Hanoi continues to strengthen its position as a retail hotspot, with several new shopping centres set to launch. (Photo: Dantri)
The Ministry of Industry and Trade forecasts that in 2025, the retail market is projected to reach 350 billion USD, contributing 59% of the total state budget.
The retail sector is experiencing positive growth, driven by government initiatives to stimulate domestic consumption, support business activities, and expand the local market.
Key growth factors include a large and young population, an expanding middle class, rising young affluent consumers, the rapid growth of e-commerce, increasing tourists, and strong investment from global brands.
A survey by Savills Vietnam found that compared to Thailand, Indonesia, or Singapore, Vietnam’s retail market is still developing. However, it has made significant strides post-COVID-19.
Previously, many Vietnamese consumers preferred shopping abroad, especially in Bangkok, due to the strong presence of international brands.
As domestic demand rises, more global brands recognise the potential for expansion in Vietnam. With a young population and strong purchasing power, the country is becoming an attractive destination for major retail corporations.
Over the period 2025–2030, the market is expected to post stronger growth, positioning Vietnam as a key competitor among leading markets in the region.
Meanwhile, the total retail supply in major cities like Hanoi and Ho Chi Minh City remained stable the fourth quarter of 2024.
In HCM City, total supply increased by 1% quarter-on-quarter and 6% year-on-year.
Similarly, Hanoi’s retail supply remained stable quarterly, with a 2% increase year-on-year. Shopping malls continued to dominate the market, accounting for 63% of the total supply.
The market also saw the emergence and expansion of new-generation retail centres, integrating diverse amenities to enhance customer experiences.
Matthew Powell, Director of Savills Hanoi, said that consumers are entering 2025 with a cautious mindset, as evidenced by the consumer confidence index remaining at 54%. Furthermore, 41% of consumers show a decline in savings. Inflation continues to shape shopping behaviour, driving spending towards essential categories such as education, food, and healthcare, while non-essential purchases see a downturn.
Consumers are also becoming increasingly price-sensitive, prioritising promotions and cost-effective shopping options. However, a segment remains willing to pay for premium products, particularly beauty, fashion, and personal electronics.
These shifts pose significant challenges for retailers in maintaining purchasing power and adjusting their business strategies. Experts suggest that brands must balance price optimisation, enhancing customer experience, and tapping into the premium consumer segment.
Hoang Nguyet Minh, Senior Director of Commercial Leasing Department under Savills Hanoi, said Hanoi continues to strengthen its position as a retail hotspot, with several new shopping centres set to launch.
Following the success of Lotte Mall in 2023, 2025 will see the opening of Hanoi Centre by Keppel, which is expected to deliver similar results. The market will further heat up in 2026 Thiso Mall and Toshin at Starlake.
Investments from leading corporations such as Aeon, Lotte, and Keppel will attract more international brands and drive consumer spending, contributing to the strong growth of Hanoi’s retail market in 2025-2026.
Regarding the southern market, Tu Thi Hong An, Senior Director of Commercial Leasing at Savills HCM City, commented: “Due to a shortage of new supply, the southern retail market has seen strong growth driven by diversification in sales channels and the influence of technology and consumer trends. Shopping malls continue to maintain high occupancy rates.
However, they must remain dynamic and innovative through ongoing renovations to stay competitive in a crowded retail landscape. This is a key driver for major shopping centres and introduces appealing business models and services for consumers”.
