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ietnam's retail and commercial real estate market is experiencing a strong growth trajectory, driven by government initiatives, evolving consumer behavior, and e-commerce expansion. The sector is expected to sustain its expansion in 2025 as major players adapt to trends.
In 2024, Vietnam's retail market witnessed a robust recovery, with official data reflecting substantial growth as the Vietnamese government reinforced its market development initiatives and consumer stimulus. According to the General Statistics Office (GSO), total retail sales of consumer goods and services in the fourth quarter of 2024 increased by 9.3 percent over the same period last year.
Vietnam's e-commerce market surpassed $25 billion in 2024, marking a 20 percent year-on-year increase, as reported by the Ministry of Industry and Trade (MoIT). E-commerce has emerged as a vital distribution channel, strengthening supply chains both domestically and internationally. It supports the sale of goods and agricultural products from farmers and businesses, particularly during harvest times.
The top five e-commerce platforms in Vietnam generated $12.67 billion in 2024, a 37.36 percent increase from 2023. Total consumption volume also rose to over 3.4 million products, up 50.76 percent, indicating strong purchasing power. E-commerce growth rate ranks among the top 10 globally, serving as a catalyst for Vietnam's economic advancement and driving digital transformation for businesses.
Vietnam's retail sector is expected to maintain its growth trajectory in 2025, driven by an upturn in consumer spending and online shopping. However, inflation concerns will continue to shape Vietnamese consumer behavior and spending priorities. Consumers are becoming more value-conscious, prioritizing essential goods over luxury items.
The rise of omni-channel shopping has become evident, with consumers preferring to reap merits from multiple methods of shopping. Online shopping has taken the lead in Vietnam, with 67 percent of transactions conducted via mobile devices. Social media plays a crucial role in influencing purchasing decisions, as 71 percent of consumers use these platforms to discover and buy products.
Vietnam's rental market experienced remarkable growth in 2024 as retailers competed for the best store spaces. The retail real estate markets in Hanoi and Ho Chi Minh City saw significant positive changes, creating strong potential for businesses in 2025. Foreign brands, particularly from China, are expanding into Vietnam across various sectors, including food and beverage, fashion, and luxury goods.
In conclusion, Vietnam's retail and commercial real estate market is on an upward trajectory, bolstered by significant growth and modernization in 2024. The combination of robust domestic consumption, favorable government policies, and the expansion of both local and international retailers positions the market for continued success in 2025.
