In early April 2019, VinCommerce, a retail subsidiary of local conglomerate Vingroup, took over convenience store chain Shop&Go for a symbolic value of 1 USD. Shop&Go is a brand from Singapore, which ran the first convenient store in Vietnam in 2006. It has 70 stores in Ho Chi Minh city and 17 stores in Hanoi. Meanwhile, South Korea’s GS 25 chain has acquired convenience store chain, Zakka Mart, with 49 stores.
A growing middle class with increasing disposable income, along with demand for quality goods and services in areas such as health and wellness is driving growth of the retail sector in Vietnam and attracting investments from both domestic and foreign investors. According to the General Statistics Office of Vietnam, wholesale and retail value in Vietnam accounts for more than 14% of the country’s GDP. Retail revenue expected to reach USD 255 billion by 2020, and USD 485 million by 2025.
Though growing rapidly, supermarkets, shopping centers and e-commerce account for less than 30% of the country’s retail market indicating ample room for growth. However, competition in the market is also intensifying.
Investments are expected to rise further with the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the upcoming ratification of the EU-Vietnam Free Trade Agreement (EVFTA).