VietNamNet Bridge - The shelves at Thai-owned supermarkets such as MM Mega Market and Big C are full of foreign-made products, while the products bearing Vietnamese brands are sparse.

With well-known brands, Thai investors have a range of modern retail types in Vietnam, from shopping malls and supermarkets to home appliance centers and convenience stores.

VietNamNet Bridge - Thai investors are expected to increase their presence in Vietnam through capital contribution and M&A deals, analysts say. This will pose a challenge for Vietnamese goods.

VietNamNet Bridge - Vietnamese and foreign convenience stores are rushing to open more shops, use more technologies and provide more services in the retail market.

VietNamNet Bridge - Vietnamese manufacturers are having difficulties in distributing their products as foreign retailers control modern distribution channels.

VietNamNet Bridge - Japanese retailers are pursuing their business strategy to open more convenience stores, malls and mini-marts within the next few years. 

A report from the World Bank released in 2017 showed that business costs in Vietnam are much higher than in other regional countries such as Malaysia and Singapore.

The national ‘Buy Vietnamese’ campaign and the great efforts made by enterprises have not produced the expected results.

VietNamNet Bridge - Despite great potential, private supermarket brands are not developing rapidly as retailers and manufacturers are trying to avoid direct confrontation.

VietNamNet Bridge - Besides Sabeco, a number of other leading Vietnamese enterprises in key business fields have been put under Thai control. 

The Ministry of Industry and Trade (MOIT) says 70-90 percent of goods available at supermarkets are ‘Vietnamese’. But consumers say it is very difficult to find ‘Vietnamese goods’ at supermarkets.

VietNamNet Bridge - The rent for retail premises has increased by 4.8 percent in HCMC’s central area over the previous quarter and by 1.5 percent in other areas of the city. 

Thai products have been flooding the market, with Thai billionaires taking over a number of Vietnamese retail chains.

Citing GDC’s (General Department of Customs) report about the $3 billion deficit in trade with Thailand in the first seven months of the year, experts say they can see a ‘Thai investment wave’ in Vietnam.

VietNamNet Bridge - Some years ago, analysts predicted that modern distribution channels would develop rapidly in Vietnam as income continued to rise. 

The Central Group from Thailand has poured money into supermarkets, home appliance distribution chains, hotels, fashion shops, export and wholesale, and is developing 160 shops/supermarkets. 

In an effort to prevent involved parties from evading tax by inaccurately declaring profits from M&A deals, MOF plans to tax one percent on the transfer price, to be applied to businesses, and one percent on income, to be applied to individuals.

AVR has asked the government to establish a retail conglomerate from four big retail chains, Saigon Co-op, Phu Thai Group, Satra and Hapro, to compete with foreign retailers flocking to Vietnam.

VietNamNet Bridge - The products which bear retailers’ own private brand account for a small proportion in the Vietnamese market. 

The foreign retail brands which have entered the Vietnamese market recently are all powerful and experienced, but it is too early to say who will thrive.