VN retailers urged to forge alliances
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Vietnamese retailers should join hands to compete more effectively against major foreign rivals as the market is fully opened over the next few years, said experts at a seminar held in Hanoi on Wednesday.
Pursuant to the country’s commitments to the World Trade Organisation, foreign investors were going to be able to establish wholly foreign-invested enterprises in the retail industry within the next three years, placing increasing pressure on domestic retailers, said Vietnam Retailers Association chairwoman Dinh Thi My Loan.
The capacity of Vietnamese retailers to compete remained limited due to a lack of capital, long-term business strategies for effective distribution, as well as adequate corporate governance, Loan said.
To open a convenience store chain, for instance, retailers would have to accept losses of 400 billion to 500 billion Vietnamese dong (Bt581 million-Bt728 million) in the first five years of operation. Joining hands with foreign partners would therefore be essential for local retailers to develop, she said, urging the government to issue policies to ease the establishment of joint ventures with foreign partners.
