Consumer Shift from General to Modern Trade (MT) Vietnam

In Vietnam’s retail market, General Trade (GT) Vietnam still plays a dominant role, accounting for more than 60% of total sales. However, the steady rise of Modern Trade (MT) Vietnam is reshaping consumer habits, especially in urban centers.

This shift opens up significant opportunities for MT growth while presenting challenges in competing with GT, which remains deeply rooted in Vietnamese culture.

Traditional markets and modern supermarkets standing side by side, symbolizing the competition between General Trade (GT) and Modern Trade (MT) in Vietnam.

General Trade (GT) Vietnam – Traditional Shopping Habits

General Trade consists of wet markets, mom-and-pop shops, and small street vendors. For decades, GT has been the go-to channel for Vietnamese consumers, particularly in rural and suburban areas.

Consumers remain loyal to GT for several reasons:

• Convenience and proximity: stores are located within neighborhoods.

• Quick transactions: fast shopping without the need for parking.

• Flexible pricing: bargaining is common, aligning with long-standing shopping culture.

As of 2024, GT still held about 61% of retail market share, demonstrating its resilience, particularly in fresh food sales.

Ba Chieu Market in Ho Chi Minh City, one of the city’s busiest traditional markets, reflecting Vietnam’s long-standing General Trade (GT) habits.

Modern Trade (MT) Vietnam – Meeting New Consumer Needs

By contrast, MT has rapidly expanded to serve the growing middle class and younger consumers. Its advantages include:

• Food safety and transparency: clear product origins and proper storage.

• Modern shopping experiences: supermarkets, minimarkets, and convenience stores with clean, organized spaces.

• Wide product range: covering FMCG, food, beverages, personal care, and household goods.

Notably, minimarkets and convenience stores have boomed in recent years, driving MT’s market share to nearly 29% of total retail sales in 2024.

GS25 convenience store in Ho Chi Minh City, showcasing the rapid expansion of Modern Trade (MT) Vietnam and changing consumer behavior.

Regional Differences in Consumer Behavior

Consumer behavior varies significantly across regions, shaping how GT and MT evolve:

• Southern Vietnam (Ho Chi Minh City): Consumers are open-minded, quick to adopt new formats, and increasingly shift to MT. The South is the most competitive battlefield for retailers.

• Northern Vietnam (Hanoi): Shoppers are more cautious and brand-loyal, sticking to familiar GT channels. As a result, the transition to MT is slower.

• Provincial and suburban areas: GT remains dominant, but MT is gradually expanding through minimarkets and small supermarkets, especially in regions with rising incomes.

The Future of GT and MT – Coexistence with Different Roles

General Trade will not disappear. Instead, it will maintain an important role, particularly in fresh food distribution and budget-friendly essentials. Meanwhile, MT will continue to grow due to convenience, modern shopping experiences, and urbanization trends.

In the next decade, Vietnam’s retail market will likely be defined by the coexistence of GT and MT, where:

• GT fulfills traditional consumer needs, especially in rural markets.

• MT leads FMCG and packaged goods distribution while shaping new consumer experiences.

For businesses and international brands, the key to success lies in building dual-channel distribution strategies (GT + MT) to maximize coverage and reach diverse customer groups.

Modern Trade’s growth is inevitable, but the pace of transition from General Trade (GT) Vietnam varies across regions and consumer segments. Rather than a replacement, GT and MT will complement each other to form Vietnam’s diverse retail ecosystem.

For SMEs and global brands entering Vietnam, choosing the right partner to design effective distribution models is essential. Go2Market (G2M) Vietnam supports companies in building tailored strategies that combine the strengths of GT and MT, ensuring efficient market entry and long-term growth.