How FMCG Distribution Vietnam Drives Modern Trade Growth

In Vietnam’s modern retail sector, FMCG (Fast-Moving Consumer Goods) and food are the key engines driving the rise of Modern Trade (MT) Vietnam. With daily demand, high purchase frequency, and shifting consumer habits after the pandemic, these categories are powering the rapid expansion of minimarkets, convenience stores, and supermarkets nationwide.

Beverage products displayed on supermarket shelves, illustrating how FMCG categories drive the growth of Modern Trade in Vietnam.

FMCG Distribution Vietnam – A Core Pillar of Modern Trade

FMCG and food account for a major share of Modern Trade operations. In 2023, FMCG within MT reached about 12% market share, still modest but growing steadily year by year.

Minimarkets and convenience stores are the main growth drivers, achieving a revenue CAGR of around 45% from 2016 to 2023. These models align with Vietnamese shopping behavior: frequent purchases in small quantities, with diverse needs ranging from food, beverages, and personal care to household essentials.

This makes FMCG Distribution Vietnam the foundation that sustains steady growth for MT while embedding itself into consumers’ everyday lives.

Changing Consumer Behavior in Food and Daily Shopping

Traditionally, Vietnamese shoppers favored wet markets for fresh food. However, after COVID-19, consumer habits shifted significantly. More shoppers now prefer supermarkets and convenience stores, where food safety, clear sourcing, and a clean environment are guaranteed.

Key consumption trends include:

• Convenience food: catering to fast-paced urban lifestyles.

• Organic and imported products: increasingly popular as the middle class spends more on quality.

• Planned shopping: consumers value product quality and overall experience rather than focusing solely on price.

Shoppers choosing fresh food in a modern supermarket, reflecting Vietnam’s shift in consumer behavior after COVID-19.

Key Players Shaping FMCG Distribution in Vietnam

The FMCG landscape within MT is shaped by a handful of major players:

• Domestic leaders:

  • Bach Hoa Xanh (MWG) dominates the minimarket segment in the South.

  • WinMart/WinMart+ (Masan) operates a nationwide network with strong market share.

• International retailers:

  • Central Retail (GO!/Big C), AEON, and Lotte continue to expand their hypermarket and shopping mall presence, intensifying competition.

A significant milestone came in 2024: for the first time, both WinCommerce (WinMart) and Bach Hoa Xanh reported positive profits after years of expansion. This marks a turning point, showing that FMCG distribution through MT is becoming financially sustainable.

 Leading Modern Trade retailers in Vietnam—Bach Hoa Xanh, WinMart, AEON, and GO!—shaping the future of FMCG distribution.

Future Outlook – FMCG as the Growth Engine of Modern Trade

Looking forward, FMCG and food will remain the primary growth drivers of Modern Trade due to:

• Essential and recurring demand: FMCG ties directly to daily consumption, ensuring steady customer traffic.

• Untapped suburban and rural markets: 60% of Vietnam’s population lives in rural areas, yet MT coverage there is still limited—especially in the minimarket format.

• Expansion of minimarkets: aligning with the “small basket, frequent shopping” behavior, minimarkets are expected to spearhead the next wave of modern retail growth.

Modern Trade (MT) Vietnam’s rise cannot be separated from FMCG Distribution Vietnam. With evolving consumer habits, rapid expansion of leading chains, and vast opportunities outside major cities, FMCG and food will continue to be the “heartbeat” of MT—driving it to become a cornerstone of Vietnam’s retail industry in the coming decade.

For companies seeking to expand, Go2Market (G2M) Vietnam provides tailored market entry solutions, helping SMEs and global brands tap into Vietnam’s FMCG distribution network and grow sustainably.