Hong Kong expert appreciates potential of Vietnamese consumer market

VOV.VN - Corey To, an economist at the Hong Kong Trade Development Council (China), has positively assessed the potential of the Vietnamese consumer market, noting that the country has recorded strong economic resilience after the COVID-19 pandemic.

To cited the forecast made by the International Monetary Fund (IMF) stating that this year the nation is likely to achieve a GDP growth rate of between 7% and 7.5%, topping the group of five emerging economies in ASEAN, including Vietnam, Indonesia, Malaysia, the Philippines, and Thailand.

He went on to assess that over the years, both Vietnamese and Hong Kong localities have maintained very close economic and trading ties.

For several consecutive years, Vietnam has consistently been among the top 10 largest trading partners of Hong Kong (China).

In 2021 and during the initial nine months of this year, Vietnam represented their eighth largest trading partner and second among ASEAN member states. Therefore, Hong Kong firms have paid close attention to the Vietnamese market.

Furthermore, the ASEAN-Hong Kong Free Trade Agreement officially coming into force in June, 2019, played a significant role in promoting mutual trade relations.

According to To, Vietnam features a young population that is undergoing rapid urbanisation, has an abundant labor market, and is an attractive consumer market with retail markets primarily located in Ho Chi Minh City and Hanoi.

The modern retail market is in the process of rapidly growing through the participation and expansion of major foreign brands such as Aeon, Uniqlo, Central Group, and Watson. Vietnam also boasts growth potential for products from the Hong Kong market.

Hong Kong's consumer demand for electronic products is in the process of increasing, such as fashion apparel, high-end gifts, electronic devices, jewelry, accessories, and products for smart life are becoming increasingly popular.

Consequently, Hong Kong businessmen are actively promoting ways to interact with the Vietnamese market.

Moreover, Vietnam is also one of the fastest growing e-commerce markets throughout all of Southeast Asia.

According to the Department of E-commerce and Digital Economy under the Ministry of Industry and Trade, Vietnamese e-commerce still maintains a stable growth rate of 16%, with retail sales reaching US$13.7 billion last year.

The Department of Telecommunications under the Ministry of Information and Communications said that by the end of 2021, the country had 91.3 million smartphone subscribers.

By March, there were more than two million smartphone subscribers, bringing the total number of smartphone subscribers in the nation up to 93.5 million.

It is estimated that the percentage of adults using smartphones stands at roughly 73.5%. Indeed, Vietnamese consumers increasingly desire to own products that have a better quality, at good prices, with high value, and in good delivery conditions. As a result, many famous brands are increasingly popular.

The PWC Vietnam report of 2021 highlights that Southeast Asia is well-positioned to drive the shift to cashless payments and even greater innovations in the digital service ecosystem.

With a consumer base of 623 million people by 2030, Southeast Asia is projected to be the fourth largest economy globally.

As one of the emerging economies of Southeast Asia, the nation has huge potential for e-payments to flourish in the time ahead.

According to a survey, Vietnamese consumers increasingly prefer to make use of e-wallets for payments.

Therefore, To encouraged Hong Kong businesses to pay closer attention to these opportunities and further exploit the Vietnamese e-commerce market.

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