Following the road map agreed to when Vietnam entered the WTO, the country is now planning to revise its commercial infrastructure and open its retail market.

Deputy Minister Ho Thi Kim Thoa repeated the commitment in Hanoi on Tuesday, at a conference Development Strategy for Domestic Market in the Period of 2011-20.

The government plan seeks to invigorate the domestic market by developing a new commercial infrastructure. Small and medium sized companies will gain advantages under the plan at the same time as it will also stimulate the establishment of larger groups for retail distribution.

“The strategy would focus on developing the distribution system nationwide, creating favourable conditions to develop businesses in all economic sectors, especially providing supports for small and medium-sized enterprises,” Thoa said.

Modern distribution channels for such goods as appliances, hardware, and food account for only 20 per cent of Vietnam’s retail market. Under the new strategy this figure will be doubled by 2020. Statistics from the The Ministry of Industry and Trade tell that the country has 8500 traditional markets, 615 supermarkets and 102 commercial centres.

But even with 80 per cent of retail trade dominated by traditional outlets, the turnover rate of the domestic market in 2011 is expected to end 29 per cent above the rate of the previous year, at VND2 trillion (US$95 million). Excluding inflation, this would mean a 7-8 per cent growth rate.

This, maintains Thoa, is a high rate in view of the weak global financial situation.

Truong Quang Hoai Nam, head of the ministry’s Domestic Market Department, said the new development strategy would sustain such growth, with an anticipated annual domestic growth rate of 10 per cent and turnover at 20 per cent of the GDP.