This article reports the findings of a study on modern domestic retailers in Vietnam. The authors based this study on (1) a survey of fifty-six firms that control almost all the modern retail format stores in Vietnam, (2) in-depth interviews with chief executive officers (CEOs) and government officials, and (3) store visits and observations that were carried out by the authors. The authors discuss the operation and retail renovations of local modern retailers, the structure and the background of competitors, the problems retailers face, and their prospects for future development. These findings provide a comprehensive picture of modern retailers in Vietnam and have significant implications for policy makers as well as for local and foreign retailers.

The present paper is the first study to link the perceptions of Vietnamese consumers to the barriers and prospects related to the development of supermarkets in Vietnam by applying quantitative and statistical analysis to Hanoi consumer survey data. It is found that shopping habits related to the purchase of fresh produce in traditional markets, combined with the proximity and low prices these outlets provide, act as a major deterrent to supermarket development. Supermarkets have made considerable advances in the sales of processed food and non‐food products. However, without expanding their fresh food category, lowering prices and enhancing their location convenience, supermarkets cannot expand their current position.

This paper sheds light on the preferences and behaviour of Vietnamese consumers in an emerging market economy. We analysed survey data of affluent consumers in Hanoi by using a binary choice Probit model for traditional bazaars versus supermarkets. The purpose of the analysis was to measure the factors which influence decision-making by consumers when selecting particular retail outlets for shopping. Our results show that freshness, price and convenience are important in shaping the choice by consumers for traditional outlets for fresh food, while price played a key role in selecting shopping outlets for processed food and drinks and non-food products. The results provide a basis for understanding the strengths and weaknesses of the old and the new retail outlet formats.

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Almost all Vietnamese consumers shop at least five or six times a week or everyday or more. We formulated a basic model of the optimal level of shopping frequency. Hanoi consumer survey data has been analysed using the binary choice Probit model to measure factors that influence the major characteristics related to the high-shopping frequency patterns of Vietnamese consumers. The results consolidate the validity of the basic model and show that freshness, convenience (distance), gender and the presence of children in the household had a significant effect on the frequency of shopping. In contrast, factors such as owning a refrigerator as well as income did not have a significant effect in shaping consumer shopping behaviour.