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The process of global economy integration leads to a multi-faced competition between Vietnam retail companies and foreign competitors. The purpose of this article is to propose the development trend of the distribution channel of domestics retail business in the early stage of the integration into the World Trade Organization. Through analyzing primary and secondary data, the article uses an apropriate model to study factors favorable for the development of distribution channels. It can be seen clearly that the domestic retailers are facing great opportunities and need to capture them to lay the foundation for setting competitive advantages before the penetration and business extension of foreign enterprises in the Vietnam retail business sector.