Grocery chain Bach Hoa Xanh opens 1st store in Hanoi, takes cautious northern Vietnam expansion approach

Bach Hoa Xanh, a grocery chain operated by Vietnam’s leading retailer Mobile World Investment Corporation (HoSE: MWG), has opened its first store in Hanoi, marking entry into one of the country’s most competitive consumer markets.

The first outlet was launched in Yen Tang village in Da Phuc commune on the outskirts of Hanoi, close to neighboring Bac Ninh province where the retailer already operates 12 stores.

Despite entering a metropolitan area with nearly nine million residents, Bach Hoa Xanh management said the company intends to prioritize expansion in provinces surrounding Hanoi rather than directly challenging entrenched urban competitors in the city center.

The retailer plans to expand gradually across northern provinces in order to optimize supply chains and logistics operations before scaling further into the capital.

Bach Hoa Xanh has accelerated store openings in northern Vietnam after entering Ninh Binh province last year. The company views the region as a major long-term growth driver amid rising urbanization and growing consumer demand for modern retail formats.

According to its website, the chain currently operates a northern region network of 69 stores in Ninh Binh province, 34 in Hung Yen province, 20 in Hai Phong city, and five in Quang Ninh province, in addition to its existing footprint in Bac Ninh. The company currently operates 2,968 stores nationwide.

The cautious approach reflects the operational complexity of Hanoi’s retail market, where WinMart, operated by Masan Group, dominates the supermarket segment with hundreds of large and small-format stores across the city.

Bach Hoa Xanh recorded revenue of VND13.1 trillion ($497.87 million) in the first quarter of 2026, up 19% from a year earlier, driven primarily by fresh food and FMCG sales.

The chain opened 280 new stores during January-March, with around 18% located in northern Vietnam and 14% in central region. The rapid pace underscores its determination to meet its target of opening 1,000 new stores in 2026.