Result recorded
Looking back on the past year, we are proud of the trade and market that have contributed to a picture with many bright colors on many different aspects and levels. The trade and service network continues to cover all three areas: urban, rural, and mountainous areas, contributing to closely linking production with consumption and goods with the market. Goods circulation has been promoted, meeting demand, especially the demand for essential goods for people in all parts of the country and even during peak consumption periods. The size of Vietnam's retail market in 2010 was 88 billion USD, rapidly increasing to 130 billion USD in 2017 and 180 billion USD in 2020.
Up to now, it has set up over 100 fixed Vietnamese selling points with the name "Proud of Vietnamese goods" in 61 localities across the country. The traditional market with 8,500 markets (with 61 wholesale markets) and 1.4 million grocery stores still maintain competitiveness with modern distribution channels, with the average flow of goods accounting for 35-40% of the total volume of goods (the average modern distribution system accounts for 22 - 25%). The traditional retail channel has had spectacular changes such as using electronic payments, combining both online and offline sales, trying to approach modern trends from displaying, introducing goods, connecting to reflect of consumers versus manufacturers.
Currently, the country has 1084 supermarkets in 62 provinces and cities and 240 commercial centers in 57 localities. Large foreign retailing corporations such as Lotte, Central Group, Aeon, Circle K, K Mart, Auchan, Family Mart... continuously promote market penetration and expansion.
Support for the consumption of agricultural products and food has been paid attention, bringing many positive results. State management of competition, consumer protection, multi-level sales management... are particularly interested in promoting and innovating management methods, contributing to protecting and supporting the healthy development of the market.
According to statistics of the General Department of Customs, the total import and export value of goods nationwide in 2020 reached 545.36 billion USD, up 5.4% from the previous year. In which, the value of exported goods reached 282.65 billion USD, up 7%, corresponding to an increase of $18.39 billion and imports reached 262.7 billion USD, up 3.7%, corresponding to an increase of 9.31 billion USD. The trade balance of goods had a surplus of 19.95 billion USD, the highest level in 5 consecutive years of trade surplus since 2016.
The total import-export value of foreign direct investment (FDI) enterprises in the past year reached 371.9 billion USD, up 11.8%, equivalent to an increase of 39.26 billion USD over the same period last year. In which, exports of goods reached 202.89 billion USD (up 10.7% over the previous year). In contrast, the import value of FDI enterprises is more than 169 billion USD (up 13.1% compared to 2019). The merchandise trade balance of FDI enterprises in 2020 reached a surplus of 33.87 billion USD. Thus, in the past year, the domestic business sector continued to have a trade deficit of 13.92 billion USD.
Unit: Billion USD
In 2020, Vietnam's merchandise trade with the Americas reached
112.02 billion USD, up 16.2% over the previous year, the continent with the highest growth rate in many consecutive years.
Import and export of goods of Vietnam and Asian countries continued to account for the highest proportion (64.7%) in the total import and export value of the country. The import-export value in 2020 with this market reached 352.97 billion USD, up 4.2% compared to 2019, of which the export value was 140.25 billion USD, up 3.4% and import value was 212.72 billion USD, up 4.7%.
Import and export value in 2020 between Vietnam and other continents, respectively: Europe 63.85 billion USD (down 3.1%); Oceania: 9.79 billion USD (up 2.4%); and Africa: 6.72 billion USD (down 5%) compared to 2019.
Statistics also show that in the past year, the export turnover of machinery, equipment, tools and spare parts of Vietnam increased by 48.6% (equivalent to an increase of 8.89 billion USD); computers, electronic products and components increased by 24.1% (equivalent to 8.66 billion USD); group of wood and wood products increased by 16.2% (equivalent to an increase of USD 1.72 billion); and the group of iron and steel increased by 25.1% (equivalent to an increase of 1.05 billion USD). Besides, there were some groups of goods that fell sharply such as: textiles and garments, down 3.02 billion USD (corresponding to the decrease of 9.2%); footwear of all kinds decreased by 1.52 billion USD (equivalent to 8.3%); petrol and oil of all kinds decreased by 1.03 billion USD (equivalent to a decrease of 51.2%) ...
On the other hand, Vietnam's imported products with increased import value include computers, electronic products and electronic components, increasing by 12.63 billion USD (equivalent to 24.6%); phones and components increased by 2.03 billion dollars (equivalent to 13.9%); plastic products increased by 731 million dollars (equivalent to 11.2% increase) ...
The problems raised
The Covid-19 epidemic has had a significant impact on the economy, not only large distributors but also small business households and small businesses facing many difficulties. There have been many chains and retail systems that have to sell or choose to associate with foreign countries if they want to exist, such as Fivimart, Citimart cooperating with Aeon (Japan); Family Mart, a convenience store chain with a large network, was also acquired by Thailand's Berli Jucker and renamed B'sMart...
According to Nielsen research, up to 6,455 new products have been launched in Vietnam, but many of them are not qualified to be on the shelves.
The problem of linking 4 units (farmers, scientists, the state and businessmen) has been raised for many years but has not been implemented, causing Vietnamese agricultural products to often fall into a state of "rescue".
Solutions for the new period
The distribution and retail sector in Vietnam still has great potential, due to its large population size (more than 98 million people), young population structure (60% of the population is aged 18-50); household spending increases by an average of 10.5%/year, while the coverage rate of modern retail system is lower than many countries in the region, the game has now expanded to all Southeast countries Asia (ASEAN), with more than 666 million people.
Following and keeping ahead of the trend must be considered as the main direction, the view that runs through and covers the entire process of commercial and market development in the coming time. That is:
1. Identification to deal wisely with the development trends of domestic trade
- Of the four sub-sectors (occupations) of the industry, distribution services and retail services are the fastest growing sub-sectors. In the near future, market development must be associated with anticipating the development trend of wholesale services. Gradually formed modern wholesale centers, the main supplier for the large network of convenience stores in the future. As the Vietnamese brand grows, it is necessary to have policies to encourage the "transferor" and support the "receiver" so that this sub-sector is expanded, targeting millions of small and medium enterprises and business households across the country.
- Distributors, especially FDI enterprises, focus on investing mainly in the mode of providing distribution services, which is commercial presence. In the coming time, restrictions (restrictions on market access, restrictions on national treatment) will continue to be lifted, along with the continuous development of information technology and e-commerce, cross-border supplied service, virtual markets… will become popular. Solve the causes first, then consider the commitment, create a legal basis to deal with foreign traders in unprecedented cases.
- Modern trade develops rapidly, surpassing traditional trade. The countryside is large, the economy is not as vibrant as the city, but there are many potential advantages. It is a place full of Vietnamese "soul", imbued with traditional values, worthy of the name of a quintessentially rich area for the development of the Vietnamese market, with Vietnamese goods, Vietnamese traders, Vietnamese business style...
- Connecting goods circulation in production and processing and forming supply chains. Investors, especially foreign investors, will invest synchronously, from production, processing to distribution (wholesale, retail and export), accompanied by a logistics service system, integrated into a closed supply chain, first of all for agricultural products and food. Developing supply chains is the most efficient way to have a civilized trade in a modern market.
2. Some major orientations and solutions in organization, commercial and market development
- Continue to consolidate and develop traditional markets in rural markets, mainly meeting the production needs and daily life of the people. At the same time, choose to develop a number of wholesale markets for agricultural products near major consumption centers (or near concentrated production areas for some specific agricultural products of the region). From there, creating a premise to form: auction market, commodity trading floor...
- Developing a large number of convenience stores, becoming a "housewife" for every home. Step by step linking into a chain of convenience stores, in which the company uses "tracking" technology and a logistics center (internal logistics) to ensure the entire supply of goods to the stores in the chain.
- The campaign "Vietnamese people give priority to using Vietnamese goods" and "Vietnamese goods conquer Vietnamese consumers" need more new impulses, it is necessary to accelerate programs to stimulate domestic consumption through some specific main activities such as: Organizing "National Focused Promotion Month 2021 - Vietnam Grand Sale 2021"; building Vietnamese sales points with the name "Proud of Vietnamese goods" in some localities.
- The Ministry of Industry and Trade should continue to coordinate with relevant ministries, branches and localities to continue reviewing and perfecting mechanisms and policies related to the development of commercial infrastructure when the mechanisms are in place. Due to the current policy, there is no breakthrough to support the development of commercial infrastructure in general, especially the types that need to be developed in the near future such as logistics infrastructure, wholesale markets.
- In the context of more and more people participating in online sales, it is very necessary to support from management agencies, authorities, as well as from other businesses. Small businesses in Vietnam, a relatively large segment of the economy, if digital transformation is successful, the "alley economy" can still trade actively even when the Covid-19 epidemic rages.
- To soon form a mechanism to coordinate information not only between management agencies and industry associations, but also need to establish information channels with farmers and businesses. The information collection and processing mechanism also needs to be innovated in the direction of going deep into the categories. Vietnam's strategy in the coming time is to gather small manufacturers into one large supplier, thereby reaching out to the outside world.
If we are determined to change, the trade and market in 2021 will certainly have a breakthrough and flourish, contributing to creating new points for the socio-economic picture of Vietnam. This is a big problem for the Government, each ministry, sector, locality and every citizen in determination to create an innovation, promote the efforts of the market, is the turning point that we need change, to bring the country to a rapid breakthrough in this decade!
Vu Huy Hung
Department of Information, Library and Trade Promotion - VIOIT