
Source: Euromonitor
Rising income, increasing fashion consciousness, aggressive promotional campaigns, and entry
of foreign players will drive the retail sales of cosmetics & toiletries in Vietnam. Resultantly,
sales are expected to grow at a CAGR of 16.5% during 2008-2012.
RNCOS
Page 35 of 81
RNCOS
Figure 4-12: Vietnam - Forecast for Cosmetics & Toiletries Sales (in Million US$), 2008-2012
1,502.2
1,600
1,280.9
in Million US$
1,400
1,096.0
1,200
1,000
945.6
815.4
800
600
400
200
0
2008
2009
2010
Source: EIU
RNCOS
Page 36 of 81
2011
2012
RNCOS
4.1.2.4
Perfumes & Fragrances
Perfumes & fragrances market in Vietnam is quite developed, and grew at a CAGR of around
14.4% during 2002-2007. This growth will be further boosted by the governments move of
lifting cap on foreign investment.
Figure 4-13: Vietnam - Perfumes & Fragrances Sales (in Million US$), 2002-2007E
18
15.5
in Million US$
16
13.5
14
12
10
11.8
10.6
9.4
7.9
8
6
4
2
0
2002
2003
2004
2005
2006E
2007E
Source: Euromonitor
Governments step to allow foreign investment and rising disposable income will push the
market to grow at a projected CAGR of about 14.6% from 2008 to 2012.
Figure 4-14: Vietnam - Forecast for Perfumes & Fragrances Sales (in Million US$), 2008-2012
35
31.4
27.3
in Million US$
30
23.6
25
20
20.7
18.2
15
10
5
0
2008
2009
2010
Source: EIU
RNCOS
Page 37 of 81
2011
2012
RNCOS
4.1.2.5
Furniture
Furniture manufacturing sector in Vietnam is mainly export-oriented but the domestic
demand is also mounting gradually. Due to rising living standard and rapidly growing middle
class population, the domestic furniture sales, both residential as well as commercial,
increased at a CAGR of 11.8% from 2002 to 2007. Presently, the furniture industry in Vietnam
is largely dominated by outdoor furniture market, but the demand for indoor furniture is also
growing rapidly; consequently, the production of indoor furniture is surging at a fast pace.
Under such scenario, the demand for indoor furniture is expected to surpass the demand for
outdoor furniture in coming years.
Figure 4-15: Vietnam - Furniture Sales (in Million US$), 2002-2007E
30
25.0
in Million US$
25
22.0
19.4
20
15
14.3
16.0
17.4
10
5
0
2002
2003
2004E
2005E
2006E
2007E
Source: Euromonitor
The domestic furniture market is projected to see growth at a CAGR of 14.32% during 2008-
2012. The domestic demand is expected to spurt by increasing number of households and
rising income level of higher middle class population in the forecasted period.
RNCOS
Page 38 of 81
RNCOS
Figure 4-16: Vietnam - Forecast for Furniture Sales (in Million US$), 2008-2012
60
49.7
in Million US$
50
43.1
37.6
40
30
29.1
32.9
20
10
0
2008
2009
2010
Source: EIU
RNCOS
Page 39 of 81
2011
2012
RNCOS
4.1.2.6
Household Cleaning Products
In 2007, household cleaning products recorded robust growth due to the increased
penetration in suburban and rural areas. This penetration was mainly driven by domestic
players who have extensive knowledge on consumers lifestyle, preferences and needs. Best-
selling and standard household care products, such as laundry detergents and hand
dishwashers, are increasingly accepted by rural consumers, and are often competitively
priced to raise sales. Rising awareness about hygiene in rural areas, as a result of several
campaigns launched by the Vietnamese government, boosted the demand for household care
products, especially those that have already attained relatively large exposure in urban areas.
Figure 4-17: Vietnam - Household Cleaning Product Sales (in Million US$), 2002-2007E
450
395.5
in Million US$
400
350
300
360.0
254.3
279.0
302.0
328.3
250
200
150
100
50
0
2002
2003
2004
2005
2006E
2007E
Source: Euromonitor
Increasing hygienic awareness in rural areas and rising number of households will further
boost the sales of household cleansing products. So the sales are forecasted to surge at a
CAGR of 8.65% in the next five years from 2008 to 2012.
RNCOS
Page 40 of 81
RNCOS
Figure 4-18: Vietnam - Forecast for Household Cleaning Product Sales (in Million US$), 2008-2012
700
614.5
in Million US$
600
500
440.9
480.2
523.2
566.1
400
300
200
100
0
2008
2009
2010
Source: EIU
RNCOS
Page 41 of 81
2011
2012
RNCOS
4.1.2.7
Consumer Electronics
Demand for consumer electronics has accelerated quickly in Vietnam, reflecting rising income
and easier access to such products. The local consumer electronics manufacturing sector has
seen significant growth in the past few years largely because of high import tariffs on finished
goods. Annual output growth in electronic goods has been impressive in recent years at
around 25% per year. Moreover, the number of joint ventures between leading foreign
manufacturers and local partners has increased as Samsung, Daewoo and LG of South Korea
and Toshiba, Sanyo and Sony of Japan - all are investing in the local production bases.
The demand for consumer electronics and white goods is expected to expand further in
coming years, as Vietnamese consumers become more active in this market and regard items
such as television sets, washing machines and refrigerators as necessities rather than luxuries.
4.1.2.7.1
TV Sets
The sales of television sets in the country grew at a CAGR of around 5.5% in the last five years
(2002-2007). This impressive growth in sales of TV sets largely stemmed from the rising
number of households and easy access to consumer finance. The future is also expected to
see the same trend.
Figure 4-19: Vietnam - TV Set Sales (in 000 Units), 2002-2007E
1400
1200
in'000
1000
1067.0
1126.0
1105.9
2004
2005
1161.2
1221.5
936.0
800
600
400
200
0
2002
2003
Source: Euromonitor
RNCOS
Page 42 of 81
2006E
2007E
RNCOS
Television sales are forecasted to surge at a CAGR of approximately 6.4% during 2008-2012.
Rising sales of LCD TVs will be one of the key factors driving growth in the Vietnamese
television market.
Figure 4-20: Vietnam - Forecast for TV Set Sales (in 000 Units), 2008-2012
1,800
1,600
in'000
1,400
1,200
1287.7
1363.4
1446.1
1544.9
1650.4
1,000
800
600
400
200
0
2008
2009
2010
2011
2012
Source: EIU
4.1.2.7.2
Mobile Handsets
Another important consumer electronics product - mobile phone - has seen strong growth in
recent past. Vietnam consumed nearly 4.7 Million mobile phones in 2006 and roughly 6.3
Million in 2007. Nearly 53% of mobile phones sold in the country in 2006 were camera phones.
In value terms, Vietnam's mobile phone market was estimated at US$ 877 Million in 2006 and
US$ 1,167 Million in 2007. Best-selling mobile phones in 2006 were priced at US$ 100-US$ 200
per unit, while handsets with price tags of US$ 400-US$ 500 accounted for only 3-4% of the
total sales in the same year.
RNCOS
Page 43 of 81
RNCOS
Figure 4-21: Vietnam - Mobile Handset Sales* (in Million Units), 2006 & 2007
6.3
in Million
6
4.7
5
4
3
2
1
0
2006E
2007E
Source: GfK Asia & Vietnam News Agency

Note: Estimated sales for 2006 and 2007
4.1.2.7.3
Personal Computers
The sales of computer are rapidly growing in Vietnam, with nearly one million units sold in
the year 2006. The market is further expected to jump about 25% in 2008 over 2007, thanks
to the countrys solid economic foundation and growing awareness and interest in IT in both
private and public sectors.
Figure 4-22: Vietnam - Personal Computer Sales (in Million Units), 2006*-2008F
1.5
1.6
1.4
in Million
1.2
1.2
1
1
0.8
0.6
0.4
0.2
0
2006E
2007E
Source: International Data Group & RNCOS

Note: It is assumed that market grew by 20% in 2007 over 2006
*Estimated data for 2006 and 2007
RNCOS
Page 44 of 81
2008F
RNCOS
4.1.2.7.4
Video Recorders
As video recorders are being replaced by high-tech mobiles rapidly, the sales of video
recorder declined a massive 32.5% between 2002 and 2005, reaching 27,000 Units.
Figure 4-23: Vietnam - Video Recorder Sales (in 000 Units), 2002-2005
45
40
40
39
33
35
27
in'000
30
25
20
15
10
5
0
2002
2003
2004
2005
Source: Euromonitor
4.1.2.7.5
Washing Machines
The demand for white goods, particularly washing machines, has seen a strong upsurge in
recent years. Sales of washing machines rose at a CAGR of over 12% from 2002 to 2007,
reaching 98,000 Units at the end of 2007.
RNCOS
Page 45 of 81
RNCOS
Figure 4-24: Vietnam - Washing Machine Sales (in 000 Units), 2002-2007E
120
98.0
100
87.0
77.0
in'000
80
60
55.0
62.0
69.0
40
20
0
2002
2003E
2004E
2005E
2006E
2007E
Source: Euromonitor
Furthermore, washing machine sales in Vietnam are projected to grow at a CAGR of over 14%
during 2008-2012. Rising disposable income and increasing accessibility due to rapid
urbanization and consumer financing will propel the growth in washing machine sales during
the forecasted period.
Figure 4-25: Vietnam - Forecast for Washing Machine Sales (in 000 Units), 2008-2012
250
191.0
in'000
200
167.0
146.0
150
112.0
127.0
100
50
0
2008
2009
2010
Source: EIU
RNCOS
Page 46 of 81
2011
2012
RNCOS
4.1.2.7.6
Others
Refrigerators
The annual sales volume of refrigerators in Vietnam stood at 181,500 in 2002 (latest available
data), but since then, it has declined slowly. The penetration rate of refrigerators in 2000 was
about 65% in Hanoi, 73% in Ho Chi Minh City and 10-40% in provinces and towns.
Air Conditioners
The penetration rate of air conditioners is low, averaging 3-8% in 2002, with the highest rate
in the southern part of the country.
RNCOS
Page 47 of 81
RNCOS
4.2
By Province
The retail sales of goods and services reflect the total sales of goods and services of business
establishments (including commercial businesses, production units, farmers, hotels,
restaurants, tourism, services held by individuals or organizations) retailed directly to

consumers in the market.
Almost all the provinces in Vietnam are reporting high retail sales, thanks to rising disposable
income, increasing demand for consumer goods, surging consumer spending, rapid
urbanization and growing brand- and fashion-consciousness.
4.2.1
South East
The retail sales of goods and services in Southeast Vietnam increased dramatically at a CAGR
of around 19% during 2002-2006 to a preliminary value of VND 201.8 Trillion at the end of
2006 from VND 101.1 Trillion in 2002.
Figure 4-26: South East - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
250
in Trillion VND
201.8
200
166.0
144.5
150
121.6
101.1
100
50
0
2002
2003
2004
Source: GSO
Note: P= Preliminary
RNCOS
Page 48 of 81
2005
2006P
RNCOS
4.2.2
Red River Delta
Red River Delta of Vietnam also witnessed a significant rise in retail sales of goods and
services at a CAGR of 20.5% from 2002 to 2006 to a preliminary value of VND 117.9 Trillion at
the end of 2006.
Figure 4-27: Red River Delta - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
140
117.9
in Trillion VND
120
96.4
100
79.3
80
60
66.1
56.0
40
20
0
2002
2003
2004
Source: GSO
RNCOS
Page 49 of 81
2005
2006P
RNCOS
4.2.3
Mekong River Delta
The retail sales of goods and services in Mekong River Delta of Vietnam surged strongly at a
CAGR of around 21% during the period spanning from 2002 to 2006.
Figure 4-28: Mekong River Delta - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
140
115.6
in Trillion VND
120
97.5
100
76.3
80
60
54.0
63.9
40
20
0
2002
2003
2004
Source: GSO
RNCOS
Page 50 of 81
2005
2006P
RNCOS
4.2.4
South Central Coast
South Central Coast of Vietnam logged an impressive growth in retail sales of goods and
services at a CAGR of about 20.5% during 2002-2006.
in Trillion VND
Figure 4-29: South Central Coast - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
50
45
40
35
30
25
20
15
10
5
0
46.4
37.8
31.7
27.3
22.0
2002
2003
2004
Source: GSO
RNCOS
Page 51 of 81
2005
2006P
RNCOS
4.2.5
North Central Coast
The retail sales of goods and services in North Central Coast of Vietnam stood at a preliminary
value of VND 35.7 Trillion at the end of 2006 from VND 17.9 Trillion in 2002, representing a
CAGR hike of nearly 19%.
Figure 4-30: North Central Coast - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
40
35.7
in Trillion VND
35
30.0
30
24.6
25
20
17.9
20.6
15
10
5
0
2002
2003
2004
Source: GSO
RNCOS
Page 52 of 81
2005
2006P
RNCOS
4.2.6
North East
The retail sales of goods and services in North East of Vietnam also experienced robust growth
at a CAGR of approximately 19% from 2002 to 2006, touching a preliminary value of VND 35.9
Trillion.
Figure 4-31: North East - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
40
35.9
in Trillion VND
35
30.1
30
25.3
25
20
17.8
20.7
15
10
5
0
2002
2003
2004
Source: GSO
RNCOS
Page 53 of 81
2005
2006P
RNCOS
4.2.7
Central Highlands
Like other regions, Central Highlands also registered strong growth in retail sales of goods and
services. It grew at a CAGR of around 23% during 2002-2006 to a preliminary value of VND 21.3
Trillion.
Figure 4-32: Central Highlands - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
in Trillion VND
25
21.3
20
17.4
15
10
12.9
9.3
10.5
5
0
2002
2003
2004
Source: GSO
RNCOS
Page 54 of 81
2005
2006P
RNCOS
4.2.8
North West
The retail sales of goods and services in North West increased at a CAGR of about 21.5%
during 2002-2006 to a preliminary value of VND 6.1 Trillion at the end of 2006 from VND 2.8
Trillion in 2002.
Figure 4-33: North West - Goods & Services Retail Sales (in Trillion VND), 2002-2006P
6.1
in Trillion VND
5.0
5
3.9
4
3
2.8
3.0
2002
2003
2
1
0
2004
Source: GSO
RNCOS
Page 55 of 81
2005
2006P
RNCOS
4.3
By Ownership
Retail sales of goods and services can be further divided into State-owned, Non-state-owned
and foreign-owned. Detailed information on these divisions is given below:
4.3.1
State-owned Companies
State-owned retail sales account for comparatively small share than the private-owned retail
sales. It grew at a CAGR of around 12% during 2002-2006 to a preliminary value of VND 72
Trillion.
Figure 4-34: Vietnam - Goods & Services Retail Sales by State-owned Companies (in Trillion VND),
2002-2006P
80
72
in Trillion VND
70
60
50
60
62
2004
2005
52
46
40
30
20
10
0
2002
2003
Source: GSO
RNCOS
Page 56 of 81
2006P
RNCOS
4.3.2
Non-state-owned Companies
Non-state-owned retail sales represent majority of retail sales of goods and services in
Vietnam and expanded at a CAGR of about 21% during 2002-2006.
Figure 4-35: Vietnam - Goods & Services Retail Sales by Non-state-owned Companies (in Trillion
VND), 2002-2006P
600
485
in Trillion VND
500
400
400
324
268
300
224
200
100
0
2002
2003
2004
Source: GSO
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2005
2006P
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4.3.3
Foreign-owned Companies
At present, foreign-owned retail sales of goods and services account for a small share of total
retail sales in Vietnam. However, it grew strongly at a CAGR of approximately 20% during
2002-2006, and stood at a preliminary value of VND 23 Trillion in 2006. In coming years, this
sector will see rapid growth due to the liberalization of retail sector.
Figure 4-36: Vietnam - Goods & Services Retail Sales by Foreign-owned Companies (in Trillion
VND), 2002-2006P
23
in Trillion VND
25
18
20
15
14
15
11
10
5
0
2002
2003
2004
Source: GSO
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2005
2006P
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4.4
By Retail Format
The domestic retail sector in Vietnam is highly fragmented and underdeveloped, with small
family-owned businesses dominating the sector. The sector has recently seen a greater
degree of foreign investment, and the market has experienced some instances of
consolidation leading to the formation of larger shops and shopping centers. However, despite
increasing foreign investment, around 90% of the total retail sales are still under the control
of traditional outdoor markets (as of 2007).
Figure 4-37: Vietnam - Share of Sales by Traditional & Modern Retail Format (%), 2007
Modern Retail
10%
Traditional Retail
90%
Source: Ministry of Trade
However, in cities like Ho Chi Minh and Hanoi, the share of modern trade is rapidly increasing.
It increased by 6 percentage points to 21% in 2006 over 2004.
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Figure 4-38: Ho Chi Minh & Hanoi - Share of Traditional & Modern Trade (%), 2004-2006
100
85
82
79
80
60
40
21
18
15
20
0
2004
2005
Modern Trade
2006
Traditional Trade
Source: AC Neilsen
Note: Based on FMCG Trade
With strong economic growth, rising income level (especially disposable income), growing
middle class, expanding young population and increasing exposure to western lifestyle are
fuelling growth in modern trade of retailing in Vietnam. Modern trade achieved an average
growth of 18% per annum during the period 2000-2006, and is expected to continue growing at
the same level in coming years. The demand for an international shopping experience by
urban consumers has risen and increasing number of consumers is shifting from the
traditional to the modern trade.
Table 4-1: Vietnam* - Number of Modern Retail Outlets by Brand (2004-2006)

Vissan
Modern Trade
2004
CoopMart
14
Citimart
Medicare
Big C
Fivimart
Marko
Maximark
Metro
Intimex
Hanoi Star Mart
CMC
Source: AC Nielsen
Note: *Data for Ho Chi Minh & Hanoi
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2005
19
13
7
6
4
3
3
4
3
3
2
2
2006
10
20
9
5
4
4
3
6
6
6
2
3
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4.4.1
Traditional Market
Although the number of traditional grocery outlets, street vendors and market stalls has been
decreasing YOY, the traditional outdoor markets accounted for around 90% of the total retail
sales in the year 2005-06, according to the Ministry of Trade. Hence, it is a good opportunity
for foreign retailers to open modern retail outlets and convert Vietnams unorganized retail
market into organized one.
Table 4-2: Vietnam* - Number of Traditional Stores by Format (2004-2006)

Format
2004
Traditional Grocery Outlet
2005
2006
23,269
18,183
Street Vendors
1,102
712
Market Stalls
3,177
2,839
Source: AC Nielsen
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17936
647
3189
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4.4.2
Supermarket
The concept of supermarket is rapidly developing in Vietnam. Ho Chi Minh City and Hanoi, the
country's two major cities, had around 104 supermarkets in 2005, accounting for 75% of the
total number of superstores. The popularity of superstores is attributed to the fact that they
offer a large variety of imported products within the ambience of a high quality-shopping
environment. Moreover, with rising number of supermarkets in Vietnam, the dimensions of
superstores in operation are changing. The size of supermarkets now average between 25,000
Square Feet and 50,000 Square Feet compared with 5,000 Square Feet to 8,000 Square Feet
at their initial development stage in the mid-90s. Most of the supermarkets in Ho Chi Minh
City are located in the downtown area where majority of expatriates are based.
Table 4-3: Vietnam* - Number of Supermarkets (2004-2006)
Year
2004
Number of Supermarkets
2005
104
104
2006
140
Source: AC Nielsen & Bao kinh te Vietnam

Note: *2004-2005 data for Hanoi & Ho Chi Minh City and 2006 data for Ho Chi Minh City, Hanoi, Da Nang
and Can Tho
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4.4.3
Hypermarket & Warehouse Clubs
Hypermarket penetration is low in Vietnam but it is expected that the number will increase
due to changing lifestyle and increase in the middle class base. Many big retailers have
started opening hypermarkets in the big cities like Hanoi and Ho Chi Minh City of Vietnam.
Table 4-4: Vietnam* - Number of Hypermarkets & Warehouse Clubs (2004-2006)
Hypermarkets
Format
2004
Warehouse Club
2005
3
3
2006
3
6
Source: AC Nielsen
In-spite of rapid growth in Vietnams food retail market, hypermarkets represent a minuscule
share in retail food sales. Hypermarkets and supermarkets together accounted for around 3%
of the retail food sales in 2007. Assuming no growth in food retail sales and 10% annual
growth in the sales of hypermarkets and supermarkets, share of hypermarkets and

supermarkets in food retail sales will reach 12% by 2020, indicating that retail sector will take
time to be dominated by hypermarkets and supermarkets.
Figure 4-39: Vietnam - Share of Hypermarkets & Supermarkets in Food Retail Sales (%), 2007E &
2020F
14
12
12
10
8
6
4
2
0
2007E
2020F
Source: BMI, 2004
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4.4.4
Convenience Stores
Convenience stores have been on the rise in Ho Chi Minh City, transforming the city into one
with modern retail channels. As Vietnam is a developing market and convenience stores have
still not reached full developed stage, coupled with rising disposable income in urban areas,
the outlook for the convenience stores is very promising. Thus, big retailer companies are
heading to open new convenience stores in the country.
Table 4-5: Vietnam* - Number of Convenience Stores (2004-2006)

Format
2004
Convenience Store
21
Source: AC Nielsen
Note: Data for Ho Chi Minh & Hanoi
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2005
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19
2006
17
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5. Consumer Behavior Pattern

Average Household Spending Patterns
Similar to other developing countries, majority of Vietnamese are poor. Therefore, it is likely
that a large proportion of income in the country is spent on basic goods and services such as
food, clothing, hygiene products and transportation.
Lifestyles/Shopping Habits
An average Vietnamese consumer relies on small open markets and domestic, owner-managed
shops for his basic needs such as food and clothing. Although large foreign-owned retail
outlets and shopping malls in major urban centers, such as Ho Chi Minh City and Hanoi, are
attracting attention and visitors, it is unlikely that an average consumer can afford to shop
regularly at such establishments.
Brand/Price Sensitivity
Vietnamese people generally prefer foreign brands to domestic brands; therefore, it is likely
that they remain fairly price-sensitive given their moderate income position. An example of
this foreign product preference was shown in a survey conducted by an international market
research institute wherein the Vietnamese products accounted for 6% of the domestic
electronic audio-visual market in 2004, while Japanese trademark products held 48% and
South Korean trademarks 35% share in the market.
Emerging Middle & Upper Class
Like many emerging economies, recent reforms in Vietnam have increased the income gap
between the rich and the poor. Growing urban middle and upper classes have shown a
particular interest in foreign luxury brands, electronics and cosmetics. This is evident from
the fact that during 2003-2005, the consumption of electronic products such as digital
cameras and televisions increased more than 250%.
Consumer Purchasing Behavior
Consumers in Vietnam spend a big proportion of their money on food items. According to the
Gain report, expenditure on food stood between 42% and 45% of the total consumption
expenditure in 2005. A major part was spent on staple and basic food items like rice, meat,
salt, sugar, vegetable oils, and sauces; very little proportion of the expenditure was spent on
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high value processed food products. However, some recent consumer surveys indicate to
increased spending on high-value products also, such as dairy products (UHT milk, fresh milk,
yogurt, cheese etc.), meat, eggs, fresh fruits, vegetables, confectionary and snack foods.
Important Trends in Consumer Behavior
High concern for food safety
Prefer eating at home
Spend a big proportion of their income on food items

Spend little on high-value processed food products
Shop daily for their food use
Prefer fresh products
Low percentage of people who have refrigerators and microwave
Urban people are more concerned about nutrition, quality, hygiene and food safety
Brand loyal but still receptive to new products
Consumers, especially kids, influenced by advertisement and promotion

Main Shopper & Key Influencer
In Vietnam, women are the key influencers and constituted 83% of the total influencers in
2005. Women also topped the list of main shoppers with a whooping 97% share.
Figure 5-1: Vietnam - Main Shoppers* & Key Influencers** (%), 2005
120
97
100
83
(%)
80
60
40
20
17
3
0
Main Shoppers
Key Influencers
Male
Female
Source: AC Nielsen
Note: *Data for Main Shoppers is for Hanoi City
**Data for Key Influencers is for Ho Chi Minh
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Consumer Behavior for Clothes
People of North and South Vietnam mostly wear cotton clothes but in different styles.
North Vietnam
In North Vietnam, most men and women wear black trousers with white or black buttons.
They prefer sandals because sandals are more comfortable to wear in a hot climate. Farmers
prefer an upper garment and baggy cotton trousers so that they can be rolled up above the
knees to save from getting wet with water and mud in rice fields. There is a large cone
shaped hat which is usually worn to protect against the bright light of the sun and heavy
rains. It is called Non la in Vietnamese. It is made out of straw and is very helpful and
important to Vietnamese farmers. Sometimes, instead of a hat, a cloth is tied around the
head.
South Vietnam
The people of South Vietnam also wear trousers and sandals, but they also wear Western-style
clothes, especially men. Many women and girls still wear the traditional dress called ao dai.
Ao dai is a long tunic with a slit on each side. They also wear skirts over a black or white color
trouser. It is usually worn on holidays and special occasions. Ao dai is embroidered with
colorful pictures of animals, dragons and birds on the front and back.
Men wear ao dai as well, but they are usually solid black or white. South Vietnamese men
don't wear ao dai as often as the North Vietnamese unless they are going to a special party or
special occasions because they are heavily influenced by the American way of life.
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6. Product Affordability Analysis

Cost and affordability analysis of some important consumer goods shows that in spite of
rapidly growing personal disposable income of Vietnamese, their affordability index is quite
low compared to their counterparts in other countries. Thus, high price of consumer goods
and low income are the major concerns for the retail market. For example, average cost of 66
cm color television set was US$ 983 at the end of 2007, almost 36 times of an average
monthly disposable income of a Vietnamese. And in terms affordability index of this product,
Vietnam ranked 57th in a group of 58 countries worldwide. Similarly, children shoes,
sportswear and women shoes cost an average of US$ 93.62 and US$ 130 respectively in 2007.
Table 6-1: Vietnam - Price & Affordability Rank by Product, 2007
Products
Hand lotion, 125 ml

(supermarket)
Lipstick, deluxe type
(chain store)
Men's business shirt,
white (chain store)
Women's shoes, town
(chain store)
Child's jeans (chain
store)
Child's shoes,
sportswear (chain
store)
Compact disc album
(average)
Television, color, 66 cm
(average)
2.16
Monthly Disposable
Income (%)
7.83
17.79
64.35
54 out of 56
50.68
183.3
56 out of 57
130
468.5
56 out of 57
24.9
90.08
55 out of 56
93.62
338.7
56 out of 56
20.28
73.38
55 out of 56
983
3555
57 out of 58
Price (in US$)
Affordability Rank*
56 out of 57
Source: EIU
Note: *Affordability Rank: For each country, the price of an item as a percentage of monthly personal
disposable income is calculated. Countries are ranked according to these percentages. The most
affordable country will have the lowest percentage and be ranked first.
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7. Future Growth Prospects

7.1
Developing Trend of Modern Retailing
Modern retail formats like air-conditioned mini-marts, supermarkets and small shopping
complexes will become more prevalent in coming years and will attract consumers away from
traditional outdoor markets. The pace of change will be more rapid in the main urban
centers, which are home to relatively affluent consumers (compared with those in rural
areas) with increasing purchasing power. In rural areas, independent small-scale retailers and
outdoor markets will continue to dominate the retail trade. Development in urban areas will
be encouraged by the government efforts to prepare the local retail sector for increased
foreign competition resulting from Vietnam's membership of the WTO. In Hanoi, the capital
city, for example, the authorities have offered tax preferences and quicker land and
administrative procedures to encourage the development of modern retail outlets.
At present, retail sales via supermarkets account for only 10% of sales, with the remaining
distributed among traditional, small markets, shops and direct sellers. However, consumption
habits of Vietnamese residents, especially the youth, are changing. Vietnamese increasingly
prefer to shop at modern supermarkets with better quality and service. It is hoped that by
2017, retail sales from supermarkets in Vietnam will account for 60% of sales, equal to the
current level in Thailand.
Figure 7-1: Vietnam - Share of Modern Retailing in Retail Sales (%), 2007 & 2017F
70
60
50
40
30
20
10
0
60
10
2007
2017
Source: AT Kearney
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7.2
Online Retailing
Internet retailing is in the early stages of development in Vietnam but it showed steady
growth and is expected to offer great potential in future. It is expected to grow fast because
of the increasing affordability and availability of computers, and consumers familiarity with
the Internet and electronic payment methods. Previously, Vietnamese business cited high
telecommunications and Internet service costs, along with poor quality as the reasons for the
lack of encouragement to fund good quality Websites. However, the number and quality of
Internet service providers is improving and this augurs well for growth over the coming years.
Figure 7-2: Vietnam - Forecast for Internet Users (in 000), 2008-2012
30,000
25,030
26,652
23,247
25,000
20,948
in'000
20,000
18,541
15,000
10,000
5,000
0
2008
2009
2010
Source: Pyramid Research
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2011
2012
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7.3
Non-food Retailers
Vietnam offers ample opportunities to non-food retailers as income has been rising and
consumers are spending more on non-essential items such as clothing, electrical and DIY
goods. Personal-care and household products have been recording the highest growth rates
since 2000. Although the domestic garment sector is strongly export-oriented, local demand
for better quality garments has grown in line with the development of a more brand-
conscious, consumer-oriented society. Rising disposable incomes have meant that essential
toiletries, particularly in the oral hygiene subsector, have become more affordable. Hair care
and bath and shower products account for the second- and third-largest shares respectively
after oral hygiene products. In addition to rising incomes, awareness programmes and
aggressive promotional campaigns have helped to push up the sales of these items and to
drive penetration rates in rural areas. Sales of cosmetics and toiletries are estimated to have
reached over US$ 683 Million in 2007.
7.4
POS Terminal
There is huge requirement for POS terminals in Vietnam. As per the latest information
available, there were only about 11,000 POS terminals in Vietnam. Thus, retailers in Vietnam
are not able to exploit the potential of those customers who do not possess hard cash during
visiting the retail shops and wanted to shop through credit or debit cards via using POS
terminals. To exploit this potential market, banks need to develop a larger network of POS,
especially at supermarkets, restaurants and trading centers. Thus, there will be huge
opportunity for POS manufacturers in Vietnam in near future.
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7.5
International Brands & Luxury Goods
International brands are expanding their presence in the Vietnamese market as the demand
for luxury goods increases with rising incomes. As competition among rival brands intensifies,
prices will remain fairly stable in nominal terms, but will fall in real terms. Luxury brands
such as Louis Vuitton, Dolce & Gabbana, Burberry, Escada and Rolex are becoming
increasingly popular, especially among young consumers, who see them as status symbol. The
government expects spending on luxury goods to increase by 5% per year during by 2010.
Although most of Vietnam's footwear and garment manufacturing industry is geared towards
exports, domestic demand for clothing and footwear, and particularly for more fashionable
items, is growing. Some local manufacturers, which until recently have concentrated on
producing goods for export, are turning their attention towards the domestic market. Seeing
the demand for quality and luxury items, they now are coming up with quality products to
leverage the opportunity.
7.6
IT in Retailing
Rising wave of foreign retailers with professional management skills and large capital
potential are arriving in Vietnam. But to survive, these retailers will have to apply IT in their
management in terms of commodity classification, clients, employees and strategic partners,
among other things. Thus, there is a huge expected demand for IT in Vietnam retailing in
coming years. The demand may be in terms of Radio Frequency Identification (RFID), barcode
readers, or some other new technology which will help in improving the management
efficiency of Vietnam retailers.
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7.7
High-tech Retailers
There are huge opportunities for hi-tech retailers in Vietnam as consumer purchasing power
for such products has gone significantly up. The volume of technological products available in
Vietnam has increased sharply in recent years, since Vietnam joined the WTO. Over 500
technological brands are on sale. Many products have posted high sale rates and including
mobile phones, Information Technology (IT) products, and high quality TVs. With a population
of 86 Million, Vietnams high-tech retail market will be more attractive in years to come. In
2006, revenue from 26 key items of the Vietnamese electronic technology sector reached US$
3.1 Billion. This year too, the hi-tech consumer goods sector will see strong growth with
categories of audio and video products, technological equipment, and laptop and home
appliances. The revenues of these products on the domestic retail market were estimated to
reach US$ 4 Billion by the end of 2007. At present, mobile phones are one of the best-selling
products. Chains of shops selling mobile phones account for 35% of those trading technological
products. It was estimated that about six million mobile phones will be purchased in 2007,
followed by TVs with around 1.2 Million sets, laptops and other IT products.
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7.8
Hotel & Restaurants
Vietnamese food retail sector offers significnat opportunities for hotel and restaurants as
consumer spending on hotel and restaurants is growing at it fastest pace and is forecasted to
grow at a CAGR of about 16% during 2008-2012.
Figure 7-3: Vietnam - Forecast for Consumer Expenditure on Hotel & Restaurants (in Million US$),
2008-2012
9,000
8,388
8,000
7,272
in Million US$
7,000
6,327
6,000
5,000
5,442
4,674
4,000
3,000
2,000
1,000
0
2008
2009
2010
Source: Euromonitor
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8. Key Industry Hurdles

Inadequate management experience, inability to access finance and poor distribution
networks are the major problems faced by domestic retailers. In addition, major international
retailers such as Wal-Mart, Carrefour, Tesco and Lotte Shopping have indicated their interest
in setting up retail branches in Vietnam in near future, which is likely to have a negative
impact on smaller domestic retailers.
8.1
Skilled Staff
The deadline for Vietnam to open its doors to foreign retailers is only one year away (as per
its entry to the WTO), but domestic retailers are already facing a serious shortage of skilled
staff. Vietnamese retailers have not yet recognized the importance of trained sales staff. As
on end of 2007, only about 5% of retail staff in the country was properly trained.
Most of the departments staff lacks professional skills, foreign language ability and ability to
adapt to a new environment. They (the staff) contribute up to 60% to the markets revenue.
Many small and medium-sized retail businesses don't have enough capital and experience to
train personnel and thus, are not able to forecast turnover.
Supermarkets and department stores account for 12-15% among the retail market and are
predicted to increase from 35 to 40% by 2020. Directors, managers, supervisors and sale clerks
will all be in demand. Companies can borrow capital and technology, but personnel must be
trained.
So the companies should give training priority to people in senior positions who can outline a
company vision and human resource strategies. Retailers should also work with foreign
partners to share management experience and information.
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8.2
Consumer Price Index
Rising consumer price inflation is definitely hitting the demand of consumer goods in Vietnam.
Vietnam's annual inflation rate soared to 19.4% in March 2008 from 15.7% in February 2008,
hitting the double digits for a fifth consecutive month. The cost of food and foodstuffs surged
by 30.6% year on year, up from a 25.2% gain in February. Food price inflation has been
accelerating rapidly since mid-2007. Housing and construction costs jumped by 20.6% in
March, following 16.4% growth a month earlier, while transport and communication costs
expanded by 14.3% year on year after increasing by 8.3% in February.
Figure 8-1: Vietnam - Consumer Price Inflation (%), Sep 2007 to Mar 2008
25
19.4
20
15.7
14.1
15
%
12.6
10
8.8
9.3
10
Sep, 07
Oct,07
Nov,07
5
0
Dec,07
Source: General Statistics Office of Vietnam
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Jan,08
Feb,08
Mar, 08
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8.3
Retail Space & Cost
Retail shop space is limited in Vietnam as the country's retail sector changes from the
traditional to a new style of retail trade. The shortage of retail space is a problem for
domestic and foreign companies. Four Vietnamese retailers, Saigon Co-op, Satra, Phu Thai
and Hapro, have, while keeping their old companies intact, established a new company, the
VDA Company, which will be looking for and building retail space, and then transferring it to
the parent companies. Foreign retailers lease space in existing store property, supermarkets
and plazas and when they get established and find something that better suits their needs,
they move to a new location.
Because demand exceeds supply, the cost of retail space in Hanoi and Ho Chi Minh City has
gone up rapidly. According to CBRE, at the end of September 2007, retail space averaged US
40 per Sq Meter in both Hanoi and Ho Chi Minh City. In Districts 1 and 3 in Ho Chi Minh City,
the best retail space had climbed to US$ 200 per Sq Meter. Thus, the shortage of retail space
is definitely putting a serious threat to the Vietnamese retail market.
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8.4
Trade Barriers & State Subsidiaries
Trade barriers and state subsidies for the local retail industry will be removed in January 2009
as part of Vietnams commitments to the WTO and the Association of South East Asian Nations
(ASEAN) of which the country is a member. Local retailers will no longer be able to enjoy
preferential treatment, while foreign players will have free access to the retail market. Thus,
there are chances that local retailers may loose their existing market share in Vietnam.
8.5
Infrastructure
Poor logistics networks and services, unequal infrastructure development between regions,
and low financial capacity, are problems local retailers currently face as they try to expand
their market shares before the increased foreign retail competition in coming years.
Infrastructure is also going to be a great challenge to the foreign players coming to Vietnam.
Thus, there is a need to overcome infrastructure-related problem soon in order to maintain

the growth rate of retail market in Vietnam.
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9. Competitive Landscape
The key players in the domestically-owned supermarket segment are Saigon Co-op Mart, G7
Mart and Maximark. Saigon Co-op Mart was modernized in the mid-1990s and since then, it
has opened large stores. The Company has made a considerable effort to introduce modern
retailing methods in Vietnam. By November 2007, the chain had 28 stores in operation, which
set aside around 25% of retail space for non-food items. In 2007, Saigon Co-op Mart recorded
revenue of nearly US$ 164 Million.
G7 Mart has expanded rapidly by franchising already existing stores at good locations and
having a strong customer base. With sales of US$ 739 Million and a market share of 19.7%, G7
Mart is now the largest organized retailer in Vietnam. It has already opened over 5,000 stores
and has set a target of 10,000 stores in coming years. Maximark, which opened its first store
in the mid-1990s, now operates six outlets in Hanoi and Ho Chi Minh City.
One of the largest foreign-owned retail players in Vietnam is Espace Bourbon, which operates
Big C supermarkets under franchise mode. The Group's first French-style shopping mall in
Vietnam, Big C Dong Nai, was opened outside Ho Chi Minh City in 1998. Two other malls
opened in Ho Chi Minh City in early 2001. The first Big C supermarket in Hanoi, the Big C
Thang Long Trade Centre, opened in 2005, and around 90% of the goods stocked there are of
Vietnamese origin.
Metro operates ten wholesale Cash & Carry stores across the country and is the second-largest
player in the market. The Company has stores in Ho Chi Minh City, Hanoi, Can Tho, Haiphong
and Danang. Although these stores are technically wholesale outlets and require members to
provide business registrations while joining, businesses are not restricted to hotels,
restaurants and food retailers. Metro has attracted retail customers away from local retailing
outlets. According to Metro, each center has more than 90,000 registered customers.
Parkson opened its first department store in downtown Ho Chi Minh City in 2005 and plans to
operate ten more stores by 2009. The chain targets middle- to high-income consumers. As the
market opens further to foreign investors, multinational retail giants such as Tesco (UK),
Carrefour (France) and Wal-Mart (US) are looking to enter the market.
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About the Company

RNCOS, formed in the year 2002, aims to outsource all your business needs and serve your
customers in their quest for the information. RNCOS is transforming the concept of
Outsourcing by adapting it into a strategic management preference to attain world-class
operational excellence and competitive advantage.
RNCOS specializes in Industry intelligence and creative solutions for contemporary business
segments. Our professionals study and analyze the industry and its various components, with
comprehensive study of the changing market behavior. We provide corporations with an
insight of the industry, competitive and market necessary to compete in today's business
environment. Additionally, our team focuses on the cause and effect relationship between
federal and state regulations and the industries affected by regulation.
The company also works closely with small and medium sized consultancy firms, in various
industry sectors. We assist in back-end research and data gathering processes. Our accuracy
and data precision proves beneficial in terms of pricing and time management that assist the
consultants in meeting their objectives in a cost-effective and timely manner.
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Disclaimer
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