Retail in Vietnam

Modern retail formats such as shopping centres, supermarkets and hypermarkets will play a crucial role in Vietnam’s future retail sector growth, given the scale needed to support a market of 90 million consumers. In particular, the rapid growth of urban residential areas is likely to result in greater demand for large-scale commercial centres. Currently, the modern retail channel accounts for around 20% of sales in Vietnam, representing a latent market opportunity for investors.

With the upcoming sector liberalisation under its WTO commitments, Vietnam’s retail arena is likely to witness intensified competition. Will domestic retailers be able to retain their first-mover advantage and consumer mind share? Or will foreign retailers be able to capitalise on their vast experience and networks to build scale? The battle lines may have been drawn, but it all boils down to understanding the market and getting the fundamentals right.

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