A lack of a master retail plan has caused insecurity and confusion inthe local retail sector, leaving many of them losing market share totheir foreign rivals, independent market analysts have said. Vietnamhas become more attractive to foreign retailers, particularly thosefrom the region, as the country ranked second this year among the 10 toplocations for retailers in Asia. According to the "TheLiveliness of Retail Markets in Asia –Pacific 2014" report that CBRErecently released, Vietnam has great potential thanks to its youngpopulation and ever-improving purchasing power from its growing middleclass. In CBRE's report, Hanoi and Ho Chi Minh City, Vietnam'stwo biggest cities, are included as two of the top 10 Asian cities forretail expansion in 2014. Foreign retailers had flocked to thecountry in recent years to take advantage of the opportunities and enterthe market at the right time. Firms such as AEON, Dunkin' Donuts, Auntie Anne's, Starbucks and McDonald's have all opened outlets in the country. Thelatest retail group is Thailand's Berli Jucker Public Company Limited(BJC), which bought the formerly German-owned Metro Cash & CarryVietnam. Although it is easier for Vietnamese companies to findlocations, they are having a difficult time competing with their foreignrivals. For instance, Ho Chi Minh City currently has 475 convenience stores, 350 of which are foreign-owned. SingaporeanShop&Go, which arrived in 2005, became the leading conveniencestore chain in Vietnam after opening its 103rd outlet in April thisyear. The US chain Circle K has opened 73 outlets since 2008, including 10 in Ho Chi Minh City since the beginning of the year. NguyenTien Vuong, Deputy General Director of the Hanoi Trade Corporation(Hapro), said localities in the country had not developed retail planssuited to specific areas and based on local people's demand. Thus, domestic retail firms were often unsure about where to locate shops and how to expand their distribution networks. "Retailerslike Hapro need specific policies from the Government that includeplanning of retail activities for such locations as resettlement areas,new residential areas and suburban areas, as well as information onconsumer demand of the residents who actually live there," Vuong wasquoted as saying in the Business Times newspaper. "Also, becauseof a lack of planning, some foreign retail giants have been allowed toput up buildings next to domestic ones, which makes it difficult forlocals to compete," he added. Pham Xuan Tiem, former Director ofthe Hanoi Socio-Economic Research Institute (HSERI), said that, due to alack of master planning, most supermarkets and trade centres werelocated in major cities, with 70 percent of them in Hanoi and Ho ChiMinh City. Moreover, most of these modern retail establishmentsare in urban areas with high density, while only a few are in ruralareas, which have great potential, Tiem said. "At present, thenumber of first- and second-tier domestic supermarkets accounts for only22 percent, and those that are third-tier account for up to 46 percentof the total. "Meanwhile, small retail establishments often have aweak array of commodities, poor and inconvenient displays, and mediocreservices," he said. Phan The Rue, former deputy minister of theTrade and Industry, said the domestic retail market still had greatpotential for exploitation, but authorised agencies had not surveyedconsumer demand to discover the most appropriate development plans. "Theimbalance among modern retail points between urban and rural areas hashad a great impact on socio-economic development. Many retail points inthe same locations not only waste human resources and land, but alsocreate unhealthy competition," Rue said. Nguyen Van Nam of theVietnam Economics Science Association said it was necessary to havelong-term coordinated development plans for all sectors, including theretail sector, so that investors could be confident about theircompetitive ability. "Foreign retailers should be allowed toinvest in the country based on master planning, particularly when theywant to open a second location for their retail stores. This wouldensure that that modern retail centres would be more spread out and lessdense," said Vu Vinh Phu, Chairman of the Hanoi SupermarketAssociation.-VNA