According to the General Statistics Office, 2019’s retail sales of cultural and educational products increased by 14.4%, that of food and foodstuff increased by 13.2%, of household appliances, tools and equipment increased by 11.3%, of garment increased by 10.9%, and of means of transportation increased by 7.8%. Sales of accommodation and catering services reached 586.7 trillion VND, accounting for 11.9% and increasing by 9.8%. Sales of travel and tourism reached 46,000 billion VND, accounting for 0.9% and increasing by 12.1%. Sales from other services reached 556.4 trillion VND, accounting for 11.3% and increasing by 8.5%.
There exist many different retail channels in Vietnam. They are traditional distribution channels including markets and grocery stores, modern distribution channels including supermarkets and convenience stores, and e-commerce channel.
According to statistics of the Domestic Market Department (Ministry of Industry and Trade), there are about 8,660 markets, 800 supermarkets, 168 trade centers of all kinds and more than 1 million household grocery stores in Vietnam.
E-commerce has experienced dramatic growth. However, modern retail channels only meet 25% of the needs of people, while the traditional distribution channels are responsible for the other 75%.
The model of convenience stores and mini supermarkets has undergone significant changes over time. First appeared in the Vietnamese market about a decade ago, this model has really attracted the attention of consumers and is gradually replacing the traditional type of grocery thanks to well-established business strategies by international brands, as well as the participation of domestic players.
The number of mini supermarkets and convenience stores is constantly increasing. Currently there are more than 1,000 convenience stores.
Vietnam is considered one of the most open economies in the world, so it offers many opportunities for foreign goods to enter the domestic retail market. However, Vietnamese goods still dominate the retail system. According to the report summarizing 10 years of implementation of the campaign "Vietnamese people give priority to Vietnamese goods" by the Ministry of Industry and Trade, the proportion of Vietnamese goods in domestic supermarkets has remained high, mostly over 80%.
The population of Vietnam is over 96 million people (according to the preliminary results of the Population and Housing Census 2019 of the General Statistics Office). Household spending is increasing. In addition, many free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Free Trade Agreement with the European Union (EVFTA) have been signed. All of these factors will make Vietnam's retail market more and more attractive to foreign investors.
Using our own huge data source, VietnamCredit has created the list of the 5 largest companies in Vietnam's grocery retail industry. The list was objectively made based on financial factors including revenue and profit, and non-financial factors including credit ratings, market experience, reputation, and legal record.
Big C is currently dominating the retail supermarket segment in Vietnam. There are 35 Big C supermarkets nationwide.