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Strong trend towards tech-driven retail in Vietnam

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There is a strong trend towards tech-driven retail in Vietnam to help increase operational efficiency, enhance customer experience, and prevent losses.

Christanto Suryadarma, sales vice president for Southeast Asia (SEA), South Korea, and Channel APJeC at Zebra Technologies, said that Vietnam’s economy is strong and growing rapidly, with increasing prosperity driving retail spending. Retailers are leveraging this growth by embracing technology—using online platforms, e-commerce solutions, and other innovations.

Strong trend towards tech-driven retail in Vietnam
Photo: Zebra

He told VIR at a media briefing on February 18 that he sees much more attention from retailers on technology applications for loss prevention.

“For retailers, profit margins are significantly smaller compared to other industries. So, any loss they experience in retail directly impacts their already thin profits. It makes a lot of sense that loss prevention has become a major priority, and I’ve observed a significant increase in this focus. After COVID, with more customers returning to physical stores, losses are happening more frequently in-store than through e-commerce. So, naturally, the attention on loss prevention has grown,” he explained.

“The second trend I am noticing is an increasing interest in AI. I think all resellers are aware of AI’s potential, and there is a growing expectation for more use cases to emerge,” he shared.

Strong trend towards tech-driven retail in Vietnam
Christanto Suryadarma, Sales vice president for Southeast Asia (SEA), South Korea, and Channel APJeC, Zebra Technologies. Photo: Zebra

George Pepes, APAC Vertical Solutions Lead, Healthcare and Retail, Zebra Technologies added, “Retailers are now starting to digitise their operations more effectively. In the past, when we talked about digitising retail, it was mainly about streamlining processes for staff to keep costs low. But now, retailers need to adapt to change.”

Technology application trend

According to the findings of the 17th Annual Global Shopper Study announced by Zebra Technologies Corporation on February 18, the majority of retail associates (84 per cent globally, and 72 per cent in Asia-Pacific) are concerned about the lack of technology deployed to spot safety threats or criminal activity.

As shown in the study, most retailers (78 per cent globally, 80 per cent in Asia-Pacific) are under high pressure to minimise theft and loss and are now investing in technology tools that can help frontline workers and those managing operations behind the scenes.

AI technologies are currently viewed as the most helpful in loss prevention, closely followed by cameras, sensors, and RFID. While only three in ten retailers (38 per cent globally and in Asia-Pacific) currently use AI-based prescriptive analytics for loss prevention, more than half (50 per cent globally, 52 per cent in Asia-Pacific) plan to implement it in the next one to three years for this purpose.

Over three in ten retailers said they also plan to use self-checkout cameras and sensors (45 per cent globally, 52 per cent in Asia-Pacific), computer vision (46 per cent globally and in Asia-Pacific), and RFID tags and readers (42 per cent globally, 38 per cent in Asia-Pacific) within the next three years, specifically for loss prevention.

This should come as a relief to shoppers, as 78 per cent said it is frustrating when products are locked up or secured within cases. Adding to that frustration, 70 per cent of consumers say it is difficult to find an associate while shopping in stores. This resonates with 79 per cent and 70 per cent of Asia-Pacific shoppers, respectively.

Strong trend towards tech-driven retail in Vietnam
Photo: Zebra

Increasingly over the past two years, one in five shoppers (21 per cent globally, 22 per cent in Asia-Pacific) left a store without getting what they needed due to a lack of available retail associates to help.

Growing demands

According to the study, although consumers remain generally satisfied with their shopping experience and global consumer spending remains steady, fewer shoppers overall are satisfied compared to previous years. In 2023, 85 per cent were satisfied with both in-store and online experiences—this stood at 81 per cent and 80 per cent, respectively, for Asia-Pacific shoppers. In 2024, satisfaction declined to 81 per cent for in-store experiences and 79 per cent for online shopping, with Asia-Pacific shoppers reporting 78 per cent and 75 per cent satisfaction, respectively.

Most shoppers now expect retailers to offer seamless click-and-collect and returns options. However, retailers (79 per cent globally, 85 per cent in Asia-Pacific) and associates (85 per cent globally and in Asia-Pacific) admit they face challenges in managing both. Many retailers also struggle with confirming current inventory and pricing. With more shoppers returning to stores, lingering labour shortages and increasing loss incidents are further impacting service levels.

Nearly 90 per cent of retail associates believe they can provide a better customer experience when they have mobile technology tools that help simplify real-time communication, prioritise tasks, and check prices and inventory. Most retailers agree that technology enables associates to perform their jobs more effectively, and as a result, 75 per cent of global retailers (79 per cent in Asia-Pacific) said they plan to increase their technology investments in 2025.

Vietnam’s retail sector is rapidly advancing its digital transformation, with retailers embracing data-driven strategies and diversified sales channels to cut costs and streamline operations. In Vietnam, the total retail sales of consumer goods and services saw a year-on-year increase of 8.5 per cent, reaching over $207.5 billion from January to October 2024, according to the General Statistics Office (GSO).

Vietnam’s Ministry of Industry and Trade has also forecast the country’s retail market to reach $350 billion by 2025, underscoring the sector’s robust trajectory.

“Many retailers in Vietnam are laying the groundwork to build a modern store experience,” said Christanto Suryadarma, sales vice president for Southeast Asia (SEA), South Korea, and Channel APJeC at Zebra Technologies. “By investing in mobile and intelligent technologies to provide greater visibility, inform operational decisions, and enable greater mobility for associates, this contributes to elevating the customer experience for retail’s long-term success. These efforts are transforming the retail landscape in Vietnam, positioning local businesses to harness the potential of Zebra Technologies to optimise operations and adapt to evolving market demands.”

Along with enhancing customer experience, the study shows that retailers’ top priorities include improving mobile workforce efficiency, productivity, and inventory management. More than one-third (39 per cent globally, 41 per cent in Asia-Pacific) believe that GenAI will have an extremely significant impact on inventory management and demand forecasting.

Retailers are also investing in automation for product location and item-level RFID (46 per cent globally and in Asia-Pacific), video monitoring (45 per cent globally, 36 per cent in Asia-Pacific), and stock-out alerts (45 per cent globally, 49 per cent in Asia-Pacific) to give associates and shoppers real-time inventory visibility, which is a key driver of profitability.

“By implementing advanced technologies like the ET4x Android business tablets, TC22/27 mobile computers, SP72 series single-plane scanners, RS2100 Bluetooth wearable scanner, FX7500 fixed RFID reader, and RFD40 UHF RFID sleds, retailers can better navigate today’s business challenges,” added Suryadarma.

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Industrial production on the mend: Deputy Minister

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Vietnam’s industrial production has continued its rosy signs since late 2023, promising a bright prospect for the country in the time ahead, Deputy Minister of Industry and Trade Phan Thi Thang said at the Government’s regular press conference in Hanoi on August 5.

According to the official, Vietnam’s Purchasing Managers’ Index (PMI) in July 2024 reached 54.7 points, the highest since November 2018, with output increasing sharply thanks to increasing new orders for four consecutive months.

The index industrial production (IIP) in July grew by 0.7% over the previous month and 11.2% year-on-year, Thang said, noting the index saw increases in 60 provinces and centrally-run cities in the first seven months of this year.

She attributed the result to improvements in the production capacity of domestic businesses that have also shown their readiness to optimise opportunities to access new markets in the time to come.

Additionally, the deputy minister said, support policies and the drastic instructions of the Government and the Prime Minister in public investment disbursement and the implementation of key industrial projects have helped consolidate the confidence of both domestic and foreign firms.

The official also pointed to a range of challenges such as intrinsic weaknesses, regional and global volatilities, the risk of global supply chain disruptions, and the reliance on some export-import markets, along with the pressure of trade remedy investigations.

Given this, the Ministry of Industry and Trade will speed up public investment disbursement, review obstacles to key projects in electricity, oil and gas, processing and manufacturing, and minerals in order to soon put them into operation, and continue its cooperation with FDI firms and big enterprises at home and abroad as well as international organisations to step up connectivity and improve capacity for domestic suppliers.

The ministry will also encourage the purchase of home-made goods, and seek new markets for key exports, Thang added.

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Petrovietnam to complete $1.5 bln Long Phu 1 thermal power plant in 2027

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State-owned energy giant Petrovietnam aims to restart the idling Long Phu 1 thermal power project, located in the Mekong Delta province of Soc Trang, and complete it in 2027, according to the draft amendments to the power development plan VIII (PDP VIII).

Petrovietnam was assigned as investor of the $1.5 billion coal-fired power project in 2010. In 2014, Petrovietnam signed deals to assign Russia’s Power Machine and its technical arm Petrovietnam Technical Service Corporation (PTSC) as engineering, procurement, and construction (EPC) contractors.

Long Phu 1 thermal power project in Soc Trang province, Mekong Delta. southern Vietnam. Photo courtesy of PetroTimes magazine.

Long Phu 1 thermal power project in Soc Trang province, Mekong Delta. southern Vietnam. Photo courtesy of PetroTimes magazine.

In January 2018, when the project reached 78% completion, the United States had deployed sanctions against Russia due to the Crimea issues, leading to challenges in project implementation. In March 2019, Power Machine stopped construction activities at the project site.

According to the ministry’s document, Petrovietnam is restarting the project and amending the project’s feasibility study.

Long Phu 1 is one of five under-construction coal-fired power plants in Vietnam, the ministry noted. The others are the 1,330 MW Vung Ang II, 110 MW Na Duong II, 1,403 MW Quang Trach I, and 650 MW An Khanh-Bac Giang.

Meanwhile, five projects are facing challenges, namely the 600 MW Cong Thanh, 1,200 MW Nam Dinh I, 1,320 MW Quang Tri, 1,980 MW Vinh Tan III, and 2,120 MW Song Hau II.

The Cong Thanh is waiting for approval to use LNG as feedstock, while Quang Tri, Vinh Tan III, and Song Hau II have stopped or do not have any investor yet. Nam Dinh I is progressing to begin construction later this year.

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Investing in human resources for cultural industries

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After more than seven years of implementing the Strategy for the Development of Cultural Industries in Vietnam to 2020, with a vision to 2030, Vietnam’s cultural industries have made new strides, making positive contributions to the country’s GDP growth.

The production value of Vietnam’s cultural industries in the 2018-2022 period reached about 1,059 trillion VND (USD 44 billion). In 2022, the contribution of cultural industries to GDP reached 4.04%. In large cities such as Hanoi and Ho Chi Minh City, cultural industries have contributed about 4% of the local GRDP. Many cities have officially joined the UNESCO Creative Cities Network such as Hanoi, Hoi An, and Da Lat.

However, according to Tran Thi Phuong Lan from the Department of Culture and Arts under the Party Central Committee’s Commission on Communication and Education, the cultural industry has not yet developed to be commensurate with the country’s distinct potential, outstanding opportunities, and competitive advantages.

Vietnam still lacks specific and appropriate mechanisms and policies to attract capital and resources for the comprehensive development of cultural industries. The connection and coordination between sectors in the development of cultural industries is still not tight, has not promoted the commercial element in cultural products; there are still few large literary and artistic products and works with high ideological and artistic value, etc.

On August 29, 2024, the prime minister signed and issued Directive No.30/CT-TTg on the development of Vietnam’s cultural industries, meeting the expectations of those working in this field.

The prime minister requested ministries, branches and localities to thoroughly grasp and further raise awareness of the position, role, importance and value of cultural industries for socio-economic development and promotion of Vietnamese culture; to promote the responsibility of leaders in directing the development of cultural industries; to proactively implement strategies in a focused and key direction; to issue necessary mechanisms and policies to support, encourage and promote the development of cultural industries in the coming period.

Many experts and managers believed that the most important thing that cultural industries need is human resources, because this is a vital and key factor. Localities need to issue mechanisms and policies to ensure and attract resources, contributing to the construction and development of culture and people in each region, closely linked to the strengths of cultural industries.

In Da Nang, since 2015, the city leaders at all levels have been striving to implement the Party and State’s policies and guidelines in placing culture on par with economics, politics, and society. The city has identified the development of cultural industries along with the construction and completion of the cultural market in 12 areas, focusing on: advertising, software and entertainment games, design, cinema, performing arts, and cultural tourism.

However, the development of cultural industries in Da Nang still has some limitations, with human resources being limited in both quantity and professional quality. The preferential treatment policy for people working in culture and arts has not been given due attention.

Nguyen Thi Hoi An, Deputy Director of the Department of Culture and Sports of Da Nang City, said: “Da Nang has proposed a roadmap to upgrade the Da Nang College of Culture and Arts. At the same time, we focus on training human resources for the cultural industry, improving the quality of training at specialised schools; building standard curricula; investing in teaching and learning equipment in a synchronous manner in the stages of art, technology, production management, distribution, preservation, and communication; and encouraging and sending qualified staff to study and gain experience in countries with developed cultural industries.”

Nguyen Thi Thanh Thuy, Deputy Director of the Department of Culture and Sports of Ho Chi Minh City, shared: The city has been focusing on training human resources for cultural industries through schools, linking with businesses, and cooperating with international partners.

In addition, the city has reviewed and supplemented land funds to the city planning to build cultural industrial parks and film studios; focused on building a network of creative, branded businesses that are competitive in areas where Vietnam has potential and strengths such as software, handicrafts, performing arts, etc., to create many high-quality products. At the same time, there should be reasonable policies and regimes for human resources in the cultural field.

Associate Professor, Dr Do Lenh Hung Tu, Chairman of the Vietnam Cinema Association, said: In the stage of training and developing the film human resources, especially high-quality human resources, the establishment of a specific mechanism to discover, nurture, use and reward talents is extremely important. At the national level, the State needs to have special treatment regimes so that talents can fully develop their capacity and contribute to society, while at the same time creating more favourable conditions for professional organisations to promote young creative activities, create playgrounds, and “talent nursery” competitions.

In the immediate future, it is necessary to promote specialised training in the film industry; especially training a team of film managers with sufficient qualifications and capacity to meet the requirements in the period when cinema is striving to become a key cultural industry.

Highly qualified human resources are a decisive factor for the development of cultural industries. Therefore, it is necessary to effectively implement policies to attract and promote talents, provide incentives and honour individuals with good works and positive influence in society; support the transfer of knowledge, skills, practical know-how, etc., related to the fields of cultural industries; train and foster a team of managers and enforcers of copyright, related rights, cultural and tourism human resources; and form a team of in-depth and interdisciplinary experts.

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