Thailand encourages firms to exploit Vietnam’s retail market
The Ministry of Commerce of Thailand recommends its retail businesses adjust their strategies and expand operations in Vietnam, a market with high potential development, able to reach a value of 3.5 trillion USD by 2068.
According to the Department of International Trade Promotion (DITP) under the Ministry of Commerce of Thailand, retail businesses should take advantage of online channels to target young consumers. Through online platforms, Thai retailers can effectively approach and interact with young customers in Vietnam. This strategy will also help them exploit the significant growth potential of the Vietnamese market.
Vietnam’s retail market is expected to reach a value of 350 billion USD by 2025, accounting for 59% of total domestic product sales, according to data from the Thai Trade Centre in Ho Chi Minh City.
DITP Director Phusit Ratanakul Sereroengrit said, that the department made assessments on the potential to expand operations of Thai retail businesses in Vietnam, through online platforms.
Retailers in Vietnam have adapted their domestic distribution networks and refined them for export. They also invested in e-commerce to meet a growing group of young consumers who account for more than 50% of Vietnam’s nearly 100 million people.
He said that Thai retailers when investing in Vietnam need to adjust their business models and focus on developing clean and environmentally friendly production, as well as towards a circular economy. These efforts will contribute to their growth in the Vietnamese market.
He noted that Thai retailers should also focus on social networking platforms in Vietnam, such as selling products through Facebook Live and TikTok, helping their products reach Vietnamese customers more easily.
However, Phusit also advised Thai businesses who want to penetrate the online market in Vietnam, to carefully survey the laws and regulations related to e-commerce in the country.
