Vietnam’s retail market reached an estimated USD 269 billion in 2025, with total retail sales of goods and consumer service revenue growing 9 to 10% year on year, the fastest expansion in five years outside of the post-pandemic rebound period. The figures, drawn from the Vietnam Domestic Market Report 2025 published by the Ministry of Industry and Trade, point to a sustained recovery in domestic consumption and strengthening consumer confidence.
Matthew Powell, Director of Savills Hanoi, attributes the growth largely to structural forces, particularly demographic shifts and rising household incomes. As Vietnam edges toward upper-middle-income status, consumers are allocating more spending to retail, education, dining, and lifestyle services, creating a durable foundation for continued market expansion.
International and domestic brands alike are actively seeking space, making this one of the more dynamic retail cycles Vietnam has seen in recent years. The market is evolving on multiple fronts, with e-commerce, traditional retail, shopping centers, and home delivery models developing in parallel rather than in competition. Many brands are adopting omnichannel strategies that use digital platforms to complement rather than replace physical store networks.
Shifting consumer habits are also reshaping what retail looks like. Gen Z and Millennials now account for 60 to 70% of foot traffic in urban shopping centers, and for these shoppers, malls and mixed-use developments serve as destinations for dining, entertainment, and socializing, not just purchasing.
On the macroeconomic side, strong foreign direct investment inflows, regulatory improvements, and a more business-friendly environment are supporting job creation, income growth, and consumer confidence, all of which underpin a healthy retail outlook going forward.
(Source: The Investor)
