UK retailers shop for some local bargains- November 2008


Led by UK Trade and Investment (UKTI), high profile UK retailers including Marks & Spencer plc, Woolworths plc, Bhs international, Ming Foods Ltd, Trans4mation Ltd, Today Translations Ltd, Ladbrokers plc, and Debenhams recently explored Ho Chi Minh City and Hanoi for business opportunities.

"Vietnam's rapid economic growth and the diversification of exports make the nation an attractive proposition for foreign retailers. Our visiting aims to showcase UK businesses' interest in Vietnam's business practices and economic strengths, and to discuss with Vietnam's business community," said Neil Wynn-Jones, a senior international trade adviser of UKTI. "Members of the mission have met with about 85 companies in Ho Chi Minh City and some 80 firms in Hanoi and would like to learn more about business and investment opportunities, particularly those involving the retail sectors," he added.

Sarah Jackson, head of marketing at Debenhams, a major high street fashion-led retailer, said Vietnam was attracting a great deal of attention from London businesses who saw an opportunity to bring their western fashion and lifestyle business to the Vietnamese market. "Franchising or developing a string of small shopping malls ranging from 1,000-12,000 square metres in harmony with the local shopping culture would be our options," she said.

Debenhams was expecting to meet with Vietnamese partners who have smaller shopping malls in both cities. According to CB Richard Ellis, with ground floor rents fluctuating between $60-155 / sqm / month in the 3super rdnosupersub Quarter of 2008, rates in prime Hanoi and HCMC locations were high compared to other countries in the region.

The lack of parking lots in prime locations was another concern for retailers who wanted to invest in the sector, said Marc Townsend, managing director of CB Richard Ellis. Hoang Tho Xuan, general director of the Ministry of Industry and Trade's Domestic Market Department, said Vietnam still lacked consistent legal frameworks for developing the retailing sector, so more cooperation with foreign companies like those from the UK would help Vietnam legislators and retailers gain greater experience. VIR.

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