Vietnam's mass grocery retail spending to reach $44.7b in 2022

This as the country further eases restrictions this year.

Vietnam’s mass grocery retail (MGR) spending is expected to post strong recovery in 2022 and will grow 8.9% year-on-year to reach $44.7b (VDN1,020t.6) as the country relaxes restrictions, according to Fitch Solutions.

It noted the growth is positive as it is a result of low base effects due to the impact of the pandemic in the sector in 2020 and 2021.

MGR spending in 2020 grew 3.4% to $39.6b (VDN903.9t), slowing down from the 10.2% growth in 2019. Spending increased slightly by around 3.7% in 2021 to reach $42.2b (VDN973.3t).

“Unlike many countries, Vietnam avoided a retraction in consumer spending over the pande.mic period but most categories were adversely affected regardless,” Fitch said.

Vietnam’s two main economic centres were placed under hard lockdown in mid-July 2021 due to the increase in COVID-19 cases. The country saw its retail sales for August to October 2021 plummet at an average of 27.2%, compared to the 9.1% decline in the preceding three months.

Signs of recovery were seen in November and December 2021, posting growth of 1.1% and 1.3%, respectively.

“We believe that this growth will increase as Vietnam continues relaxing further restrictions over 2022, encouraging households to increase their spending,” Fitch said.

$1 = VND22,830.01