With favorable conditions in macroeconomic,
political and social, Vietnam is a potential destination for setting up company
and conduct the M&A activity.
In Vietnam, the growth of the retail market
and the entry of international brands, while the average income of consumers is
increasing along with stable economic conditions are creating motivation for
retail market. In addition, e-commerce sector is growing and accounts for a
large part of total retail sales, although traditional forms of shopping still being
preferred by consumers.
Moreover, the liberalization of the retailmarket in 2009 created favorable condition for foreign brands to join and
domestic brands are constantly expanding in order to maintain market presence.
The most developing sectors of the retail segment are food & beverage
(F&B) and consumer products.
Vietnam
Retail Market
Prospect for the Asian retail market is very
positive, the average growth rate in retail sales is 8.5% in the last 5 years.
The number of tourist increases is promoting retail activity in the shopping
venues with a prime and convenient location. Although the development of
e-commerce in the region is now very noticeable, but the traditional forms of
shopping still has an important position in the market. The store owner will
need to focus on improving the shopping environment and concerning about the
customer experience in order to increase competitiveness.
According to Cushman & Wakefield, in the
next 5 to 7 years, approximately 1.5 million m2 of retail floor space will
enter the Ho Chi Minh City market of retail space, bringing the total number of
retail area to nearly 2.5 million m2. The retail market will be busy,
especially in the affordable and intermediate segments. The powerful foreign
retail corporations will consider Vietnam as potential market in the region,
demonstrating that in the period 2014 – 2015, the retail and consumer goods are
the mainstream of M&A activity in the world, accounting for 36% of the total
value of M&A activity in Vietnam.
In addition, Vietnam ranked 32nd in
the list of nations that have the shopping streets with the most expensive rent
cost in the world, in the context of Vietnam is preparing to join a series of
free trade agreements such as AEC and TPP, then this will cause domestic
retailers to face with many difficulties because rent cost plays the 2nd important
role (after the location) in business strategy. When foreign retailers have
strong financial resources, they can afford to hire premises with the most
favorable location in the market.
Vietnam
Tourism Real Estate Market
Many promient investors have visited Vietnam
to explore the market potential. In the real estate segment, Kevin Green,
one of British’s leading millionaires has just come to Vietnam to experience
the market. He interested in tourism real estate and especially Sapa when the
Hanoi – Lao Cai highway has completed. Moreover, the Fansipan cable car when
completed will attract huge number of tourists to come here. Convenient
transportation is a golden opportunity for tourism real estate.
Sapa is currently attracting around 2.5
million visitors. This figure is expected to rise to 5 million in 2020 due to
infrastructure connections between Sapa and other areas are increasingly
improved.
When talking about investment opportunities
in tourism real estate in Sapa, Kevin Green said that Sapa has a lot of
potentials for investment. He interested in the resort project “Sapa Jade
Hill”, which is currently being developed. He also works with investors to be
able to offer this product to abroad market, while completing the procedure to
purchase Sapa Jade Hill villa for long term investment.
Reportedly, Sapa Jade Hill is a key project
in Sapa, developed by Truong Giang Sapa and by Dai Hung Investment and
International Trade JSC (GBI Land) with a total investment of nearly 2,000
billion USD. This project has completed Phase 1 with 19 service villas, which
was sold out and handed over the red book to customer.
In addition, in the Property Expo Conference
was held in Hanoi, Kevin Green and enrichment experts have shown a huge shift
of capital flow from foreign companies, factories to Vietnam, then this is the
most ideal place for real estate investment within the next 5 -10 years. The
employment index is an indicator of the increase in value of real estate, as
the number of workers in the industrial zone of Vietnam is on the rise.
ANT Consulting is here to assist you from the
outset; providing corporate intelligence, risk advisory, management consulting
services that assist market entrance, and ensure efficient business start-up
operation.
We strive to save your cost by guiding you
towards economical solutions that comply with local legislation and procedures.
We support you through early logistic solutions and carry you through as your
business grows. We aim to bridge the gap between international best
practices and local cultures and assist foreign companies and organizations
entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at
email: ant@antconsult.vn or
tel: +848 3520 2779 . To learn more about us, please visit www.antconsult.vn
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