Vietnam Retail Trade Size Will Reach USD 180 Billion till 2020
The market size of retail trade in Vietnam will reach USD 180 billion till 2020.
Since Vietnam joined the WTO in 2008, the market size of retail trade has been growing rapidly. In recent years, it maintains an annual growth rate of more than 10%. It was USD 88 billion in 2010, increased to over USD 140 billion in 2018 and is expected to reach USD 180 billion in 2020.
According to the statistics from of the Domestic Markets Department of Vietnam’s Ministry of Industry and Trade, by the end of 2018, there were 8,660 marts, 800 supermarkets, 768 shopping centers and over 1 million family-run stores in Vietnam. However, modern retail trade accounted for only 25% and traditional retail trade accounted for 75%. The proportion of modern retail trade is expected to increase to 40% in 2020.
The high growth rate of Vietnam’s retail market has attracted a large number of foreign investors. Large retail groups such as Lotte, Central Group, Aeon, Circle K, Kmart, Auchan and Family Mart have entered and are expanding business and opening new stores in Vietnam. The signing of the Comprehensive Progressive Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), the rapid growth of Vietnam’s economy and the Vietnamese government’s commitment to opening up the service sector and retail trade increase foreign investment in Vietnam’s retail trade.
CRI suggests that small and medium-sized foreign retail enterprises should investigate and assess Vietnam’s retail market to seek investment opportunities. In the next two decades, Vietnam’s GDP growth rate will maintain its global leading position and Vietnam’s retail market will grow faster than its GDP, which will make Vietnam one of the major retail markets in Asia. For investors, earlier entry into Vietnam’s retail market means lower investment costs and earlier enjoyment of the market dividends.
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