Viet Nam is world’s third most attractive emerging market 

Viet Nam rose five places this year to the third place in the list of the world’s most attractive emerging markets, according to the 2006 Global Retail Development Index (GRDI).

According the GRDI, an annual study carried out by AT Kearney of retail investment attractiveness among 30 emerging markets, Viet Nam has consistently performed well over the past five years and has one of the fastest growing economies in Asia. Half of its 84 million people are below age 30 and they like to shop. Consumer spending increased by about 16 percent and modern retail sales rose by 20 percent from 2004 to 2005.

“In many ways, Viet Nam resembles a little India, particularly because of its fragmented retail market. In fact, 90 percent of retail outlets are neighbourhood stores run by locals, similar to the Indian kirana shops. Also like India, the biggest hurdles to entering this market are its FDI regulations, high import taxes and difficulties in obtaining licenses to open more stores,” the study said.

The study also found Asia has overtaken Eastern Europe as the dominant region for global retail expansion. Powering Asia’s charge are Viet Nam, and other Asian Tigers including Thailand, the Republic of Korea (RoK) and Malaysia, all of which are in the top 15.

India retained its position as the world’s most attractive emerging market, the study said, adding that China, however, fell one spot to fifth place as international retailers continue to saturate the market.

According to the General Statistics Office of Viet Nam, the country’s gross retail sales reached 335.383 trillion USD (roughly 20.93 billion USD) in 2005.