VIETNAM’S RETAIL MARKET HITS US$269 BILLION

Shoppers are seen at a local supermarket – PHOTO: ARCHIVES

HCMC – Vietnam’s retail market is estimated to have reached US$269 billion in 2025, up 9–10% year-on-year, reflecting a clear recovery in domestic consumption and continued rapid growth in e-commerce, according to the Ministry of Industry and Trade.

The estimate was released in the Vietnam Domestic Market Report 2025 by the Department of Domestic Market Management and Development, which reviews market performance and outlines prospects for the 2025–2030 period.

Total retail sales of goods and services posted one of the fastest growth rates in the past five years, excluding periods affected by the pandemic. The ministry said the rebound points to improving consumer confidence and a growing preference for domestically produced goods.

Vietnam’s commercial infrastructure continued to expand, with 1,293 supermarkets, 276 shopping malls, and more than 8,200 traditional markets nationwide. The expansion has reshaped urban retail landscapes and highlighted a shift toward modern, multi-channel consumption.

However, regional disparities remain pronounced. Modern retail facilities are concentrated in major cities such as Hanoi, HCMC, Danang, and Haiphong, while rural and mountainous areas still rely heavily on traditional markets.

E-commerce remained a key growth driver. The sector was valued at around US$32 billion in 2025, accounting for nearly 12% of total retail sales. Growth exceeded 20%, placing Vietnam among the fastest-growing e-commerce markets in Southeast Asia, supported by rising digital adoption, cashless payments, and increased corporate investment in online platforms.

In terms of spending structure, food and essential goods continued to dominate, making up 34.1% of total retail sales. Meanwhile, spending on services such as accommodation, food and beverage, and tourism grew faster, rising 12–14% annually, reflecting improving living standards and demand for experiences.

The report also highlighted ongoing challenges, including vulnerability to external shocks, regulatory and cost barriers, labor and infrastructure constraints—particularly in rural areas—and competitive gaps between domestic firms and multinational players.

Looking ahead to 2026–2030, the ministry expects Vietnam’s domestic market to expand further, driven by a large, young population and rising incomes. E-commerce revenue could reach around US$50 billion by 2030.

Source: The Saigon Times