The retail market did not grow as expected in 2024 but is forecast to improve in 2025. Many retail businesses have increased the opening of new points of sale to seize this opportunity.
Many retail businesses open new distribution channels.
In mid-January, AEON Vietnam opened AEON Xuan Thuy (Cau Giay), continuing to implement its strategy of diversifying its retail models. Instead of focusing on shopping malls and hypermarkets as in the initial phase of its launch in Vietnam, AEON has now focused on developing retail models of different scales near residential areas, thereby bringing convenience to customers.
Mr. Furusawa Yasuyuki, Member of the Board of Directors of AEON Group in charge of the Vietnamese market and General Director of AEON Vietnam, shared that AEON Vietnam plans to open a variety of new shopping locations with different models and scales. Not only located in AEON shopping centers, we will also expand and develop more at the shopping centers of other partners. In terms of area, although different, all retail locations of AEON Vietnam fully meet the needs of customers from food, household appliances, mother and baby, fashion, etc.
Besides traditional retail, multi-channel retail is also growing strongly in Vietnam. Last October, Sapo - Multi-channel sales and management platform officially introduced to the market the Sapo OmniAI Multi-channel sales and management platform, leveraging the power of Headless Commerce and artificial intelligence (AI) technology to create a completely superior version of Sapo.
With Headless Commerce technology at its core, Sapo OmniAI is Sapo's next breakthrough, an advanced solution that allows businesses to manage all sales channels from one platform, keep up with all new business trends in the market, and focus on buyers to bring a seamless multi-channel shopping experience.
These are two of the highlights in the relatively vibrant picture of the Vietnamese retail market, especially in the second half of the year. According to the General Statistics Office, in 2024, the Vietnamese retail industry made an important contribution to Vietnam's socio-economic development. Retail sales of goods in 2024 are estimated at VND 4,921.7 trillion, accounting for 77% of the total and increasing by 8.3% over the previous year.
The bright spot in the retail picture in 2024 is the strong development of e-commerce, e-commerce revenue increases, accounting for an average of about 20% of total retail sales.
Ms. Lai Viet Anh, Deputy Director of the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), said that in recent years, e-commerce in Vietnam has affirmed its pioneering role in the digital economy.
Although the global and regional economies are still facing many challenges, Vietnam's e-commerce continues to maintain an impressive growth rate, reaching 18-25% per year.
In 2023, Vietnam's e-commerce will record a growth rate of 25%, with B2C revenue reaching 20.5 billion USD. In 2024, Vietnam's e-commerce will record a growth rate of 20%, with B2C (business to consumer) revenue exceeding 20.5 billion USD. With the above positive results, it is forecasted that in 2024, the retail market will exceed 25 billion USD.
In addition, retail businesses have also put forward priority strategies to reposition their operations. According to a survey by Vietnam Report, 79.2% of businesses choose multi-channel sales.
Along with that, businesses have promoted product diversification and input quality control (up 22.6% compared to the survey results in 2023). Retail businesses have also strengthened their links with members in the supply chain, manufacturers and logistics service providers, aiming for sustainability and stability.
In addition, attention is paid to commercial infrastructure, especially in the rural market segment, helping people shop conveniently, with civilized commerce and ensuring food safety.
Mr. Nguyen Anh Duc, Chairman of the Vietnam Retailers Association, added that 2024 will witness a transformation between the proportion of modern retail and traditional retail when, for the first time after the Covid-19 pandemic, the proportion of traditional retail will fall further, which is a change in line with the trend. If before the Covid-19 pandemic, the proportion of modern retail was 24%, after the pandemic it decreased to 18-19%, then by 2025, modern retail will increase to 25%. In big cities such as Hanoi and Ho Chi Minh City, the proportion of modern retail accounts for 28-30%, higher than in other provinces and cities.
In addition, currently, the proportion of foreign retailers accounts for about 2/3 of the Vietnamese retail market in the modern retail segment. This helps the retail market develop more strongly, approaching the large countries in the world because foreign retailers often have great economic potential. However, this also puts certain pressure on domestic enterprises.
Expectations for the growth of the retail market in 2025
In 2025, the retail market is forecast to be more vibrant as Vietnam's economy has room to grow stronger after a year of people tightening spending due to economic difficulties.
To enhance the competitiveness of the retail industry and help businesses take full advantage of opportunities from the $200 billion market, experts say that businesses need to promote digital transformation and develop modern retail models; including investing in digital technology to develop multi-channel retail models, enhance consumer experience and optimize supply chain management.
On the other hand, enhance competitiveness and cooperation; in which, encourage cooperation between domestic and foreign retail enterprises to share technology, experience and build a modern and sustainable retail ecosystem.
On the business side, Ms. Doan Thi Huong Thanh, Legal Director, Wincommerce, suggested that ministries, branches, and localities invest in developing the national logistics network, investing in warehouse systems, transportation, and modern logistics centers... to reduce transportation costs, reduce prices, and improve competitiveness for retail businesses.
Ms. Tran Thi Phuong Lan, Vice President of the Vietnam Retail Association, added that in 2025, new trends from the application of technology in e-commerce to the differentiation of consumer behavior will not only reshape the market, but also create great opportunities and challenges for businesses.
Therefore, retail businesses need to promote technological innovation, digital transformation, multi-channel sales, grasp the shift in consumer trends to respond appropriately. Coordinate directly with manufacturers to select products, reduce costs, lower prices, and compete in a healthy market. Have solutions to deal with cheap imported products that are dominating the market.
In 2025, the Ministry of Industry and Trade strives for total retail sales of goods and consumer service revenue to increase by about 10% compared to the same period in 2024. Solutions to stimulate consumption to achieve a growth rate of 10% will be implemented by the Ministry of Industry and Trade in coordination with businesses, which is an opportunity to unleash great potential for the retail market.
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