Negative impact of macroeconomic conditions have been eroding the confidence of both consumers and businesses, yet the Vietnamese retail market is still thriving with new and expanding distribution chains, according to experts.

Big retailers have triggered a fierce struggle, trying to ease selling prices to improve revenue and obtain bigger market share amid weak demand.

Retail firms of the Republic of Korea (RoK) are stepping up efforts to tap into the Vietnamese market, which has huge growth potential thanks to its rapid economic growth and a high proportion of the working age population.

Many domestic enterprises are renewing their business methods to catch up with the green consumption trend.

The presence of foreign-invested enterprises in Vietnam's retail sector has increased competition among businesses, jointly regulating supply and demand in the domestic market.

The Department of International Trade Promotion (DITP) under the Ministry of Commerce of Thailand has recommended Thai businessmen to study the possibility of exploiting Vietnam's steadily growing retail market.

Vietnam remains an attractive market for retailers as Vietnamese consumers remain optimistic about the economic challenges and are driving premium purchases.

Many luxury brands have begun implementing a market diversification strategy in Southeast Asia, especially Singapore, Thailand and Vietnam, according to Savills Vietnam.

The presence of foreign-invested enterprises in Vietnam's retail sector has increased competition among businesses, jointly regulating supply and demand in the domestic market.

The bankruptcy filing from Malaysian retailer Parkson Retail at the end of April has demonstrated the fierce competition among retail centres in Vietnam

The collapse of Parkson Vietnam is most likely attributable to its inappropriate business strategy.

Due to falling demand, communication and technology (ICT) firms had to sacrifice profits to stimulate demand as well as promote other product segments to compensate for the losses.

Vietnamese companies are expanding their retail system to maintain their home turf advantage and market share.

The moderate situation at these supermarkets in Hanoi reflects the dim landscape of Vietnam’s retail and consumption.

The nation is becoming an attractive retail market for companies globally with many regional and global FDI investors recently revealing their plans to increase capital and expand distribution networks here.

Tech retail chains are experiencing the toughest days in their history. They have had to sell products at a loss and negotiate with landlords on slashing rent.

Central Retail is one of the big players in the retail industry willing to spend big money to buy retail empires. Rumor has it that it is negotiating to acquire a large shopping mall chain in Vietnam.

Central Retail Corporation (CRC), the largest retailer of Thailand, has announced its biggest investment in Vietnam at 50 billion THB (US$1.45 billion) in the 2023-27 period to accelerate its market presence in the country.

The scale of the domestic retail market is expected to increase from 142 billion USD at present to 350 billion USD by 2025, contributing 59% of the national GDP, according to the Ministry of Industry and Trade (MoIT).

Although 2023 is forecast to see many difficulties, experts expect this is a recovery year of the retail sector after COVID-19 pandemic as there are many signs showing the return of investors and higher demands.