(VOVworld) – Sweden’s fashion house Hennes&Mauritz’s decision to open a store in Vietnam illustrates an increasing interest of foreign investors in Vietnam’s retail sector, according to a report by Britain’s Economist Intelligence Unit (EIU).

The report predicts that foreign firms will expand their operations in Vietnam and strengthen their partnership with Vietnamese businesses. Japanese supermarket chain operator Aeon Company Limited has formed business tie-ups with two local retailers by acquiring a 30% stake at Fivimart and a 49% stake at Citimart.

An Aeon Mall in Hanoi (Photo: Hoang Hai/VNA)

According to the report, Vietnam’s retail sector enjoyed an impressive average growth rate of 13% per year between 2012 and 2016.

The EIU says favorable demographic conditions would result in a dramatic surge in consumers’ spending. People’s increasing income is also a factor that attracts foreign investors to Vietnam’s retail market, the report adds.