Modern Trade (MT) Vietnam – The Rising Force in Retail

In Vietnam’s retail landscape of 2024, Modern Trade (MT) Vietnam has emerged as a powerful growth driver. From minimarkets and convenience stores to pharmacy chains and shopping malls, MT is not only changing consumer behavior but also reshaping the market structure. With revenues reaching $57 billion and over 16,000 outlets nationwide, this channel is steadily asserting its role as the future backbone of Vietnam’s retail sector.

Costco leadership meets Vietnam’s President to discuss investment opportunities in the country’s modern retail sector.

Market Size and Current Landscape of Modern Trade (MT) Vietnam

Modern Trade has expanded rapidly between 2020 and 2024. Revenue reached $57 billion in 2024, equivalent to 29% of total retail sales, up from 22% in 2020.

At the same time, the number of outlets exploded, surpassing 16,286 stores by the end of 2024, more than doubling within four years. Convenience stores and minimarkets account for over 45% of this network, followed by pharmacy chains and specialty stores (~20%). Large supermarkets and hypermarkets represent only ~3% of store count due to high investment and operating costs.

Key Growth Drivers of Modern Trade in Vietnam

Several key factors explain the robust expansion of Modern Trade in recent years:

• Rising income and a growing middle class: Average monthly income in 2024 reached $315, with the middle class representing 56% of households. This group is willing to spend more on modern retail channels where they expect convenience and quality.

• Stronger focus on food safety and product quality: post-pandemic, consumers increasingly shift to supermarkets and convenience stores for clear sourcing, hygiene, and a safer shopping environment.

• Untapped rural and suburban markets: While MT remains concentrated in urban hubs, nearly 60% of Vietnam’s population lives in rural areas, where modern retail penetration is still limited. These markets represent significant room for expansion.

Vincom Mega Mall set to launch, highlighting new growth drivers of Modern Trade in Vietnam.

Regional Distribution and Urban Concentration

About 30% of all MT outlets are located in Hanoi and Ho Chi Minh City. These urban hubs are the most dynamic retail markets with high-income consumers and modern shopping habits.

However, consumer behavior varies across regions:

• Southern Vietnam (HCMC): Consumers are open-minded, willing to try new brands, and quick to adopt modern retail formats. This makes the South the most competitive battleground for MT.

• Northern Vietnam (Hanoi): Consumers are more conservative, brand-loyal, and cautious with spending. They tend to stick to traditional channels, making market penetration slower and requiring tailored, localized strategies.

AEON Tan An open as the first AEON shopping mall in the Mekong Delta, reflecting the rapid adoption of modern trade formats in Southern Vietnam.

Outlook and Future Potential of Modern Trade (MT) Vietnam

Looking ahead, Modern Trade (MT) Vietnam is forecast to grow at a 6% CAGR between 2025 and 2030. Key drivers will include ongoing urbanization, a rising middle class, and increasing demand for modern shopping experiences.

Future expansion will not only come from minimarkets and convenience stores but also from omnichannel strategies that combine online and offline retail. This integrated approach will allow retailers to better serve customers, enhance loyalty, and capture new growth opportunities in suburban and rural markets.

Modern Trade in Vietnam is clearly at a turning point. With its growing scale, improving profitability, and untapped opportunities in rural areas, MT is set to play a defining role in reshaping Vietnam’s retail landscape over the next decade. For both domestic and international retailers, the question is no longer if Modern Trade will dominate—but how fast they can adapt to capture the momentum.

As a trusted partner for market entry and distribution, Go2Market (G2M) Vietnam supports SMEs and international brands in navigating this transformation and capturing growth opportunities in Vietnam’s retail sector.