Retail has been at the forefront of economic development in Vietnam in recent years. According to AT Kearney's Global Retail Development Index (GRDI), Vietnam ranked 30th last year, down from ninth in 2009, reflecting the impact of the global economic slowdown. Despite that setback, the potential for growth is still there based on the high ratio of affluent young professionals and a steady increase of new middle-class consumers, especially in urban areas.
The Vietnamese retail logistics sector has been following that of Thailand by 5-10 years but the rate of catch-up is starting to accelerate more than most people realise.
Balancing supply and demand: Two of the main drivers of the retail sector in Vietnam are the establishment of end-to-end supply chain awareness and a serious investment in multi-modal logistics infrastructure as a backbone to support development at controllable costs. This has elevated the importance of logistics within retail organisations, which can now focus on improving their sourcing effectiveness (supply side). This in turn allows for responsive adaptation to the increasing complexity and changing requirements from consumers (demand side).
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