K-distribution networks in Vietnam are tightening quickly. More consumers are enjoying Korean-style lunchboxes and ready-to-eat meals at GS25 convenience stores and experiencing K-food and K-beauty brands at Lotte's mixed-use malls. Domestic distribution and food corporations that see Vietnam not as a simple production base like in the past, but as a "second consumer market," are accelerating their push into the country.
As of the 11th, according to the distribution and food industries, domestic corporations are pouring efforts into expanding local distribution networks and consumer touchpoints in Vietnam. They are building product manufacturing, logistics, and distribution brand experiences together on the ground. The reasons corporations are focusing on Vietnam include its young demographic structure and changing consumption patterns. Vietnam is a market of 100 million people. Among them, the share of younger consumers under 40 with strong purchasing power accounts for more than half. On top of that, as delivery platforms and mobile consumption rapidly become part of daily life, spending centered on convenience stores, ready-to-eat meals, and franchises is also rising. According to Singapore venture capital (VC) Momentum Works, the size of Vietnam's delivery app (online food delivery) market (by gross merchandise value, GMV) stood at $2.1 billion (about 3.0477 trillion won) last year, up about 19% from a year earlier.
Recently, food delivery platforms have expanded into quick commerce areas such as grocery runs and convenience store delivery, intensifying competition in day-to-day consumption. Global market research firm Mordor Intelligence estimates that Vietnam's quick commerce market stood at $810 million (about 1.1756 trillion won) last year and is expected to grow to $1.32 billion (about 1.9158 trillion won) by 2030. Local platforms such as Grab and Shopee are also widening their quick commerce reach to include convenience stores, ready-to-eat meals, and daily necessities.
In response, domestic corporations that have entered Vietnam are competing to build distribution networks that move directly into local consumers' daily routes. That is because the spread of delivery apps, quick commerce, and mobile consumption has intensified competition among daily-life consumption channels such as food, ready-to-eat meals, and shopping. A distribution industry official said, "Vietnam's consumption culture is shifting into a lifestyle platform where a single smartphone connects everything from food delivery orders to grocery runs and convenience store delivery," adding, "Ultimately, the core competitive edge lies in how many touchpoints you secure in consumers' everyday lives."
In particular, the industry says domestic corporations' Vietnam strategies have changed from the past. Beyond producing products at local factories for export, they are putting more weight on distribution networks and the brand experience itself by moving directly into local consumers' living areas.
◇ K-distribution and food companies moving into everyday life in Vietnam
A prime example is Lotte Group. Shin Dong-bin, chairman of Lotte Group, visited Hanoi, Vietnam, on Apr. 23 to inspect Lotte Mall West Lake Hanoi and Lotte Center Hanoi. Lotte Mall West Lake Hanoi is an integrated mall combining Lotte Department Store, Lotte Mart, Lotte Hotel, and an aquarium. According to Lotte, cumulative visitors to Lotte Mall West Lake Hanoi surpassed 30 million since its 2023 opening. Last year's sales reached about 600 billion won.
The convenience store sector is also speeding up its push into Vietnam. According to GS Retail, which operates the GS25 convenience store chain, the number of GS25 stores opened in Vietnam totaled 422 as of the first quarter of this year, with expansion focused on major cities such as Ho Chi Minh City and Hanoi. In particular, it is strengthening its appeal to younger local consumers by highlighting Korean-style lunchboxes, ready-to-eat foods, and private brand (PB) products.
A distribution industry official said, "Vietnam's young consumers tend to consume the brand experience itself rather than make simple purchases," adding, "That is why experiential consumption strategies that combine food, K-content, and entertainment are spreading."
Food companies are also diversifying their approaches to Vietnam. CJ CheilJedang teamed up with Vietnam's No. 1 retail chain, "Bách Hóa Xanh," to spread K-food. Orion is accelerating its push into the Vietnamese market by expanding localized products such as the rice snack "An" and adding factory capacity, while Daesang is expanding K-food categories such as gim (seaweed), kimchi, and tteokbokki and strengthening its local production system.
OTOKI is strengthening its push into the local ramen and sauce markets based on production hubs in northern and southern Vietnam, while Paldo Co. is focusing on ramping up ramen and beverage output by expanding its second local plant. Recently, Harim also obtained approval to export samgyetang products to Vietnam and is moving to tap the local market.
Among others, café franchise The Venti opened its third store at "Pearl Plaza," a key commercial district in Ho Chi Minh City, offering localized menus and K-café space experiences, while Shinsegae Department Store held a K-beauty showcase in Hanoi to expand local partnerships. LF Corp.'s men's brand Maestro is also expanding stores around Hanoi's premium retail districts.
A food industry official said, "Competition to weave Korean-style lifestyles themselves into local consumers' daily lives is entering full swing. The corporations that seize this first are more likely to gain an edge as K-consumption expands going forward," adding, "For the time being, domestic corporations entering Vietnam will pursue strategies that penetrate local consumers' everyday routines."
Hwang Yong-sik, a professor in the Department of Business Administration at Sejong University, said, "If the past focused on production bases or localization strategies, recently it has evolved into embedding consumption experiences tied to Korean content in the local market. Strategies that strengthen Korean content and Korean elements have become more important," adding, "In particular, in Vietnam, where younger consumers make up a large share, brand scalability will grow when K-content combines with daily consumption."