{"id":7704,"date":"2025-01-08T07:52:31","date_gmt":"2025-01-08T00:52:31","guid":{"rendered":"https:\/\/hcmcfoodex.com\/?p=7704"},"modified":"2025-06-23T07:53:31","modified_gmt":"2025-06-23T00:53:31","slug":"bright-ahead","status":"publish","type":"post","link":"https:\/\/hcmcfoodex.com\/en\/bright-ahead\/","title":{"rendered":"Vietnamese retail industry expects bright future ahead"},"content":{"rendered":"
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With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.<\/div>\n<\/div>\n
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Consumers shopping at a supermarket in H\u00e0 N\u1ed9i. \u2014 VNS Photo Mai H\u01b0\u01a1ng<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

H\u00c0 N\u1ed8I \u2014 Vi\u1ec7t Nam\u2019s retail industry is experiencing a period of remarkable growth, fuelled by favourable economic conditions and evolving consumer behaviour.<\/p>\n

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.<\/p>\n

Ti\u1ec1n Phong Securities Corporation projected the retail market in Vi\u1ec7t Nam to grow at an impressive rate of 12.05 per cent between 2024 and 2029.<\/p>\n

This robust trajectory is attributed to a burgeoning middle class, widespread adoption of digital payment systems and the rapid expansion of modern retail formats.<\/p>\n

The rise in consumer confidence and disposable incomes further cements the retail sector’s pivotal role in the nation\u2019s economic recovery and growth.<\/p>\n

Vi\u1ec7t Nam’s demographic structure is critical to the retail industry’s momentum. With a population exceeding 100 million, over 70 per cent are under the age of 40, forming a consumer base that is tech-savvy, urban-oriented, and aspirational.<\/p>\n

By 2025, the country\u2019s GDP per capita is expected to surpass US$5,000, marking a significant milestone to stimulate consumer spending further.<\/p>\n

Ho\u00e0ng Xu\u00e2n Trung, Head of Corporate Clients at Citi Vi\u1ec7t Nam, this demographic advantage, coupled with an increasingly affluent middle class, is set to drive retail demand for years to come.<\/p>\n

\u0110\u1eb7ng Th\u00fay H\u00e0, Director of Customer Behaviour Research at NielsenIQ Vi\u1ec7t Nam, also highlights the growing consumer focus on not just basic needs but also quality-of-life enhancements, a shift that offers lucrative opportunities for retailers to diversify their offerings.<\/p>\n

Key drivers of retail growth<\/b><\/p>\n

The evolution of the country’s retail industry can be attributed to several interrelated factors.<\/p>\n

Ti\u1ec1n Phong Securities said that the expansion of retail networks has brought modern shopping experiences to underserved areas. Supermarkets, convenience stores and online platforms are increasingly penetrating rural markets, offering consumers a more accessible and efficient alternative to traditional retail channels.<\/p>\n

Additionally, the surge in digital payments reflects the growing integration of technology into daily life.<\/p>\n

Close to 40 per cent of consumers now use banking apps for shopping transactions, underscoring a shift towards cashless societies. This trend aligns with the government\u2019s push to promote digital transformation, enhancing both convenience and transparency in retail transactions.<\/p>\n

The country\u2019s expanding middle class, projected to account for 26 per cent of the population by 2026, also represents a significant driver of consumption. Estimates suggest that an additional 23.2 million people will join this demographic by 2033, creating vast opportunities for growth across all retail segments.<\/p>\n

Vi\u1ec7t Nam’s favourable labour demographics, with a majority of its population in the working age group and a high participation rate of women in the workforce, ensure sustained consumer spending across categories.<\/p>\n\n\n\n\n
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A PNJ store inside AEON Mall H\u00e0 \u0110\u00f4ng. \u2014 VNS Photo Ly Ly<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Shifting consumer trends<\/b><\/p>\n

Consumer preferences in Vi\u1ec7t Nam are undergoing a rapid transformation.<\/p>\n

Health and sustainability are becoming central to purchasing decisions, with increasing demand for eco-friendly and high-quality products. Shoppers are also showing greater loyalty to trusted brands, signalling a shift from price-sensitive behaviour to value-driven consumption.<\/p>\n

Leading retail enterprises are positioning themselves to capitalise on the sector\u2019s recovery and expansion.<\/p>\n

Companies like FPT Retail (FRT), Mobile World Investment Corporation (MWG), Digiworld (DGW), Masan Group (MSN) and Ph\u00fa\u00a0Nhu\u1eadn Jewelry JSC\u00a0(PNJ) are leveraging their strengths to adapt to changing market conditions.<\/p>\n

For MWG, strategic restructuring and operational efficiency have set the stage for a strong performance in 2024 and beyond.<\/p>\n

The company\u2019s initiatives to enhance its grocery chain, B\u00e1ch H\u00f3a Xanh, and consumer electronics brand, Erablue, are expected to yield significant results as the economy recovers and urbanisation progresses.<\/p>\n

Similarly, Digiworld anticipates robust growth as foreign direct investment inflows bolster the economy, leading to higher consumer incomes and confidence.<\/p>\n

Policy measures such as a 2 per cent reduction in VAT for specific goods and services are also expected to stimulate spending, further benefiting retail players.<\/p>\n

Mordor Intelligence predicts a 12.1 per cent\u00a0annual Compound Annual Growth Rate (CAGR) for Vi\u1ec7t Nam’s retail and consumer services sector from 2024 to 2029. Retail enterprises still have room for growth.<\/p>\n

Nguy\u1ec5n Vi\u1ec7t \u0110\u1ee9c, head of Digital Business at\u00a0VPBank Securities, expected\u00a0that retail stocks will rebound due to escalating demand, enhanced consumer spending\u00a0and the overall economic recovery momentum. \u2014 VNS<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years. Consumers shopping at a supermarket in H\u00e0 N\u1ed9i. \u2014 VNS Photo Mai H\u01b0\u01a1ng H\u00c0 N\u1ed8I \u2014 Vi\u1ec7t Nam\u2019s retail industry is experiencing a period of remarkable […]<\/p>\n","protected":false},"author":2,"featured_media":7707,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[35,37],"tags":[],"class_list":["post-7704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-market-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/posts\/7704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/comments?post=7704"}],"version-history":[{"count":0,"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/posts\/7704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/media\/7707"}],"wp:attachment":[{"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/media?parent=7704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/categories?post=7704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hcmcfoodex.com\/en\/wp-json\/wp\/v2\/tags?post=7704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}