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| Vietnam's retail revenue hit roughly 269 billion USD in 2025. (Illustrative photo: VNA) |
Hanoi (VNA) – Vietnam's retail revenue hit roughly 269 billion USD in 2025, with total goods sales and service revenue expanding 9-10% from a year earlier, the fastest pace in five years outside pandemic-distorted periods, according to the Vietnam Domestic Market Report 2025 from the Ministry of Industry and Trade’s Agency for Domestic Market Management and Development.
The surge signals the recovery of purchasing power and rising consumer confidence, boosted by the long-standing "Vietnamese Prioritise Vietnamese Goods" campaign, encouraging support for local products.
Modern retail infrastructure grew substantially, reaching 1,293 supermarkets and 276 shopping malls nationwide, complemented by 8,274 traditional markets. The expansion has transformed urban economy and driven a consumer shift toward modern retail formats.
Yet, stark urban-rural divides persist. Nearly half of modern outlets are clustered in Hanoi, Ho Chi Minh City, Da Nang and Hai Phong, leaving remote and mountainous areas dependent on traditional markets.
E-commerce stood out as a major success, reaching 32 billion USD, and claiming nearly 12% of the country’s retail sales. Growing over 20% year-on-year, it ranked as the second-fastest in Southeast Asia, driven by corporate investments in digital solutions like inventory management, cashless payments, online platforms, and livestream selling.
Consumption remains anchored in essentials, with food and foodstuffs at 34.1% of retail goods sales, highlighting the priority of basic needs. Services spending, covering accommodation, dining and tourism, outpaced goods, rising 12-14% annually, aligning with trends in more mature economies where consumers favour experiences and quality-of-life enhancements.
The report flags vulnerabilities, including exposure to external shocks from deep economic integration. Challenges include cumbersome administrative procedures, high land and rental costs, workforce skill gaps, uneven infrastructure in rural areas, and lingering issues with product quality and market transparency.
In 2025, exchange rate fluctuations, external inflationary pressures, and concerns over employment amid automation and artificial intelligence also weighed on consumer sentiment. Domestic firms have gained ground but trail multinationals in scale, technology and management sophistication.
Looking to 2026-2030, the outlook is optimistic. A population topping 100 million, youthful demographics and rising incomes position Vietnam as one of Southeast Asia's largest retail markets. E-commerce is forecast to reach 50 billion USD by 2030, solidifying itself among regional growth leaders.
The report provides critical insights for policymakers and businesses navigating one of Southeast Asia's fastest-growing economies. The full annual study, in Vietnamese and English, is available at www.dms.gov.vn./.
