Vietnam Retail Insights 2025: Offline Strength for SMEs

After years of pandemic-related disruptions, global retail is showing signs of recovery. Despite predictions that online channels would fully dominate, offline retail remains the backbone of consumer spending worldwide. This trend is especially evident in Viet Nam, where offline retail is experiencing a strong resurgence. For businesses considering SME Vietnam market entry, the retail landscape in 2025 presents both opportunities and challenges.

Ho Chi Minh City skyline — symbolizing Vietnam’s growing retail market and the potential revealed in Vietnam Retail Insights 2025.

Offline Retail Still Dominates Consumer Spending

Globally, consumers are returning to physical stores not just to shop, but to engage with brands and enjoy immersive experiences. In the U.S., nearly 80% of total consumer spending still takes place in physical stores (Savills, Impacts 2025 Report).

Viet Nam reflects a similar pattern, where shopping malls and modern retail spaces continue to attract both international brands and local consumers.

• In Ho Chi Minh City, total retail supply in Q1/2025 reached 1.6 million sqm, up 6% YoY. Occupancy hit 94%, reflecting robust demand (Savills Vietnam, Retail Market Q1/2025).

• In Ha Noi, ground-floor rents in prime CBD locations surged 37% YoY, while overall occupancy stood at 86% (Savills Vietnam, Retail Market Q1/2025).

These figures highlight the attractiveness of Viet Nam’s retail ecosystem for companies seeking Vietnam SME Market Entry and SME Market Expansion Vietnam.

Fresh fruit display in a Vietnamese supermarket — proof that offline retail still dominates consumer spending in Vietnam.

Why Viet Nam’s Retail Sector Stands Out

Several factors drive the resilience and growth of the offline retail market in Viet Nam:

1. Young, dynamic consumers – With a median age of 32, Viet Nam’s population is heavily skewed toward younger demographics who value both convenience and lifestyle experiences (UN Population Data, 2024).

2. Rising middle class – Disposable incomes are increasing, fueling demand for fashion, cosmetics, and F&B brands in modern trade (MT) and malls (World Bank, 2024).

3. Urbanization and infrastructure – Rapid development in major cities has created demand for high-quality shopping centers and distribution channels Vietnam (Vietnam Ministry of Construction, 2024).

4. FMCG momentum – According to recent reports, Vietnam FMCG Growth is projected to remain strong in 2025, supported by robust GDP growth of 7.09% in 2024 (General Statistics Office of Vietnam, 2025; Worldpanel Vietnam, FMCG Outlook 2025).

   
   

Vietnam Retail Insights for SMEs

For SMEs exploring Vietnam market opportunity, retail remains one of the most promising entry points. However, understanding Vietnam retail insights is crucial before expanding:

• Modern retail formats are expanding quickly: Projects like Thiso Mall Sala and Vincom Mega Mall Grand Park achieved over 70% occupancy immediately after launch (Savills Vietnam, 2025).

• Street-front retail is losing ground: Limited amenities and weaker customer experience make it harder to compete with large-format malls (VNS, Vietnam Retail 2025).

• Shift in tenant demand: While F&B dominated leasing before, fashion, cosmetics, and convenience stores are now taking a bigger share (Savills Vietnam, Q1/2025).

SMEs must align their strategies with these shifts to ensure successful Vietnam SME expansion strategy.

Offline Retail as a Strategic Asset

Retail in Viet Nam is no longer just about leasing space. Malls are increasingly being managed as operating assets that integrate:

• Tenant mix optimization

• Data-driven consumer insights

• Professional marketing and engagement campaigns

• Technology for seamless customer journeys

This sophistication requires SMEs to think beyond simple distribution and adopt an integrated approach. Choosing the right partner for Vietnam distribution setup for SMEs is now more critical than ever.

Opportunities for FMCG and Consumer Brands

Offline retail growth creates a favorable environment for FMCG Distribution Vietnam and other consumer sectors. For SMEs, offline retail provides:

• Brand visibility: Physical presence enhances credibility and trust among Vietnamese consumers.

• Scalability: Once established, brands can expand into General Trade (GT) Vietnam, Modern Trade (MT) Vietnam, and even Horeca Distribution Vietnam.

• Profitability: Labour, warehousing, and operational costs remain lower in Viet Nam compared to many neighboring markets, making it attractive for long-term investment (Savills Vietnam, Retail Insights 2025).

Vietnamese shopper evaluating products in a supermarket — highlighting new opportunities for FMCG and consumer brands in Vietnam.

Challenges SMEs Should Prepare For

While opportunities are strong, Vietnam SME Challenges remain:

• Rising rental costs in prime locations (Savills, Q1/2025).

• High competition from both local and international brands (Worldpanel Vietnam, 2025).

• Complex distribution channels requiring professional management (GSO, 2025).

• Regulatory processes that can delay expansion if not well navigated (Vietnam Ministry of Industry & Trade, 2024).

Understanding these hurdles and leveraging Go2Market services Vietnam can help businesses mitigate risks and achieve a fast market entry solution Vietnam.

Why SMEs Should Move Now

With GDP growth above 7% and consumer spending rising, Viet Nam’s offline retail sector offers unmatched potential. For businesses seeking an SME distribution partner Vietnam, this is the time to act.

SMEs that establish a strong foothold in Viet Nam’s offline retail ecosystem today will be better positioned to capitalize on Vietnam Consumer Trends, capture market share, and build sustainable growth in one of Asia’s fastest-growing economies.

If your business is considering expansion, partnering with an experienced Vietnam market entry partner for FMCG can accelerate your journey, minimize risks, and ensure successful Vietnam SME Market Entry.

For those seeking a reliable partner, Go2Market (G2M) Vietnam provides the expertise, network, and speed needed to turn opportunities into results.

Source:

Savills Vietnam – Retail Market Report Q1/2025

General Statistics Office of Vietnam – Annual Economic Data 2025

Worldpanel Vietnam – FMCG Outlook 2025

Vietnam News / VNS – Vietnam Retail 2025: Opportunities in Real Estate

UN Population Data, 2024

World Bank, 2024