What it takes to make it in Vietnam

As a retail market, Vietnam is a study in complexity amid opportunities. As Southeast Asia’s fastest growing economy, it has a middle class that is not only rapidly expanding but also growing its spending power, making it a draw for the buy and sell trade. And as discretionary spending rises, expenses on high-ticket items like homes and residential refurbishment is gaining ground. Added to this, the exports-driven state has also recently made it a policy to boost domestic consumption as a counter to the impacts of international headwinds, such as the geopolitical tensions, spiraling oil prices, and the shifting trade policies in the United States.

Market players that have tried and failed in the market, however, know that while immensely attractive, Vietnam’s retail scene is not for the timid. Challenges, mostly inherent to a nascent market, are only starting to get addressed: retail personnel are still being trained, logistics infrastructure is still being built, and retail reach is still uneven and concentrated in tier-1-cities such as Hanoi, the capital, and Ho Chi Minh City, the business hub. Meanwhile, shoppers are becoming not only tech savvy but also smarter. Demand for quality products that carry the seal of reliability and champion sustainability is on the rise.  

Entering the market is one thing, thriving is another. What does it take for home improvement retailers to make it in Vietnam? What emerging trends do they need to pay attention to, and what kind of shoppers are they going to be catering to? DIY International Asia correspondent Jennee Grace U Rubrico finds out.