Vietnam retail market grows amid cautious consumer spending

Vietnam's retail market saw growth in the first eight months of 2026, with revenue reaching approximately 3,947.6 trillion VND, a 12.8% increase compared to the same period last year. Despite this growth and reports that many consumers feel their personal finances have improved, spending habits have become increasingly cautious.

Surveys indicate that 89.5% of consumers compare prices across different sellers before purchasing, and 39.5% delay purchases to wait for promotions. This shift highlights a growing gap between traditional commerce and modern digital trends. Small, traditional shop owners struggle to adapt to new technologies, such as electronic payments and online ordering apps, as consumer habits move away from cash and physical storefronts.

Retail businesses are facing significant pressure from rising costs, including rent, personnel, energy, and logistics. Inflation remains a primary concern, with the Consumer Price Index (CPI) increasing by 4.45% over the first eight months of the year. While there is potential for expansion in rural areas, businesses must navigate higher operational and logistics costs to reach these markets.