Most modern retailers from Indonesia, who are engaged in minimarkets and convenience stores, have expressed interest in expanding their business in Vietnam, according to Chairman of the Indonesian Retailers Association (Aprindo) Roy Nicholas Mandey.
|A Circle K store in HCM City. Vietnam saw strong growth of 13 per cent in Fast Moving Consumer Goods (FMCG) sales in convenience stores in 2018. - VNA Photo |
Mandey has called on the Indonesian government to support the retailers’ efforts through relaxation of regulations.
“The expansion to Vietnam will not be possible if it is not facilitated by the government,” he said, suggesting the government negotiate with the destination countries so that its retailers can obtain business licenses more easily.
According to Nielsen Market Research Company, Vietnam saw strong growth of 13 per cent in Fast Moving Consumer Goods (FMCG) sales in convenience stores in 2018. Meanwhile, the number of minimarkets and convenience stores rose 45.5 per cent to 1,812 facilities in the year.
In addition, the World Bank said that the number of middle-class people in Vietnam reached 11.64 million last year, accounting for 13 per cent of the total population. The figure is forecast to rise by 26 per cent in 2026.
So far, there have been two modern retailers from Indonesia developing their business in Vietnam. They are PT Perintis Jasa Paripurna which operates Century Healthcare pharmacy outlets, and PT Mitra Adiperkasa Tbk (MAPI) which operates fashion and food and beverage outlets such as Burger King, Debenhams, H&M, Reebok, Stradivarius and Zara.