Supermarkets in Vietnam

Euromonitor International
February 2024
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2023 DEVELOPMENTS ............................................................................................................... 1
Supermarkets sees healthy growth........................................................................................... 1
Bach hoa xanh sees strong rebound in 2023 ........................................................................... 1
Aeon group strengthens presence with aeon maxvalu ............................................................. 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Supermarkets to see stable performance amid greater competition ......................................... 2
Players will invest more in private label lines ............................................................................ 3
Home deliveries for online orders to give substantial push to overall channel sales................. 3
CHANNEL DATA .......................................................................................................................... 3
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2018-2023 ............. 3
Table 2 Supermarkets: Value Sales, Outlets and Selling Space: % Growth
2018-2023 .................................................................................................... 4
Table 3 Supermarkets GBO Company Shares: % Value 2019-2023 ........................ 4
Table 4 Supermarkets GBN Brand Shares: % Value 2020-2023 .............................. 4
Table 5 Supermarkets LBN Brand Shares: Outlets 2020-2023 ................................. 5
Table 6 Supermarkets Forecasts: Value Sales, Outlets and Selling Space
2023-2028 .................................................................................................... 5
Table 7 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2023-2028 ....................................................................................... 6

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SUPERMARKETS IN VIETNAM
KEY DATA FINDINGS
▪ Retail value sales rise by 7% in current terms in 2023 to VND102 trillion
▪ Mobile World JSC is the leading player in 2023, with a retail value share of 30%
▪ Retail sales are set to grow at a current value CAGR of 13% (2023 constant value CAGR of
9%) over the forecast period to VND188 trillion

2023 DEVELOPMENTS

Supermarkets sees healthy growth

Supermarkets in Vietnam saw significant growth in 2023, with notable increases in terms of
both current value sales and the number of outlets, driven by the aggressive expansion
strategies of key players. Local consumers in suburban and rural areas are increasingly drawn
towards supermarkets for their grocery shopping as living standards rise along with demand for
modern services. Supermarket players such as Coop Mart regularly collaborate with
manufacturers to offer discount deals of up to 50%, and the increase in loyalty and membership
programmes is also contributing to higher footfall in the channel. Like hypermarkets and
convenience stores, supermarkets were not closed during pandemic-era lockdowns and
benefitted from the gain of consumers unable to visit traditional grocery retailers. This has
meant no severe interruption to supermarkets’ progress during the review period.
Supermarkets is a competitive threat to the hypermarkets channel. Outlets in supermarkets
have the advantages of needing smaller store space than hypermarkets, and of being situated
in the heart of residential areas, while hypermarkets are typically found in shopping centres or
on the outskirts of cities. Young urban consumers prefer to visit supermarkets for their proximity
and convenience. The supermarkets channel has further exploited the advantage of small store
space through the development of the mini-supermarket format, which has seen a boom from
2016, pioneered by VinGroup JSC with the VinMart+ brand, and has since enjoyed investment
from major players such as Saigon Union of Trading Cooperatives.

Bach hoa xanh sees strong rebound in 2023

Early in the review period, Bach Hoa Xanh expanded its store network significantly, recording
strong performances as national brand owner Mobile World set up various messenger chat
groups on the Zalo messenger platform. On the platform, consumers can search and join the
chat group administered by Bach Hoa Xanh store in their neighbourhood. Each chat group is
managed by Bach Hoa Xanh managers and staff. Via the chat groups, consumers can order
groceries and have them delivered to the home within one or two days.
However, in 2022, Bach Hoa Xanh recorded falls in revenue. Continuing a strategy begun in
the previous year, Mobile World closed hundreds of Bach Hoa Xanh outlets, citing them as
unprofitable and inefficient stores. At the same time, the company also temporarily closed many
stores for renovation, with a new strategy to increase the number of sales per store instead of
expanding the number of its outlets. In 2023 the player saw a robust rebound with double-digit
rises in both current value sales and outlet numbers.
The Bach Hoa Xanh brand benefits from its novelty, being one of the newest in the market
and, although Bach Hoa Xanh stores have a relatively small sales area and limited product
variety, the brand is boosted by its focus on offering fresh food and faster checkout than other

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(larger) supermarkets. Moreover, its stores are mostly located in residential areas, which
provides greater convenience for busy urban consumers. The move to shut down
underperforming outlets frees up Mobile World to redirect its resources towards enhancing
product quality, refining marketing efforts and ultimately boosting revenue per store.

Aeon group strengthens presence with aeon maxvalu

During the review period, AEON Vietnam invested in opening a new supermarket chain in
Hanoi, under the name AEON MaxValu. This is one of the middle- and long-term strategies of
AEON to establish a stronger position in retail, and the company already set Vietnam as the
second foreign market for AEON’s long-term development. AEON MaxValu is a supermarket
with an average floor space of 300-500 sq. meters per outlet (meaning it fits the mini-
supermarket format, being up-to-500 sq. meters) and the concept was inspired by the
increasingly faster pace of life and ongoing urbanisation in northern parts of Vietnam. Hanoi is
the first city in which AEON tried to develop this supermarket chain.
AEON has increased the presence of new formats like medium-sized and small-scale
supermarkets under the MaxValu brand in order to adapt to evolving customer needs. In 2023,
AEON’s Aeon MaxValu brand expanded in northern Vietnam and has recently entered the south
region, including Binh Duong. AEON MaxValu supermarkets are strategically located in inner-
city residential areas, offering a convenient shopping experience for customers with their
compact size. The supermarket aims to provide maximum convenience while minimising travel
distance for everyday shopping needs and offers a diverse selection of high-quality goods that
meet AEON's standards, catering to the regular and daily needs of customers. The player has
plans for continued expansion, which should further bolster the growth of supermarkets over the
forecast period.

PROSPECTS AND OPPORTUNITIES

Supermarkets to see stable performance amid greater competition

Vietnam’s GDP is set to expand at an accelerated rate during the early forecast period,
pushed by a rise in the number of foreign enterprises investing in the country and creating
additional job possibilities through new local factories and businesses. As a result, average
incomes are expected to be slightly higher than in 2023, stimulating increased spending. This
will mean strong and stable growth for supermarkets, despite intensifying competition from
existing players, as well as new entrants attracted to the channel’s potential.
Over the review period, mini supermarkets – those with retail selling space less than 500 sq m
– gained greater attention from consumers. Winmart+ from Masan Consumer Corp and Bach
Hoa Xanh from Mobile World are two of the most popular brands within this format. One of the
major benefits of mini supermarkets is their smaller floor space, which is just slightly larger than
that of a convenience store, allowing these outlets to penetrate crowded residential areas more
easily. These mini supermarkets suit the lifestyles of busy urban consumers, who have little free
time and prefer to visit a convenient shop near to their homes. However, with the aggressive
expansion of mini supermarkets early in the review period, this sub channel has become more
mature. As a result, the trend of mini supermarkets will see an organic slowdown in its
expansion regarding the number of outlets over the forecast period, with less room for growth in
big cities like Ho Chi Minh and Hanoi.
During the pandemic, with the temporary closure of traditional stores due to restrictions and
associated challenges, Vietnamese consumers shifted to purchasing grocery products at
modern grocery retailers – especially supermarkets. As such, by 2023 consumers had become

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more familiar with supermarket formats and had developed an ongoing shopping habit in the
channel. Supermarkets are seen as attractive retail options thanks to their wide ranges of
products and guaranteed product quality. This format is also in line with urbanisation in Vietnam,
and supermarket players are likely to expand their number of outlets in other parts of Vietnam –
especially where competition is less crowded compared to Ho Chi Minh city. Expansion plans
may even reach semirural areas over the forecast period.

Players will invest more in private label lines

Players have been actively promoting their private label lines, highlighting their commitment to
quality through various offline and online channels. As a result, consumers are showing greater
interest in these products, partly thanks to competitive pricing and also thanks to high levels of
trust as major players work to win over local shoppers. Consumers have confidence in these
players and so are increasingly open to their private label offerings. During the forecast period
companies like AEON are likely to introduce their own private label lines, with such options
gaining further ground as bigger players expand their offer. Trust in quality will continue to grow,
along with appreciation for low-cost alternatives to branded products.
Private label products span a broad and diverse range of product areas, including fresh
vegetables, home care and apparel, and the strength of the offer helps supermarkets to build
consumer loyalty. Moreover, many players closely follow market trends and update their private
label ranges accordingly. For example, Saigon Union of Trading Cooperatives has its own
private label lines for organic, clean, and safe fresh vegetables to cater to the rising consumer
concern about food safety. Saigon Union of Trading Cooperatives (Co.opMart and Co.op Food)
is the local pioneer in the development of the private label segment, followed by many other
local and international supermarkets, including Big C, Lotte Mart and VinMart.

Home deliveries for online orders to give substantial push to overall

channel sales
Vietnam has been seeing a considerable shift towards online sales for supermarkets, with
rising numbers of local consumers using e-commerce platforms to buy their groceries along with
other home essentials. The trend was accelerated during the pandemic when demand grew for
online shopping and contactless delivery services. To remain competitive, several supermarket
players in Vietnam have embraced the e-commerce distribution channel, setting up dedicated
platforms, communicating through messaging app Zalo, joining third party marketplaces, and
developing mobile apps, as well as utilising third party apps. Consumers are increasingly drawn
to the frequent and deep discounts found online, as well as offers of free shipping.
Retailers are also investing in partnerships with mobile apps such as Grab, to provide quick
and convenient deliveries to their customers, and to extend their reach. Over the forecast
period, home deliveries of groceries ordered online will expand, strengthening its impact on
overall sales in supermarkets.

CHANNEL DATA
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2018-2023

2018 2019 2020 2021 2022 2023

Value sales VND billion 56,030.4 69,810.9 83,513.3 95,320.5 95,585.4 102,046.8
Outlets 3,260.0 5,202.0 5,825.0 5,943.0 6,315.0 7,045.0
Selling Space '000 sq m 1,574.7 1,840.1 2,132.6 2,127.3 2,397.4 2,815.7

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Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 2 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2018-2023

% growth
2022/23 2018-23 CAGR 2018/23 Total

Value sales VND billion 6.8 12.7 82.1

Outlets 11.6 16.7 116.1
Selling Space '000 sq m 17.4 12.3 78.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Supermarkets GBO Company Shares: % Value 2019-2023

% retail value rsp excl sales tax

Company 2019 2020 2021 2022 2023

Mobile World JSC 15.4 25.5 29.6 28.3 29.8

Saigon Union of Trading 46.4 40.7 29.6 29.8 29.1
Cooperatives
Masan Group Corp 26.1 23.8 32.4 28.8 27.9
Dong Hung Trading Service 1.6 1.4 1.2 1.3 1.3
Co Ltd
Saigon Trading Group 1.4 1.1 1.0 1.0 1.1
(SATRA)
Central Retail Corp 1.0 0.8 0.7 0.8 0.9
TCT Group - - - - -
An Phong Trading & - - - - -
Services Co Ltd
Dong Hung Co Ltd - - - - -
VinGroup JSC - - - - -
Others 8.0 6.8 5.5 9.9 9.8
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 4 Supermarkets GBN Brand Shares: % Value 2020-2023

% retail value rsp excl sales tax

Brand Company (GBO) 2020 2021 2022 2023

Bach Hoa Xanh Mobile World JSC 25.5 29.6 28.3 29.8
WinMart Masan Group Corp - - 28.8 27.9
Co.opMart Saigon Union of Trading 36.3 26.1 26.2 25.7
Cooperatives
Co-op Food Saigon Union of Trading 4.4 3.5 3.6 3.4
Cooperatives
Aeon Citimart Dong Hung Trading Service 1.4 1.2 1.3 1.3
Co Ltd
Satrafood Saigon Trading Group (SATRA) 1.1 1.0 1.0 1.1
LanChi Mart Central Retail Corp 0.8 0.7 0.8 0.9
VinMart Masan Group Corp 23.8 32.4 - -
Maximark An Phong Trading & - - - -
Services Co Ltd

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Citimart Dong Hung Co Ltd - - - -

Fivimart TCT Group - - - -
VinMart VinGroup JSC - - - -
Others 6.8 5.5 9.9 9.8
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 5 Supermarkets LBN Brand Shares: Outlets 2020-2023

sites/outlets
Brand (GBO) Company (NBO) 2020 2021 2022 2023

WinMart+ (Masan Group Masan Consumer Corp - - 3,268 3,950

Corp)
Bach Hoa Xanh Mobile World JSC 1,719 2,106 1,728 1,926
Co-op Food Saigon Union of Trading 410 400 430 430
Cooperatives
Satrafood Saigon Trading Group (SATRA) 227 189 192 205
WinMart (Masan Group Masan Consumer Corp - - 130 135
Corp)
Co.opMart Saigon Union of Trading 128 128 128 128
Cooperatives
LanChi Mart (Central Lan Chi Co Ltd 24 24 24 24
Retail Corp)
Aeon Citimart Dong Hung Trading Service 23 20 15 13
Co Ltd
VinMart+ (Masan Group Masan Consumer Corp 2,880 2,619 - -
Corp)
VinMart (Masan Group Masan Consumer Corp 74 122 - -
Corp)
Maximark (An Phong An Phong Investment JSC - - - -
Trading & Services Co
Ltd)
Citimart (Dong Hung Dong Hung Trading Service - - - -
Co Ltd) Co Ltd
Fivimart TCT Group - - - -
VinMart VinGroup JSC - - - -
VinMart+ VinGroup JSC - - - -
Others Others 340 335 400 234
Total Total 5,825 5,943 6,315 7,045
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 6 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2023-2028

2023 2024 2025 2026 2027 2028

Value sales VND billion 102,046.8 109,639.1 119,592.8 130,915.7 143,244.3 156,770.4
Outlets 7,045.0 7,463.0 7,904.0 8,360.0 8,819.0 9,301.0
Selling Space '000 sq m 2,815.7 2,790.5 2,820.9 2,840.4 2,848.8 2,849.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

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Table 7 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth
2023-2028

% growth
2023/24 2023-28 CAGR 2023/28 Total

Value sales VND billion 7.4 9.0 53.6

Outlets 5.9 5.7 32.0
Selling Space '000 sq m -0.9 0.2 1.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

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