Modern Retail Channel Accelerates: Vietnam Leads the Shift in ASEAN Region

The proportion of modern retail channels in Vietnam will reach about 27% by 2025 and is expected to increase to 35% by 2030, the fastest growth rate in the ASEAN region. As the wave of modernization accelerates, businesses with large-scale retail systems are emerging as direct beneficiaries of this shift.

Retail modernization - Leveraging market trends.

Over the years, the Vietnamese retail market has witnessed the coexistence of two main distribution channels: the traditional channel (General Trade - GT) and the modern retail channel (Modern Trade - MT). While GT has traditionally been the "lifeline" contributing a large portion to total retail sales, MT is emerging as a new driving force, clearly reflecting the trend of urbanized consumption and modern lifestyles.

According to a report from Insight Asia, the share of medium-sized enterprises (MT) in Vietnam reached approximately 27% in 2025 and is expected to increase to 35% by 2030, the fastest growth rate in the ASEAN region. This is a remarkable leap compared to the regional average, reflecting the strong transformation of the Vietnamese retail market.

This acceleration stems from several converging factors. First, the expanding middle class, rapid urbanization, and the demand for convenient living have led consumers to increasingly favor modern retail outlets with consistent service quality, hygiene, and clearly displayed prices. Simultaneously, consumer behavior has also changed significantly: 62% of consumers shop at the MT channel weekly, while 67% check promotions via apps or digital platforms before making a purchase. This shows that MT is not only expanding in scale but has also become an integral part of new consumer habits.

Besides behavioral factors, government policies also play a crucial role in promoting the MT trend. In the "Strategy for the Development of Domestic Trade to 2030, Vision to 2045," the target is set as: "The proportion of total retail sales of goods from the domestic economic sector accounts for approximately 85%, and the FDI sector accounts for approximately 15%."

This policy emphasizes strengthening the role of domestic businesses in the distribution system, encouraging the development of domestic retail chains to be more proactive in regulating the market. This serves as a "macro-support framework" for the accelerating wave of mass production and creates significant room for retail chains to expand their market share.

Notably, the medium-scale retail (MT) market is not only growing in major cities but is also expanding to second- and third-tier cities and rural areas, where there are still significant gaps in modern retail infrastructure. With large populations, stable incomes, and increasingly diverse needs, these areas are becoming strategic destinations for many retail chains.

Opportunities for acceleration for large-scale retail chains.

As the modern retail market enters a period of rapid growth, large-scale domestic chains are emerging as the group that benefits most directly from this trend. WinCommerce (WCM), a member of Masan Group (HOSE: MSN), is one of the leading retail systems in the market with nearly 4,300 WinMart/WinMart+ stores nationwide. The widespread presence of the WinMart, WiN, and WinMart+ systems helps WCM to effectively capitalize on the natural growth momentum of this channel.

Besides its extensive coverage, MT offers operational advantages and the ability to closely track consumer behavior. When buyers prioritize convenience, hygiene, and price transparency, standardized store systems become the default choice for a large segment of customers. WCM, with its dense network in both urban and rural areas, is able to reach this customer group more quickly and effectively than many foreign competitors who focus primarily on major cities.

Another noteworthy point is the ability to leverage technology and data to optimize operations. The MT model allows businesses to better control the supply chain, manage inventory, and coordinate goods more accurately. With its wide coverage, WCM's store system further enhances its advantages.
The ability to respond flexibly to fluctuations in market demand.

WCM's expansion strategy focuses on rapidly urbanizing areas with significant room for modern retail models, where consumer behavior is shifting rapidly but is not yet saturated by foreign chains. This is a strategic move, consistent with the market size and policies encouraging the development of domestic chains.

Recently, WCM also announced that its Q3/2025 revenue exceeded VND 10,000 billion, the highest level since its establishment. For the first nine months of the year, WCM's total revenue reached VND 28,500 billion, a 16.6% increase compared to the same period in 2024, far exceeding the company's baseline growth target for this year (8-12%). This is the result of a sustainable development strategy, combining rational network expansion, increased operational efficiency, and technology application.

The wave of modernization is reshaping the Vietnamese retail market. In this context, WinCommerce is seizing growth opportunities thanks to its extensive market coverage and flexible operational capabilities, demonstrating the rise of domestic chains during this industry transformation. In this race, WinCommerce holds a significant advantage due to its deep market reach, adaptability, and close attention to consumer behavior.

This is not just a story about a company expanding its market share, but also reflects the structural shift in Vietnam's retail industry over the next decade.

Source: https://www.masangroup.com/vi/news/masan-news/Modern-Retail-Accelerates-Vietnam-Leads-ASEAN-in-Market-Transition.html