Vietnam's consumer goods market is developing strongly with diverse products, services and modern distribution channels, especially e-commerce.
Full of potential
At the recent Forum on Policy and Law for Domestic Trade Development 2024, themed "Developing a fast and sustainable modern retail system", opinions emphasised the importance of perfecting the legal system, creating a favourable legal corridor for retail businesses to develop.
In addition, applying advanced technology trends, such as artificial intelligence (AI), big data, and data analysis tools in supply chain management, will help optimise retail operations, creating a green, sustainable and environmentally friendly retail market. In addition, training high-quality human resources will also contribute to meeting the development needs of the modern retail industry.
Sharing about the trends and opportunities for developing modern retail systems in Vietnam, Vuong Quang Luong, a representative from the Institute for Industry and Trade Strategy and Policy Research under the Ministry of Industry and Trade, said that according to a report by the market research company Nielsel, in Asia, the Vietnamese retail market is one of the markets with high growth rates recently.
To improve the quality and social responsibility in the supply of consumer goods, according to Vice Chairperson of Vietnam Association of Consumer Goods Development (VACOD) Nguyen Thi Thu Thuy, Vietnam's consumer goods market is growing strongly with a diversity of products, services and modern distribution channels, especially e-commerce.
However, under the pressure of fierce competition from domestic and foreign enterprises, awareness and changes in consumer shopping habits need to deeply assess the importance of improving the quality of goods associated with social responsibility standards. This requires consensus, efforts and responsibility from enterprises, the State and consumers.
The trend of sustainable development, green growth and circular economy creates opportunities for the retail industry to develop modern retail business models, green the supply chain and promote the distribution and consumption of green, environmentally friendly products.
Therefore, the authorities need to strengthen the supervision and enforcement of laws related to consumer goods quality and social responsibility. At the same time, improve, upgrade, and invest heavily in the domestic logistics system.
On the business side, it is necessary to create a "push" in investing heavily in research and development (R&D) to improve products and invest in product innovation in both design and function to increase competitive opportunities and meet consumers' high and diverse needs.
 |
| The retail system is facing many opportunities and challenges. (Photo: SONG ANH) |
Perfecting institutions
To create conditions for retail businesses to develop, Head of Legal at WinCommerce - Masan Group Doan Thi Huong Thanh suggested that the Government and agencies, ministries, departments and branches complete and issue policies related to competition between FDI enterprises and Vietnamese enterprises to ensure healthy competition between economic sectors, supporting the development of the domestic retail system.
In particular, it is necessary to develop standards, regulations and conditions related to participation in the retail market and product quality standards to protect the interests of consumers and domestic businesses. "The policy of reducing VAT by 2% for some goods and services, the credit policy on reducing deposit and lending interest rates to support credit growth in 2023 and 2024 has brought great support to businesses".
Regarding sustainable development, Representative of AEON Vietnam, Nishikawa Satoshi, Northern Regional Director of AEON Vietnam, shared that for sustainable development, AEON aims to reduce environmental impact on the local area, achieve long-term economic growth in Vietnam, realise diversity, fairness and coexistence among people.
"With the current trend of developing green consumption models and large competition, to survive and develop the modern retail distribution chain sustainably, businesses need to comply with and apply international standards on social responsibility, environmental protection and climate change response," he said.
Director of the Domestic Market Department, Ministry of Industry and Trade Phan Van Chinh said that the retail system plays an important role in connecting production and consumption and as a driving force for economic growth, job creation, and improving people's quality of life.
The Party and the State always identify the development of the retail system as a key task in the industrialisation and modernisation process, contributing significantly to the goal of sustainable development.
In the context of Vietnam's deep integration with the world economy, the retail system has been facing many great opportunities and challenges. Participation in new-generation free trade agreements (FTAs) not only expands the market but also promotes healthy competition, creates motivation for innovation, and improves quality and services in the retail sector.
Therefore, developing a fast and sustainable retail system needs to promote digital transformation, develop modern retail models, invest in digital technology in multi-channel retail models, enhance consumer experience and optimise supply chain management.
Moreover, it is necessary to improve competitiveness and cooperation, encourage cooperation between domestic and foreign retail enterprises to share technology experience and build a modern, sustainable retail ecosystem. Based on reality, Phan Van Chinh made some recommendations:
First, it is necessary to promote digital transformation and develop modern retail models, including investing in digital technology for multi-channel retail models, enhancing consumer experience and optimising supply chain management.
Second, it is necessary to enhance competitiveness and cooperation, which encourage cooperation between domestic and foreign retail enterprises to share technology and build a modern, sustainable retail ecosystem.
Third, it is necessary to promote sustainable consumption and environmental protection, which is required to build green supply chains, encourage the use of environmentally friendly materials, reduce waste in retail activities, and raise awareness of consumers and businesses about sustainable consumption towards a circular economy.
Fourth, it is necessary to build a synchronous and inclusive retail network, in which it is necessary to develop a modern retail system not only in urban areas but also expanding to rural, remote and isolated areas, ensuring that all people have the opportunity to access quality goods and services.
Fifth, it is necessary to promote integration and healthy competition, in which the prerequisite is to create a transparent and equal business environment to encourage domestic and foreign investors to participate in developing the retail industry, bringing common benefits to the whole society.
Permanent Vice President of the Vietnam Association for Consumer Goods Development (VACOD) Nguyen Thi Thu Thuy: Enterprises must prioritise developing environmentally friendly production technology. Digital transformation supports information search activities with high-quality products, reputable businesses, fast and effective management, operation, production, and service connection processes. Furthermore, businesses also need to commit to prioritising the use of environmentally friendly materials and proactively establishing many alternative supply sources to ensure sustainability and reduce risks from monopoly or scarcity of raw materials.
