Vietnam's Retail Market Poised for Growth Amid Rising Domestic and Foreign Investment
Retail sales forecast to hit 350 billion US dollars in 2025, with cosmetics and food sectors driving momentum
Vietnam’s retail sector is projected to reach 350 billion US dollars in 2025, contributing 59 percent of domestic goods sales, according to the Ministry of Industry and Trade. Retail sales in 2024 climbed by 8.8 percent, fueled by surging demand in cosmetics, food, and beverages. International brands like The Body Shop and L'Oréal have reported significant growth, with The Body Shop Vietnam expanding its retail presence despite global financial challenges and L'Oréal Vietnam seeing a 17 percent revenue boost.
Domestic companies are also capitalizing on rising consumer demand. GC Food, a leading exporter of aloe vera products, reported a 60 percent surge in domestic retail sales, contributing to nearly 28.3 million US dollars in revenue last year. However, experts caution that the sector must implement breakthrough strategies to stay competitive, especially with increasing foreign direct investment. Strengthening support for local enterprises and leveraging data-driven insights are seen as critical steps to fostering sustainable growth.
Vietnam’s growing middle class and Gen Z consumer base continue to drive market expansion, prompting experts to advocate for balanced policies that support domestic startups and small businesses. With foreign investors accelerating their entry into Vietnam’s retail market, the government is urged to create a more transparent and supportive environment for local enterprises to thrive alongside international competitors.
---
Domestic companies are also capitalizing on rising consumer demand. GC Food, a leading exporter of aloe vera products, reported a 60 percent surge in domestic retail sales, contributing to nearly 28.3 million US dollars in revenue last year. However, experts caution that the sector must implement breakthrough strategies to stay competitive, especially with increasing foreign direct investment. Strengthening support for local enterprises and leveraging data-driven insights are seen as critical steps to fostering sustainable growth.
Vietnam’s growing middle class and Gen Z consumer base continue to drive market expansion, prompting experts to advocate for balanced policies that support domestic startups and small businesses. With foreign investors accelerating their entry into Vietnam’s retail market, the government is urged to create a more transparent and supportive environment for local enterprises to thrive alongside international competitors.
---
