General Trade (GT) Vietnam Dominates Urban Retail Scene

In Vietnam’s retail landscape, General Trade (GT) Vietnam remains dominant not only in rural areas but also in major urban centers such as Ho Chi Minh City and Hanoi.

Its greatest strength lies in dense coverage and unparalleled accessibility, offering a level of convenience that Modern Trade (MT) has yet to match.

For SMEs looking to enter the market, urban GT represents the fastest gateway to achieve wide product distribution.

A busy street in Ho Chi Minh City lined with mom-and-pop stores, showcasing the dense coverage of General Trade (GT) Vietnam in urban areas.

Unmatched Density of General Trade (GT) Vietnam in Major Cities

Ho Chi Minh City had about 40,000 mom-and-pop shops in operation by 2021. With a total area of roughly 2,095 km², this translates to nearly 20 shops per km²—meaning almost every neighborhood has a convenience store nearby.

Hanoi also boasts a massive GT network. During the 2021 pandemic, the city listed 7,866 essential retail points (including wet markets, grocery stores, and small shops) that were allowed to remain open, demonstrating the scale of GT in the capital.

By comparison, MT has far lower density: as of 2023, Ho Chi Minh City had only 239 supermarkets and a little over 3,000 convenience stores—equivalent to just 0.1 supermarkets/km² and 1.5 convenience stores/km². Thanks to this presence, GT still commands about 75% of retail share, serving up to 85% of daily consumer needs.

Convenience and Accessibility of General Trade (GT) Vietnam for Consumers

Surveys show that 92% of consumers prefer to purchase daily essentials from GT outlets rather than MT. With shops located directly inside residential areas, customers need just a few steps to shop. More than 50% of shoppers report they want to spend under 2 minutes when dropping by a nearby store to grab a couple of items.

In contrast, shopping at supermarkets takes longer due to greater distances and more complex processes such as parking, navigating large aisles, and queuing at checkouts. This “buy quick, buy nearby” convenience makes GT a natural part of daily urban life and consumer behavior.

 Customers shopping at a neighborhood GT store, highlighting the convenience of quick purchases without parking or long queues.

 Cost and Price Competitiveness: Why General Trade (GT) Vietnam Stays Relevant

• A survey of 1,000 shops found that GT prices are typically around 6% lower than listed retail prices.

• Across the 100 most popular consumer products, there is little price gap, and GT was on average slightly cheaper.

• The reason: GT outlets often accept lower margins to retain loyal customers, while MT pricing must account for overhead such as rent, staff, and operations.

For the average consumer, GT is not only more convenient but also more economical than MT.

A balanced scale comparing GT and MT prices, emphasizing that GT is not only more convenient but also more economical for consumers.

Examples of General Trade (GT) Vietnam Models in Urban Areas

Urban GT is diverse and spans multiple formats:

• Wholesale markets: such as Bình Điền, Thủ Đức, and Hóc Môn in Ho Chi Minh City, or Long Biên in Hanoi, supplying bulk produce and fresh food across the city.

• Neighborhood mom-and-pop stores: the most common GT format, with about 40,000 outlets in Ho Chi Minh City alone, serving local residents daily.

• Small specialty shops: rice stores, fruit vendors, independent pharmacies, butcher stalls, and hardware shops. Their sheer number and diversity create a resilient and highly flexible GT ecosystem in urban areas.

Inside Bình Điền wholesale market, the largest wet market in Ho Chi Minh City, a major hub of GT distribution.

Implications for SMEs and Market Entry

For SMEs, the density and accessibility of urban GT provide strategic advantages:

• Rapid product presence across tens of thousands of outlets without heavy upfront investment.

• Opportunities for product testing and building consumer loyalty during the early Market Entry phase.

• Options to leverage Sales Outsourcing Vietnam or partner with an end-to-end distribution partner Vietnam like Go2Market for cost and speed optimization.

Use GT as a foundation for later expansion into MT and e-commerce, building a balanced omnichannel strategy.

General Trade (GT) Vietnam in urban areas is more than just a sales channel—it is deeply woven into the daily lives of consumers. With dense coverage, doorstep convenience, and competitive pricing, GT retains a position that is difficult to replace. For SMEs entering Vietnam, capitalizing on GT’s urban strengths ensures rapid market penetration, while combining it with Modern Trade and e-commerce paves the way for sustainable growth.

To support this journey, Go2Market (G2M) Vietnam acts as a trusted partner, offering sales outsourcing and distribution services tailored for SMEs seeking efficient and scalable market entry strategies.