Shaping the future of Vietnam’s e-commerce market with AI solutions

Alex Luu of Centric Software spoke about how AI and young consumers serve as contributing factors in revolutionising the retail landscape in Vietnam. 

Valued at a striking US$22b, Vietnam’s e-commerce and retail industry is experiencing a transformation and has surged to become the third-largest in Southeast Asia. Its growth is expected to head in an upward direction, with projections of reaching nearly triple its current figure, surpassing regional giants like Thailand. 

Alex Luu, Regional Director of Centric Software in Vietnam and Philippines, spoke to Retail Asia, underscoring how the new generation of digital-first consumers and the powerful technologies such as AI are fuelling this massive growth. 

Keeping up with young shoppers

With nearly 70% of Vietnam’s population under 40, the country’s retail scene is being driven by millennials and Gen Z. These consumers are not only young—they are tech-savvy, brand-conscious, and value-driven. 

Luu pointed out how these age groups expect a shopping experience that goes far beyond just price tags and are leaning towards convenience, personalisation, and brands that reflect who they are. He further noted that these young shoppers care about sustainability, limited-edition collections, and the stories behind the products they buy—a preference that presents both a challenge and an opportunity for businesses. 

“Younger consumers are moving away from the big chain retailers. They want to have a limited edition, story-driven brand that aligns with their value and helps them express who they are,” Luu said.

“With this, I think retail has to change and has to transform itself to adapt to this new core consumer base,” he added.

For retailers, this means rethinking their traditional retail approaches—from product development and pricing to customer engagement.

AI-powered dynamic pricing

Meeting these fast-evolving demands would need speed and insight, and Luu regards AI as the “game-changer” and the most efficient solution to this. 

Vietnam’s modern consumers no longer care if a product is trendy. Instead, they give more attention to details, including product components, eco-friendly packaging, and manufacturing details. 

Traditionally, retailers relied on separate systems (e.g. POS, CRM, and sales reports) to try to piece together customer behaviour. However, as Luu pointed out, that approach is too slow. 

AI allows brands to capture and act on data instantly, whilst also offering deep insights into consumer behaviour, pricing trends, competitor actions, and more, all in real time. Instead of guessing, brands can plan strategically with data they trust.

“It's no longer about setting the competitive price lower than your competitor. It is also about catching up with the market trend earlier so they can translate them into the product faster than ever to capture the sales momentum,” Luu stated.

In Vietnam, where the diversity between urban and rural shoppers is significant, AI helps businesses understand and respond to different needs more effectively. Gen Z shoppers in Ho Chi Minh City may want bold and fashion-forward products, whilst their counterparts in smaller cities might prefer practical and budget-conscious items.

AI doesn’t just provide answers, it generates millions of potential scenarios based on current trends, historical performance, and emerging signals. This technology helps retailers fine-tune their inventory, assortment, pricing, and marketing strategies—factors that are far too complex to manage manually.

Centric Software leads the way

Being a global leader in product lifecycle management (PLM), planning, pricing, and market intelligence solutions tailored for retailers and brands, Centric Software offers retailers an end-to-end solution that brings everything from planning to pricing together on one intuitive platform.

By unifying data from across the organisation, Centric makes it easier for companies to collaborate and move faster. Once the data is organised and accessible, AI can be applied to deliver real-time insights that drive smarter decisions.

“What Centric Software can do is have retailers move with agile, make smarter decisions, and stay relevant in the market, where the consumer expectation evolves daily,” Luu said.

Vietnam’s retail landscape continues to evolve, and success will only be exclusive to the brands that adapt and innovate. Gen Z and millennial shoppers have redefined what it means to connect with a brand, so companies should embrace technology like AI to lead the next chapter of growth.

With solutions like those from Centric Software, retailers can not only survive but thrive in this fast-paced environment. To know more about Centric Software, visit them at https://www.centricsoftware.com.