Chinese retail giants enter Vietnam, intensifying competition

Earlier, brands such as Miniso and Pop Mart quickly captured Vietnam’s young consumer segment.

Experts say Meiyijia’s decision to enter Vietnam and Malaysia as its first Southeast Asian markets reflects a deliberate strategy. In Vietnam, the chain operates under the Ohmee brand and has launched pilot stores in Hanoi to test a market widely seen as having strong growth potential.

A recent report by DPS Media estimates Vietnam’s convenience store market would reach about USD 486 million in 2025, with a compound annual growth rate of over 13 per cent. This is a relatively high rate in the region, especially as Vietnam’s modern retail sector remains in an early stage of development.

According to Nguyen Thi Phuong Thanh of the University of Commerce, spending on essential goods accounts for 59.6 per cent of total household expenditure in Vietnam. Food spending is significantly higher than in countries such as Thailand and Malaysia, indicating that basic consumption remains a key pillar.

At the same time, traditional retail is showing signs of decline. Vietnam currently has around 1.4 million small grocery stores and more than 8,000 traditional markets, but the number of markets fell by nearly 3.6 per cent between 2020 and 2024.

This shift is creating space for modern retail models, particularly convenience stores, which offer better quality control, standardized services and integrated technology.

From a macro perspective, analysts estimate Vietnam’s consumer market could reach USD 309 billion by 2025 and continue expanding toward 2030, placing the country among the world’s seven largest consumer markets. Growth is driven by a rapidly expanding middle class, rising demand for experience-based consumption and the boom in ecommerce.

These factors explain why international retailers, particularly from China, see Vietnam as a new growth hotspot. A population of more than 100 million, with over 70 per cent under working age, combined with low modern retail penetration, around 21 per cent in urban areas and just 6 per cent in rural regions, offers rare expansion opportunities.

Despite its appeal, Vietnam’s convenience store market is far from easy for newcomers. Major cities such as Ho Chi Minh City and Hanoi already have a dense network of stores.

WinMart+ leads with roughly 4,500 outlets nationwide. It is followed by Circle K with about 500 stores, GS25 with more than 300, alongside FamilyMart and 7-Eleven.

According to DPS Media, competition has entered a new phase where success depends less on store numbers and more on understanding consumer behavior.

A defining feature is the influence of Generation Z, which accounts for about 60 per cent of frequent convenience store customers. For this group, convenience stores are not just places to shop but also spaces to socialize, work and experience services. This is pushing retailers to reposition themselves from pure retail outlets into integrated “lifestyle service hubs”.

Another notable trend is expansion into rural areas and second, third-tier cities. As Hanoi and Ho Chi Minh City approach saturation, companies are moving into suburban and less developed areas to take advantage of lower rents and rising demand.

However, challenges remain, particularly in logistics and entrenched consumer habits, as rural populations continue to rely on traditional markets and small shops. This requires retailers to adapt their operations and product offerings.

In the long term, the “phygital” trend, combining physical and digital experiences, is expected to reshape the market. Hybrid models integrating convenience stores with financial services, pharmacies, cafés and laundry services are likely to become more common, maximizing revenue per square meter.

At the same time, technologies such as cashless payments, multi-platform loyalty programs and rapid delivery will become standard, areas where foreign players with strong technological and supply chain capabilities may hold a competitive edge.