Distinct paths being shaped by retailers in Vietnam

Foreign investment into Vietnam’s retail space is becoming more structured, with clearer signals around how the market is being developed and where long-term capital is expected to flow.

- By Nguyen Phuong Thao

With the wholesale, retail, and vehicle repair sectors securing over $12.8 billion in foreign direct investment across over 9,500 projects, retail modernisation has risen to a core economic priority.

This influx aligns tightly with the national retail development strategy towards 2030 and beyond, a framework designed to elevate organised trade, build resilient supply chains, and leverage domestic consumption as a primary engine for GDP growth. For international investors, this strategy serves as both a policy signal and a regulatory scaffold, providing the structural stability needed to place high-stakes, long-term bets on one of Asia’s most dynamic consumer markets.

Foreign funding in Vietnam’s retail sector is increasingly concentrated among Japan, South Korea, and Thailand, as evidenced by the presence of AEON, Lotte Mart, and Central Retail Group.

Instead of competing head-to-head across all segments, each country selects a distinct path, reshaping the market structure based on unique business philosophies: Japanese investors prioritise a long-term infrastructure mindset with large-scale, all-in-one regional megamalls in suburban areas to capture the outward migration of the rising middle class, while South Korea targets premium urban cores, leveraging the powerful Hallyu wave to transform physical shopping into experiential lifestyle hubs that integrate entertainment and dining for younger demographics.