Vietnam might have the fastest-growing convenience market in Asia by 2021
Vietnam, and especially Ho Chi Minh City (HCMC), its major commercial hub, have seen a swift rise in number of convenience stores in the previous few years.
HCMC, home to over 10 million people, saw a 5.1% increase of number of convenience stores in the first quarter of 2018. Today, more than 1,800 stores with 270,000 square meters of space are operating across the city.
According to JLL, global real estate services firm, the number of stores in the city will continue to increase due to the city’s large (and optimistic) population and a number of foreign and local competitors who are trying to strengthen their market position.
The Institute for Global Development (IGD) puts Vietnam on the forefront of the fastest-growing convenience store markets in Asia by 2021, with a projected compound annual growth of more than 37%. Vietnam’s neighbors the Philippines, Indonesia and Malaysia took the next 3 spots.
According to Nick Miles of IGD: “Convenience stores in Vietnam have become popular destinations for young consumers to shop and hang out, as the stores provide them with an air-conditioned environment, well-organised shelves and seating areas, high quality products and, in some stores, free Wi-Fi. It is also easier to get licences for stores under 500 sqm, which is why retailers have been expanding to gain market share”.
Foreign convenience store chains are dominating the Vietnamese market, holding around 70% of market share.
The market’s main contenders include:
- Foreign: Circle K, Family Mart, Shop&Go, B’s Mart, 7-Eleven, Ministop
- Local: Vinmart (the company plans to open over 3,000 shops across Vietnam
Asia’s grocery market is the largest in the world. By 2021, its size is expected to reach $4.8 trillion, a size equivalent to Europe and North America’s combined. With this fact in mind, it makes it even more impressive that Vietnam is forecast to have the fastest growing convenience store market – showcasing growth and positive business climate in the country.