According to the latest research by Nielsen Vietnam, modern trade has a much higher growth rate than traditional trade in Vietnam and the number of convenience stores in Vietnam has grown over 400% during the last six years. According to Nick Miles, head of Asia-Pacific at international grocery research company IGD, “Convenience stores in Vietnam have become popular destinations for young consumers to shop and hang out, as the stores provide them with an air-conditioned environment, well-organized shelves and seating areas, high quality products and, in some stores, free Wi-Fi.
Miles also noted that is easier to get licenses for stores that are under 500 square meters in size, which is why retailers have been expanding so that they can gain market share and economy of scale. Anh Dung, Executive Director of Nielsen Vietnam said of their latest research: “Thanks to the rapid increase in the number of stores, modern trade has a much higher growth rate than traditional trade in Vietnam.”
According to Nielsen’s Market Pulse report, which looked at 31 fast-moving consumer goods categories in Vietnam, the number of modern urban trade stores in Vietnam increased by 10.7% on-year during Q1 2018, compared to a decrease of 2.6% for traditional stores, Dung also said that the number of stores which focus on beauty and health products has doubled over the last two years in Vietnam and that “we also expect the number of small-scale supermarkets in Vietnam to significantly grow in the future.”
Jones Lang LaSalle (JLL), the global real estate consultancy, recently released its Vietnam 2018/Q1 real estate analysis and reported that as of the end of March 2018, Ho Chi Minh City has over 1,800 convenience stores and small-scale supermarkets, an increase of 5.1% compared to last year. According to both JLL and IDG, Vietnam is forecast to be the fastest-growing convenience store market in Asia by 2021 with a growth rate of 37.4% and will be followed by the Philippines and Indonesia.