The retail industry in Vietnam is showing signs of recovery in the third quarter of 2023, with a number of new developments and expansions from major players.
- New developments: Major retailers are opening new stores and shopping malls across Vietnam. For example, Lotte Mall West Lake Hanoi, the largest shopping mall in Hanoi, opened its doors in July. Aeon Mall, a Japanese retail chain, opened a new "flexible supermarket" in Thu Dau Mot, Binh Duong province, in July.
- Expansions: Retailers are also expanding their existing stores. For example, Hung Vuong Plaza, a shopping mall in Ho Chi Minh City, reopened in the third quarter after a period of renovation. Thiso Retail, a Thai retail chain, is currently building its third Emart store in Ho Chi Minh City.
- New entrants: Major international retailers are entering the Vietnamese market for the first time. For example, Central Retail, a Thai retail conglomerate, opened a new Go! supermarket in Nhon Trach, Dong Nai province, in July.
The retail industry in Vietnam is expected to continue to grow in the years to come. As the economy continues to grow, more Vietnamese consumers will have disposable income to spend on goods and services. In addition, the increasing popularity of e-commerce is also expected to drive growth in the retail industry.
Implications for businesses
Businesses operating in the Vietnamese retail industry should focus on expanding their reach and improving their customer experience. They should also consider investing in e-commerce to reach a wider range of customers.
Focus on shopping expansion
Businesses looking to expand their shopping presence in Vietnam should consider the following:
- Target key markets: Vietnam is a large and diverse country, so it is important to target key markets when expanding. For example, businesses may want to target major cities such as Hanoi and Ho Chi Minh City, or they may want to target specific provinces or regions.
- Choose the right location: When choosing a location for a new store or shopping mall, it is important to consider factors such as foot traffic, visibility, and proximity to other businesses and attractions.
- Offer a unique value proposition: In order to succeed in the competitive Vietnamese retail market, businesses need to offer a unique value proposition to customers. This may include offering a wide range of products and services, competitive prices, or a convenient shopping experience.
