Vietnam opening to retail competition

Vietnam is planning to open its retail sector to foreigners gradually over the next several years, but local retailers are getting ready now.

The country's leading retail chain, Saigon Coop Mart, has only fifteen stores, but is planning to add units in all 64 provinces. Other firms have similar plans.

Their inexperience in managing distribution networks appears to be the largest concern:

G7’s Vu said developing a modern distribution network would be a challenge for Vietnamese retailers while international rivals were experienced in inventory management, marketing, and negotiating with retailers.

Local distributors should team up instead of operating individually if they were to take on international giants, he said.