DITP urges Thai exporters to tap Vietnam’s US$268.5bn retail boom

Vietnam’s retail market and service-sector revenue surged to a five-year high in 2025, prompting Thailand’s Department of International Trade Promotion (DITP) to urge Thai exporters to step up efforts to capture demand in a fast-modernising consumer market.

In a report posted on the DITP website, the Thai Trade Center in Hanoi cited Vietnam’s Directorate of Market Surveillance under the Ministry of Industry and Trade (MOIT) as saying combined retail-market value and service-sector revenue reached 7,000 trillion Vietnamese dong, or US$268.5 billion, in 2025—up 9.2% year on year.

Retail and services hit five-year high

The report said retail revenue rose 8% from the previous year, while services expanded 20.2%. Revenue from accommodation and food services climbed 14.6%, supported by major events and strong foreign tourist arrivals, alongside improving incomes and living standards in Vietnam.

E-commerce surges as omni-channel accelerates

DITP noted that brands are increasingly adopting technology and digital platforms to drive omni-channel retail—blending shopping-mall experiences with faster, more flexible online purchases.

E-commerce was highlighted as a key growth engine, supported by high smartphone and internet usage. In 2025, Vietnam’s e-commerce market was valued at US$32 billion, accounting for 12% of nationwide retail revenue from goods and services, with annual growth averaging more than 20%—the report said this ranked second-highest in Southeast Asia.

The expansion reflects both shifting consumer behaviour and heavier business investment in digital tools, ranging from inventory systems and cashless payments to online platforms and livestream selling, the report added.

Modern trade expands, with rural push in focus

Vietnam’s retail infrastructure continues to broaden, with 1,293 supermarkets, 276 shopping malls, and more than 8,274 traditional markets nationwide—an indicator of a gradual shift from traditional to more modern consumption patterns.

Citing the Vietnam Retail Store Modern Trade Trends 2025 report by Q&Me Vietnam Market Research, the Thai Trade Center in Hanoi said the number of convenience stores and mini-supermarkets rose from 7,362 outlets in 2024 to 7,806 in 2025. WinCommerce’s WinMart and WinMart+ network accounted for 4,592 outlets, or 58.8% of the national total. The company opened 764 new stores in 2025, including 602 WinMart+ outlets in rural areas—80% of its new openings—signalling a clear rural expansion strategy.

What DITP says Thai exporters should do

DITP said the five-year peak underscores not only Vietnam’s income growth but also the impact of expanding domestic trade infrastructure. With retailers accelerating expansion beyond major cities—especially into rural provinces—DITP described the trend as a major opportunity for consumer-goods distributors and Thai exporters in the years ahead.

The report also flagged ongoing constraints, including administrative hurdles, land costs, human-resource quality, and gaps in transport, payment and telecoms connectivity—particularly in rural areas—alongside exchange-rate volatility, external inflation pressures and job concerns linked to rapid automation and AI. Even so, DITP said Vietnam’s large, youthful population and rising per-capita income could position it to become Southeast Asia’s largest retail market in 2026–2030, with e-commerce projected to reach US$50 billion by 2030.