Sales of products and services for 2021 reached nearly VND 4.8 trillion, down 3.8% from the previous year.
According to a recent report by the Ministry of Planning and Investment, the number of newly established businesses in November last year saw a sharp drop of 15% compared to the same period the previous year, to a just over 105,000. Meanwhile, nearly 40,000 businesses were closed during the period, according to a news agency.
Vietnam’s big retail companies will gain more market share in 2022 as smaller competitors have been forced out of the game due to COVID-induced issues, experts say. The Ministry of Industry and Commerce predicts that by 2025, domestic sales will account for 13.5% of GDP, with sales of products and services expected to grow by 9-9.5% per year.
The figure indicates weaker competition overall during the fourth quarter of 2021, which, in turn, gave the big players an edge in gaining market share.
The top three driving forces for the industry were said to include digital commerce, electronics for work and study from home, and a shift in consumer behavior from traditional shopping to digital shopping.
A recent article by Facebook and Bain & Company said consumers are spending more money on digital commerce, a trend associated with more time spent browsing and researching products online before making purchases.
According to iPrice, during the third quarter of last year, 77.8 million visits were recorded on Shopee and 21.4 million visits on Lazada, two of the most popular digital commerce sites in Vietnam, which makes the most effective platforms for retailers to reach consumers, especially those who have well established online sales.
The pandemic has also caused consumers to switch from traditional shopping to online shopping.
Fibre2Fashion (DS) News Desk
