The retail market size has reached its highest level in five years.

The Vietnamese retail market is expected to experience impressive growth in 2025, reaching an estimated size of approximately US$269 billion. Total retail sales of goods and consumer service revenue are projected to increase by 9-10% year-on-year, the highest rate in the past five years.

Consumers choose to buy fruit at Lotte Mall West Lake Hanoi. Photo: Do ​​Tam

According to the Vietnam Domestic Market Report 2025 by the Department of Domestic Market Management and Development ( Ministry of Industry and Trade ), the growth momentum of the retail market is not only short-term but is supported by many fundamental factors. Among these, improvements in people's income and living conditions play a key role, creating room for consumer spending to continue expanding.

Commenting on the market's growth drivers, Matthew Powell, Director of Savills Hanoi , said that structural factors, especially demographics and rising household incomes, are creating a solid foundation for the Vietnamese retail market.

As Vietnam approaches upper-middle income status, consumers tend to spend more on areas such as modern retail, education , food and beverage, and lifestyle-related services, thereby creating sustainable demand in the medium and long term.

According to Matthew Powell, the Vietnamese retail market is entering a vibrant growth cycle, with strong expansion demand from both international brands and domestic businesses. Simultaneously, the market is developing alongside e-commerce, traditional retail, shopping malls, and home delivery models. These retail channels are not mutually exclusive but complementary, creating a diverse and flexible ecosystem.

Rapid urbanization and changes in consumer behavior have also contributed to growth. Retail today is not just about shopping; it is gradually becoming a space for experiences, socializing, and daily life.

This trend is particularly evident in major cities, where young customers now account for approximately 60-70% of foot traffic in shopping malls, significantly benefiting retail projects, commercial streets, and mixed-use complexes.

Furthermore, technology and digital platforms continue to play a crucial supporting role. E-commerce is developing rapidly thanks to high smartphone and internet usage rates, but it mainly serves as a supplement to physical retail. Multi-channel retail models are being adopted by many brands to improve operational efficiency and strengthen connections with consumers.

Against a backdrop of positive macroeconomic conditions, stable FDI inflows, and a continuously improving business environment, the Vietnamese retail market is expected to maintain sustainable growth in the coming period, based on long-term drivers and increasingly higher-quality consumer trends.

Source: https://hanoimoi.vn/quy-mo-thi-truong-ban-le-dat-muc-cao-nhat-trong-5-nam-731228.html