To expand retail market share, Vietnamese businesses need to focus on new products.

Mr. Nguyen Anh Duc - Chairman of the Vietnam Retailers Association and General Director of the Ho Chi Minh City Commercial Cooperative Union ( Saigon Co.op ) - had an exchange with a reporter from the Industry and Trade Newspaper regarding this issue.

Sir, as one of Vietnam's major retailers, how do you assess the state of this industry over the past 10 years?

Over the past 10 years, Vietnam's modern retail sector has grown tenfold, from $2.6 billion to $26 billion. However, modern retail accounts for only about 20% of the total market share, compared to 90% in Singapore, 65% in Thailand, 40% in Malaysia, and around 20% in India.

Saigon Co.op implemented a series of promotional programs before, during, and after the increase in gasoline and diesel prices. Photo: VGP/Phuong Dung

The Vietnamese retail market is experiencing rapid growth, particularly in modern retail. However, compared to other countries in terms of market penetration, Vietnam's modern retail sector is still considered to be lagging behind.

On a positive note, Vietnamese retailers are facing a great opportunity to innovate, develop new products, and leverage the high mobile usage among consumers to diversify sales methods and increase revenue.

Many believe that Vietnam's retail sector is developing rapidly but unsustainably. What are your comments on this? What opportunities does this present for Vietnamese retailers in the near future?

Vietnam's modern retail sector is still developing but lags behind other countries. The market is emerging with new trends, such as a shrinking household size and increasing popularity of health-focused products. Another area for growth in Vietnam's retail market lies in the introduction of new products and services.

Mr. Nguyen Anh Duc - Chairman of the Vietnam Retailers Association - General Director of Saigon Co.op. Photo: The Next Power

Reports indicate that 30% of the revenue of the world's top 500 companies comes from new product development, this figure is 20% in Asia, while Vietnamese businesses have only reached 10%.

This means that the potential for increased revenue from new product development for domestic businesses is still very large. Cooperatives need to take advantage of this period to develop market share and expand modern retail channels.

Currently, the cooperative's revenue in modern distribution channels is still very modest. What recommendations do you have to help the cooperative's products penetrate deeper into and increase sales in modern retail channels?

In my opinion, cooperatives should apply science and technology throughout the entire production process, including traceability, post-harvest preservation of agricultural products, food processing technology, and environmentally friendly practices. They should strengthen cooperation and linkages with producers to invest in developing raw material areas, ensuring a reliable supply of high-quality, safe products at the best possible prices, building trust, and guaranteeing consumer health.

Cooperative societies and individual farmers need to create strong production-consumption linkages to ensure a stable supply of goods to the market and protect the interests of all parties. Saigon Co.op proactively participates in connecting agricultural product consumption across provinces and cities to narrow the gap between producers and consumers, thereby demonstrating social responsibility and contributing to the supply of good, safe products for consumers, as well as gradually increasing the income of farmers.

Thank you, sir!

Source: https://congthuong.vn/mo-rong-thi-phan-ban-le-doanh-nghiep-viet-can-chu-trong-san-pham-moi-343508.html