Supermarkets in Vietnam

PROSPECTS

Targeting growing demand for convenient meal solutions

With ongoing urbanisation leading to smaller households distanced from extended family, more hectic lifestyles and the erosion of traditional culinary habits, Vietnamese have less time, ability and inclination to cook. The supermarkets channel is targeting the growing demand for convenient meal solutions amongst urban consumers by developing the offer of hot and ready to eat food at stores, particularly counters offering traditional Vietnamese food.

Supermarkets developing the private label offer

Supermarket’s private label offers are developing an increasingly strong presence in the Vietnamese market, as they appeal to consumer price-consciousness, while trust in product quality is supported by consumer confidence in the major supermarket brands. Private label products span a broad and diverse range of categories, including fresh vegetables, home care, and apparel, and the strength of the offer helps supermarkets to build consumer loyalty.

Mini supermarkets prove compatible with lifestyles of busy urban consumers

The mini supermarket format, which utilises a selling space of less than 500 square metres, continued to gain in popularity at the end of the review period. Vinmart+ by VinGroup JSC was the most popular brand in this format.

COMPETITIVE LANDSCAPE

Local players dominate supermarkets

Domestic players dominate the supermarkets channel, thanks to their long-standing presence in the market and intimate knowledge of local market conditions. In addition, local players, such as Saigon Union of Trading Cooperatives, benefit from strong government support for the expansion of modern grocery retailing channels in both urban and rural areas.

Saigon Union of Trading Cooperatives builds on long-standing presence

Local company, Saigon Union of Trading Cooperatives remained the largest player in supermarkets at the end of the review period. Its supermarket brand, Saigon Co.

Mobile World JSC sees significant growth

Mobile World JSC saw notable expansion at the end of the review period with its Bach Hoa Xanh brand. The brand benefited from its novelty, being one of the newest in the market, and the company’s significant investment in outlet expansion.

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