HANOI: Vietnam’s retail sector is set to develop stronger autonomy, higher-quality services and sustainable competitive advantages.
These were the central issues discussed at the roundtable “Developing Vietnam’s Retail Market to 2030, Vision to 2050”, held by the Institute of Industry and Trade Policy and Strategy.
According to the institute, the global retail market changed sharply between 2022 and 2025. By 2025, habits formed during the lockdown period were no longer temporary, they became “long-term” consumer behaviour.
The lockdowns also pushed businesses into digital transformation. What used to be a strategic choice quickly became a basic requirement for survival.
Deputy director of the Institute, Nguyen Khac Quyen, said that developing the retail market is a major goal and a key driver of domestic trade and overall economic growth.
Retail continues to support domestic consumption, while exports face many challenges. But even with steady growth, the sector still falls short of the government’s target of 10% to 12% annual expansion.
The main reasons include weak capacity among domestic distributors, limited capital, slow technological adoption and a shortage of skilled workers.
Small household businesses, which remain common in rural areas, still operate in an unprofessional manner.
Old and inefficient commercial and logistics infrastructure also increases costs and reduces the competitiveness of Vietnamese goods.
Poor links between production, transport and distribution continue to cause bumper harvests and low prices, Nguyen pointed out the forum.
At the same time, market controls are not strong enough, allowing fake and low quality goods to circulate and weaken consumer confidence.
Domestic retailers are also under heavy pressure from foreign corporations with deep financial resources and sophisticated strategies. Technical barriers meant to protect the domestic market are still incomplete. Without more effective support policies, Quyen warned, foreign retailers could easily dominate the market.
Experts said the retail sector still has great potential for growth.
The middle class is expanding quickly and is expected to make up around half the population by 2035, increasing demand for better-quality products and better shopping experiences.
Ecommerce is already one of the world’s five fastest-growing markets and is expected to surpass US$20bil in 2024. Both Vietnamese and foreign retail groups continue to invest heavily in the market. — Viet Nam News/ANN
