Differences in foreign investment in Hanoi and Ho Chi Minh City, as seen through convenience stores

There are clear differences in the trends of foreign companies entering Vietnam between Hanoi and Ho Chi Minh City.
One example that clearly illustrates this difference is the expansion of foreign-owned convenience stores.

Ho Chi Minh City, as an economic center, has seen early entry of foreign investment and is a highly competitive market.

In the convenience store market, FamilyMart entered the market relatively early, followed by Seven-Eleven and others. In recent years, GS25 (a South Korean-owned convenience store chain) has also increased its number of stores and is gaining a strong presence, particularly in urban areas.

One of the characteristics of Ho Chi Minh City is that its citizens are receptive to new services and business models, and tend to embrace change. New product lineups and store styles are relatively easy to accept, making it a market where foreign companies can easily test and expand their operations.

On the other hand, in the capital city of Hanoi, foreign retailers have been relatively cautious in entering the market due to administrative regulations and differences in business practices. In recent years, Seven-Eleven and GS25 have finally begun to enter the market, but small, independently owned shops, often referred to as "mom-and-pop shops," still play a significant role as essential infrastructure for local life.

Hanoi residents are often described as generally conservative, and this regional characteristic is an important point to consider when considering foreign investment.

*Papa Mama Shop in Ho Chi Minh City

Vietnamese convenience stores are a little different from those in Japan, with a very well-stocked hot food and beverage section. In addition to steamed buns and fried chicken, you can sometimes find Korean-style red oden-like foods.

Additionally, the number of shops where customers can customize their iced coffee or bubble tea by choosing their own toppings is increasing, especially in urban areas.

* Korean-style red oden

Even looking at the differences between familiar convenience stores, it's clear that the market characteristics of Hanoi and Ho Chi Minh City are vastly different, highlighting the essential city-specific understanding required for foreign companies.