The present paper is the first study to link the perceptions of Vietnamese consumers to the barriers and prospects related to the development of supermarkets in Vietnam by applying quantitative and statistical analysis to Hanoi consumer survey data. It is found that shopping habits related to the purchase of fresh produce in traditional markets, combined with the proximity and low prices these outlets provide, act as a major deterrent to supermarket development. Supermarkets have made considerable advances in the sales of processed food and non-food products. However, without expanding their fresh food category, lowering prices and enhancing their location convenience, supermarkets cannot expand their current position. Copyright 2007 The Authors Journal compilation 2007 East Asian Economic Association and Blackwell Publishing Ltd .
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