Vietnam continues to prove to be a potential market especially for services, construction materials, industrial machineries, materials for garment and textile, foot wares industry and agriculture, motorbikes and automobiles, wood materials…in the years to come. A trend of import surge in the coming years will become evident due to Vietnam’s AFTA and WTO commitments to lift tariff barriers for imported products.

Vietnam’s main export partners include ASEAN countries, China, Taiwan, Japan, Korea, EU, Hong Kong, India, USA,…In recent years, import volume from China, Taiwan and USA has seen a steady growth while there is an opposite trend for imported products from EU countries. Goods can be distributed in Vietnam in two ways – either directly or through distribution companies of wide network of distribution channels.

Regarding domestic market, Vietnam’s total retail sale and services increasing yearly. Customer spending has witnessed a good growth rate surpassing the population growth which means an increase in consumer spending per capital and indicates better standard of living. In addition, the ratio of retail sale and service turnover to the total consumer spending volume rapidly growth up. This trend can be translated as reduction in self-production and self-consumption or marketability increase.
With a large population of 90 million people, 70% of whom live in rural areas, estimated population growth together with tendency of people moving to urban areas make Vietnam make up a increasingly large-scale market. Emergence of high-income class due to economic development along with large young population, increasingly upgraded infrastructure, robust development of tourism industry are the engine boosting consumer spending especially luxury goods. Agro-forestry and fishery products hold up only 19.1% the total retail sale and this figure is likely to reduce in the future, while industry-construction goods make up a big share of 53.6% and likely to increase. Service sector only accounts for a small part of 27.3% but likely to increase rapidly in the future.
Regarding goods categories, products which such as mobile phones, computers, air conditioners, refrigerators,…motor mobiles in rural areas and automobiles in urban areas were once considered unnecessary or luxury are increasingly consumed. There is also a tendency of changing distributors from traditional markets to modern markets with the emergence of many of supermarkets and trade centers.

LAWYER FOR BUSINESS AND FOREIGN INVESTMENT