Retail market now prepared to embrace a fresh growth cycle

Despite rising fuel prices triggered by escalating tensions in the Middle East, retailers in Vietnam have largely maintained stable prices and supply, positioning the sector for a new growth cycle as purchasing power gradually recovers and the retail landscape continues to evolve.

- By Hoang Oanh

A sector report released last month by Asia Commercial Securities (ACBS) noted that the retail market continues to maintain positive highlights, laying the groundwork for a new growth cycle.

New tax policies are promoting fairer competition between formal retail businesses and small household traders, while retailers, particularly those expanding their chain networks, are expected to record positive profit growth in the coming year, it said.

According to ACBS, the steady recovery in retail revenues, together with the strong shift from traditional retail channels to modern and online retail, is becoming the main driver of industry growth.

"In major urban areas, modern retail channels are accounting for an increasingly larger share of fast-moving consumer goods spending, creating room for expansion for both domestic and foreign enterprises," the ACBS report noted.

Notably, new tax policies are expected to help narrow the gap between the formal retail sector and small household businesses, fostering more transparent competition. In this context, companies with well-structured chain expansion strategies are forecast to record positive profit growth in the coming year.