6 Common Operating Expenses for Retail Businesses in Vietnam—And How to Optimize Them Without Cutting Quality
- Hieu Do
- 14 hours ago
- 4 min read
For CEOs and founders of FDI-backed retail SMEs in Vietnam, managing costs isn't about cutting corners—it’s about building efficient operations that scale without draining your team or disappointing your customers.
Whether you’re running a lifestyle brand with a growing presence on Shopee, TikTok Shop, and other e-commerce channels, or managing several concept stores across Vietnam, you’ve likely felt the pressure: increasing operating costs, higher customer expectations, and the challenge of doing more with less.
In this article, we explore six common cost centers for retail SMEs (under 50 staff) and share how savvy business leaders are optimizing these areas—without sacrificing quality, customer experience, or internal culture.
1. Inventory That Ties Up Cash
Over-ordering, slow-moving stock, or expired goods can quietly freeze your working capital. Without proper tracking, teams often rely on guesswork or past seasons to plan stock.
How to fix?
Use real-time sales data to guide reordering decisions.
Prioritize your top-performing 20% of products, which often generate 80% of your revenue—this is known as the 80/20 rule.
Set clear stock aging limits and monitor turnover cycles to avoid markdowns and write-offs.
Local Tip: Local tools like KiotViet or Haravan are built for Vietnam’s market and help retail teams manage inventory across both online and offline sales channels.
2. Labor Costs That Don’t Match Store Traffic
Staffing without insight into actual foot traffic leads to overstaffing during quiet hours—and poor service during peak times.
How to fix?
Track sales by time of day to adjust schedules.
Cross-train employees to handle multiple roles, so you're not over-reliant on hiring.
Hold short weekly team check-ins to uncover pain points in daily routines.
3. Siloed Online and Offline Operations
Managing in-store and e-commerce operations separately leads to duplicated work, inconsistent customer experiences, and more admin.
How to fix?
Integrate customer profiles, stock, and sales reporting across channels.
Build shared workflows so your online and offline teams speak the same language.
Standardize key processes like order confirmation, fulfillment, and post-sale support.
In Vietnam, internal communication often happens via Zalo or Facebook Messenger—quick, but messy. Clear SOPs and defined update times can reduce confusion without changing your entire system.
4. Logistics and Delivery Waste
Without route planning or bulk coordination, last-mile delivery and returns can become a serious profit leak—especially with multiple store locations or nationwide shipping.
How to fix?
Group deliveries by area to reduce fuel and time costs.
Set clear return/exchange guidelines to minimize handling overhead.
Incentivize in-store pick-up to drive foot traffic while cutting delivery fees.
5. Marketing That Doesn’t Convert
Retail brands often spend heavily on digital ads (Facebook, TikTok, Instagram) without tracking which campaigns actually drive sales or loyalty.
The Fix:
Prioritize conversion data over impressions.
Use small A/B tests to guide bigger campaign decisions.
Build referral and loyalty programs to increase lifetime customer value with lower spend.
6. Tech Tools That Outpace the Team
SMEs sometimes adopt tech too early or without clear workflows, leading to tools that confuse teams, duplicate tasks, or go unused.
The Fix:
Before adding tech, make sure your internal process is stable and well-understood.
Choose software that fits your current workflow—not the other way around.
Do a quarterly audit: What’s being used? What overlaps? What adds real value?
Tech should support a strong process—not try to replace one. For small teams, clearly defined roles and routines often deliver more impact than the latest tool. For growing teams, solid processes lay the foundation for effective tech integration.
What the Best Retail Leaders Are Doing Differently
Smart FDI-backed founders in Vietnam aren’t focused on slashing budgets—they’re focused on:
Making informed, data-driven decisions
Simplifying workflows to free up team capacity
Aligning internal operations before scaling externally
Investing in training and systems that scale with the business
It’s not about doing more—it’s about doing the right things, better.
Final Thought: Operational Excellence Is the Quiet Advantage
Many CEOs think operational improvements need to be large-scale or tech-heavy. But in reality, it’s often three or four subtle shifts—how you plan your schedules, structure your internal updates, or reduce repetitive tasks—that have the biggest ROI.
The difference between surviving and scaling is in the structure you build beneath your growth.
Get More Tips Like These, Tailored for FDI Retail Leaders in Vietnam
At SOSP Consulting, we support FDI-backed retail and F&B SMEs in Vietnam through operations consulting and team training that helps you work smarter—not just harder.
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