Retail Modernization - Riding the Market Trend
For years, Vietnam’s retail landscape has been shaped by two major distribution channels: traditional trade (GT) and modern trade (MT). While GT has long served as the “lifeline” of the economy, contributing the majority of total retail sales, MT is now emerging as a powerful new growth driver - reflecting the rapid urbanization of consumer behavior and a growing preference for modern lifestyles.
According to a report by Insight Asia, modern trade’s market share in Vietnam has reached around 27% in 2025 and is expected to climb to 35% by 2030, marking the fastest growth rate in ASEAN. This significant leap underscores the strong transformation underway in Vietnam’s retail sector.
This acceleration is fueled by multiple converging factors. First, a rapidly expanding middle class, fast-paced urbanization, and a rising demand for convenience have led consumers to favor modern retail formats that offer consistent service quality, hygiene, and transparent pricing.
Consumer behavior has also evolved markedly - 62% of shoppers purchase from modern trade channels weekly, while 67% check promotions on apps or digital platforms before making purchase decisions. These patterns demonstrate that MT is not only growing in scale but is becoming an integral part of consumers’ everyday habits.
Beyond consumer behavior, government policy has played an important role in promoting MT growth. The “Domestic Trade Development Strategy to 2030, Vision to 2045” sets a clear target: “Domestic enterprises are expected to account for about 85% of total retail sales, while FDI enterprises make up the remaining 15%.”
This policy emphasizes strengthening the role of domestic retailers in distribution, encouraging the expansion of local retail chains to enhance market stability. It serves as a macro-level framework supporting the acceleration of modern trade and providing ample room for retail chains to expand market share.
Importantly, MT growth is no longer confined to major cities - it is spreading to tier-2 and tier-3 urban centers as well as rural areas, where modern retail infrastructure remains underdeveloped. With large populations, stable incomes, and increasingly diverse needs, these regions have become strategic destinations for retail chain expansion.
Growth Opportunities for Large-Scale Retail Chains
As modern retail enters a high-growth phase, large domestic chains are emerging as the primary beneficiaries of this trend. WinCommerce (WCM), a member of Masan Group (HOSE: MSN), is among Vietnam’s leading retail systems with nearly 4,300 WinMart and WinMart+ stores nationwide. The extensive presence of WinMart, WiN, and WinMart+ enables WCM to capture the natural momentum of the modern retail channel.
Beyond scale, MT offers operational advantages and the ability to stay closely aligned with evolving consumer behavior. As consumers prioritize convenience, hygiene, and transparent pricing, standardized retail networks have become the default shopping choice for many. With its dense network across both urban and rural areas, WCM can reach these customer segments more effectively than many foreign competitors, who are often concentrated in major metropolitan markets.
Another notable strength lies in the use of technology and data to optimize operations. The MT model enables better supply chain control, inventory management, and distribution accuracy. With its nationwide scale, WCM leverages these systems to respond swiftly to market demand fluctuations.
WCM’s expansion strategy focuses on areas with rapid urbanization and significant potential for modern retail formats - markets where consumer behavior is shifting quickly but not yet saturated by foreign players. This is a strategic approach, consistent with both market potential and Vietnam’s policy of encouraging domestic retail chain development.
Recently, WCM announced record revenue of over VND 10,000 billion in Q3/2025, the highest since its establishment. For the first nine months of 2025, total revenue reached VND 28,500 billion, up 16.6% YoY, far exceeding the company’s base growth target of 8-12% for the year. These results highlight the effectiveness of WCM’s sustainable growth strategy, which combines prudent network expansion, operational productivity gains, and technology-driven management.
The modernization wave is reshaping Vietnam’s retail market. In this evolving landscape, WinCommerce is capitalizing on growth opportunities with its broad market coverage and operational agility - a clear example of the rise of domestic retail chains in the sector’s transformation phase.
Armed with deep market penetration, adaptive execution, and consumer insight, WinCommerce is well positioned not only to expand its market share but also to represent a broader structural shift - one that defines the future of Vietnam’s retail industry in the coming decade.