A day in Vietnam’s retail landscape: what we have learnt

Momentum Works team recently spent a full week in Ho Chi Minh city. In addition to hosting the “Winning in Vietnam: the most vibrant ecommerce market in Southeast Asia” event, a packed schedule of business meetings (including an excursion to Cần Giờ), we also spent a full day exploring and studying the retail ecosystem in the city, and Vietnam in general.

Special thanks to the Metub team, who has guided us through the various retail formats, answered all the (often very specific) questions on product assortment, branding as well as various parts operations. Also great thanks to managers of a number of retail stores who came down to discuss and share with us.

Throughout the day, we saw the diversification of the retail landscape, with supermarkets and specialty stores gaining prominence alongside traditional markets. Ecommerce has obviously surged, and both international and local retail businesses have been investing heavily in digitalisation. 

Here are the five notable places we have visited during the day: 

1. Bách hoá XANH
   Bách hoá XANH is a community retail concept launched by electronics retailer Thegioididong.com in 2015. Initially with a dozen stores selling household items,  Bách hoá XANH pivoted to fresh produce very quickly.
   It has since expanded to over 2,000 stores across Vietnam. Bách hoá XANH  is regarded to be the more convenient and budget-friendly option for supermarkets, and it also offers delivery services, particularly to urban and suburban regions.

   Share prices of the holding entity of Thegioididong.com have risen more than 60% this year. Local friends told us that people generally have strong trust in the management, who managed to turn the company around a few times in difficult circumstances.

2. Hasaki
   Founded in 2010, Hasaki began with the goal of providing high-quality beauty products and services to Vietnamese consumers. Recently it received an investment from Alibaba Group.Hasaki offers a diverse selection of beauty products from both international and local brands online and offline. The assortment also includes a number of new and trendy Chinese and Korean brands, as opposed to some of its competitors which focus on big international brands.

   Hasaki is not only one of the biggest sellers of the category in Vietnam on TikTok Shop, it has also built a membership base of a few hundred thousand. Consumers can scan QR codes to check for additional information/prices in store. The company takes orders also from Zalo chat app, and offers 2 hour express delivery.
   

3. Winmart
   Operated by local retail conglomerate Masan Group (into which Alibaba has also invested), Winmart is a chain of over 700 large format supermarkets that are designed for comprehensive shopping experiences with extensive product selections. They also offer an online shopping platform and delivery options that include same-day delivery. WinMart+, is a subsidiary that are smaller convenience stores and focuses more on daily necessities and convenience items (think 7-11), providing a quicker and more accessible shopping option for everyday needs.
   
4. Annam Gourmet – upscale supermarket
   Annam Gourmet’s differentiating factor is its primary focus on the high standard of product offerings and premium shipping experiences. It currently operates 12 stores in Ho Chi Minh city and 2 in Hanoi, mainly in higher-end shopping malls. They offer membership benefits which include exclusive discounts and special offers.
   
5. Co.opmart
   Co.opmart was established in 1996 and has grown to become a significant player in Vietnam’s retail market. They are large-format stores designed to be one-stop shopping destinations for groceries, household goods, electronics, and more. An interesting thing we noticed, apart from the scale of the store , was that they had various tiers on in-house brands. A few examples are Co.op Select: a premium house brand that balances affordability and quality. Co.op Extra: for value-conscious consumers looking for more affordable options, and Co.op Premium: for higher-income consumers who seek premium quality and specialty items.
   

Key observations

The retail scene in Vietnam is fiercely competitive and very dynamic. Here are some key observations we noted from this day:

1. The race of foreign brands to capture Vietnamese consumers’ attention is evident. Major Chinese F&B players like Haidilao have established a strong presence in numerous malls, Philippine group Jollibee has expanded its reach by acquiring Highlands Coffee, and products from brands like Indonesia’s Indomie and Thai conglomerate CP Group (with its sausages) are very present in many supermarkets we visited.
   
2. Confidence in Local Brands: Local brands show remarkable confidence and resilience in the competitive landscape. For example, while Indomie buys expensive advertising space in stores, local instant noodle Hảo Hảo just stores massive amounts of various flavours there – and consumers will look for the brand themselves. Local friends told me that many Vietnamese students overseas still pack full suitcases of Hảo Hảo as a convenient taste from home.
   
3. Diverse offerings targeting different consumer segments, income levels and use cases:
   • Annam Gourmet targets premium consumers with high-end, often imported or foreign-inspired products;
   • WinMart and Co.opmart offer a wide range of products for the general public.
   • Bách hoá XANH provides convenience and competitive prices for everyday needs close to the community; .
   • Even within Co.opmart, private labels offer various products tailored to different customer segments.
     
4. Omnichannel Integration: Retailers are embracing omnichannel strategies:
   • • • Hasaki integrates online and offline experiences with its own membership system. Leading Chinese operators we travelled with were impressed by the number and activity of Hasaki’s user base. 
       • Annam Gourmet offers at least 4 ordering options (Zalo, Visa, AMEX, Cash on delivery) to cater to different preferences and capture as many customers as possible. 
       • Retail shops are increasingly providing in house as well as platform-provided delivery services, competing for consumers in speed and convenience.
         
5. Video Commerce: Video commerce is reshaping the retail landscape, potentially more radically than other trends. Quite a few stores we have visited already have the live streaming facilities and equipment inside the store.And TikTok Shop ads are seen across the city.
   

We also visited a major live commerce studio where a few celebrities were selling live. But what impressed us more was the enthusiasm and dedication of the entire crew, who were working hard, and cheering the live hosts on. 

Of course, it is hard to describe what we have observed, and immersed in, with just words or numbers. If you would like to explore Vietnam’s retail landscape and opportunities for your brand, you should really spend time on the ground, observe trends and consumer preferences, and interact with local stakeholders.

Join us next time 🙂