Vietnam is quickly emerging as one of Southeast Asia’s most promising markets for commercial real estate and retail. Thanks to government incentives, growing domestic demand, and the rapid rise of e-commerce, 2025 is shaping up to be a year of robust expansion for businesses looking to invest or expand in the country.
A Retail Sector in Full Recovery
2024 marked a turning point for Vietnam’s retail sector. According to the General Statistics Office (GSO), total retail sales of goods and services reached VND 6.4 quadrillion (approximately USD 250 billion), representing a 9% year-on-year increase. Retail sales alone accounted for over USD 193 billion, an 8.3% rise from 2023 and a 31.5% jump compared to 2019, the pre-pandemic benchmark.
E-commerce on the Rise: Digital Opportunities in a Growing Market
E-commerce continues to drive the retail transformation, reaching USD 25 billion in 2024—a 20% increase over the previous year. Vietnam now ranks as the third-largest digital market in the region, behind Indonesia and Thailand.
This growth is fueled by a dynamic ecosystem where farmers, SMEs, and major brands use online platforms to sell locally and across borders. Shopee, Lazada, TikTok Shop, Tiki, and Sendo—the country’s top platforms—generated over USD 12.6 billion in sales, a 37% increase in just one year.
E-commerce now accounts for over 60% of Vietnam’s digital economy, alongside complementary sectors like online tourism, food delivery, and ride-hailing.
Key Growth Drivers in 2025
Several structural factors are creating a highly favorable environment:
• Recovery in domestic demand: Imports of consumer goods rose by 20.6% in 2024, while more than 17.5 million international tourists boosted local spending and services.
• Targeted government incentives: The government extended the VAT reduction from 10% to 8% on various goods and services through June 2025, stimulating consumption and lowering business costs.
• Evolving consumer habits: Despite the rise of online shopping, physical stores remain crucial—especially within an omnichannel strategy that blends digital and in-store experiences.
Offline Retail and Real Estate Dynamics
As consumer interest grows and competition intensifies, retailers are increasingly competing for premium commercial spaces. Hanoi and Ho Chi Minh City, in particular, saw significant rental growth in central business districts, according to CBRE.
2024 brought renewed momentum to the commercial real estate market, driven by both local and international brands—especially from China—and a rising wave of investors seeking high-potential retail locations.
A Favorable Outlook for Global Investors
Vietnam is positioning itself as one of the most dynamic destinations for retail and commercial real estate expansion in 2025. The convergence of strong domestic consumption, digital transformation, and government support creates an ideal landscape for businesses eyeing growth in Asia.
For international operators—especially those considering market entry or expansion in Southeast Asia—Vietnam is a market to watch closely. The combination of economic growth, local demand, and innovation offers significant potential for long-term success.