Vietnam’s Retail Sector: A Standout Performance in 2025
Vietnam’s retail sector has shown remarkable resilience and dynamism in 2025, achieving total retail revenue of approximately $269 billion. This impressive figure emerges from the Vietnam Domestic Market Report 2025 released by the Ministry of Industry and Trade’s Agency for Domestic Market Management and Development. The report highlights significant trends in consumer behavior, the growth of e-commerce, and the ongoing challenges within the retail landscape.
Consumer Spending and Growth
One of the standout features of Vietnam’s retail performance in 2025 is the strong year-on-year growth of retail goods sales and service revenue, expanding by around 9-10%. This surge marks the most robust growth in five years, particularly in the post-pandemic recovery phase. The increase is largely fueled by a rebound in purchasing power and a renewed consumer confidence, which have been bolstered by the long-standing “Vietnamese Prioritise Vietnamese Goods” campaign. This initiative has played a pivotal role in promoting domestically produced items, leading to increased demand and sales.
The E-commerce Boom
E-commerce has emerged as a critical driver of retail growth, with online retail turnover soaring to $32 billion in 2025. This figure accounts for nearly 12% of total retail sales, positioning Vietnam as Southeast Asia’s second-fastest-growing e-commerce market. The rapid growth—exceeding 20% annually—can be attributed to significant investments in digital infrastructure, encompassing cashless payment systems, integrated inventory management, online marketplaces, and innovative formats like livestream commerce.
Modern Retail Format Expansion
The evolution of modern retail formats has reshaped Vietnam’s domestic market landscape. By the end of 2025, the country boasted an impressive 1,293 supermarkets and 276 shopping malls spread across urban centers, supplemented by 8,274 traditional markets. This transformation is indicative of a notable shift in consumer habits, moving from informal trade channels towards more organized retail options. Urban populations are increasingly gravitating toward modern retail venues, thus redefining consumption patterns in Vietnam.
Regional Disparities and Structural Challenges
While the retail growth statistics are promising, the report highlights enduring regional disparities. Almost half of Vietnam’s modern retail outlets are concentrated in major urban areas like Hanoi and Ho Chi Minh City, leaving rural, remote, and mountainous regions dependent on traditional markets. This imbalance points to significant challenges in accessibility and service availability in less developed areas, stalling potential growth opportunities.
Impact of External Factors on Consumer Sentiment
Consumer sentiment in 2025 has been influenced by various external factors, including exchange rate fluctuations and pressures from imported inflation. Additionally, concerns about employment stability owing to advancements in automation and artificial intelligence (AI) loom large. While domestic retailers have enhanced their market presence, they still face stiff competition from multinational corporations, particularly in the realms of scale, technological uptake, and management practices.
Prospects for the Future
Looking ahead, the period from 2026 to 2030 appears promising for Vietnam’s retail landscape, with projections indicating that e-commerce revenue could reach $50 billion by 2030. This growth reinforces the sector’s role as a key pillar of retail expansion in the region. Vietnam is poised to remain one of Southeast Asia’s largest and most vibrant retail markets, continuing to attract investment and innovation.
Structural Vulnerabilities Ahead
Despite the rosy outlook, the report underscores several structural vulnerabilities that could hinder sustained growth. Vietnam’s deep integration into global markets makes domestic consumption vulnerable to external shocks—an aspect that requires careful navigation. The ongoing challenges include complex administrative procedures, high land and rental costs, a skills gap within the workforce, uneven infrastructure development, and lingering concerns regarding product quality and market transparency.
This multifaceted landscape of Vietnam’s retail sector in 2025 highlights not just its impressive growth but also the challenges that lie ahead as it seeks to balance expansion with structural integrity.