Business in Global Erena - Case of Saigon Coop in Vietnam

  You have been asked by your Managing Director (MD) to undertake a RESEARCH on the effects of the WTO agreements on competitiveness of the organization. The company is worried that Vietnam’s commitments under WTO may be detrimental to the future competitiveness of the organization and would like to know how in SPECIFIC DETAIL the exact commitments Vietnam has made with regard to the company’s industry. The MD would also like you to undertake a preliminary research on some of the commitments made by other SIMILAR countries and if possible some of the major competitor countries. This research report will help the MD to make future strategic plans for the company.


  Vietnam is currently considered the most attractive investment destination for retailers among the developing countries. Its retail market turnover reached $46 billion in 2007, an astonishing 27% increase over the previous year and is estimated to hit 975 trillion VND (59 billion USD) in 2008, a year-on-year increase of 20.5%. In Vietnam, distribution and retail business contribute 15% to GDP per year. Although wet market remains the primary channel in Vietnam’s distribution channel, modern retail is estimated to account for approximately 14% of the market according to the TNS World Panel Asia-2007. Currently there are approximately 400 supermarkets, 60 trade centres and 2,000 convenience stores…Meanwhile the Ministry of Industry and Trade   forecasts that by 2010 the market will witness the presence of 750 supermarkets, 150 trade centres and thousands of convenience stores.

  In developing countries, supermarkets play a very important role in distribution and retail business with the norm in Asia is 52% for modern trade and 48% for other channels. While in Vietnam, the number is 14% for modern trade.
  Source :   TNS Worldpanel Asia – 2006 – FMCG excluding Fresh Foods
  Base on figures as well as the developing experiences from...