1

VIETNAM RETAIL SECTOR

(2018-2024)

Sample

Sample Vietnam Retail Sector Sample

 TABLE OF CONTENTS 2

1. Introduction 6. Segmentation – By Product Category

1.1 Key Deliverables of the Study 6.1 Food and Beverage and Tobacco Products

6.2 Personal Care and Household

1.2 Study Assumptions
6.3 Apparel, Footwear, and Accessories
1.3 Research Methodology
6.4 Furniture, Toys, and Hobby
2. Scope Of Study
6.5 Industrial and Automotive
3. Market Insights
6.6 Electronic and Household Appliances
3.1 Market Overview 6.7 Pharmaceuticals, Luxury Goods, and Other Products

3.2 Customer Behavior Analysis 7. Insights on Distribution Channels in Retail Trade

3.3 Industry Attractiveness - Porter's Five Forces Analysis 7.1 Hypermarkets, Supermarkets, and Convenience Stores

4. Market Dynamics 7.2 Retail Products Consumption in Specialty Stores

7.3 Department Stores’ Offers Attracting Consumers

4.1 Drivers
7.4 E- commerce Trend in the Vietnam Retail Sector
4.2 Restraints
7.5 Other Distribution Channels
4.3 Opportunities

4.4 Industry Value Chain Analysis

5. Technology Snapshot

Sample Vietnam Retail Sector Sample

 TABLE OF CONTENTS 3

8. Competitive Landscape - Key Vendor Profiles

8.1 Saigon Co.op.

8.2 Central Group

8.3 AEON

8.4 Vin Group

8.5 Lotte Mart

8.6 E-Mart

8.7 Auchen

8.8 Shop & Co.

8.9 Parkson

8.10 Big C

9. Investment Analysis on the Vietnam Retail Sector

10. Future of the Vietnam Retail Sector

*List not Exhaustive

Sample Vietnam Retail Sector Sample

 4

1.1 Key Deliverables of the Study

1.INTRODUCTION 1.2 Study Assumptions

1.3 Research Methodology

Sample Vietnam Retail Sector Sample

1.3 RESEARCH METHEDOLOGY - RESEARCH PHASES 5

• Company Annual reports • Sales Managers • Industry Experts

Garnering Insights from Data
• Journals • Surveys • Consultants
and Forecast, which are then
• Government Publications • Manager-Purchasing and • Subject-matter Experts
Compiled into One Report
Logistics • In-house Experts

SECONDARY DISCUSSION PRIMARY ECONOMETRIC EXPERT DATA REPORT

RESEARCH GUIDE RESEARCH MODELING VALIDATION TRIANGULATION WRITING

• Company-related Queries • Revalidation of Numbers Got

• Forecasting Model
• Market-related Queries from Secondary through
• Monte Carlo Simulation
• Company Financials Primaries
• Combination of Top-down and
Bottom-up Approaches

Sample Vietnam Retail Sector Sample

1.3 RESEARCH METHEDOLOGY - ANALYSIS METHODOLOGY 6

• Financial Journals
• Annual Reports
• Market Research Reports
1. Secondary Define Objective and Scope
• Industry Websites
Data Analysis
• Industry-related Databases
Suppliers,
• Thought Leader Briefings
3. Analyze and OEMs, Raw Material Suppliers, and
Secondary Research Process Collate Different Customers’ perspective
Research Perspectives
Identify and assess top companies
and their best practices
Primary
Research 2. Interview
Participants
• CEOs/CFOs
• Board Members  Outcome—Top performing companies

• Research Heads Based on Revenue Generated

Industry Experts,
• Strategic decision makers
Consultants,  Overall Understanding of the Market,
• Financial Advisors
Plant Managers, Industry Trends and Events
• Investors
Strategists, etc.

Research Methodology Research Process

Sample Vietnam Retail Sector Sample

 7

2. SCOPE OF THE STUDY

Sample Vietnam Retail Sector Sample

2.SCOPE OF THE STUDY 8

Food and Beverage and Tobacco

Personal and Household Care

Apparel, Footwear, and Accessories

By Product Category Furniture, Toys, and Hobby

Industrial and Automotive

Electronic and Household Appliances

Pharmaceuticals, Luxury Goods, and Other
Products
Vietnam Retail Sector
Hypermarkets, Supermarkets, and Convenience
Stores

Retail Products Consumption in Specialty Stores

By Distribution Channel Department Stores’ Offers Attracting Consumers

E- commerce Trend in Retail Sector

Other Distribution Channels

Sample Vietnam Retail Sector Sample

 9

3.1 Market Overview

3.2 Customer Behavior Analysis

3. MARKET INSIGHTS
3.3 Industry Attractiveness - Porter's Five Forces Analysis

Sample Vietnam Retail Sector Sample

 3.1 MARKET OVERVIEW 10

• The economic growth, rising middle class, urbanization and higher standards, and demands for
sanitation and hygiene are factors fueling the growth of the Vietnamese retail sector.

• The population growth in Vietnam is similar to the trend in the Southeast Asian countries, as it has been
on a steady rise for years. The country’s population is characterized by the large young workforce, ECONOMIC GROWTH, GDP WEIGHT (%),
making labor more cost-efficient for foreign investments. However, Vietnam’s dependency ratio, or the VIETNAM, 2018
percentage of people in the workforce keeps on declining, from 75% in the 1990s to 42% in 2016.
Agriculture, Fishing,
• Distributive trade and services continue to be the main economic driver for Vietnam, accounting for and Forestry
38.57% share. This can be attributed to the strong domestic consumption. The industrial sector, at Mining

34.6%, continues to contribute a lot, with robust growth on mining, manufacturing, utilities, and Manufacuring

construction.
Utilities
SAMPLE FIGURE
• Most of the industrial sectors are forecast to register robust growth. However, these observed lower Construction
growth rate in comparison to that in 2016, with the exception of the mining sector, growing from -4% at
Trade
2016 to 1.64% by 2017.
Others
• Exports surged at 15.10% amounting to USD 44.7 billion, and imports on the other hand, had a growth
rate of 24.9% amounting to USD 46.6 billion. The surge in exports is because of the huge demand for
electronics, computers, and components, driven by the foreign investments in the manufacturing sector.
The top export markets of Vietnam in 2016 are the United States, China, and Japan.

• Meanwhile, the largest source of Vietnam’s imports are China, Korea, and Japan. Most of the imported
items in 2016 consisted of machinery, equipment, electronics, and computers, which are heavily related
to export assembly.

Sample Vietnam Retail Sector Sample

3.1 MARKET OVERVIEW 11

• Unlike most of its neighboring countries, convenience stores in Vietnam account for
• However, it is evident that modern retailing continues to flourish in a
the lowest sales among retailing channels. In 2015 alone, the sales among
country heavily dominated by its traditional market. Remarkably, from two
convenience stores accounted only to USD 100 million, while hypermarkets
supermarkets in 1990s, thousands of modern concept retail stores are
accounted for USD 1.18 billion, and supermarkets had highest sales, at USD 1.73
built around Vietnam and their numbers continue to grow each year.
billion.
• There is a high demand for fresh vegetables and fruits in Vietnam. Thus,
• However, it is also worth noting that modern retail sales in Vietnam are following a
modern retailing outlets make it a point to offer fresh products that can
steady growth every year. It rose from USD 1.34 billion in 2011 to 3.02 billion in
compete with goods sold in the wet market.
2015, nearly 22% growth rate in 4 years.
• Besides the impeccable look and feel, they assure their consumers that
• On the other hand, other grocery retailers (wet markets, food stalls, etc.) accounted
all areas of the store are completely hygiene.
for the largest sales in the traditional markets. In 2017, other grocery retailers
accounted for nearly USD 40 billion, followed by independent small grocers at USD • Additionally, imported wines and liquors from different continents are also
17 billion, and food/drink/tobacco specialists at USD 1.5 billion. offered, giving the consumers a variety of choices that can be
• Similar to the modern retailing channels, the traditional market channels continue to accompanied by cold cuts and cheeses.
grow progressively during the forecast period, 2018 - 2023.
• Modern retailing outlets also offer a wide range of imported products.
• Despite steady growth in both channels over the past years, it is declining in With the increasing number of tourists and expats in the country, the
comparison to modern retail. Modern retail experienced a steep growth rate by demand for imported products also continues to rise.
2014 at 28%, however, declined in the following year at 18%.
• In addition to this, Vietnamese consumers are developing a taste and
• Traditional retailing growth rate declined from 24% in 2012 to 8% by 2015. appreciation for imported products.

Sample Vietnam Retail Sector Sample

3.1 MARKET OVERVIEW 12

• In 2018, there were more than 700+ supermarkets, out of which, foreign retailers
account for more than 35% (130+ shopping centers). Among these, more than
30 are foreign direct investments, and 9,000 traditional markets (according to Retail Sales (%), by Enterprise, Vietnam, 2018

the Ministry of Industry and Trade of Vietnam).

• By 2024, the country is anticipated to have nearly 1200+ supermarkets, 200

department stores, 160 shopping centers, and 1 million retail outlets operated by
individuals.

• The retail growth rate in Vietnam is projected to register a healthy CAGR of

12.14% during the forecast period, 2018 – 2023, and the Vietnam retail sector is State Owned Enterprises

estimated to reach USD 257.8 billion, of which, modern retailing contributes SAMPLE FIGURE Local Private Enterprises

around 45%. FDI Enterprises

• In 2017, the retail sales in Vietnam were dominated by local private enterprises
with a share of 86%. This was then followed by the state-owned enterprise with
a share of 10%, and FDI enterprises with a share of 4% (according to Ministry of
Industry and Trade).

• In Vietnam, there are more than 90 retailers for FDI enterprises, and the sales of
these retailers are 5-6 times, when compared to that of a supermarket, owing to
large scale operations.

Sample Vietnam Retail Sector Sample

3.1 MARKET OVERVIEW 13

• Modern and traditional type of retailers are surviving and challenging with each other, on
the other hand, retailers from Thailand, Japan, and South Korea have set up their
distribution systems in Vietnam and are obtaining greater market share in this booming
potential market.

• In 2017, the rivalry between the domestic retailers and the foreign retailers is escalating,
and moreover, the foreign retailers invested in supermarkets and department stores,
such as Metro Cash & Carry, AEON, and Big C.

• In 2016, a foreign investor, Central Group Thailand (which is one of the best known to
Vietnamese) acquired the Big C Vietnam. The deal was worth USD 1.14 billion.

• Thailand investors, such as Central Group and TCC Holding, were very swift to acquire
leading retailers in Vietnam (Big C and Metro Cash & Carry). Moreover, they bought
nearly 49% stakes in the electronics retailer, Nguyen Kim.

• Furthermore, in 2016, these firms also purchased Zalora Vietnam for a deal worth USD
10 million. With these mergers and acquisitions, Thai retailers have accomplished nearly
50% of the Vietnamese retail market.

Sample Vietnam Retail Sector Sample

3.1 MARKET OVERVIEW 14

• In 2016, Emart, South Korea’s leading retailer, opened a USD 60 million worth
shopping center in Vietnam, Ho Chi Minh city, and launched 11 other supermarkets.
Moreover, the organization is anticipating to expand its diverse portfolio to 60 stores in
Vietnam by 2020.

• Additionally, the French company, Auchan, and the US-based firm Walmart are
entered the Vietnamese market. Meanwhile, Japanese firms have also made big
investments in Vietnam.

• Additionally, in Vietnam, Aeon planned to set up at least 20 malls and declared its
double acquisitions i.e. 30% of Fivimart and 49% of Citimart.

• Young people residing in Vietnam are more interested in Japanese culture, so AEON
launched their own brand TopValu for authentic Japanese kitchenware and utensils, and
AEON is now looking for wider options (solutions) to produce these products in the
domestic market.

• In 2015, revenue of international fast food chains (Burger King, McDonalds, KFC,
Dominos Pizza, Pizza Hut, and Starbucks) in Vietnam was around USD 740 million, an
increase of 9% when compared to 2014.

Sample Vietnam Retail Sector Sample

3.1 MARKET OVERVIEW – MARKET PLAYERS 15

Most of Vietnam’s population still relies on wet markets or traditional retail channels for their day-to-day purchases. Primarily, Vietnamese dishes are mainly composed
of fresh fruits and vegetables, making wet markets the most convenient place to purchase fresh goods for everyday consumption. In addition to this, traditional retail
outlets also pose as a more viable option for most Vietnamese shoppers.

Sample Vietnam Retail Sector Sample

3.1 MARKET OVERVIEW 16

• Modern retail outlets also offer private brands/products that can be exclusively purchased
Traditional Vs. Modern (%), 2017
in their stores. Thus, they can assure every consumer that the products they sell are
specially made to cater the demands and needs of their shoppers.

• One key factor why Vietnamese consumers choose to shop in traditional markets is
because they can buy ingredients in smaller portions. In response to this, supermarkets
are offering RTCs or ready-to-cook packages that is better suited for the daily needs of
Traditional
an average consumer.
SAMPLE FIGURE
Modern
• Besides food products, non-food products and home appliances are also offered in
supermarkets, making shopping easier and offering everything needed for the customer
under one roof.

• To further improve the shopping experience, some stores have in-house bakeries and
cafés, where consumers can hang out and enjoy with family or friends. • The growth of sales in the traditional market is declining, compared to

• The local population’s inclination to make their purchases in the traditional outlets are modern retailers. According to Nielsen, foot traffic on traditional outlets

high, owing to several factors: traditional outlets are seen everywhere, offering declined.

convenience and easy access for consumers, comparatively lower prices of goods and • In 2012, 81% of consumers rely on traditional outlets, while in 2014, it

products (which consumers can still bargain), fresh produce supply source is better at declined to 64%. On the other hand, foot traffic on convenience stores

wet markets, and traditional retailers offer flexible package sizes for day-to-day increased from 5% (total number of consumers) on 2012 to 11% in

consumption. 2014.

Sample Vietnam Retail Sector Sample

3.1 MARKET OVERVIEW 17

Modern Grocery Retail: Revenue in VND trillion, by Channel, Vietnam, 2011-2015

Retail channels 2011 2012 2013 2014 2015

Convenience Stores 0.7 xx xx xx xx

Hypermarkets xx 10.2 xx xx xx

Supermarkets xx xx xx xx xx

Traditional Grocery Retail Revenue in VND trillion, by Channel, Vietnam, 2011-2015

Retail channels 2011 2012 2013 2014 2015

Food/Drink/Tobacco specialists 17.5 xx xx xx xx

Independent Small Grocers xx 258.3 xx xx xx

Other Grocery Retailers xx xx 721.7 xx xx

Complete Data Will be Provided in the Full Report

Sample Vietnam Retail Sector Sample
 18

4.1 Drivers

4.2 Restraints
4. MARKET DYNAMICS 4.3 Opportunities

4.4 Industry Value Chain Analysis

Sample Vietnam Retail Sector Sample

4. MARKET DYNAMICS - IMPACT CHART 19

GROWING ECONOMY, INCREASING

High
URBANIZATION, AND INCREASING
POPULATION xx
Market Drivers

Impact

Low
Short-term Medium-term Long-term
Low
Market Restraints

Impact

xx
xx

High

Sample Vietnam Retail Sector Sample

4.1 DRIVERS
• In 2018, the Vietnamese Retail industry reached close to USD XX billion of which
nearly 74.7%. Other sectors taking up a share of the retail market, includes
accommodation, catering, and travel services.
• The growth of modern trade (fast moving consumer goods) has been greater than
traditional retail, owing to broad factors, such as growing economy, increasing
urbanization, younger population, and rising incomes.
• Nearly 40% of the population of Vietnam is under 25 years of age and its average
income per capita has been increasing at a rate of around 30%, for every two years.
• This age bracket of consumers is showing an increasing confidence in spending
patterns. In 2017, over 63% of Vietnamese population chose to use spare cash for
savings, which was down from 76% in 2016. More consumers are spending on
clothing, consumer electronics, vacations, and urban out-of-home entertainment.
• The rising middle- and affluent classes and a younger population are valuing
convenience and comfort. The growth of convenience store market due to the
expansion of companies, such as Circle K, which is expanding across Hanoi,
already having a strong foothold in Ho Chi Minh City.
• The increasing presence of local players, such as Vinmart+, which has nearly 900
stores all over the country, and the recently introduced Bach Hoa Xanh by Mobile
World, which plans to have about 1,000 stores in Ho Chi Minh city.
Sample Vietnam Retail Sector Sample
20
• The overall shopping experience has been singled out to be the most
important factor among others in shopping decisions. Consumers are
conducting research online, such as social media before purchasing.
• The rising interest toward gyms, personal care, and healthy eating has
become increasingly important to Vietnamese consumers. They are
becoming highly social-conscious, which is driving their spending habits.
• Over 86% of consumers are ready to spend higher prices on products
and services by companies, which have a positive social and community
as well as environmental impact.
• The Vietnamese food and beverage market (F&B) has been growing
heavily due to the investments made by foreign brands.
• Over 35% of the Vietnamese out-of-home spending share is from
Western food, driven by the growing number of foreign franchisees.
• The share of Western food in the food and beverages market has been
growing steadily, with the introduction of new food products catered to
local tastes.
• The increasing number of visits to food service outlets has been due to
the modernization of traditional Vietnamese cuisines and rising number of
convenience stores, which are being frequented by young working
professionals.
4.1 DRIVERS 21

• Location is a significant criteria for choosing a restaurant, due to the growing urban
population and traffic. A huge percentage of the population has placed location, Retail Sector: Sales Distribution (%), Vietnam, 2018
cleanliness, and food quality as the top three criteria for choosing a restaurant.

• The increase in foreign investors in important cities, such as Ho Chi Minh and Hanoi,
has been mainly because the citizens in these cities have a higher income, which is
about 2 or 3 times compared to the national average. It is natural that modern retail
chains are targeting the urban middle-class in these cities.
Traditional Retail

• With the increasing internet and smartphone penetration, restaurants have also started
SAMPLE FIGURE Modern Retail
focusing on online ordering, in order to increase their sales. Online ordering currently
accounts for almost half of all food delivery orders in the major cities.
Online

• E-commerce businesses are booming in Vietnam. As of 2018, there were nearly 35

million digital consumers buying goods or services online. Vietnam’s younger population
are keen users of mobile devices.

• The country’s consumers spend more time online than its neighboring countries. People
spend nearly 25 hours online per week, which is on par with Singapore and the
Philippines.

Sample Vietnam Retail Sector Sample

4.1 DRIVERS 22

Population Urbanization (%), Vietnam, 1996 – 2026* Population Income Distribution (%), Vietnam, 1996 – 2026*

High

Rural SAMPLE FIGURE

Mid

SAMPLE FIGURE

Urban Low

% of population in 1996 % of population 2016 % of population in 2026 % of population in 1996 % of population 2016 % of population in 2026

*Approximate projected value based on secondary research.

Detailed data will be provided in the full report.

Sample Vietnam Retail Sector Sample

4.1 DRIVERS 23

Online population in million, by Country, Southeast Asia, 2018

SAMPLE FIGURE

Indonesia Vietnam Phillipines Thailand Malaysia Singapore

Detailed data will be provided in the full report

Sample Vietnam Retail Sector Sample

4.1 DRIVERS 24

As of 2018, consumers have become more familiar with online retail shopping.

Each person spends over Around XX% of

Over XX% of the
XX hours per day surfing shopping websites are of
population owns a
the internet national scale.
smartphone

Foundation for e-commerce About XX% shopping

XX% of the population uses
produced over USD XX websites are of regional
internet to buy online
billion turnover. scale

Average spending for online Over XX% of retailers

shopping is XX USD/per receive orders through e-

person/year commerce websites

XX% of the population shop

online, spending 350 USD/
person
Complete data will be enclosed in the full report
Sample Vietnam Retail Sector Sample
3.3 OPPORTUNITIES 25

Opportunities for Businesses in the Retail Sector

As a significant percentage of the Vietnamese population is becoming increasingly affluent, there is a huge potential

1 demand for organic produce that is fresh and of good value. The urban population is preferring retailers who supply
affordable organic food.

Offering higher-quality substitutes to local organic food that is produced under stringent checks. With the weak local
2 enforcement of the organic label, consumers prefer to purchase from reliable, trustworthy brands or countries.

XX
3

Using e-commerce to reach the technologically-savvy Vietnamese population. Vietnam’s ecommerce market is projected
4 to reach XX million smartphone users, with a value of EUR XX million by 2020.

XX
5

The number of retail stores in Vietnam, in general, is rising steadily, in alignment with retail value growth. Various

6 international retail brands have plans/show intentions to open new stores in Vietnam. These imply the need for retail store
products, such as light systems, surveillance, camera, and furniture.

Sample Vietnam Retail Sector Sample

4.3 OPPORTUNITIES 26

Number of Modern Stores in Vietnam, by type, 2012 - 2018

67

53

850

xx
Hypermarket

Super Market

xx
Convenience store
SAMPLE FIGURE
xx xx
1600
xx
xx

xx
356

2012 2014 2016 2018

Complete data will be enclosed in the full report

Sample Vietnam Retail Sector Sample

 27

5. TECHNOLOGY SNAPSHOT

Sample Vietnam Retail Sector Sample

 5. TECHNOLOGY SNAPSHOT 28

• Asia-Pacific region has been in the forefront of the digitization wave. Countries, like
China, Japan, India, and Vietnam, have welcomed and adopted the new technology
trends.
Number of Internet Users in millions ,Vietnam, 2015-2022
• E-commerce is one such major market trend that has allowed the growth of online
shopping in Asia-Pacific region. With the presence of players, like Flipkart, Shopee,
Rakuten, and Lazada, in Vietnam the e-commerce market flourished.

• Vietnam shows strong potential in the e-commerce space, due to its economics and

Number of internet users in millions

manufacturing history. Vietnam has lots of experience with manufacturing and
exporting. Vietnam's e-commerce growth can be attributed to two major factors, high
internet penetration and an expanding workforce.

• In 2017, there were 53.86 million internet users in Vietnam, and expected to reach SAMPLE FIGURE
nearly 60 million in the next four years.

• Complimenting e-commerce is the QR payment landscape in Vietnam. The banks,

like Hanoi Commercial Joint Stock Bank, has adopted Q pay for easier and secure
transfer and payment. It is expected that the QR money transfer market is likely to
grow following the adoption of the technology by banks in Vietnam.

• Contributing to the market growth is the increasing number of service providers for the
QR payment technology. Razor Pay, SpherePay. Masterpass QR, and Visa-certified 2015 2016 2017 2018 2019 2020 2021 2022

QR solutions are some of the small players and major providers in the Vietnam
market.
Sample Vietnam Retail Sector Sample
 5. TECHNOLOGY SNAPSHOT 29

• Retailers are shifting toward cloud computing to tackle the ever changing
consumer demand and market dynamics. • Inventory tracking becomes increasingly one of the most important functions
in the vastly expanding Vietnam retail market. The cloud-based inventory
• More than 50 percent of marketers in different industries have been using
tracking solutions allow to not only automatically replenish stock, but also
proximity technology (such as beacons) for their business. Proximity
improve product identification and provide an efficient ordering system for the
technology is soon likely to revolutionize the whole retail experience and take
retailers.
over traditional marketing practices. From raising awareness to in-store
experience and finally re-targeting, the marketing services enabled by • Notably, e-commerce Amazon has officially landed in Vietnam, beginning the

proximity technology can enhance every stage of the customer journey.
• Bich Ngoc Technology Vietnam and Ubudu Asia are some of the players
providing proximity marketing systems in Vietnam retail market.
• Conventional brick-and –Mortar players are moving toward ecommerce shops
and increasing online presence. The Vietnam population is young, with a
media age of approximately 31.4. About 71% of the online buyers prefer
market entry by the program, in order to support the export of goods for small
and medium enterprises. Vietnam is attracting multiple foreign e-commerce
giants.
• Prior to Amazon, Alibaba Group of China's billionaire Jack Ma also plunged
deeper into Vietnam, with the acquisition of Lazada.
• The entry of major global players like Amazon and Alibaba that take

buying online as compared to physical shops. This increases the importance of advantage of their innovative retailing capabilities, like cash less stores and

ecommerce shops for retailers. drone delivery, among others, are expected to further change the Vietnam
retail market scenario.
• Vingroup, Vietnam’s biggest private-sector company, has plans to expand into
artificial intelligence, software and big data and set up a Silicon Valley-style • 7-Eleven already has taken a step in that direction of drone deliveries.

tech hub in Hanoi. The use of artificial intelligence and big data to understand
and predict consumer behavior and increase sales is expected to be the future
in the Vietnam retail market.

Sample Vietnam Retail Sector Sample

5. TECHNOLOGY SNAPSHOT 30

Online Consumer Purchased Categories (%), Vietnam, 2018

Restaurent Deliveries or Meal-kit Delivery Service

xx

Products for baby an dyoung children

xx

Event Tickets
xx

Furniture, Decoration, Tools SAMPLE FIGURE

xx

IT and Mobile
40%

Consumer electronics
xx

Beauty and Personal Care Products

xx

Travel
xx

Books/Music/Stationary
xx

0
Fashion
xx

Complete data will be enclosed in the full report

Sample Vietnam Retail Sector Sample

 31

6.1 Food and Beverage and Tobacco Products

6.2 Personal and Household Care

6.3 Apparel, Footwear and Accessories

6.SEGMENTATION BY PRODUCT CATEGORY 6.4 Furniture, Toys, and Hobby

6.5 Industrial and Automotive

6.6 Electronic and Household Appliances

6.7 Pharmaceuticals, Luxury goods, and Others

Sample Vietnam Retail Sector Sample

 SEGMENTATION - BY PRODUCT CATEGORY 32

Retail Sector: Revenue share, by

Retail Industry: Revenue in USD billion, by Product, Vietnam, 2018-2024
Product, Vietnam, 2018

Product 2018 2019 2020 2021 2022 2023 2024 CAGR (%)

Food and Beverage and Tobacco

XX XX XX XX XX XX XX XX.X
Products

Personal and Household Care XX XX XX XX XX XX XX XX.X SAMPLE FIGURE

Apparel, Footwear, and Accessories XX XX XX XX XX XX XX XX.X

Furniture, Toys, and Hobby XX XX XX XX XX XX XX XX.X

Industrial and Automotive XX XX XX XX XX XX XX XX.X

Food and Beverage and Tobacco Products
Electronic and Household Appliances XX XX XX XX XX XX XX XX.X Personal and Household Care
Apparel ,Footwear and Accessories
Pharmaceuticals, Luxury goods, and Furniture, Toys, and Hobby
XX XX XX XX XX XX XX XX.X Industrial and Automotive
Others Electronic and Household Appliances
Pharmaceuticals, Luxury goods, and Others

* Further details will be provided in full report

Sample Vietnam Retail Sector Sample

6.1 FOOD AND BEVERAGE AND TOBACCO PRODUCTS
• The food retail industry in Vietnam is dominated by traditional retailers. As of
2018 , the traditional retailers account for 91% of the retail grocery sales, and the
remaining 9% sales contributed to modern retail sales.
• According to industry experts, the modern retail sales are expected to reach
20% of the total food retail sales by 2025.
• The highly-dominated food landscape of the country (with wet markets and small
businesses) is witnessing tremendous growth in the concept of the modern retail
trade with growing convenience stores, Hypermarkets and Supermarkets, etc.
• The traditional retailers, with lower rental and operational costs have flexibility
with packaging sizes, and competitive prices. These traditional stores are ideal
for purchasing small quantities for more number of times, so that fresh produce
can be obtained.
• With more than half of the young population, the consumption of food and
beverages in the country is witnessing huge growth. In addition to this, as of
2016, the annual growth of the country’s population was 1.1%, which indicates a
rise in the customers, as food is an essential item.
• According to GSO, the sales of food and foodstuffs increased by 11.1%, in 2017.
Sample Vietnam Retail Sector Sample
33
• The consumers in tier 1 and tier 2 cities have more access to quality products
than those in the rural areas.
• Increasing concern over hygiene and food safety is one of the prime factors
driving the growth of the modern food retail sector in the country, along with
factors ,such as the rising disposable income and less time for food shopping.
• During the past few years, several food safety incidents have led to increase in
consumer scrutiny. Increasing social media usage is leading to a rise in the
awareness about food safety incidents and issues.
• In 2014, more than 5,000 people were affected by food poisoning, of which 80%
of the victims were hospitalized and 43 died, according to a World Health
Organization report.
• The changing food purchasing decisions of consumers, such as growing
preference for product diversity and high regard for the quality of western food
brands and seamless shopping experience are expected to propel the growth of
the modern food retail sales.
• The rand loyalty and consumer acceptance for processed and packaged foods,
considering them as safer than wet products, are also responsible for fuelling the
sales of modern food retailers.
6.1 FOOD AND BEVERAGE AND TOBACCO PRODUCTS
• However, the preference for daily shopping of fresh products and lack of storage
facilities are the factors that support the growth of traditional food retail sales.
Additionally, traditional grocery retailers have government priority, with projects
for improving hygiene and food safety in rural areas.
• The retail food structure is slowly transitioning into modernity, with a growing
number of western-style fast-food restaurant chains, bakeries, and coffee
shops, as franchising has been introduced.
• In 2015, Vietnam’s international fast food chains (Burger King, McDonalds,
KFC, Dominos Pizza, Pizza Hut, and Starbucks) revenue was around USD 740
million, at an increase of 9%, in comparison to that of 2014.
• As of 2017, Ho Chi Minh City (HCMC), the financial center of the country, is
home to more than 200 food stores, hundreds of convenience stores, 8
hypermarkets, and 85 supermarkets, whereas the capital city, Hanoi, with more
than a million in population, is home to 4 hypermarkets and 91 supermarkets.
• The market entry, or registering a new product, is comparatively difficult, time
consuming, and costly, and requires more efforts.
• HCMC is the gateway for retailers entering Vietnam’s modern food retail sector.
They first enter the HCMC city before expanding to other tier 2 cities and rural
areas.
Sample Vietnam Retail Sector Sample
34
• The prices of the meat and vegetables are 20-30% higher in supermarkets and
convenience stores, as compared to that of traditional markets. Moreover,
specialty shops that are selling organic vegetables are also growing in the
country.
• The total per capita grocery spending is relatively low in Vietnam, when
compared to other countries in Asia. This represents the huge growth opportunity
present in the market.
• The traditional retail channel in the food and beverage sector of the country is
expected to grow by ~50% during 2015-2020.
• With 84 supermarkets, including 33 stores in HCMC and 51 stores across the
country, Co.opmart is the leading food retailer in Vietnam.
• Saigon Trading Group (Satra) launched its 170th Satrafood convenience store in
District 2, Ho Chi Minh City, taking the number of convenience stores in 2018
alone, of the group, to 13. Satra plans to have a total of 60 operational
convenience stores this year.
• Saigon Co.op currently has 210 Co.op Food stores, 76 Co.op Smiles, and is
developing the Cheers convenience store model. In 2018, Saigon Co.op aims to
open additional 170 Co.op Food stores, 150 Co.op Smiles, and 50 Cheers
convenience stores.
6.1 FOOD AND BEVERAGE AND TOBACCO PRODUCTS 35

Grocery Retail Sales in VND trillion, by Retail Channel, Vietnam, 2011-2018

Retail Channel 2011 2012 2013 2014 2015 2016 2017 2018

Modern Grocery Retailers xx 37.3 xx xx xx xx xx xx

--Convenience Stores xx xx xx xx xx xx xx xx

--Hypermarkets 8.5 xx xx xx xx xx xx xx

--Supermarkets xx xx xx xx 39.8 xx xx xx

Traditional Grocery Retailers xx xx xx xx 1,302.2 xx xx xx

--Food/Drink/Tobacco Specialists xx xx xx xx xx xx xx xx

--Independent Small Grocers xx xx xx xx xx xx xx xx

--Other Grocery Retailers xx xx xx xx xx xx xx xx

Total Grocery Retailers xx xx xx xx xx xx xx xx

*Complete data will be enclosed in the full report

Sample Vietnam Retail Sector Sample

6.1 FOOD AND BEVERAGE AND TOBACCO PRODUCTS 36

Grocery Retail Outlets in Number of Units, by Retail Channel, Vietnam, 2011-2018

Retail Channel 2011 2012 2013 2014 2015 2016 2017 2018

Modern Grocery xx xx xx xx xx xx xx xx

--Convenience Stores xx xx xx xx xx xx xx xx

--Hypermarkets xx xx xx xx xx xx xx xx

--Supermarkets xx xx xx xx xx xx xx xx

Traditional Grocery xx xx xx xx xx xx xx xx

--Food/Drink/Tobacco specialists xx xx xx xx xx xx xx xx

--Independent Small Grocers xx xx xx xx xx xx xx xx

--Other Grocery Retailers xx xx xx xx xx xx xx xx

Total Grocery Retail Outlets xx xx xx xx xx xx xx xx

Complete data will be enclosed in the full report

Sample Vietnam Retail Sector Sample

 6.1 FOOD AND BEVERAGE AND TOBACCO PRODUCTS 37

• The annual consumption of food and drink products in Vietnam accounts for about 15% • The country’s demographic profile and increasing health consciousness
of Gross Domestic Products (GDP), according to the Ministry of Industry and Trade, accelerate the sales of healthier beverage products, such as fruit juices and
and the food and beverage industry is expected to occupy its position among the Asian herbal teas. In addition to this, the continuous development in the tourism
Top 3 by 2020. sector in the country acts as a catalyst for the growth of the sector.

• With the beverage consumption in the country expected to reach 109 million liter and • Vietnam has the biggest beer market in Southeast Asia. The local consumption
expected annual growth rate of 6% by 2020, the beverage sector is the highest growth of beer is expected to reach 4.2 billion liter by 2020. The people of Vietnam
sector among the Fast Moving Consumer Goods (FMCG). present beer as a gift for special occasions.

• Among the beverages, the consumption of beer in the country is among the top 10 in • The MOIT has set the development plan to increase beer production in the
the Asian region and is expected to reach per capita consumption of 42 liters by 2020, country to 5.5 billion liter by 2030. Despite the increasing foreign players, the
with a CAGR of 3.5%. Besides, the wine and spirits sector is expected to register a beer sector in Vietnam is dominated by local players. Sabeco and Habeco are
CAGR of 8% and non-alcoholic beverages sector is expected to register 6.1%. the two major breweries in Vietnam.

• The Ministry of Industry and Trade has set ambitious plan to increase its beverages • The beer and non-alcoholic beverages constitute each 20% to Vietnam’s
exports to USD 450 million by 2020 and to USD 900 million by 2035. The Ministry aims FMCG sector value. These are the top two categories in terms of value growth
to make the country’s beverage industry a modern one, in order to meet the domestic in 2017, with beer witnessing a rise of 10% and non-alcoholic beverages
consumption and export demands. increasing by 7%.

• The targets include, the production of beer accounting to 4.1 billion liter, alcohol to 350 • As per the master plan of development for the beverage industry by the
million liter, and non-alcoholic beverages to 6.8 billion liter by 2020. Ministry of Industry and Trade (MOIT), beverage capacity in the northern

• The country’s beverage industry has been growing at a steady pace over the past few mountainous region is targeted to account for 8% of the country’s total capacity

years. For instance, the non-alcoholic beverages sector witnessed a growth rate of by 2025, the Red River Delta 22%, the north-central region 19.5%, the central

13% and revenue reached USD 3,520 million in 2017. highlands 2.5%, the southern region 31%, and the Mekong Delta 17%.

Sample Vietnam Retail Sector Sample

 38

7.1 Hypermarkets, Supermarkets, and Convenience Stores

7.2 Retail Products Consumption in Specialty Stores

7.SEGMENTATION BY DISTRIBUTION CHANNEL 7.3 Department Stores offers attracting consumers

7.4 E- Commerce trend in Retail Sector

IN RETAIL TRADE
7.5 Other Distribution Channels

Sample Vietnam Retail Sector Sample

7.4 E- COMMERCE TREND IN RETAIL SECTOR 39

• The E-Commerce in Vietnam is booming and is expected to register a CAGR of

Retail Industry: Revenue in USD billion, E-Commerce,
14% during 2017-2020, accounting for almost 5.5% of the total retail sales.
Vietnam, 2018-2024
• The high penetration of the smartphone, internet and the digital savvy young
population result in the transition of the retail sales from the brick-and-mortar to
online.

• According to Vietnam E-commerce Association (VECOM), the e-commerce

Revenue (in USD billion)

industry in Vietnam witnessed growth rate of 25 % in 2017, much higher than
other Southeast Asian countries.

• The weak logistics infrastructure is one of the important challenges to the SAMPLE FIGURE
growth of the e-commerce retail segment resulting in higher logistics costs. In
addition to this, the payment landscape in the country lags behind with cash on
delivery being most preferred payment method due to lack of trust.

• The strong growth in the retail e-commerce is likely to result in the landfall of the 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
local retailers. The retailers are expected to increase their service qualities and Year

expansion activities to both offline and online, in order to improve their

• Vietnam is one of the most profitable market for e-commerce. The total
competitive capacity.
revenue generated from B2C e-commerce in 2016 reached USD 5 billion that

• Moreover, the increasing importance of the Omni channel retailing is leading to equals to 3 percent of the total retail industry revenue and is estimated to

opening of the online marketplaces by the existing brick-and-mortar retailers. reach USD10 billion by 2020.

Sample Vietnam Retail Sector Sample

7.4 E- COMMERCE TREND IN RETAIL SECTOR 40

Number of Registered E-Commerce Websites, by type, Vietnam, 2016-2017

Number of Registrations

SAMPLE FIGURE

E-Commerce Sales Website E-Marketplace Online Auction Sites Online Promotion Sites

2016 2017 2018

Detailed data will be enclosed in the full report

Sample Vietnam Retail Sector Sample

 41

8.1 Saigon Co.op

8.2 Central Group

8.3 AEON

8.4 Vingroup

8.5 Lotte Mart

8. COMPETITIVE INTELLIGENCE 8.6 E-Mart

8.7 Auchen

8.8 Shop & Co.

8.9 Parkson

8.10 Big C

Sample Vietnam Retail Sector Sample

8.4 VINGROUP - OVERVIEW 42

• Vingroup Joint Stock Company (Vingroup Corporation), which was formerly known as Technocom Group, was
established in Ukraine in 1993 by a group of Vietnamese, who worked in the field of food and had success with the
brand Mivina. Technocom was on the list of top 100 largest enterprises in Ukraine from the early years.
Founded in 1993
• In 2000, Technocom - Vingroup returned to Vietnam, in order to contribute to the Vietnam economy. Vingroup primarily
HQ
focused on investing in tourism and real estate with the two strategic brands Vinpearl and Vincom. Hanoi, Vietnam HC

• The group planned to enter the Retail market. The company has sufficient financial resources. Hence Vingroup
http://vingroup.net/
continuously launches a lot of money to purchase other supermarkets systems, such as OceanMart, Vinatexmart, and
Maximark, aiming to shorten the penetration time.

Total Revenue (2016-2017)

(in VND billion )
89,350

VND 89,350
billion Revenue (2017)

VND 213,792 billion 81,318

Total Assets (2017)
VND 4,462.4 billion
NET INCOME (2017)
40,000+
Employees
2016 2017

Sample Vietnam Retail Sector Sample

 8.4 VINGROUP - OVERVIEW 43

• Finally, the brand name Vinmart was officially launched on the Vietnamese market
• Additionally, the Company is evaluating and considering the feasibility
in 2014 with the simultaneous opening of 9 first supermarkets in Hanoi. In two
of 86 projects another option to make decisions on investment in this
years, Vinmart already has 50 supermarkets /hypermarkets and 830 Vinmart+
project in the future
convenience stores across the country.
• The food retail business area of Vingroup includes the brands Vinmart
(supermarket) and Vinmart+ (Convenience store), which are the strategic cards FIELD OF OPERATION

behind the booming real estate business in the country.

RETAIL
• Currently, Vingroup plans to open 400 home furniture chains and shopping centers
by the end of 2019. HEAVY INDUSTRY
• Vincom Retail Corporation is the Retail business segment of the Vincom group.
EDUCATION
Vincom Retail is the company developing, owning and operating the system have
the most significant commercial center and has the fastest growth rate in Vietnam.
REAL ESTATE
• As of June 2017, Vincom Retail is managed, operated and leased 40 shopping
centers in 21 provinces and major cities of the country with a total area of ​retail AGRICULTURE
space up to 1.1 million square meters.
• Additionally, the company had 73 projects, while 22 projects are under MEDICAL
construction and 51 are in the development stage. The shopping centers are and
TRAVEL AND ENTERTAINMENT
about to help Vincom Retail further increases its presence in 29 provinces and
cities, bringing the total number to 50. .

Sample Vietnam Retail Sector Sample

IVE
KEY PLAYER PROFILES SUNWAY BERHAD OVERVIEW
NCE 8.4 VINGROUP - OVERVIEW 44

• The group recorded a revenue of VND 89,350 billion in 2017, which represents an
increase of 9.9% from 2016. the performance was better due to higher contribution from
Revenue Breakdown - By Business Segment (USD million) (2017)
Real estate and growth in the retail segment.

• The establishment of major supermarkets and other retail chains in the country has
Education
Services and resulted in the growth of the retail segment. Additionally, wide range of products offered
Leasing
Investment Hospital Services Related Other
and Related Services in the retail chain of the company attracted diversified customer base.
Properties and 1%
Services 1%
Related Activities
5% 2%

Brands

Services for
Tourists,
Entertainment, and
Related Services • VinHomes • VinPro
6%
• Vincom • VinDS
• VinCity • Adayroi
• Vincomoffice • VinExpress
Retail Services
15% • Vinpearl • Vinschool
• Vinpearl Land • VinEco
Transfer of Real
Estate • VinCommerce • Vinmec
70%
• VinMart

Sample Vietnam Retail Sector Sample

8.4 VINGROUP - RETAIL 45

LIST OF VINCOM TRADE CENTER RETAIL SYSTEM MANAGAMENT, AS OF JUN 2017

Vincom Center Vincom Mega Mall Vincom Plaza Vincom +

Number of Shopping Centers 4 3 27 6

Building Floor Area (m2) 40,000-60,000 60,000-150,000+ 10,000-40,000 ~5,000

Customer Base Medium and High end All Customers Medium Low and Moderate

• Fashion International and • Fashion

• International Fashion
Domestic • Cuisine • Supermarket Consumers
• Cuisine
• Cuisine • Service • Fashion
Main Business Types • Entertainment
• Entertainment • Entertainment • Cuisine
• Supermarket
• Service • Supermarket Consumers • Entertainment
• Other Sectors
• Other Sectors • Other Peer

Sample Vietnam Retail Sector Sample

 8.4 VINGROUP - RETAIL 46

VINCOM RETAIL’S RELATED LEASING , AS OF JUNE 2017

Vincom Retail Business Segment Breakdown, 2017 Name Type No. of Contracts Occupied GFA (%)

Others VinMart Supermarket 78 15

1%
VinPro Consumer Electronics 37 5
Financial Incomes
18% VinDS Retail 73 7

Vinschool Education 16 3

Logistics Vincom Retail Services 27 1

Total 30
Real Estate Sales
15%

Leader in Mall Space Leasing

Mall leasing Vincom Retail has 41 malls with gross floor area (GFA) of more than 1.1mn
66%
sqm. It has footprints in prime locations in 24 cities/provinces across
Vietnam. Its four main brands are Vincom Center, Vincom Mega Mall,
Vincom Plaza, and
Vincom+.

Sample Vietnam Retail Sector Sample

8.4 VINGROUP - RECENT DEVELOPMENTS 47

Vietnam's Vingroup launched smartphones as part of

E
strategy shift : Vingroup launched its first smartphones on Dec.
14, 2018, as part of its transformation into a technology and
Vincom Retail opened 30 shopping centers in Vietnam in 2018, increasing its
industrial group.
mall network to 200, by 2021. To fund the plan, the retail subsidiary of
Dec 2018
Vingroup drafts plans to raise USD 500 million. The first of the new malls are
likely to open Vincom Center Landmark 81 and Vincom Center Lieu Giai in
E Hanoi. Other malls are likely to be launched around Vietnam under Vincom
Plaza and Vincom + formats.
Jun 2018

M I E P

Mergers and Product Expansion Partnership

Acquisitions Innovation

Sample Vietnam Retail Sector Sample

 48

9. INVESTMENT ANALYSIS ON VIETNAM RETAIL SECTOR

Sample Vietnam Retail Sector Sample

9. INVESTMENT ANALYSIS ON VIETNAM RETAIL SECTOR 49

• Convenience stores and mini-marts are expected to observe the fastest growth in the
country. Thus, investors are expected to achieve a higher return on convenience stores,
as compared to traditional supermarkets or hypermarkets, and the initial investment is
lower. In addition to this, it is easier for investors to obtain business licenses for
convenience stores and mini-marketplaces, than for supermarkets.

• Vietnamese prefer to shop in convenience stores. More than one-third of households in

Vietnam have shopped in convenience stores at least once in the past year. The growth 150
800
rate of modern distribution channels from April 2016 to March 2017 was 7.7%, higher Shopping
Supermarkets
than the growth rate of 6.1% of the traditional distribution channels. Vietnam’s trade Malls
ministry estimates that the country’s retail market would hit USD 179 billion by 2020, at
a jump of 52% from last year.

• Witnessing high returns in the retail industry, an estimated 17,800 enterprises were
established across the wholesale and retail sector, within the five-month period,
accounting for 33.9% of Vietnam's newly-established enterprises.

• Many existing major retailers have also planned to expand their operation in the country.
Japan’s AEON Group has recently commenced building a USD 180 million mall in the
city of Hai Phong. This 9.3 ha project is to become operational in 2020. 9000 9000
• AEON also began construction of a mall in Hanoi’s Ha Dong district, with total capital of Traditional Traditional
about USD 90.4 billion. It is the second AEON mall in Hanoi, and the fifth in Vietnam. Markets Markets

Sample Vietnam Retail Sector Sample

9. INVESTMENT ANALYSIS ON VIETNAM RETAIL SECTOR 50

• Growing FDI and the relaxed government stance in the extensive entry of international
players into the Vietnamese retail market has led to the expansion of the market and
encouraged players from different countries, like China, Japan, France, and Korea,
FDI Influx: in USD billion, Vietnam, 2010-2016
among others, to take advantage of the market conditions.
• Countries with highest FDI in Vietnam are South Korea, Japan, Singapore, and Taiwan,
among others.
xx xx
• Processing and manufacturing, electricity and power generation, and real estate and
22.4 xx
retail are among the most FDI-financed fields in Vietnam.
xx
Top 10 Countries and Territories with Highest FDI: in USD
billion, Vietnam, 2016-end xx
xx

Thailand

US

China

Malaysia

Hong Kong

British Virgin Islands

Taiwan

Singapore
2010 2011 2012 2013 2014 2015 2016
Japan

South Korea

In-depth investment analysis will be provided in the full report

Sample Vietnam Retail Sector Sample
SOME OF OUR CLIENTS
SOME OF OUR CLIENTS
 Adding to your revenues without being a cost.

Copyright © 2015 Mordor Intelligence LLP

All Rights Reserved. This document contains highly confidential information and is the sole property of Mordor Intelligence LLP. No part
of it may be circulated, copied, quoted, or otherwise reproduced without the approval of Mordor Intelligence LLP.

+1 617-765-2493 | 5th Floor, Brigade Towers,Financial District, Gachibowli, Hyderabad - 500032,India | info@mordorintelligence.com