Ho Chi Minh City (VNA) — Ho Chi Minh City’s retail sector is showing strong signs of recovery, with total retail sales of goods and consumer service revenue in the first four months of the year rising about 16%, the highest level recorded over the past year, and a positive signal for the city’s goal of achieving double-digit growth in the trade and service sector this year.
Domestic consumption is being regarded as one of the key drivers for sustaining economic growth. Following the Government’s Resolution No. 88/NQ-CP on promoting the domestic market and stimulating consumption, many retailers have accelerated the expansion of distribution systems, invested in technology and improved supply chains.
Industry experts noted that growth opportunities in Ho Chi Minh City’s retail sector are no longer concentrated mainly in central districts, but are increasingly shifting toward suburban areas, industrial parks and satellite urban zones. Modern retail models integrated with logistics services, technology and experiential shopping are also seen as new growth engines.
Technology is playing a growing role in enhancing customer experience at retail outlets. Several supermarket chains have introduced digital applications and automated services to improve interaction with shoppers and encourage spending.
Menas Group recently deployed robots at some Mena Gourmet supermarkets to assist customers with carrying baskets, introducing promotional programmes and guiding them to product sections. The company reported that the initiative had helped attract more visitors, extend shopping time and increase sales transactions. While the retail market in central areas is considered close to saturation, suburban areas are viewed as offering significant untapped potential. Therefore, many retail businesses have accelerated plans to expand their presence beyond the city centre, especially after Ho Chi Minh City entered a new phase of urban development.
Saigon Co.op recently opened the Co.op Thong Nhat centre in Di An area, raising the number of hypermarkets in the former Binh Duong province to three. The expansion forms part of the retailer’s broader strategy to tap rising consumer demand in suburban and neighbouring areas, where modern retail still has room for further development.
The retailer also plans to increase investment and promotional programmes in the former Binh Duong and Ba Ria–Vung Tau areas, while adjusting business models to suit local demand. Areas with large numbers of workers and industrial zones are expected to remain key markets, while regions with strong logistics and port advantages are expected to support more efficient distribution and lower transportation costs.
Most major retail chains have also strengthened their presence in suburban districts while increasing the proportion of Vietnamese products in their stores. Businesses are expanding support for OCOP (One Commune One Product) goods and working more closely with domestic suppliers in an effort to optimise prices and stimulate local consumption.
According to the municipal Department of Industry and Trade, stable revenue growth indicates that the retail market still has substantial room for expansion if appropriate measures are implemented. The expansion of distribution networks, particularly in newly developed urban and suburban areas, has already shown positive results in boosting purchasing power.
The department noted that in previous years, the city frequently organised mobile sales programmes to bring stabilised-price goods and high-quality Vietnamese products to suburban residents. However, the growing network of modern retail outlets has gradually improved access to goods and helped ensure smoother circulation of products from manufacturers to consumers.
The locality's authorities are expected to continue supporting enterprises in developing distribution systems in surrounding areas, particularly in the former Binh Duong and Ba Ria–Vung Tau localities. Officials believe that wider distribution networks will help consumers access goods more conveniently while enabling businesses to expand sales.
As domestic consumption continues to play an important role in economic growth, effectively tapping new retail markets is expected to be crucial for maintaining strong growth momentum and helping Ho Chi Minh City move closer to its double-digit growth target this year./.
