Vietnam's retail sector is witnessing remarkable growth as changing consumer behavior reshapes the market. According to the Hanoi Department of Industry and Trade, the estimated total retail sales of goods and revenue from consumer services for January 2025 reached 84.9 trillion VND, marking an 8.6% increase from the previous month and reflecting a 26.4% rise compared to the same period last year.
This surge not only highlights the resilience of Vietnam's economy amid global challenges but also indicates the increasing preference for local products. Over 80% of goods available at supermarkets and trade centers are domestically produced, showcasing the remarkable shift among Vietnamese consumers toward prioritizing local over imported goods.
The data points to a growing trend where Vietnamese consumers exhibit solid support for native products, significantly across major retail chains such as Co.opmart, Vinmart, and Hapro, which report local product shares ranging from 90% to 95%. Even international chains like AEON and Mega Market showcase local goods prominently, with 60% to 90% of their offerings being domestically sourced.
Phó Giám đốc Sở Công Thương Hà Nội, Nguyễn Kiều Oanh, emphasized the need for companies to adapt quickly to these new consumer trends. She stated, Businesses need to actively invest and grasp the new consumption trends of the Vietnamese, aiming to sustain and boost the message of the "Vietnamese prioritize Vietnamese products" movement.
This changing consumer behavior stems from multiple factors, including rising awareness about the quality of local goods, alongside effective promotional campaigns to boost sales of domestic products. Retailers are actively engaging by implementing promotional programs and special events to attract consumers.
Despite the optimism surrounding retail growth, the industry faces pressing challenges such as rising operational costs and fierce competition. These factors necessitate continuous innovation across menu selections and retail environments. For example, the food and beverage (F&B) sector segments are dramatically adapting to cost fluctuations and customer desires, with experiences playing a significant part.
Nguyễn Hoài Phương, CEO of Gong Cha Vietnam, noted, There's always anxiety, but we dont let it stop us from improving quality and building trust with customers. That foundation is what supports sustainable growth for businesses, hinting at the emphasis on maintaining high standards even during challenging times.
Experts suggest businesses should find competitive pricing strategies, increase appeal, and optimize payment methods to retain market viability. Nguyễn Hoàng Dũng, an economic expert, pointed out, Starting up is not just a game or short-term endeavor. Companies need to invest seriously and grow from smaller scales, urging sustainable practices to contribute to both operational longevity and economic growth.
Concurrently, Hanoi is establishing approximately 128 chains linking safe agricultural production and consumption, seeking to fortify transparency and accessibility for customers prioritizing premium local produce.
To address this demand, retailers are urged to continue innovatively refining product offerings, ensuring they not only meet consumer expectations but exceed them to navigate the dense competitive environment successfully.
The future outlook for Vietnam's retail market remains affirmative, with projected revenue for the food and beverage sector expected to reach 872 trillion VND by 2027. The continuous emphasis on local goods combined with strategic adjustments to meet shifting consumer trends will play pivotal roles.
With these developments, Vietnam's economic potential through its retail sector can materially impact growth efforts at large, enhancing overall consumer appeal and satisfaction throughout the nation.