Market Trends of Vietnam Retail Industry
This section covers the major market trends shaping the Vietnam Retail Market according to our research experts:
Rapid Growth in Consumer Spending is a Driving Factor
Vietnam's disposable income per capita is expected to grow quickly and reach USD 3,062 in 2023. Vietnam's real household spending increased 8.3% to USD 121.3 billion in 2021, compared to USD 112.1 billion in 2019 . The private consumption rate is also high, more than 67% of the GDP. This is the second highest in the region, behind the Philippines (73.8%) and ahead of Malaysia and Indonesia (57.0% and 57.3%, respectively).
Low Urbanization with High Potential for Growth
Vietnam's urbanization rate is still low when compared across the region, at 37% of the population, compared with rates between 47% and 76% in other Southeast Asian countries. This represented an area of high potential and expected growth. In fact, the Vietnamese urban population is expected to register a CAGR of about 3% in the forcasted period, while this growth rate is between 1% and 2 % for Indonesia, Malaysia, the Philippines, and Thailand. Analysis of urbanization rates in comparable Southeast Asian countries indicates that the early stage of urbanization is likely to be rapid. Vietnam's growth follows a similar trajectory, as urbanization is likely to reach 55% in 2030.
