The Vietnamese economy recorded growth of approximately 8% in 2025, and domestic demand-driven expansion is expected to continue toward 2027. While the overall Vietnamese market is growing, the level of growth potential and attractiveness differs depending on each market segment. Going forward, it will become increasingly important for Japanese companies to determine which areas they should allocate their resources to. In this article, B&Company, a company specializing in Vietnam market research, organizes five business areas considered promising for 2027 based on supporting data.

Vietnam Economic Outlook for 2027 and Changes in the Market Environment

Strong Domestic Demand Will Support Market Growth in 2027

Vietnam’s retail and service sales reached VND 7,008.9 trillion in 2025, representing a 9.2% increase year on year. The country’s GDP growth rate in the same year was 8.02%. This momentum continued into 2026, with retail and service sales reaching VND 3,185 trillion during January–May, up 11.2% compared with the same period of the previous year. By category, accommodation and food services recorded the highest growth at 13.3%.

Figure: Trend in Retail and Service Sales (2022–2026, January–May Cumulative)

Source: Vietnamplus

The expansion of the middle-income population is the key driver supporting this domestic demand. Over the next 10 years, approximately 36 million people are expected to newly enter the consumer class, strengthening demand for branded products, modern food retail, lifestyle-related products, cafés and casual dining, and premium-priced food and beverage businesses. The nature of the market is shifting from “growth in quantity,” driven by population expansion, toward “growth in quality,” where average spending per consumer increases.

Four Criteria for Selecting Promising Businesses in 2027

This article narrows down business areas based on four criteria: ① depth of domestic demand, ② support from policies and public funding, ③ areas where Japanese companies’ technologies and know-how can create value, and ④ remaining entry opportunities where existing players have not yet fully established dominance. The following five sectors satisfy all of these conditions.

Promising Market ① Vietnam Retail and Food Service: Expanding Foundations for Store Expansion

Vietnam’s Commercial Areas Expanding Through Urban Rail and Housing Development

The biggest reason why retail and food service are considered promising is that the number of locations where businesses can establish stores is itself increasing. In Hanoi and Ho Chi Minh City, urban railway development is progressing, creating new customer flows centered around stations. In suburban areas, new housing developments continue, generating demand for commercial facilities located close to residential areas. Mall development is also expanding into major regional cities, creating an environment where companies that previously had limited expansion options can increasingly select locations that match their requirements.

The infrastructure supporting store expansion is also becoming stronger. From January to September 2025, non-cash payment transactions increased by 43.32% in volume and 24.23% in value, while QR code payment value surged by 150.67%. As payment friction decreases, operational methods such as app-based ordering, loyalty programs, and small-value transactions are becoming increasingly feasible.

The e-commerce market expanded to approximately USD 29.6 billion in 2025 (up 25% year on year), while the food delivery market grew from USD 1.4 billion in 2023 to USD 1.8 billion in 2024, recording the highest growth rate in Southeast Asia. The Vietnamese government has also set targets to increase retail and service sales by 11–11.5% annually and e-commerce sales by 15–20% annually by 2030, meaning that policy support for modern distribution channels is expected to continue.

Vietnam’s Food Service Market Is Entering a More Selective Growth Phase

The food service market is forecast to reach approximately VND 759.9 trillion in 2026, representing 4.6% growth year on year. The number of food service establishments is expected to reach 333,600 locations. Although the growth rate has moderated compared with the rapid recovery period after COVID-19, this indicates that the market is continuing to expand while entering a more selective growth phase.

Figure: Trends in the Number of Food Service Establishments and Food Service Market Revenue (2018–2026 Forecast)

Source: iPOS’s F&B Report 2023 and 2025

Companies that can standardize store operations, manage rent, labor costs, and raw material costs, and build a base of loyal customers will have an advantage in this phase. For Japanese companies, accumulated expertise in multi-store operation design, quality control, and central kitchen management can directly become a source of differentiation.

Promising Market ② Growth of Experience-Based Consumption and the Experience Economy in Vietnam

Tourism Revenue Exceeds VND 1,000 Trillion | Expanding Experience-Based Consumption

In markets where material wealth has reached a certain level, spending priorities shift toward experiences. This trend is also evident in Vietnam, where domestic travelers reached approximately 130 million people in 2025, foreign visitors reached approximately 21.2 million, and tourism revenue exceeded VND 1,000 trillion for the first time. Areas such as arts, entertainment, leisure, and cinema all recorded strong growth.

Another area attracting attention is the MICE market【an abbreviation for Meeting (corporate meetings), Incentive Travel (incentive and training trips organized by companies), Convention (international conferences organized by international organizations, associations, academic societies, etc.), and Exhibition/Event (exhibitions, trade fairs, and events); a general term for business events expected to attract large numbers of visitors and participants】.

Vietnam’s MICE market size is estimated at approximately USD 6 billion, with annual growth of 12–15% expected between 2026 and 2030. As large-scale events, music festivals, exhibitions, business trips combined with tourism, and cultural events increase, spillover effects will expand across accommodation, food service, transportation, retail, and advertising.

Consumer awareness surveys also support this trend. More than half of Vietnamese consumers responded that they have increased spending on experience-based and premium categories, while 80% consider entertainment events, high-quality dining, and leisure travel essential parts of their lifestyles.

The proportion of consumers increasing spending on concerts, festivals, and dining is approximately one-quarter of the population, with the trend particularly noticeable among Generation Z and Generation Y. A structural shift is underway in which rising income is increasingly allocated toward activities with emotional value, such as travel, entertainment, events, dining, and self-care. Operation of entertainment facilities, experience-based services, event production, and related content businesses are promising areas toward 2027.

Promising Market ③ Vietnam GX Market and Business Opportunities in Disaster Prevention and Decarbonization

Growing Climate Risks Create Continuous Demand for Investment in Facilities and Infrastructure

In recent years, Vietnam has experienced increasing damage caused by natural disasters. Economic losses reached VND 89.3 trillion in 2024 and VND 102.7 trillion in 2025, exceeding VND 100 trillion for the first time. Human losses have followed a similar trend, with 570 deaths and missing persons and 2,204 injuries recorded in 2024. The major floods in central Vietnam in 2020, Typhoon Damrey in 2017, Typhoon Yagi in 2024, and a series of storms, floods, and landslides in 2025 have contributed to this increase.

Figure: Trends in Human Damage Caused by Natural Disasters (2016–2025)

Source: NSO (Vietnam National Statistics Office) data

As pressure increases on infrastructure, agriculture, housing, and local living foundations, investment priorities for climate adaptation, disaster prevention and mitigation, resilient infrastructure, and early warning systems will continue to rise. These are not temporary recovery needs but rather long-term investment themes expected to become established continuously.

GX Loan Supported by JPY 50 Billion in ODA Creates Business Opportunities

Policy and financial support are also being established. On March 30, 2026, JICA signed a Japanese ODA loan agreement with the Vietnamese government in Hanoi for the “GX Program Loan for Green Growth and Climate Resilience.” The loan amount is up to JPY 50 billion.

This project focuses on developing systems for fiscal and investment incentives related to GX and green growth, establishing policies for implementing NDCs (Nationally Determined Contributions), and promoting climate change adaptation measures. Through financial support and policy dialogue, it aims to support the realization of Vietnam’s climate change action targets.

When ODA drives institutional and policy changes, concrete procurement and business opportunities emerge as a result. Areas such as energy-saving equipment, renewable energy, CO2 emission calculation and visualization, water management, disaster prevention infrastructure, and environmental consulting will require Japanese companies’ technologies and track records. GX should be viewed as a clear growth market toward 2027.

Promising Market ④ Vietnam Healthcare Shifts Toward Prevention and Health Screening

Institutionalization of Free Health Checkups Expands Demand for Testing and Diagnosis

Vietnam’s healthcare policy is shifting from a treatment-centered model toward a prevention-centered model. From 2026, the government announced a policy allowing citizens to receive free annual health checkups or screenings at least once per year. If health checkups become widely available as an established system, demand for screening, clinical testing, and subsequent health management will rapidly expand.

In fact, Vietnam’s clinical testing market was approximately USD 1.84 billion in 2024 and is expected to reach approximately USD 6.79 billion by 2030, with a CAGR of approximately 24.31% from 2025 to 2030. The opportunities extend across a wide range of areas, including testing equipment, reagents, health screening center operations, and data management systems.

Aging Population and Lifestyle Diseases Expand the Preventive Healthcare Market

Demand-side structural changes are also supporting preventive healthcare. Non-communicable diseases such as cardiovascular disease, cancer, chronic respiratory diseases, and diabetes account for approximately 80% of deaths. Particularly for hypertension and diabetes, the number of untreated patients remains high, creating significant demand for early detection and regular testing. In addition, Vietnam is aging rapidly, and within the next 10 years, more than one in five citizens is expected to be over the age of 60. The need for regular health checkups, chronic disease monitoring, cancer screening, and long-term preventive care is steadily increasing.

Supporting this demand, adoption of AI, electronic medical records, and smart hospitals is also progressing. Improved early detection accuracy enables continuous risk monitoring and personalized health management. Testing and diagnostic equipment, healthcare screening business support, corporate health management services, and digital health are all areas where Japanese companies can leverage their strengths.

Promising Market ⑤ Premiumization of Baby Products and Postpartum Care

Even as Birth Rates Decline, Spending per Child Continues to Increase

The baby-related market is characterized by the simultaneous decline in birth rates and expansion of market value. In 2025, the total fertility rate was 1.93, and the share of the population aged 0–14 declined to 22.8%. Nevertheless, spending per child continues to increase, particularly among urban and middle-income households. Parents are increasingly prioritizing criteria such as organic products, imported goods, enhanced nutrition, low allergens, and safety certifications, showing a stronger willingness to invest in children’s health and development.

Figure: Baby Care Product Market Size (2025, 2026, 2031) / CAGR 4.9%

Source: Mordor Intelligence

The market is shifting away from growth based on volume expansion toward growth driven by quality, safety, and premium nutrition. The baby care products market is expected to expand at an annual average rate of 4.9% from 2026 to 2031, while the infant formula market is expected to grow from USD 1.30 billion in 2026 to USD 1.59 billion in 2031. The reputation of Japanese products for safety and quality will become a clear advantage in this market.

Postpartum Care Is Growing as a High-Value Service

The service side is developing even faster. Vietnam’s first self-proclaimed five-star postpartum care center has emerged, offering 14-day and 28-day programs starting from VND 198 million that combine hotel-level accommodation, childcare support, nutrition management, breastfeeding assistance, recovery care, and medical monitoring. Private hospitals are also expanding services into premium delivery packages (VND 59.9–69.9 million) and postpartum support. Postpartum care is evolving beyond basic healthcare into an integrated model combining medical care, recovery, nutrition, and hospitality. Japanese postpartum care expertise and facility operation know-how have strong compatibility with this emerging market.

Semiconductors, Data Centers, and Logistics Are Also Promising Areas Over the Next Five Years

Beyond consumer-facing sectors, there are many promising themes over the next five years. In semiconductors and advanced electronics, Vietnam has established national strategies targeting more than 50,000 highly skilled workers by 2030, more than 300 design companies, three manufacturing plants, and 20 packaging and testing facilities by 2050. A USD 1.5 billion-scale testing facility by a major electronics manufacturer is scheduled to begin operation in 2027. The trend toward increasing added value from assembly-focused operations to design, testing, and precision manufacturing is strengthening.

Data centers and AI-related infrastructure are also continuing to expand. Under the target of increasing the digital economy to approximately 30% of GDP by 2030, the data center market is expected to grow from approximately USD 1.04 billion in 2025 to approximately USD 3.19 billion in 2031 (CAGR approximately 20.5%), creating broad related demand ranging from power equipment and cooling systems to cloud migration support. The cybersecurity market is also expected to expand from USD 310 million in 2025 to USD 701 million in 2031.

Logistics, cold chain, and industrial real estate are also showing steady growth. The freight and logistics market is expected to grow from USD 55.5 billion in 2026 to USD 76.39 billion in 2031 (CAGR 6.6%), while the cold chain market was approximately USD 1.2 billion as of 2024 and is forecast to grow approximately 9% annually through 2030. In 2025, approved FDI exceeded USD 38 billion, while realized FDI reached USD 27.62 billion, the highest level in five years, supporting continued demand for industrial parks and Ready-Built Factories (rental factories that are already completed and ready for immediate operation or occupancy, commonly used in overseas industrial parks in Southeast Asia).

Five Promising Markets in Vietnam for 2027 and Key Points to Consider

The five promising sectors toward 2027 are retail and food service, experience-based consumption, GX and climate change solutions, healthcare and wellness, and baby products and postpartum care. What these sectors share are three driving factors: renewal of living infrastructure through urbanization, changes in spending structures driven by rising income, and support from government policies and public funding. All are rooted in structural changes expected to continue over the next five years.

However, the fact that a market is promising does not necessarily mean that a company can succeed in it. Even within the same retail or food service sector, outcomes will differ depending on target cities, price ranges, and partner selection. Before entering the market, companies should verify through primary information the size and growth rate of target segments, competitive landscape, regulations and licensing requirements, and capabilities of local partners.

B&Company has provided market research and market entry support in Vietnam for 20 years and has completed more than 700 projects. From estimating market size and conducting competitor and channel research to consumer research and identifying and arranging meetings with potential partners, B&Company can provide support tailored to each stage of consideration. Companies considering their next move in the Vietnamese market are welcome to consult with us.

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