Retail service industry of Vietnam have been benefitted by the strength of domestic economy as well as tourism.

International arrivals to Hanoi reached a record 4 million last year, an increase of 21 per cent compared to 2015. Around 3,000 rooms in 12 hotels are due to open in the capital, with most of this new supply in the upscale segment, which will support increasing corporate demand, according to the Spotlight on the Accommodation & Tourism Industry report from JLL.

International operators IHG, Pan Pacific, Accor, Hilton, and Marriott currently have their hotel brands in the city.

In contrast to Ho Chi Minh City, there are very few domestically-operated hotels in the upscale and luxury segments, with the Apricot Hotel, a boutique luxury hotel located just to the west of Hoan Kiem Lake one of only a few to compete with international brands on average room rates. The majority of locally-operated hotels cater to the midscale and budget segments, especially in the popular Old Quarter, which is dominated by low cost and backpacker accommodation.

International fashion brands target Vietnamese market

International brand names are starting to grab the attention of Ho Chi Minh City’s fashion-conscious people, clearing the way for more ready-to-wear clothing stores in Vietnam. More than 50 well-known brand names, such as Giordano, Mango, Zara, Topshop, Gap and Old Navy, have opened stores in HCM City.

While Old Navy opened its first store last month, H&M launched its brand name last weekend with a fashion show at a leading shopping centre in the city.

Other fashion companies, including Pull&Bear, Uniqlo and F21, will also enter the market this year with their own stores scheduled to open in Hanoi shopping centres.

“Before launching our designs in Vietnam, we spent time researching the country’s economic development, culture and living conditions,” said a representative of Zara, who noted that the country would become one of the most important markets for the popular fashion brand from Spain.

Although their prices are higher than local products, ranging from 300,000 VND (15 USD) to over 1.5 million VND (70 USD) with accessories sell for an average of 100,000 VND (4 USD) per item yet customers, particularly young people, are thrilled they are here.

Vietnam to lead Asia for growth in convenience stores

Vietnam is forecast to be the fastest growing convenience store market in Asia by 2021, according to the Institute of Grocery Distribution (IGD).

By 2021, the growth of the convenience channel in Vietnam will increase by more than 37 percent, followed by the Philippines at 24 percent and Indonesia on 16 percent. The retail market in Vietnam is shifting from traditional to modern trade, said the IGD.

Vietnamese goods make up more than 80 percent of goods in the retail distribution system.

In recent years, Vietnam convenience stores have become popular destinations, especially for young consumers. Savvy operators, like Circle K and Family Mart, have recognised local demand for the stores as a place to not only shop but to hang out as well, providing an air-conditioned area to consume freshly-served convenience foods and snacks, modern merchandising systems, a mix of imported and local goods and in some stores free wifi.

Source: VietNamNet , Vietnam+ , VietNamNet