Retail in Vietnam is a market of two worlds. Millions of small shops and wet markets still move the majority of goods, while modern supermarkets, convenience chains and e-commerce grow fast in the cities. Understanding how these worlds fit together is essential for any brand entering the country. I am Delissa Kieu, Vietnam Market Director at GMA. Here is our 2026 read on modern trade versus traditional trade in Vietnam.

Vietnam retail in numbers (2026)

• About 100 million consumers, rapidly urbanizing.
• Traditional trade still handles a large majority of everyday sales.
• Modern trade and convenience chains grow fastest in major cities.
• E-commerce keeps taking share across every category.

Traditional trade: still the backbone

Traditional trade, wet markets, family-run shops, small grocers and independent pharmacies, remains the backbone of Vietnamese retail. It handles the majority of everyday purchases, especially outside the big cities and among price-sensitive shoppers. Reaching it means working through distributors who can service thousands of small outlets. For most FMCG brands, traditional trade is still where the volume lives, and ignoring it means ignoring most of the country.

Modern trade: growing fast in the cities

Modern trade, supermarkets, hypermarkets and the booming convenience-store and mini-mart format, is expanding quickly in Ho Chi Minh City, Hanoi, Da Nang and other urban centers. Convenience chains in particular are spreading fast, meeting the needs of busy, younger, urban consumers. Modern trade brings visibility, trust and premium positioning, but also listing fees and shelf competition. It is where brand-building and premiumization happen.

E-commerce: the third force

No retail picture in Vietnam is complete without e-commerce. Shopee, Lazada and TikTok Shop have become core channels, not add-ons, letting brands reach the whole country, test products and sell direct. Increasingly, the lines blur: shoppers research online and buy offline, or discover on social and buy on marketplaces. Omnichannel is no longer optional.

How to play both worlds

The winning approach is not to choose, it is to match channels to your goals. Use traditional trade for reach and availability, modern trade for brand-building and premium positioning, and e-commerce and social commerce for discovery, testing and direct sales. Coordinate them so they reinforce each other, and feed all of them with demand created online.

The mistakes brands make in Vietnamese retail

• Ignoring traditional trade. It still moves most of the volume nationwide.
• Betting only on modern trade. Cities are not the whole market.
• Treating e-commerce as a side channel. It is now core to discovery and sales.
• No channel coordination. Channels should reinforce, not cannibalize.
• Weak distribution. The right partners decide your reach.

What this means for you

Vietnam’s retail market rewards brands that master both worlds: traditional trade for reach, modern trade for brand, and e-commerce for discovery and direct sales. Coordinate them, and feed them with demand. For context, see the economy of Vietnam and its Digital 2025 profile.

Read next on our blog: working with distributors in Vietnam and marketing tips to manage a brand in Vietnam.

FAQ: Vietnam’s retail market

Is traditional trade still important in Vietnam?

Yes. Wet markets, small shops and grocers still handle the majority of everyday sales, especially outside big cities. For most FMCG brands, it is where the volume is.

How fast is modern trade growing?

Quickly, especially convenience stores and mini-marts in major cities. Modern trade brings visibility, trust and premium positioning to younger urban shoppers.

Where does e-commerce fit?

It is now a core third channel. Shopee, Lazada and TikTok Shop drive discovery and direct sales, and shoppers move fluidly between online and offline.

Should I choose one channel?

No. Match channels to goals: traditional trade for reach, modern trade for brand, e-commerce for discovery and direct sales, all coordinated to reinforce each other.

What is the biggest retail mistake?

Ignoring traditional trade, or treating e-commerce as a side channel. Both cost you reach and relevance in a market that spans two very different worlds.

Build your retail strategy in Vietnam with GMA

At GMA, we help foreign brands build the right retail mix in Vietnam, across traditional trade, modern trade and e-commerce. We create the demand and connect the channels so they work together. If you want a retail strategy that fits Vietnam, tell us about your project.

Delissa Kieu, Vietnam Market Director at GMA (Gentlemen Marketing Agency). I lead our work on the ground in Vietnam, advising foreign brands on market entry, distribution and digital growth. If you want a clear read on this market, talk to our team.

GMA is a French agency based in Shanghai with more than 75 specialists, running marketing, e-commerce and distribution for foreign brands across Asia, with a dedicated team on the ground in Vietnam.