Offline Retail Expansion in Vietnam: A Smart Move for SMEs
- Khôi Nguyễn Duy
- Sep 19, 2025
- 3 min read
Updated: Oct 22, 2025
The rapid growth of e-commerce often dominates global headlines, but offline retail expansion in Vietnam remains the backbone of consumer spending.
Nearly 80% of all purchases still take place in physical stores (Savills, Impacts 2025 Report). For companies considering SME Vietnam market entry, prioritizing offline channels is not just about maintaining presence—it is the fastest path to growth.
Offline retail still dominates consumer spending in Vietnam
Viet Nam’s retail performance in recent years underscores the resilience of physical formats. According to the General Statistics Office, total retail sales of goods and services grew 9.3% in 2024. Much of this growth came from shopping centers and modern trade outlets.
The Vietnam retail market is projected to reach US$350 billion in 2025, contributing 59% of the national budget (Vietnam News, Retail 2025).
Shopping malls in both Ho Chi Minh City and Ha Noi continue to report occupancy rates above 90%, despite rental growth pressures (Savills Vietnam, Q1/2025).
These trends confirm that physical retail remains central to Vietnam SME Market Entry and Vietnam SME expansion strategy.
Why SMEs should prioritize offline retail expansion in Vietnam
For businesses targeting SME Market Expansion Vietnam, offline retail provides distinct advantages compared with purely digital strategies:
Trust and visibility – Physical stores help SMEs establish credibility with Vietnamese consumers, who prefer face-to-face interactions for lifestyle and high-value purchases (Worldpanel Vietnam, FMCG Outlook 2025).
Experiential value – shopping malls are becoming lifestyle hubs, making them attractive entry points for sectors like fashion, cosmetics, and F&B.
Distribution scalability – Once established, brands can scale across General Trade (GT) Vietnam, Modern Trade (MT) Vietnam, and beyond.
Cost competitiveness – Labour and operations in Viet Nam remain relatively affordable compared to regional peers, improving margins (World Bank, 2024).
Global brands set the tone for expansion
International companies are already leading the way in offline growth
Fashion and cosmetics brands rapidly filled spaces in Thiso Mall Sala and Vincom Mega Mall Grand Park, reaching more than 70% occupancy within months (Savills Vietnam, 2025).
Convenience store chains such as GS25 and Circle K are multiplying in urban centers, reflecting Vietnam consumer trends towards convenience and lifestyle-driven retail.
These examples highlight why SMEs should align their Vietnam SME expansion strategy with offline retail momentum.
Key considerations for SMEs entering Vietnam’s retail market
While opportunities are strong, SMEs must address several factors to succeed:
Choosing the right channels – From shopping malls to Horeca Distribution Vietnam, aligning distribution with product category is critical.
Managing costs – Rental growth in prime areas remains a challenge.
Adapting to consumer behavior – Younger demographics expect convenience, design, and customer service as standard.
Navigating competition – The market is crowded with both global giants and agile local players.
Working with a trusted SME distribution partner Vietnam helps mitigate these risks while enabling faster execution.
Why SMEs should act now
With GDP growth above 7% and consumer spending rising, Viet Nam offers one of Asia’s strongest Vietnam market opportunities. Businesses that secure an offline footprint today will be better positioned to overcome Vietnam SME Challenges, capture consumer loyalty, and scale efficiently.
Partnering with a specialized Vietnam market entry partner for FMCG ensures access to local expertise, efficient distribution channels Vietnam, and a fast market entry solution Vietnam tailored to your business.
With proven capabilities, Go2Market (G2M) Vietnam is helping SMEs transform offline retail expansion plans into practical success stories.
