Policy reforms to unlock outlet malls and duty-free shops with a 2030–2045 vision for Vietnam

Speaking at the consultation workshop on the project “Developing outlet models and duty-free shops in Vietnam through 2030, with a vision to 2045,” Mr. Tran Huu Linh, Director of the Department of Domestic Market Management and Development, said that developing outlets and duty-free shops is not only about expanding distribution channels, but also a crucial shift toward a modern retail ecosystem, with spillovers to logistics, tourism and services.

Vietnam’s retail growth, but outlets still not established

Retail in Vietnam has maintained stable growth of 8–10% from 2015–2025, yet the market still lacks truly leading models. In particular, outlets—an important distribution channel widely used worldwide—have not formed meaningfully in Vietnam and mostly exist as small, fragmented stores.

At the same time, demand from new consumer patterns is becoming clearer. By 2030, Vietnam is expected to have more than 50 million people in the middle class, described as the “golden customer” for the outlet model because they value both brand and price.

Tourism spending gap highlights room for outlet-driven shopping

Another gap lies in tourism expenditure. Currently, the average spending of international visitors in Vietnam is around $1,050–$1,150 per person, significantly lower than Thailand or Singapore. The figures point to substantial room to increase the value of shopping, a core element of modern tourism strategy.

Globally, outlet models have shown strong economic performance. In the US, the outlet market reaches about $65 billion per year and attracts millions of tourists. In Europe, outlet revenue in 2023 reached €21.4 billion with hundreds of international brands. In Asia, Japan, China and Thailand have linked outlets with experiential travel, where “outlet villages” function not only as shopping destinations but also integrate entertainment, cuisine and culture.

Duty-free models differ by region

For duty-free, each region has its own operating characteristics. The US operates under a market-based regime linked to air logistics; the EU applies strict controls under the customs union; and Korea, while strong, remains sensitive to changes in international travel.

Vietnam’s plan through 2030 and vision to 2045

Under the plan for developing outlet models and duty-free shops in Vietnam through 2030, with a vision to 2045, Vietnam aims to form at least five outlet centers in key areas: Hanoi, Ho Chi Minh City, Da Nang, Quang Ninh and An Giang (Phu Quoc). The 2045 vision includes luxury outlet villages across three regions.

The development strategy follows two main directions:

• “Premium outlet village” model on a large scale, integrated into complexes of shopping, entertainment and cultural experiences, targeting middle- and high-income customers and positioned as a tourism destination.
• Urban or suburban outlet centers with flexible scale, focusing on mainstream and mid-range brands to meet broader consumer demand and align with local land and infrastructure conditions.

Duty-free coverage targets and domestic goods share

For duty-free shops, the goal is to cover 100% of international airports and major border crossings, and to extend into inner-city tourism hubs. The new direction also allows serving both domestic travelers and those eligible for duty-free benefits.

Importantly, the plan targets raising the share of Vietnamese-made goods in these networks to 30–40%, described as a way to promote “national gifts” to the world.

Expected revenue and key policy bottleneck

The plan indicates that, if implemented effectively, these models could generate direct revenue of around VND 579,000 billion, equivalent to a 10% growth of the retail market. However, the biggest current hurdle is an incomplete policy framework.

Le Hong Thuy Tien, CEO of IPPG, highlighted a paradox: Vietnam is a major manufacturing hub but lacks a genuine outlet because of an unclear legal framework to attract international brands.

Proposed solutions from businesses

To “unlock” the market, businesses proposed practical measures, including:

• Allocating clean land to strategic investors with incentives similar to those offered in industrial zones.
• Creating a dedicated promotional policy for outlets, including deep discounts for stock held or out-of-season goods.
• Implementing electronic VAT refunds at the point of sale to improve visitor experience.

For duty-free shops, businesses proposed expanding operating space beyond airports, allowing operations in free-trade zones, and developing online sales with integrated international payment methods.

Ho Chi Minh City prepares for outlet and duty-free pilots

Locally, Ho Chi Minh City has set an objective to become a leading retail hub in ASEAN. The city aims to develop a large-scale “outlet village” complex combining shopping, services and entertainment to become a tourism-and-consumption destination.

To implement this, the city proposes piloting duty-free shopping in the city center under the “buy locally, collect at the airport” mechanism and applying a policy to select strategic investors to shorten project preparation time. The city is preparing land, improving infrastructure and related conditions, and is ready to proceed once the plan is approved.

In addition to tax and land incentives, multiple voices emphasized the urgent need to build a transparent, stable and feasible legal framework to attract investors and support the model’s sustainability.