VIETNAM MODERN TRADE: ROBUST DEVELOPMENT OF MINIMART & CVS: ADAPTING TO SURGING SHOPPING DEMAND POST-PANDEMIC

The Robust Growth in Minimart and Convenience Stores 

Vietnam's retail market is dominated by general trade, but there's a notable shift towards modern trade channels and e-commerce. Modern trade, which now accounts for 33% of the market, is rapidly expanding due to the growth of minimarts and convenience stores (CVS). This shift is driven by a combination of factors, including rising urbanization, a growing young population, and changing consumer preferences. 

As of 2023, the number of CVS POS in Vietnam nearly doubled compared to four years ago, reaching 1,409. This robust expansion reflects the increasing popularity of these convenient retail formats among Vietnamese consumers. The overall retail sector has also witnessed substantial growth, with a compound annual growth rate (CAGR) of 6.7% from 2019 to 2023 in terms of the number of modern trade points of sale. 

The Dominance of Local Players 

Local players dominate the market, holding over 70% of the market share. However, foreign retailers are increasing their presence and expanding their retail chains in Vietnam. Notably, the top five international modern trade brands, all CVS, have established significant chain coverage. 

Positive Outlook for Modern Trade in Vietnam 

The rising urbanization rate, young population structure, increasing disposable income and a gradual consumer shift from general trade to modern retail channels are fueling a growing demand for modern retail channels. This presents a significant opportunity for investors to capitalize on the expanding consumer base. In which, international modern trade brands are particularly focused on expanding their networks across the country. 

The Vietnamese modern trade market, particularly the minimart and CVS segment, is experiencing a period of rapid growth. This creates a favorable market environment for establishing new modern retail ventures, drawing significant interest from both domestic and foreign investors. By understanding the current market dynamics and leveraging the available opportunities, investors can position themselves for success in this dynamic and promising sector.

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About FiinGroup      

FiinGroup is Vietnam’s leading provider of financial data analytics platforms, business information, market research and consulting, credit ratings, and other data-driven analytics services via Platform as a Service (PaaS), annual package, and on-call services.     

To assist potential investors in unlocking the potential of Vietnam's modern trade sector, FiinGroup has successfully supported various local and foreign investors via market assessment, market entry advisory, commercial due diligence, merger filing support, and deal advisory to penetrate/ expand their businesses in Vietnam. 

For more information about FiinGroup’s support and other investor services and how we can support, please call +84 (24) 3562 6962 or email to research.support@fiingroup.vn.