Vietnam retail tipped to record double-digit growth
The Vietnam retail sector is forecast to record double-digit growth from 2019 to 2024, according to a report by ResearchAndMarkets.
While a number of Vietnamese consumers still choose to shop in traditional markets as they can buy ingredients in smaller portions, supermarkets are offering ready-to-cook packages better suited to the daily needs of the average consumer, says the report. Thus, supermarkets and convenience stores are taking an increasing share of the overall food and grocery market.
Food products, non-food products, and home appliances are also sold in larger supermarkets, offering more range and convenience for local customers under one roof.
Modern retail outlets also offer private brands/products that can be exclusively purchased in their stores.
Some newer stores have in-house bakeries and cafes where consumers can hang out and enjoy with family or friends.
Growth of convenience
The growing Vietnamese middle and affluent classes and the younger population increasingly value convenience and comfort. That is driving growth in the convenience store market, met by the expansion of companies such as Circle K, which is now expanding across Hanoi after establishing a strong presence in Ho Chi Minh City, FamilyMart, 7-Eleven and GS25, among others.
The increasing presence of local players, such as Vinmart+, which has nearly 900 stores nationwide, and test stores trading as Bach Hoa Xanh, operated by Mobile World, are helping expand the Vietnam retail market.
Traditional food-and-beverage retailers still dominate the sector.
As of last year, traditional retailers accounted for 94 per cent of the retail grocery sales, and the remaining 6 per cent sales were attributed to modern retail.
According to industry experts, modern retail sales are expected to reach 18 per cent of total food retail sales by 2024.