Vietnam has entered a new era of growth, aiming for double-digit GDP expansion in the coming years. Boosting domestic consumption will be a key driver in achieving this ambitious goal.
According to the Retail Market Development Strategy of Vietnam until 2030, with a vision towards 2050, approved by the Prime Minister, the total retail sales of goods and consumer service revenue are expected to grow at an average rate of 11-11.5% annually.
Key directives within the strategy include: Encouraging businesses from all economic sectors to participate in retail market development through appropriate forms and scales; establishing a core domestic distribution force by offering initial incentives in terms of mechanisms, financial policies, and land.
The strategy aims to form large conglomerates/enterprises in the distribution sector, primarily domestic enterprises, including those with foreign investment. Private enterprises are identified as the core force driving significant momentum and contributing to market development. Additionally, the strategy supports small businesses, trade cooperatives, household businesses, and individual entrepreneurs in participating in the retail market.
The strategy also focuses on developing modern trade formats such as e-commerce and digital trading platforms. It promotes diverse retail methods, with a special emphasis on omnichannel retailing, mobile retailing, television retailing, and social media-based retailing, all leveraging the internet to meet future consumer shopping trends and demands.
Vietnam is home to numerous retail and consumer goods companies across various sectors, including The Gioi Di Dong (MWG), Masan (MSN), FPT Retail (FRT), PNJ, Digiworld (DGW), and Vinamilk (VNM). The Retail Market Development Strategy presents a significant opportunity for retailers in general, with the aforementioned companies holding distinct competitive advantages.
With nearly 6,000 stores nationwide, MWG is poised to benefit significantly from this strategy, thanks to its diverse product portfolio spanning ICT/CE (phones/electronics), FMCG (fast-moving consumer goods), pharmaceuticals, and more. MWG has already transitioned from a volume-driven growth phase to a substantial scale, generating over 10 trillion VND in monthly revenue.
MWG, led by Nguyen Duc Tai, is far from content with these figures. The retail giant aspires to become Southeast Asia’s leading retail empire. Following a comprehensive restructuring, MWG unveiled its 2030 strategy, focusing on quality growth through optimizing existing platforms, personalizing customer experiences, integrating services, and expanding regionally.
For its Bach Hoa Xanh (BHX) chain, MWG targets $10 billion in revenue by 2030, based on the estimated $60 billion market size of Vietnam’s food and FMCG sector. After dominating the southern retail market, BHX is now expanding northward, aiming to open 1,000 new stores annually. MWG plans to IPO the BHX chain from 2028, once accumulated losses are eliminated.
Another growth driver for MWG is the The Gioi Di Dong/Dien May Xanh (MW) chain, which is ready to challenge market saturation perceptions and unlock new potential. MWG’s leadership sees this as the perfect time to spearhead a new growth journey and establish a foothold in Southeast Asia. MW aims to double its 2025 profit by 2030, maintaining a growth rate above 15% annually, and also plans to IPO.
A critical component of Nguyen Duc Tai’s retail empire’s regional expansion is its electronics chain in Indonesia, EraBlue. Having achieved its 2025 targets ahead of schedule, EraBlue aims for 500 stores and an IPO by 2027. EraBlue enjoys a competitive edge in Indonesia’s fragmented electronics market, where over 50% of the market share is held by traditional stores.
Beyond traditional retail channels, Nguyen Duc Tai’s company is making bold moves into the high-potential e-commerce arena. In a recent Facebook post, Huynh Van Tot, MWG’s E-commerce Director, stated that MWG is committed to creating a transparent, fair platform for domestic and international businesses, marking a historic step for Vietnamese enterprises.
According to Huynh Van Tot, the e-commerce market is vast, with double-digit annual growth expected over the next 5-10 years. This shift is driven by consumers increasingly moving from traditional shopping to online channels. “This is the golden moment for MWG to launch its new platform,” affirmed the MWG executive.
In summary, Vietnam’s retail sector is entering a new era of opportunity, supported by favorable macroeconomic policies. This presents a chance for major retailers to thrive and expand regionally and globally. To seize this opportunity, companies must develop sound strategies and ensure ample resources.
