Quality service, autonomy key to retail growth

Quality service, autonomy key to retail growth

Việt Nam's retail sector should develop stronger autonomy, higher-quality services and sustainable competitive advantages.

Shoppers at a supermarket in HCM City. VGP Photo

Việt Nam's retail sector should develop stronger autonomy, higher-quality services, and sustainable competitive advantages. 

These were the central issues discussed at the roundtable 'Developing Việt Nam’s Retail Market to 2030, Vision to 2050', held recently by the Institute of Industry and Trade Policy and Strategy.

According to the Institute, the global retail market changed sharply from 2022 to 2025. By 2025, habits formed during the COVID-19 period were no longer temporary – they became long-term consumer behaviour. 

The pandemic also pushed businesses into digital transformation. What used to be a strategic choice quickly became a basic requirement for survival.

Deputy Director of the Institute Nguyễn Khắc Quyền said that developing the retail market is a major goal and a key driver of domestic trade and overall economic growth. 

Retail continues to support domestic consumption, while exports face many challenges. But even with steady growth, the sector still falls short of the Government’s target of 10 to 12 per cent annual expansion. 

The main reasons include weak capacity among domestic distributors, limited capital, slow technological adoption, and a shortage of skilled workers. Small household businesses, which remain common in rural areas, still operate in an unprofessional manner.

Old and inefficient commercial and logistics infrastructure also increases costs and reduces the competitiveness of Vietnamese goods. Poor links between production, transport and distribution continue to cause bumper harvests and low prices. 

At the same time, market controls are not strong enough, allowing fake and low-quality goods to circulate and weaken consumer confidence. 

Domestic retailers are also under heavy pressure from foreign corporations with deep financial resources and sophisticated strategies. 

Technical barriers meant to protect the domestic market are still incomplete. Without more effective support policies, Quyền warned, foreign retailers could easily dominate the market.

Experts said the retail sector still has great potential for growth. The middle class is expanding quickly and is expected to make up around half the population by 2035, increasing demand for better-quality products and better shopping experiences. 

E-commerce is already one of the world’s five fastest-growing markets and is expected to surpass US$20 billion in 2024. Both Vietnamese and foreign retail groups continue to invest heavily in the market.

At the roundtable, Lâm Tuấn Hưng from the Ministry of Industry and Trade’s Training and Development Centre said that potential only translates into real competitiveness when supported by a clear and comprehensive strategy, in line with the Prime Minister's Decision 2326/QĐ-TTg dated October 21, 2025, which approved the Retail Market Development Strategy to 2030.

“Retail market development must go hand in hand with innovation, market modernisation and more specialised segments, so that production and consumption stay connected in a sustainable way,” Hưng said.

Experts recommended seven key solutions aimed at directly addressing current bottlenecks. These focus on improving infrastructure, logistics, fair competition, support for small and medium-sized enterprises and stronger market supervision. 

The goal of achieving average retail sales growth of 10.5 per cent per year by 2030 is ambitious, but achievable if implementation is consistent and decisive.

Experts said the new retail strategy not only sets out a clearer path forward, but also requires a change in governance, stronger domestic enterprises, and commercial infrastructure that meets international standards. 

If policies are carried out effectively and in line with real business needs, the retail market could become one of the most dynamic in the region, boosting economic growth and helping improve the quality of life for millions of people.

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