Digital Synergy: Retail and E-Commerce in Vietnam

Việt Nam’s e-commerce and retail industries are reshaping the nation’s economic landscape, driving growth and redefining how consumers shop and interact with brands. The nation’s internet economy is estimated to be worth $36 billion this year. This marks a 16% increase from last year. The country’s digital transformation continues at an impressive pace. Retail e-commerce, contributing $22 billion—61% of the total internet economy—stands at the forefront of this transformation. Yet, it’s the interplay between physical retail spaces and digital platforms that tells the most compelling story.

Luxury retail spaces like Đồng Khởi Street in Ho Chi Minh City exemplify the power of physical locations in brand strategy. As Việt Nam’s most expensive retail destination, with rents at $330 per square meter per month, Đồng Khởi attracts high-end global brands. Trang Bùi, country head of Cushman & Wakefield, highlights the street’s role in positioning brands as “luxurious and classy” while capturing high-end consumers drawn by the area’s proximity to iconic landmarks and luxury hotels. Moreover, the tight vacancy rates and willingness of brands to pay premium rents underscore the enduring significance of physical retail.

In parallel, Tràng Tiền Street in Hà Nội reflects similar trends. Rental rates there stand at $300 per square meter per month, up 50% from pre-pandemic levels. Despite e-commerce’s rise, luxury and mass-market brands alike prioritize flagship stores in premium locations to provide a tangible shopping experience. Cushman & Wakefield’s report reveals that these physical spaces enhance customer connection and brand loyalty. More so even as digital platforms expand.

Vietnam e-commerce and digital transformation in retail

Việt Nam’s e-commerce growth, fueled by digital transformation and green transition initiatives, complements this retail expansion. Forums organized by the Department of E-commerce and Digital Economy emphasize the role of technology in fostering sustainable development. Businesses like Grab Vietnam and FPT Digital demonstrate successful digital strategies, offering lessons for others navigating this evolving landscape.

While e-commerce captures consumer convenience, retail spaces deliver immersive experiences. Together, they create a synergistic dynamic that propels Việt Nam’s economy forward. Global projections of the internet economy estimate it will reach $90-$200 billion by 2025. Thus, this harmonious blend of digital innovation and physical presence cements Việt Nam as a rising powerhouse in Southeast Asia’s economic landscape.