|The number of convenience stores in Vietnam has quadrupled over the last six years. Photo by Reuters
“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. It is also easier to get licenses for stores under 500 square meters, which is why retailers have been expanding to gain market share,” said Nick Miles, head of Asia-Pacific at international grocery research organization IGD last month.
“Thanks to the rapid increase in the number of stores, modern trade has a much higher growth rate than traditional trade in Vietnam,” said Nielsen’s executive director Nguyen Anh Dung, as heard in the press release.
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, according to Nielsen’s Market Pulse report, which looked at 31 fast-moving consumer goods categories in Vietnam.
Dung also said that the number of stores which focus on beauty and health products has doubled over the last two years in Vietnam.
“We also expect the number of small-scale supermarkets in Vietnam to significantly grow in the future,” said Dung.
As of the end of March, Ho Chi Minh City has over 1,800 convenience stores and small-scale supermarkets, an increase of 5.1% compared to last year, said a Q1 report on Vietnam’s property market by Chicago-based real-estate firm Jones Lang LaSalle.
Vietnam is forecast to be the fastest-growing convenience store market in Asia by 2021 with a growth rate of 37.4%, according to IGD, followed by the Philippines and Indonesia.