Retail segments and channels in Vietnam
Within the retail sector in Vietnam, food and beverage make up the largest segment, contributing over 51 billion U.S. dollars in retail sales in 2020. As consumer demands are shifting more towards convenience products, packaged food has been among the items with the highest revenue growth within the food sector. On the other hand, other retail segments such as electronic devices and household goods have experienced steady growth thanks to increasing consumption.While traditional retail channels such as street stores and wet markets still accounted for the country's largest share of retail sales, modern trade channels have shown steady growth and a high penetration rate over the years. Convenience stores and supermarkets have increased their presence by continuously opening new outlets. In urban areas, many Vietnamese consumers have demonstrated a higher preference for modern channels over traditional ones. Although local brands such as VinMart and Bach Hoa Xanh have dominated the modern retail landscape, many foreign retailers have gained popularity, such as Japanese Aeon and Korean Lotte franchises. In recent years, an increasing share of retail sales was from e-commerce.
