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Summary of main findings from literature and study on supermarket development

Moustier P.. 2006. In : Moustier Paule (ed.), Dao Thê Anh (ed.), Hoang Bang An (ed.), Vu Trong Binh (ed.), Figuié Muriel (ed.), Nguyen Thi Tan Loc (ed.), Phan Thi Giac Tam (ed.). Supermarkets and the poor in Vietnam. Hanoi : MALICA, p. 30-41.

The global expansion of supermarkets has been extensively reported over the last decade, and while anticipated lower costs for consumers can be viewed as a positive outcome, the potential for job losses and the tendency toward oligopsonies imply a more negative effect. The regulation of supermarkets via good business practice codes and by promoting alternative, more poor-friendly distribution chains is advocated by some authors to limit the negative implications associated with supermarket development. Data collected from 2000 - 2004 in Vietnam has shown a 17% annual growth of supermarkets in Ho Chi Minh City and a corresponding 14% growth rate in Hanoi. This especially applies to the three leaders (Metro Cash & Carry, Coop-Mart and Big C) - and can be seen due to increased urbanization, growing purchasing power, and related effect from the demand for big ticket consumer goods such as cars and refrigerators. However traditional city markets are still the major players in terms of direct and indirect employment - with markets employing more people than supermarkets for the same unit area, while their food share is estimated to be between 85 and 99% depending on the type of product. In Vietnam's two largest cities policies have favored the centralization of food distribution via planned wholesale and retail markets; incentives for private investment in supermarkets; and planned cessation of street vending and informal markets. The main rationales underlying these policies are facilitating traffic conditions, monitoring food safety, and the desire to modernize urban ares.

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