In the developing countries the modern retail sector is capturing an increasing market share. The implications of this for farmers is an important topic among researchers, policymakers and donors. In this paper, we provide an insight into the retail marketing system for vegetables and the actors in Hanoi at the time when supermarkets first started to expand. While supermarkets have arrived in Vietnam, their share of the total food retail turnover is still rather limited, especially for fresh vegetables. The most important retail system for vegetables is the 12,000 traditional retailers in the wet markets and street vendors. Based on surveys carried out in 2003, we analyse the characteristics of different types of wet markets and retailers in both urban and peri-urban areas. We discuss how the current retail system is likely to change because of the rise of supermarkets and what the impact on actors will be. The paper ends with recommendations for traditional retailers and policymakers about how the competitiveness of the traditional retail sector can be improved.
