❄️ Shift to Malls from Street Retail
Vietnam has seen a rapid transition from traditional street shops to shopping malls, driven by climate considerations and urban planning shifts.
🏬 Mall Types & Expansion
- Retail spaces fall into regional and community malls (10,000–30,000 sqm with 50–100 stores), dominating Ho Chi Minh City and Hanoi.
- Since 2014, super-regional suburban malls have emerged, boosting suburban township values.
🌟 Prime vs Non-Prime
- About 50% of net leasable area (NLA) in HCMC is classified as prime malls with strong tenant mixes and solid footfall.
- Leading developers include Aeon, Vincom, and Keppel Land, highlighting a concentrated and professional retail sector.
📊 Supply & Demand Dynamics
- Retail space per capita in HCMC and Hanoi remains among the lowest in Southeast Asia, indicating strong demand.
- The middle class is expanding rapidly: Oxford Economics projects 27 million new middle-class consumers by 2030.
🏪 Retailer Strategies & Innovation
- Brands like Uniqlo and Muji act as anchor tenants using shared-revenue arrangements, lifestyle-focused concepts, and immersive experiences.
- In contrast, more traditional brands (especially in beauty) favour cautious growth in city centres.
🔮 Strategic Insights
- Developers and retailers must balance prime city centre opportunities with suburban growth potential.
- Success hinges on experience-driven formats, tenant adaptability, and willingness to explore emerging suburban markets.
🧭 Summary
Vietnam’s retail real estate is thriving, characterized by:
- A strategic shift to modern malls
- A growing middle class and unmet retail demand
- A professionalized sector gaining competitive depth
- Innovative retailer models adopting lifestyle focus
