Vietnam’s Retail Sector: A 2025 Overview
Vietnam’s retail landscape has witnessed remarkable growth in 2025, with total retail revenue soaring to an impressive $269 billion. This performance, highlighted in the Vietnam Domestic Market Report 2025 from the Ministry of Industry and Trade’s Agency for Domestic Market Management and Development, signifies a robust recovery in consumer spending.
Strong Year-on-Year Growth
The retail goods sales and service revenue expanded by approximately 9-10% year on year, marking the most substantial growth experienced in five years, excluding periods affected by the pandemic. This surge reflects a rejuvenated consumer confidence bolstered by increased purchasing power. The success can be partly attributed to initiatives like the ‘Vietnamese Prioritise Vietnamese Goods’ campaign, which has effectively cultivated a growing demand for locally produced items.
E-Commerce: A Game Changer
A noteworthy trend in the retail sector is the remarkable rise of e-commerce, which achieved a turnover of over $32 billion, accounting for nearly 12% of total retail sales. With annual growth exceeding 20%, Vietnam has claimed the title of Southeast Asia’s second-fastest-growing e-commerce market. This growth is fueled by substantial corporate investments in digital infrastructure, including advancements in cashless payment systems, inventory management solutions, online marketplaces, and innovative livestream commerce strategies.
Modern Retail Formats on the Rise
The evolution of modern retail formats is reshaping Vietnam’s domestic market. By the end of 2025, the country boasted 1,293 supermarkets, 276 shopping malls, and 8,274 traditional markets. This expansion has notably transformed consumption patterns in urban areas, facilitating a shift from informal trade to organized retail channels. The improved accessibility of modern shopping options has empowered consumers with more choices and convenience.
Persistent Regional Imbalances
Despite the overall growth, the report casts a spotlight on concerning regional imbalances within the retail sector. A significant concentration of modern retail outlets—nearly half—are located in major urban centers such as Hanoi, Ho Chi Minh City, Da Nang, and Hai Phong. Meanwhile, rural, remote, and mountainous areas continue to depend heavily on traditional markets, lacking sufficient access to modern retail services. This disparity presents challenges for fostering equitable growth across the entire country.
Consumer Sentiment and Economic Influences
Consumer sentiment in 2025 has been shaped by various economic factors, including exchange rate fluctuations, inflation from imported goods, and employment uncertainties associated with emerging technologies like automation and artificial intelligence. While domestic retailers have made strides in enhancing their market presence, they still struggle to keep pace with multinational corporations in aspects such as scale, technology integration, and management capabilities.
Future Outlook: Growth and Challenges Ahead
Looking ahead to the 2026-2030 period, Vietnam is poised to maintain its status as one of Southeast Asia’s most vibrant and dynamic retail markets. E-commerce revenue is projected to surge to $50 billion by 2030, further solidifying its role as a cornerstone of retail development. However, despite the optimistic figures, the report highlights several structural vulnerabilities that must be addressed.
Vietnam’s significant integration into global markets exposes domestic consumption to external shocks, underscoring the importance of resilience in the face of economic fluctuations. Current challenges include cumbersome administrative procedures, elevated land and rental costs, skills gaps within the workforce, uneven infrastructure development in rural regions, and ongoing concerns regarding product quality and market transparency.
Preparing for a Dynamic Retail Future
As Vietnam’s retail sector evolves, both opportunities and challenges will continue to shape its trajectory. The importance of fostering a more balanced retail environment cannot be overstated, given the potential for sustainable growth and inclusivity. With strategic focus and commitment to addressing these challenges, Vietnam can harness its retail potential and carve a prominent position in the regional and global retail arena.