City's retail market grew by 11.9 per cent despite pandemic

Tuesday, Jan 05, 2021 17:03

Saigon Co.op recently opened Co.opmart Thap Muoi in Dong Thap Province, its 128th store. Viet Nam’s retail market was worth US$172 billion last year. — VNS Photo Truong Vi

The HCM City market grew by 11.9 per cent to VND759.7 trillion ($32.84 billion).

Considering the impacts of the pandemic, the growth was surprising, Huynh Van Hung, head of the city Statistics Office, said.

Data from a number of large retailers showed that the market began to bustle again in the second half of 2020 after an initial slump.

It was partly due to trade promotion activities undertaken toward the end of the year and a recovery in consumer demand due to the Government’s efficient containment of the disease.

Mobile World JSC, for instance, reported double-digit growth in both revenues and profits in the first 11 months.

Phu Nhuan Jewelry Joint Stock Company reported 21.7 per cent growth in sales.

The food and beverages sector reported a 15.9 per cent rise in earnings before interest and tax.

The pandemic caused a boom in e-commerce as shopping behaviours changed.

According to several market research companies, retail chains have to restructure since brick-and-mortar stores face shrinking profit margins because of fewer customers and soaring costs.

This year the market grew by 6.8 per cent last year to $172.8 billion despite the debilitating economic effect of the COVID-19 outbreak, according to the General Statistics Office. Until 2019 Viet Nam's retail market always grew in double digits. — VNS

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