Eleven's first Hanoi location opened in the city's Old Quarter in early June. (Photo by Yuji Nitta)

HANOI -- A battle of convenience stores is heating up in Hanoi, with Japan's 7-Eleven entering the city to take on a recent arrival, South Korean chain GS25, and market leader Circle K.

7-Eleven opened its first Hanoi location on busy Lo Su Street in the Vietnamese capital's Old Quarter last month. A local company runs the store through a franchise agreement with a subsidiary of Japanese parent, Seven & i Holdings.

The country's first 7-Eleven opened in 2017 in Ho Chi Minh City, the commercial hub where there are now 120 stores.

Hanoi's convenience store market has long been dominated by Circle K, a U.S.-Canadian store brand operated locally by a Hong Kong group. Foreign consumer brands tend to set up shop in Ho Chi Minh City first and pass over the capital.

The Old Quarter is popular among Hanoi residents and tourists. Rent for above-ground shops in the area can reach $100 to $200 per square meter per month, on par with central Tokyo.

Although many people in Hanoi shop at traditional markets, younger consumers, who are more conscious about cleanliness, are increasingly choosing modern retailers.

"I didn't know about 7-Eleven, but I came in because it was a clean and eye-catching store," said a woman in her 30s who works in an office nearby.

GS25 opened a Hanoi store in March, three months before 7-Eleven. (Photo by Yuji Nitta)

Just 80 meters from 7-Eleven's Hanoi shop is a GS25 store. The South Korean chain opened its first Hanoi location in March. Until then, it had focused on Ho Chi Minh City.

"My 9-year-old daughter likes Korean food, so she seems more interested in GS25 than 7-Eleven," said a woman. The stores stock Korean favorites like gimbap rice rolls and play music from South Korean dramas.

In both stores, the first floor is lined with product shelves, while the upper floor features a space to sit and eat. Both storefronts are narrow with long interiors.

The refrigerated corner is where each store's unique products stand out, with prepared foods, tea-based drinks and other offerings.

The bestseller at 7-Eleven is the toasted sandwich, which costs 27,000 dong (about $1) for ham and cheese.

GS25 has a wide selection of ready-to-eat lunches, including fried rice and pasta.

In Japan, 7-Eleven is known for its fresh onigiri rice balls, but in Vietnam, the onigiri are stocked frozen to increase their shelf-life, costing 17,000 dong to 19,000 dong. Customers microwave them before eating.

Prices are a little higher than local supermarkets. Many tea drinks can cost over 30,000 dong when toppings like tapioca are included. At Mixue, a tea and ice cream chain from China that is popular among young people, popular products are priced under 25,000 dong.

"Considering the price, I'm not sure that I would shop here everyday," said a person at 7-Eleven.

7-Eleven is also preparing to open a store in Capital Place, an office building that houses many Japanese companies.

Yuji Nitta