Vietnam’s Retail Market Development Strategy: A Vision for 2030
Vietnam’s retail sector is on the brink of transformation. Recently, Prime Minister Pham Minh Chinh approved the Retail Market Development Strategy to 2030, aiming to modernize retail practices across the nation, bolster e-commerce, and strengthen domestic purchasing power. This ambitious plan is not merely about boosting sales; it seeks to promote Vietnamese products globally.
Aiming for Growth
Under this newly minted strategy, Vietnam has set its sights on increasing total retail sales of goods and consumer services by an annual average of 11% to 11.5% through 2030. E-commerce is another focal point, with an anticipated growth rate of 15% to 20% per year, aiming to contribute roughly 20% of the national retail sales by the end of the decade. The strategy hopes to see 45% of small and medium-sized enterprises (SMEs) participating in online platforms, encouraging a more digital-centric retail landscape.
Objectives Outlined in Decision No. 2326
The specifics of this strategy are laid out in Decision No. 2326, signed by Prime Minister Pham Minh Chinh. The overarching goal is to establish a modern, sustainable, and transparent retail market that aligns with both domestic trade interests and international commitments. By embracing global trends in the digital economy, green economy, and sharing economy, Vietnam aims to ensure that its retail sector remains competitive on a global scale.
Encouraging Participation from Diverse Enterprises
The strategy is designed to be inclusive, inviting enterprises across all economic sectors to contribute to market development. The government is focusing on creating a fair and competitive environment to attract reputable domestic and foreign retailers. Vietnamese businesses are particularly encouraged to innovate and adopt globally recognized retail practices.
Support for Small Players
In its pursuit of a vibrant retail ecosystem, Vietnam envisions the formation of large domestic retail groups led by private enterprises, while also supporting smaller entities such as cooperatives and household businesses. The government plans to provide financial, land, and policy incentives to these smaller players, allowing them to thrive alongside larger corporations.
Diversification of Retail Formats
A diversified retail network will be essential to this strategy. The government aims to integrate various modern retail formats such as supermarkets, shopping centers, convenience stores, and specialty shops, ensuring that traditional markets also receive balanced development. This multifaceted approach recognizes the diverse shopping preferences of Vietnamese consumers.
Strengthening Supply Chains
Efforts to modernize retail will also include building efficient supply chains that connect production to distribution. This focus will be especially critical for essential agricultural and food products, aiming to stabilize both supply and demand while ensuring top-notch quality and food safety.
Sustainability and Traceability
A significant aspect of the strategy is the commitment to fostering sustainable supply chains. The government is pushing for products that are not only traceable but also eco-labeled, meeting international standards. This forward-thinking approach aims to establish Vietnam as a source of high-quality, sustainable products in global markets.
Small Businesses and Market Linkages
To further strengthen the market, small businesses and cooperatives are encouraged to create vertical and horizontal linkages. This will enhance their access to markets and elevate their competitiveness. The government recognizes that cooperation among producers, distributors, and service providers will be vital for creating a stable, high-quality supply base.
E-commerce as a Driving Force
At the heart of Vietnam’s retail transformation is e-commerce. The strategy outlines a plan to expand online trading platforms and promote omni-channel models that seamlessly integrate physical and digital retail experiences. This aligns with rising consumer trends, emphasizing retail via mobile devices, television, and social media.
Legal Framework and Innovation
To pave the way for this transformation, the government aims to refine the legal framework for e-commerce. There will be initiatives to introduce pilot mechanisms for innovative digital platforms, ensuring equal treatment for all business models in accordance with global e-commerce standards and the advancements of Industry 4.0.
A Bright Future for Vietnam’s Retail Market
According to estimates from Mordor Intelligence, Vietnam’s retail market could soar to $309 billion by 2025 and reach $546 billion by 2030. Currently, modern retail accounts for 12% to 15% of the total market share, highlighting significant opportunities for businesses to scale up and diversify their offerings.
The Ministry of Industry and Trade forecasts steady growth for the retail sector, projecting an increase in retail sales and consumer service revenue by 10.5% to 12% in 2025. Excitingly, from January to September 2025, total retail sales saw a 9.5% rise year-on-year, indicating strong domestic consumption momentum.
Emerging E-commerce Trends
The e-commerce market, a cornerstone of this development, is expected to grow by 25.5% in 2025, a figure that surpasses initial targets. From January to August 2025, the sector experienced a remarkable 27% growth, signaling an accelerating digital transformation and a consumer base eager for online shopping.
Vietnam’s retail market is thus poised for remarkable evolution, rooted in pivotal strategies that not only aim for economic growth but also strive for sustainability and innovation.