Grocery Retailers Expanding In Vietnam As Consumers Step Up Food Spending

Key View: As the Vietnamese economy continues to recover from the effects of the pandemic and income levels of consumers rise, many MGR players are capitalising on the growing formalisation of the grocery sector and increased food spending by launching expansion initiatives. Rising rates of urbanisation, the expansion of the middle class and high rates of mobile internet adoption also contributed to the rise of delivery services in urban centres like Hanoi and Ho Chi Minh City, where time-poor consumers have the disposable income to pay a premium for home-delivery options. We spotlight the growing healthification trend in the country, particularly among the growing middle to high income (household disposable incomes of above USD10,000) earners, as these households trade up price points for premium and healthier food options.