Vietnam still a draw for investors: survey
In its latest “Vietnam Food and Drink Report” released last Friday (26 June 2009), Research and Markets said that the Vietnamese economy would not be immune to the current crisis but the country’s outlook appeared promising.
They forecast a real GDP growth of 2.9 percent in 2009, a downward revision from the previous forecast of 5 percent. However, Vietnam is expected to outperform much of Asia in 2009-10, resuming rapid growth by 2011, according to the report.
“Vietnam’s mass grocery retail sector has witnessed the most activity this quarter,” it said, citing the intention announced in April 2009 of the Japanese convenience store chain, FamilyMart to open its first Vietnamese outlet in HCM City in September, in partnership with the local distribution company Phu Thai.
“Although the convenience retail sector is expected to be the slowest-growing format in the country over the forecast period, growth is still expected to be an impressive 81.7 percent to 2013, and FamilyMart is hoping to establish a strong foothold in the country before demand for the convenience format really takes off, said Research and Markets.
“This quarter has also seen Saigon Co-op announce plans to expand its supermarket chain from 35 stores to approximately 50 by the end of this year. Supermarket sales are forecast to increase by 97.4 percent by 2013 and Saigon Co-op is hoping to take advantage of this,“ it added. The drinks industry saw Anglo-South African brewer SABMiller buy out local partner Vietnam Dairy Products Joint Stock Company (Vinamilk) in March 2009, leaving the former free to pursue its own strategy.
According to the website, Vietnam’s food-processing sector received confirmation from the Asian Development Bank (ADB) that it would get a loan of US$95 million in order to better equip its food industry to adhere to health, safety and quality requirements needed to enable it to integrate with international markets.
It reconfirms that the above-mentioned efforts will help to boost Vietnam’s image in the country’s all-important export market and activity in this quarter underlines the fact that Vietnam remains an investment destination.
