Series of pressures on retailers in the 6.4 trillion VND market

(Dan Tri) - Vietnam has more than 5.2 million individual business households, estimated to contribute about 30% of GDP and create jobs for tens of millions of workers. However, this group is "easily left behind" in the retail industry.

With a favorable demographic structure, accelerated urbanization, and a developing economy leading to increased per capita income, Vietnam's retail sector is experiencing strong growth.

Retail sales are accelerating, but retailers face a range of pressures.

According to data from the General Statistics Office, in 2024, the retail sector – including retail of goods and consumer services – in Vietnam is estimated to reach nearly 6.4 trillion VND, an increase of approximately 9% compared to the previous year.

According to the latest report from Super Market Research, the Vietnamese retail market is projected to experience strong growth over the next 10 years, with an average CAGR of 13.6% between 2025 and 2033.

“Market value can increase dramatically, but this is accompanied by fiercer competition, higher operating costs, and more stringent requirements for supply chain management efficiency. Although the growth potential is enormous, maintaining substantial growth, especially for medium and large manufacturers, still presents many challenges,” a noteworthy comment from Ms. Dang Hong Thuy, Director of Commercial Development at One Mount Distribution, at a recent event.

From an insider's perspective, Ms. Thuy pointed out a series of challenges for the retail industry. Firstly, many sources of goods are unregulated, lacking guaranteed origin and quality, and do not have complete and valid invoices and documents.

Secondly, market prices fluctuate, influenced by multiple layers of intermediaries and sellers, leading to imbalances across distribution channels. Retailer loyalty is low, making them easily attracted to cheaper goods, resulting in customer loss. The heavy reliance on online sales teams poses risks due to staff turnover or the need to handle multiple tasks simultaneously.

Furthermore, the cost of developing new products is high, but the success rate upon launch is low. Traditional distribution systems have too many intermediaries, increasing costs and making it difficult for manufacturers to control quality until the product reaches the final point of sale…

She asserted that comprehensive digitalization is a necessary solution for small business owners to keep pace with digital transformation.

Leaders of the Ho Chi Minh City Department of Industry and Trade: Digital transformation is no longer an option.

Deputy Director of the Department of Industry and Trade Le Huynh Minh Tu (Photo: DT).

Speaking in his capacity as an official, Deputy Director of the Department of Industry and Trade Le Huynh Minh Tu stated at an event held this morning in Ho Chi Minh City that, in the context of the world entering the digital economy era, digital transformation is no longer an option, but an essential requirement for sustainable development. Digital transformation has been, is, and will be a key driving force helping businesses enhance their competitiveness, optimize supply chains, and provide better experiences for consumers.

In line with Resolution 57 and the National Digital Transformation Program, Ho Chi Minh City aims for the digital economy to account for 40% of its GRDP by 2030, with the trade and service sector, especially retail, playing a leading role.

To achieve this goal, the Ho Chi Minh City Department of Industry and Trade is implementing many synchronized solutions to promote digital transformation in the industry and trade sector, specifically: Building a digital ecosystem for the trade and distribution industry, connecting businesses, suppliers, distributors, logistics and consumers on a shared data platform....

Simultaneously, the leaders emphasized the need for collaboration with technology and investment units; One Mount and its partners at today's event, according to Mr. Tu, are a prime example; all with the goal of jointly cultivating and building "smart retail," "digital supply chain," and "industry data connectivity" models.

Currently, Vietnam has over 5.2 million individual business households, estimated to contribute about 30% of GDP and create jobs for tens of millions of workers. This force is considered the "lifeblood" of the national consumer economy, but it is also facing many new challenges as digital transformation takes place on a large scale.

Regulations on the implementation of electronic invoices, transparency of goods sources, and the abolition of lump-sum tax from January 1, 2026, also pose challenges regarding management capacity and adaptation – requiring business households to transform themselves to keep pace with the times and achieve sustainable development.

Mr. Nguyen Duc Toan, Commercial Director of MM Mega Market, stated that the retail industry currently demands rapid digital transformation. He explained that digital transformation not only helps retailers save costs, trace origins, and manage inventory, but consumers today also demand speed, immediate availability, and personalized service.

Accordingly, the company affirmed the need for digital transformation, which will help the retail industry in general and retailers in particular to develop more sustainably in the future.

In the coming period, the Ho Chi Minh City Department of Industry and Trade also affirmed that it will continue to work alongside the business community, investors, and technology units to promote deeper digital transformation throughout the industry, aiming for a modern, connected, and green commercial ecosystem.

Source: https://dantri.com.vn/kinh-doanh/loat-ap-luc-voi-nha-ban-le-tren-thi-truong-64-trieu-ty-dong-20251027130530887.htm