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Kobe University Repository : Thesis Kobe University Repository : Thesis Studies on Retailing Innovation in Vietnam: A Policy and Consumers' 学位論文題目 Perspective(ベトナムにおける小売システムのイノベーションに関す Title る研究：政策と消費者の観点) 氏名 NGUYEN THI THANH TAN Author 専攻分野 博士（商学） Degree 学位授与の日付 2015-03-25 Date of Degree 公開日 2017-03-25 Date of Publication 資源タイプ Thesis or Dissertation / 学位論文 Resource Type 報告番号 甲第6300号 Report Number 権利 Rights JaLCDOI URL http://www.lib.kobe-u.ac.jp/handle_kernel/D1006300 ※当コンテンツは神戸大学の学術成果です。無断複製・不正使用等を禁じます。著作権法で認められている範囲内で、適切にご利用ください。 PDF issue: 2021-10-07 Studies on Retailing Innovation in Vietnam: A Policy and Consumers' Perspective 氏 名: Nguyen Thi Thanh Tan Table of contents Introduction .................................................................................................................... 3 Chapter 1 Vietnamese retail system .......................................................................... 6 1.1 Macro-environment and changes in the retail system in Vietnam .................... 6 1.1.1 Macro-environment ..................................................................................... 6 1.1.2 Changes in the retail system ........................................................................ 7 1.1.3 Appearance of online retailing system ...................................................... 12 1.2 Some popular modern retailers in Vietnam .................................................... 15 1.2.1 Domestic retailers ...................................................................................... 16 1.2.2 Foreign retailers ........................................................................................ 17 Chapter 2 Retail polices and the impacts on retail system in Vietnam ................ 20 2.1 Regulations and policies on the retail system .................................................. 20 2.1.1 Regulations on foreign direct investment (FDI) ....................................... 20 2.1.1.1 Overview of regulations and policies for foreign investment .......... 20 2.1.1.2 WTO commitments and domestic laws in the distribution sector .... 21 2.1.2 Competition regulation .............................................................................. 26 2.1.2.1 Competition rules before the Competition Law ............................... 26 2.1.2.2 Overview of the Competition Law .................................................... 26 2.1.3 Regulations on prices ................................................................................ 29 2.1.3.1 Regulations on prices before the Law on Price ............................... 29 2.1.3.2 Overview of the Law on Price .......................................................... 30 2.1.4 Regulations on quality of products and goods .......................................... 31 2.1.5 Regulations on the environment ................................................................ 34 2.1.6 Regulations on e-commerce and online retail ........................................... 36 2.2 Impacts of regulations on retailers ................................................................... 38 2.2.1 Influence of the open market policy on changing the retail system .......... 38 2.2.2 Impact on domestic retailers...................................................................... 39 2.2.2.1 Impact on traditional retailers ......................................................... 39 2.2.2.2 Impact on modern retailers .............................................................. 41 2.2.3 Impact on foreign retailers ........................................................................ 44 Chapter 3 Retail strategies of modern retailers in Vietnam ................................. 48 3.1 Changing consumers after economic reform ................................................... 48 3.2 Retail strategies in the transitional retail environment ................................... 51 3.2.1 Low price strategy ..................................................................................... 51 1 3.2.2 High quality and safety products strategy ................................................. 54 3.2.3 Premium image and good service strategy ................................................ 55 3.2.4 Location proximity strategy ...................................................................... 56 3.3 Discussion of online retail strategy .................................................................. 57 Chapter 4 A comparative study on consumers’ retail outlet choice in Hanoi after five years of WTO ........................................................... 59 4.1 Introduction ....................................................................................................... 59 4.2 Theoretical framework ...................................................................................... 62 4.3 Research design and descriptive data ............................................................... 65 4.3.1 Research design ......................................................................................... 65 4.3.2 Descriptive data ......................................................................................... 66 4.4 Empirical results ............................................................................................... 68 4.5 Discussion .......................................................................................................... 77 Chapter 5 Where to Shop and How to Shop: Bivariate Probit Analysis of Vietnamese Consumer ......................................................................... 80 5.1 Introduction ....................................................................................................... 80 5.2 Theoretical framework and hypotheses ............................................................ 83 5.2.1 How to shop: Determination of optimal shopping frequency ................... 83 5.2.2 Where to shop: Determinants of consumer store choice ........................... 84 5.3 Data and variables ............................................................................................. 89 5.4 Empirical results ............................................................................................... 94 5.5 Discussion and conclusion ............................................................................... 97 Conclusion and future research ................................................................................ 100 References ................................................................................................................... 104 2 Introduction Since the implementation of Doi Moi from 1986, many changes have been taking place in the economic structure of Vietnam, including structural changes to its distribution system. Before 1986, under the planning system, all food distribution was carried out through a rationing system or state-owned stores. With the liberalisation of commerce and prices, business activities have continuously increased. In 1987-1988, markets for most products began to emerge. The traditional bazaar system (wet markets, mom and pop stores) became the central hub for all trade activities. In light of this rapid rate of economic development, a multitude of products and brands have flooded the Vietnamese market, not to mention a proliferation of advertising and retail outlets and a resulting expansion in consumer choices (Shultz, 1994). The rapid economic development and the relaxation of regulations on foreign direct investment (FDI) and food retailing have profoundly transformed both the traditional retail system and the distribution system in Vietnam throughout the 1990s. Especially, after Vietnam fully opened up its market under its commitment to the World Trade Organization (WTO) by the begin of 2009, a wave of new international retailers (e.g., Dairy Farm, AEON, FamilyMart) along with the existing foreign players (e.g., METRO Cash & Carry, Casino Group, Parkson, and Lotte Mart) began a new period of development in the Vietnam retail market with the rapid increase in the number of modern retail formats and changes in consumers’ shopping behaviour with a shift towards these modern retailers. After nearly two decades since the establishment of the first supermarket in Vietnam, modern distribution networks account for 20% of the total distribution of products in the entire country (and approximately 30–40 percent of the distribution of products in major cities), and forecasts predict that this is to continue changing resulting in 40% by the end of 2020 (Ministry of Industry and Trade [MOIT], 2012). 3 The modern distribution network grew at an average rate of 15–20 percent each year between 2000 and 2011 (MOIT, 2012). This tells us an obvious fact that supermarket chains are booming and will continue to spread rapidly in the foreseeable future. So, it is necessary to raise the question as to what are the reasons supporting this tremendous revolution of supermarkets in Vietnam in recent years? Why is it that a larger number of consumers continue shifting to supermarkets, leaving their long established-habits of shopping at traditional outlets behind? The purpose of this study is, therefore, to provide information about the modernization of the food retailing system in Vietnam from three aspects including the government policies, retailers’ strategies, and consumers’ behaviours. Firstly, chapter 2 discuss some specific regulations related to the retail sector that have been operational in Vietnam following the economic reform, the Doi Moi, as well as the government policies
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