Economic Overview - Vietnam's economy is experiencing strong growth, with real GDP growth from 2020 to 2024 expected to exceed the average levels of the Asia-Pacific and Southeast Asia regions, positioning Vietnam as the second-largest economy in Southeast Asia and the 21st globally by 2038 [1][12]. - The economic growth is primarily driven by the industrial, construction, and service sectors, while agriculture shows lower growth rates. The population advantage is significant, with a total population of 101 million, of which 65% are aged between 15 and 64, attracting substantial foreign direct investment, particularly from Singapore and South Korea by 2024 [1][12]. Retail Market Landscape - The retail market in Vietnam is characterized by three main points: 1. A diverse channel landscape where traditional trade remains the primary channel for grocery shopping due to cultural foundations, but modern trade is expanding rapidly, and online shopping has surged post-pandemic [2][14]. 2. Regional dynamics show significant differences, with the southern region contributing the most to fast-moving consumer goods (FMCG) sales (44.4%), while the northern and central regions are growing faster [2][44]. 3. The influence of Korean culture is profound, with Korean brands and products gaining popularity, leading to significant sales growth in items like instant noodles [2][56]. Consumer Behavior - Vietnamese consumers exhibit high financial resilience, with their financial status better than that of many countries. The FMCG market shows polarization, with categories like beer and beverages growing, while categories like cigarettes and home care are declining [3][29]. - Consumers are willing to pay for specific attributes of premium products, such as convenience and outdoor experiences. Strategies to adapt to consumer trends include seeking value, focusing on promotions, and being sensitive to price changes [3][29]. Strategic Insights - To effectively navigate the Vietnamese retail market, it is essential to consider market, consumer, category, and retail insights, focusing on regional differences, the impact of Korean culture, and prioritizing suitable regions and channels to understand category trends for effective strategy formulation [3][39].

Economic Overview - Vietnam's economy is performing well, with GDP growth consistently surpassing that of the Asia-Pacific and Southeast Asia regions. The industrial, construction, and service sectors are showing significant growth, while agriculture, forestry, and fisheries are also developing steadily. The population is approximately 101 million, with 65% in the working-age group of 15-64 years. Vietnam is expected to become the second-largest economy in Southeast Asia and the 21st largest globally by 2038 [1][10]. Retail Market Structure - The retail market in Vietnam is primarily composed of traditional trade (TT), modern trade (MT), and online platforms. Traditional trade remains the main channel for grocery shopping due to cultural factors, but it faces challenges in meeting modern consumer demands. As of March 2025, market stalls account for 51% of total retail outlets. Modern trade is rapidly expanding, with a notable increase in convenience stores and minimarts, particularly in urban areas. Online shopping has surged post-COVID-19, with consumers increasingly adopting online grocery purchasing habits [2][22][29]. Consumer Behavior - Vietnamese consumers exhibit strong financial resilience, with a bifurcated FMCG market showing both premiumization opportunities and downtrading trends. A significant portion of consumers (64%) are willing to pay a premium for home products that enhance outdoor experiences, while 75% are price-sensitive and utilize promotions to stock up on goods. Categories such as beer, cigarettes, and beverages are long-term growth drivers for FMCG, while personal care and home care categories have seen declines due to a shift towards online channels [3][27][28]. Regional Dynamics - The retail landscape varies significantly across regions in Vietnam. The southern region contributes the most to total FMCG sales, but both the northern and central regions are growing at a faster pace. Northern consumers prefer strong flavors and larger packaging, influenced by traditional customs, while central consumers are more price-sensitive and favor local brands. Southern consumers prioritize convenience and outdoor spending, with lower prices in the Mekong Delta compared to the southeast [40][44][45].