Released on = June 10, 2007, 10:25 pm

Press Release Author = Shushmul Maheshwari

Industry = Retail

Press Release Summary = Vietnam’s retail market is growing rapidly with more
and more overseas retailers vying to grab their market share posing a threat for the
domestic retailers to survive

Press Release Body = Vietnam’s retail industry is progressing at a remarkably
fast pace. Owing to this overseas distributors and retailers are vying to invest in
the country’s retail market. As per economic experts, Vietnam would notice
more and more overseas retailers in the coming period. This would pose a threat for
the domestic retailers and contributors to protect their market share. Hence,
Vietnam’s top most retailers officially began the country’s leading
distribution group VDA (Vietnam Distribution Associate Network) on Monday, May 14,
2007 to strengthen their competitiveness and of other distributors prior to an
estimated influx of global competitors.

Local distributors are trying to develop their distribution networks to prepare for
the severe competition with overseas retailers. Possessing the investment resources
of VND1, 500bil (US$ 93.75mil) in the initial period of investment, March
2007-October 2008 and VND3-6, 000bil (US$ 187.5mil-375mil) in the second period from
November 2008-October 2011, VDA will concentrate on the growth of modern trade
centers, hypermarkets, and supermarkets which would grab a bigger share in the
distribution market at home as well as overseas.

The findings presented by the RNCOS’ recent report “Vietnam Retail
Industry Analysis”, expressed similar concerns, as per which, after WTO
accession, overseas retailers will try capturing the Vietnam retail market. Domestic
retail shops would have difficulties competing with these overseas retailers, as
most of the domestic retailers are small and independent. The giant overseas
retailers are fully prepared to lose money for an extended period of time, selling
products cheaper then Vietnamese competitors, to win market share, even if it means
driving an untold number of local businesses out of the market. The large and strong
domestic retailers might now consider joining hands to lower prices, improve quality
and selection, and become more service oriented.

The research reports also addresses some interesting issues for today’s global
business environment such as market size and potential of the Vietnam’s retail
industry, growth prospects and issues related to the industry, factors driving
growth in this sector as well as opportunities, emerging trends, and challenges
faced by retailers in Vietnam.

The report provides an extensive research and objective analysis of the Vietnamese
retail industry and help clients in analyzing the opportunities critical to its
growth.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM502.htm
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Web Site = http://www.rncos.com

Contact Details = RNCOS E-Services Pvt Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com