Modern retail chains have been competing with traditional markets for 10 years. Despite powerful financial capability, they still have not been able to defeat traditional markets.

Some economists say they cannot understand why the Ministry of Industry and Trade (MOIT) wants to issue a circular on supermarket and shopping center management.

The Gioi Di Dong (Mobile World - MWG), which has had an ambitious plan to enter all retail market segments, from luxury to common products, has unexpectedly closed hundreds of stores.

Traditional markets and groceries still hold the largest share of the consumer retail market, but new business models are scrambling for a piece of the pie.

The COVID-19 pandemic caused retail revenue to drop sharply in 2020, impacting the domestic retail property market, according to Savills Vietnam.

Selling fresh food online is a service provided by supermarkets, but e-commerce firms and technology platforms have jumped on the bandwagon recently.

While seeking new growth, many big companies, from The Gioi Di Dong (phone distributor) and Petrolimex (petroleum distributor) to Son Kim Retail are targeting the FMCG (fast-moving consumer goods) sector.

VietNamNet Bridge - With average annual growth rate of 10 percent and revenue of $150 billion in 2018, the Vietnamese retail market is full of potential, especially for convenience stores.

VietNamNet Bridge - Every year, retailers from the east to the west, including Walmart, Fairprice and LotteMart, travel around the world and come to Vietnam to seek suppliers.

VietNamNet Bridge - Convenience stores have been developing rapidly in Vietnam, with foreign retailers having the upper hand.

VietNamNet Bridge - 7-Eleven, which has been prospering in Thailand, and GS25, which dominates the South Korean market, still have not fulfilled their plans to expand retail networks in Vietnam.

More foreign retailers have flocked to Vietnam as they believe the market is promising. But many retailers have had to leave because of stiff competition.

VietNamNet Bridge - Vietnam is a promising $7 billion market for companies which provide goods and services for mothers and children.

VietNamNet Bridge - The rapid expansion of food & beverage, restaurant and pharmacy chains in the last few years has led to the general opinion that they are easily profitable. But there are pitfalls that companies must be aware of. 

VietNamNet Bridge - The first warning about the ‘Thai goods threat’ was given two years ago when Thai groups took over a number of retail chains in Vietnam. 

Even though retail premises in the central business district (CBD) of HCMC are becoming more scarce and the rents are increasing, premises far from the center are still unpopular with new retailers.

VietNamNet Bridge - The products which bear retailers’ own private brand account for a small proportion in the Vietnamese market. 

VietNamNet Bridge - While 7-Eleven expands its business in the Vietnamese retail market, Family Mart has decided to stop injecting more money into the chain in Vietnam because of losses.

VietNamNet Bridge - Simple toys in thin plastic bags were commonly seen in shops near traditional markets years ago. Today, toys are displayed in modern shopping malls or supermarkets.