Hanoi (VNA) – Vietnam's retail goods and services market has recorded strong growth in recent years, but development has yet to become truly sustainable, experts have said.
According to a report on recently released by the Ministry of Industry and Trade’s Agency for Domestic Market Surveillance and Development, the size of the market reached more than 7 quadrillion VND (about 266 billion USD) in 2025, up around 10% compared with 2024.
This was the highest growth rate in the past five years, reflecting a rapid recovery in purchasing power, stronger consumer confidence, and continued support for domestically produced goods.
Nationwide efforts to expand, renovate and upgrade modern distribution infrastructure have also played a key role. Vietnam currently has around 1,300 supermarkets and 280 shopping centres in operation. At the same time, e-commerce platforms and social media-based commerce have expanded rapidly, with transaction values reaching 32 billion USD, accounting for about 12% of total market revenue.
These developments have improved the shopping experience for consumers and become an important driver of growth in the domestic trade and retail sector, enhancing its competitiveness against foreign retailers. They have also helped strengthen the resilience of the domestic retail market amid global volatility, reflecting the vitality of an economy transitioning from traditional to modern models and creating favourable conditions for supply chain organisation, regional linkages and product distribution.
However, a number of shortcomings continue to hinder the sustainability of Vietnam’s retail market, notably the uneven development of distribution networks. In rural areas, lower incomes mean consumption still relies largely on traditional channels such as small local markets, where service quality and customer experience remain limited. In addition, logistics infrastructure and electronic payment systems remain incomplete and inefficient, while administrative procedures are still cumbersome. High rental costs and a shortage of skilled human resources further add to the challenges facing retailers.
Although the competitiveness of domestic retail enterprises has improved, they continue to lag behind foreign-invested firms in terms of scale, financial capacity, adoption of advanced technologies and corporate governance. Unfair competition, the widespread presence of counterfeit and substandard goods, limited market transparency and weak consumer protection also pose significant barriers, leaving the domestic market vulnerable.
To address these issues, experts say state management agencies need to accelerate administrative reforms to reduce business costs, continue investing in logistics, transport and electronic payment infrastructure, particularly in remote and disadvantaged areas, and strengthen market oversight to combat counterfeiting and better protect consumers.
Retail businesses, meanwhile, are encouraged to adopt hybrid online–offline models, expand into untapped areas, improve service quality and invest more in workforce training.
Logistics companies should step up investment in digitalisation, optimise transport routes, develop regional cold storage facilities and strengthen links with distribution centres to reduce costs and improve efficiency. These combined efforts are seen as essential to building a more sustainable and transparent domestic retail market, better meeting consumer demand and enhancing the resilience of Vietnam’s retail sector amid global uncertainties./.
