General Trade (GT) Vietnam Transforms Toward Modern Retail

In the face of rapid growth in Modern Trade (MT) and e-commerce, General Trade (GT) Vietnam—long the backbone of retail—faces growing pressure to evolve. Today’s consumers demand cleaner, more transparent, and more modern shopping experiences.

Many traditional mom-and-pop shops are “wearing a new coat,” transforming into “mini-mart light” models that retain their neighborhood familiarity while adopting modern practices. This shift is both a challenge and a major opportunity for SMEs entering the Vietnamese market.

A shopper scanning a QR code inside a neighborhood grocery store, symbolizing the modernization of General Trade (GT) Vietnam from traditional formats to “mini-mart light.

Why General Trade (GT) Vietnam Needs Modernization

Between 2020 and 2024, GT’s share of total retail declined from 73% to 61%, as MT and e-commerce expanded. A key reason is shifting consumer behavior: younger urban shoppers expect cleaner stores, clear pricing, and product traceability.

Without modernization, GT risks losing these consumers to MT—where shopping feels modern and safe—or to e-commerce, which offers unmatched convenience.

The “Mini-Mart Light” Model Emerging in Vietnam

Across major cities, a new format of GT is taking shape:

• Cleaner, more organized displays: products arranged neatly and accessibly.

• Modern payment methods: acceptance of QR codes, bank transfers, and e-wallets.

• O2O sales channels: shop owners use Zalo or Facebook to take orders and deliver to homes.

• Partnerships with major retailers: such as VinShop, Masan’s WIN+ or MM Mega Market’s “Giá Tốt” program, which support mom-and-pop shops in upgrading their operations.

Thanks to these improvements, many GT outlets can now compete directly with convenience stores and mini-marts, while still retaining their trust and familiarity within the community.

A partnership between Vinshop and a mom-and-pop shop, showcasing how major retailers support GT stores in upgrading operations.

Opportunities for SMEs in Modernizing GT

The modernization of GT creates powerful opportunities for SMEs:

• More effective distribution: products can be displayed professionally, boosting visibility.

• Sales support tools: SMEs can provide simple POS systems, posters, and point-of-sale materials.

• Acceleration of FMCG Distribution Vietnam: upgraded GT outlets act as flexible retail points to drive sales faster.

• Stronger long-term relationships: by supporting shop owners in modernization, SMEs build loyalty and strengthen their competitive edge.

Challenges in the Modernization Journey

Still, upgrading GT comes with challenges:

• Shopkeeper demographics: many are older and less familiar with technology.

• Capital limitations: the cost of renovations and new equipment is a burden for small stores.

• Digital skills gap: many shop owners lack experience in inventory management software or online selling.

As a result, support from businesses, distributors, and government policy is critical in driving this transition.

An elderly shopkeeper at a traditional grocery store, reflecting the demographic challenges as many GT owners are older and less familiar with technology.

Implications for SMEs and Market Entry Strategy

For SMEs, leveraging the modernization of GT provides a strategic advantage:

• Use modernized GT as a product testing channel before scaling into MT.

• Partner with Go2Market (G2M) Vietnam to access a network of “mini-mart light” stores and deploy Sales Outsourcing Vietnam quickly.

• Integrate O2O strategies, ensuring products are not only visible in physical outlets but also accessible through digital platforms.

The modernization of General Trade (GT) Vietnam is not only helping mom-and-pop shops remain competitive against MT and e-commerce but also creating new opportunities for SMEs pursuing Market Entry.

This evolution serves as a bridge between traditional and modern retail, offering fertile ground for companies seeking sustainable growth in Vietnam. As an end-to-end distribution partner, Go2Market (G2M) Vietnam supports SMEs throughout this journey, providing optimized solutions that harness GT’s strengths while unlocking the potential of modern channels.