Xin Ou
Research expert covering Greater China
Retail sector in Vietnam - statistics & facts
The Doi Moi economic reform in Vietnam has led to rapid economic development and increased domestic consumption, resulting in the expansion of the country’s retail sector. To meet the demand of Vietnam’s growing population and emerging middle class, the retail industry has evolved in recent years in both urban and rural areas. In 2022, the wholesale and retail sector, together with the vehicle maintenance sector, was among the main contributors to the country’s GDP. Despite the major impact of the COVID-19 pandemic, the retail sector’s growth track has shown signs of recovery following the lifting of several COVID-19 restrictions, reflected in the expansion of modern retail channels as well as the competitive race between international and local retail players in Vietnam.
The impacts of the COVID-19 pandemic and digitalization have significantly altered how Vietnamese people shop. While traditional retail channels, such as street stores and wet markets, still account for the country's largest share of retail sales, modern trade channels have been expanding fast. As a result, convenience stores, supermarkets, and department stores have increased their presence by continuously opening new outlets. In urban areas, many Vietnamese consumers have demonstrated a higher preference for modern channels or e-commerce. According to a recent survey among internet users in Vietnam, around 78 percent of respondents confirmed having shopped online. This shift in consumer shopping channel preference has led to the growth of e-commerce in Vietnam, which accounted for 7.5 percent of the country’s total retail sales.
Retail segments and channels in Vietnam
Within the retail sector in Vietnam, food and foodstuffs made up the largest segment, contributing over 1.4 quadrillion Vietnamese dong in retail sales in 2022. As consumer demands shift more towards convenience products, packaged food has been among the items enjoying consistent revenue growth within the food category. On the other hand, other retail segments, such as electronic devices and household goods, have experienced a steady rise thanks to increasing consumption.The impacts of the COVID-19 pandemic and digitalization have significantly altered how Vietnamese people shop. While traditional retail channels, such as street stores and wet markets, still account for the country's largest share of retail sales, modern trade channels have been expanding fast. As a result, convenience stores, supermarkets, and department stores have increased their presence by continuously opening new outlets. In urban areas, many Vietnamese consumers have demonstrated a higher preference for modern channels or e-commerce. According to a recent survey among internet users in Vietnam, around 78 percent of respondents confirmed having shopped online. This shift in consumer shopping channel preference has led to the growth of e-commerce in Vietnam, which accounted for 7.5 percent of the country’s total retail sales.
The race of retail giants in Vietnam
Thanks to its dynamic and emerging economy, Vietnam has become a potential playground for retail giants seeking to tap into its growing consumer market. Despite facing strong competition from international retail brands, such as leading Korean retailer Lotte, Japan’s Aeon, and Big C from Thailand, domestic retailers still gain the upper hand in Vietnam’s retail landscape. One of the key players in Vietnam’s retail sector in terms of scale, revenue, and profit is the conglomerate Mobile World Investment Corporation (MWG). Established in 2009, the firm operates large-scale retail chains such as The Gioi Di Dong, Dien May Xanh, Bach Hoa Xanh, and An Khang Pharmacy, which specialize in various retail segments ranging from electronic devices to grocery retail and pharmacy. When it comes to grocery retail, Saigon Co.op, with its nationwide supermarket chain Co.opmart, has remained in its leading position even after suffering severe impacts from the COVID-19 pandemic. These modern trade forms have offered consumers a wider range of choices and enhanced their shopping experience. Ultimately, this competition is driving innovation and setting higher retail benchmarks in Vietnam, benefiting both consumers and the overall economy.
