What's Happening?
Vietnam's retail market has reached a significant milestone, achieving an estimated $269 billion in 2025, marking the fastest growth in the past five years. This growth is attributed to a 9-10% year-on-year increase in total retail sales of goods and
consumer service revenue. The Vietnam Domestic Market Report 2025 highlights the recovery of domestic consumption and improved consumer trust as key factors driving this growth. The market is evolving towards higher-quality retail models that emphasize experience, catering to the sophisticated needs of urban consumers. The expansion is fueled by demographic changes, rising household incomes, and a dynamic retail cycle driven by international and domestic brands. Urbanization and changing consumer habits are also shaping demand, with retail spaces becoming venues for experiences and socializing.
Why It's Important?
The growth of Vietnam's retail market is significant as it reflects broader economic recovery and consumer confidence. As Vietnam approaches upper-middle-income status, increased spending on retail, education, dining, and lifestyle services is creating a sustainable demand. This growth is supported by a favorable macroeconomic environment, including strong foreign direct investment inflows and regulatory improvements. The shift towards experience-focused retail models indicates a transformation in consumer behavior, particularly among Gen Z and Millennials, who dominate urban shopping centers. The integration of e-commerce and traditional retail further enhances market sophistication, offering brands opportunities to adopt omnichannel strategies.
What's Next?
Vietnam's retail market is expected to maintain stable growth, driven by long-term structural factors. The continued emphasis on experience and quality in retail models will likely attract more international brands and investments. As urbanization progresses, the demand for mixed-use developments with strong food, beverage, and entertainment offerings will increase. The integration of digital platforms with physical stores will continue to evolve, enhancing consumer convenience and brand engagement. The market's trajectory suggests a sustained focus on innovation and adaptation to meet the evolving needs of consumers.
