Vietnam’s Retail Sector: A Remarkable Performance in 2025
Vietnam’s retail sector has made headlines with a standout performance in 2025, achieving a remarkable total retail revenue estimated at $269 billion. According to the Vietnam Domestic Market Report 2025, published by the Ministry of Industry and Trade’s Agency for Domestic Market Management and Development, this figure signifies a robust annual growth of 9-10 percent, the strongest pace witnessed in five years, excluding the pandemic-related disruptions.
Consumer Confidence and Purchasing Power
The upsurge in retail revenue is closely tied to recovering consumer spending, signaling an increase in purchasing power and heightened consumer confidence. A significant contributor to this growth is the ongoing ‘Vietnamese Prioritize Vietnamese Goods’ campaign, which has successfully bolstered demand for domestically produced items. This initiative not only promotes local brands but also fosters a sense of national pride among consumers, encouraging them to support the local economy.
E-commerce Boom
The e-commerce landscape in Vietnam has also experienced a seismic shift. In 2025, the online retail turnover soared to $32 billion, accounting for nearly 12 percent of the total retail sales. With an annual growth rate exceeding 20 percent, Vietnam has emerged as Southeast Asia’s second-fastest-growing e-commerce market. This impressive growth is fueled by substantial corporate investments in digital infrastructure, including cashless payment systems, advanced inventory management, and the burgeoning popularity of online marketplaces and livestream commerce.
Transformation of Retail Formats
Modern retail formats have notably reshaped the domestic market. By the end of 2025, Vietnam boasted 1,293 supermarkets and 276 shopping malls, alongside a solid infrastructure of 8,274 traditional markets. This transformation has significantly altered urban consumption patterns, prompting a shift away from informal trade towards more organized retail channels. The increased availability of modern retail outlets has enhanced consumer experience, providing greater variety and convenience.
Regional Imbalances and Structural Challenges
Despite these achievements, the report underscores the persistent regional imbalances within Vietnam’s retail sector. Almost half of the modern retail outlets continue to be concentrated in major urban centers such as Hanoi, Ho Chi Minh City, Da Nang, and Hai Phong. In contrast, rural, remote, and mountainous areas remain heavily reliant on traditional markets, often lacking access to modern retail services. This uneven distribution highlights ongoing disparities in economic development across the country.
Factors Influencing Consumer Sentiment
In 2025, several external factors influenced consumer sentiment. Exchange rate volatility, imported inflation pressures, and uncertainties surrounding employment—exacerbated by automation and artificial intelligence (AI)—played a role in shaping purchasing behaviors. While domestic retailers have made strides in expanding their market presence, they still face challenges in scale, technology adoption, and management capabilities when compared to their multinational counterparts.
Future Outlook: 2026-2030
Looking ahead to the 2026-2030 period, Vietnam is poised to remain one of Southeast Asia’s most dynamic retail markets. E-commerce is projected to further expand, with revenue expected to soar to $50 billion by 2030, reinforcing its pivotal role in driving retail growth. This forecast reflects a robust trajectory, positioning Vietnam as a key player in the region’s retail landscape.
Structural Vulnerabilities
Despite positive indicators, the report highlights several structural vulnerabilities that could hinder sustained growth. Vietnam’s deep integration into global markets leaves domestic consumption exposed to external shocks. Additionally, ongoing challenges such as complex administrative procedures, high land and rental costs, skills gaps in the workforce, uneven infrastructure development in rural areas, and concerns regarding product quality and market transparency must be addressed to facilitate a more inclusive retail environment.