This was shown in the seventh annual Global Retail Development Index™ (GRDI), a study of retail investment attractiveness among 30 emerging markets conducted by A.T. Kearney.

According to the study, Vietnam's leap from fourth in the 2007 GRDI to first place in 2008 was driven by strong GDP growth, changes to the country's regulatory structure favouring foreign investors and growing consumer demand for modern retail concepts.

While Vietnam's US$20-billion retail market pales in comparison to India or China, the absence of competition and 8 percent GDP growth make it an attractive opportunity for global retailers, the study said.

Moreover, Vietnamese consumers have been considered the youngest in Asia, with 79 million below the age of 65, the firm said, adding that their consumer spending increased by more than 75 percent between 2000 and 2007.

Now is the “perfect time” to get involved in Vietnam’s retail market, said Mike Moriarty, a partner with A.T. Kearney and co-leader of the GRDI.