A Zara store in HCM City operated by PT Mitra Adiperkasa Tbk (MAPI) (Photo: cafebiz.vn)

Roy has called on the Indonesian government to support the retailers’ efforts through relaxation of regulations.

“The expansion to Vietnam will not be possible if it is not facilitated by the government,” he said, suggesting the government negotiate with the destination countries so that its retailers can obtain business licenses more easily.

According to Nielsen Market Research Company, Vietnam saw strong growth of 13 percent in Fast Moving Consumer Goods (FMCG) sales in convenience stores in 2018. Meanwhile, the number of minimarkets and convenience stores rose 45.5 percent to 1,812 facilities in the year.

In addition, the World Bank said that the number of middle-class people in Vietnam reached 11.64 million last year, accounting for 13 percent of the total population. The figure is forecast to rise 26 percent in 2026.

So far, there have been two modern retailers from Indonesia developing their business in Vietnam. They are PT Perintis Jasa Paripurna which operates Century Healthcare pharmacy outlets, and PT Mitra Adiperkasa Tbk (MAPI) which operates fashion and food and berverage outlets such as Burger King, Debenhams, H&M, Reebok, Straparius and Zara.

VNF ( VNA )