The Participation of the Poor in Supermarkets and other Distribution Value Chains (ADB Discussion Paper)

by Paule Moustier, Dao The Anh, Hoang Bang An, Vu Trong Binh, Muriel Figuié, Nguyen Thi Tan Loc, Phan Thi Giac Tam

ADB Discussion paper No.11

Although the development has not been as fast paced as in other countries in Asia, supermarkets are an increasingly common part of commodity trade in Viet Nam. In late 2001, there were 70 supermarkets in Viet Nam, 32 in Hanoi and 38 in Ho Chi Minh City, while there were none before 1990. By June 2004 the number of supermarkets in Hanoi reached 55 supermarkets (plus 9 wholesale centers, including Metro), and there were 71 supermarkets in Ho Chi Minh City alone by 2005.

The development of these innovative distribution chains goes together with activities which add much value to the business of food distribution. Thanks to economies of scale, they also have a potential for cutting distribution costs and sell more affordable products to consumers. This development represents income generation opportunities for a country like Viet Nam where poverty alleviation is a major policy goal. The challenge is how to ensure that the value added by these new enterprises can effectively be distributed to the poor and how to maintain alternative distribution chains which can generate more value for the poor.

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