SÀI GÒN — High inflation and fluctuating prices have prompted buyers to focus on essential goods, but the sale of foreign products has continued to rise.

The consumption of essential goods including foodstuffs, soap and detergent has increased significantly while that of luxury goods has dropped as Vietnamese shoppers respond to high inflation.

At the same time, supermarket shoppers are willing to pay more for imported goods, according to data collected at supermarket chains around Vi?t Nam in the first half of the year.

The information was presented at a recent conference on consumer trends held by the Center for Business Studies and Assistance (BSA).

Revenues from fresh and processed food and milk products increased by 40 to 50 percent and those of chemical products like soap and detergent rose by 30 to 40 percent.

Shoppers have focused more on basic goods like detergent, dishwashing liquid and soap rather than skin and body creams, says Nguy?n Ng?c Hoà, director of Co.opMart supermarket chain.

Meanwhile, purchases of garment products rose insignificantly in many stores including Fivimart and Maximark while decreasing in Co.opMart by 2 percent.

Zen Plaza, a Sài Gòn trade center that mainly sells branded perfumes, cosmetics and clothes, saw its first half revenues drop by 3 percent.

With consumers showing a preference for price-related promotion programs, many firms have cut down on other forms of marketing, including advertising and public-relations e-vents.

For the first seven months of the year, the consumer price index rose by 21.28 percent.

Another development that has been noted by the supermarkets is that the percentage of made-in-Vi?t Nam goods on their shelves has decreased by 5 percent over the same period last year.

Meanwhile, the proportion of foreign products has risen by 20 to 30 percent and looks set to continue.

Ngô Van H?i, deputy head of Citimart’s business department, says the advantage of lower prices of domestic products has not deterred customers from enjoying higher living standards.

Besides, imported products are more diversified and more conveniently packed, he says.

A survey by US-based advertising agency, Grey Global Group, released in late July showed up to 77 percent of Vietnamese prefer foreign brands to domestic ones.

The average percentage in Asia was 40 percent.

The agency’s '"Eye on Asia"' survey launched three years ago was conducted in 16 nations and territories and about 25,000 people were interviewed.

The number of customers at supermarkets in Vi?t Nam rose by 10 to 30 percent in the first half of this year, increasing their share of the retail pie to 20 percent from 16 percent at the end of 2007.

Vu Kim H?nh, head of BSA, says that thanks to substantial reserves, prices of goods in supermarkets were more stable than those in other markets and small stores, attracting more customers in an economy mark-ed by fluctuating prices and inflation.

In addition, merchandise in supermarkets, previously some 10 to 15 percent costlier than other suppliers, is only three percent more expensive at the maximum.

Some goods are even cheaper than at other distribution channels.

Ðình Th? M? Loan, general secretary of the Association of Vi?t Nam’s Retailers (AVR), told another conference last month that the Vietnamese market is a highly attractive proposition for foreign retail giants like Tesco, Wal-Mart, Lotte and Carrefour.

Duong Th? Qu?nh Trang, from the Big C supermarket chain’s external affairs bureau, said regional and international producers are trying to access the market with original products, diversified designs, competitive prices, promotions, and discounts for suppliers.

In the first half of this year, total retail revenue in Vi?t Nam reached $26 billion, a 30 percent year-on-year increase, according to the General Statistics Office.

Vi?t Nam’s annual retail sales are set to increase by 13.6 percent on average between 2008 and 2012, according to multinational market research firm RNCOS.

This year, Vi?t Nam has become the world’s top retail market, according to the Global Retail Development Index report by A.T. Kearney released in June.

It ranks nations based on their economic and political risk, per capita income, market saturation and market attractiveness.

Among its 85 million people, the nation has some 60.6 million consumers aged 15-69, according to U.S.-based marketing research firm A.C. Nielsen.

Vi?t Nam will open the market to 100 percent foreign-invested retail and distribution firms early next year as part of its commitment to the World Trade Organization.

Currently, fully foreign-owned firms are only approved on a case by case basis.