Vietnam retail shifts to AI-driven decision ecosystems

AI tools are also reshaping how shoppers choose products across retail channels.

Vietnam retail competition is shifting towards AI-driven customer decision-making and end-to-end service models, Karim Noui, president of Nguyễn Kim, said at the Retail Asia Summit Vietnam 2026.

Noui said retail is moving away from product selling towards what he described as a “decision ecosystem” covering the full customer journey, with omni-channel platforms, AI tools, financing, and after-sales services such as delivery and installation all integrated into a single system.

He added that Vietnam’s retail market is worth abrout $236b, supported by a population of 100 million and GDP growth of around 7.1%, whilst the market remains split between 30% modern trade and 70% traditional trade, leaving room for further structural change.

Shoppers are increasingly turning to AI tools for product advice before buying, including platforms such as ChatGPT, Copilot, and Gemini. Noui said around 50% of customers already use AI in some form, with about 60% of that group relying on such tools for product guidance.

He cited more advanced use cases where AI supports product selection and cost estimation, such as recommending air-conditioning units based on apartment size and estimating electricity costs.

Retail transformation, he said, is progressing through three stages: foundation, personalisation, and a full AI-driven decision ecosystem. 

The foundation stage includes data infrastructure and omni-channel systems; personalisation involves AI agents and chatbots; and the final stage embeds AI across the entire customer decision process.

Noui said competition is also shifting, with established electronics retailers such as Mobile World Group, MediaMart, and Pico remaining key players, whilst future competition will come from ecosystem builders and marketplace operators.

He added that retailers are moving away from promotion-led selling towards demand identification, with AI increasingly used to detect customer needs rather than rely on discount-driven strategies.

Regionally, he noted that about 75% of electronics sales in China are already online, whilst Vietnam’s online penetration continues to expand, with some operators doubling online sales to around 30% in two years.

Noui said retailers are now operating across physical stores, digital platforms, and social channels, with AI embedded across each stage of the buying journey.