Vietnam retail market overview in Q1/2025

In Savills Q1/2025 Market Brief, the retail market in Vietnam has witnessed notable developments in terms of supply, rental rates, occupancy, and leasing demand across the two major cities: Ho Chi Minh City and Ha Noi.

1/ Ho Chi Minh City retail market in Q1-2025

Limited new supply

The new retail supply in Ho Chi Minh City saw modest growth in Q1/2025, increasing by only 1% quarter-on-quarter (QoQ) and 6% year-on-year (YoY), bringing the total retail area to 1.6 million square meters. This growth was mainly attributed to the official opening of Centre Mall Vo Van Kiet in District 6, which significantly contributed to the market's total area.

In the remaining nine months of 2025, Ho Chi Minh City is expected to welcome an additional 66,244 square meters of retail space from five upcoming projects. Despite ongoing challenges such as limited land availability and high development costs, it is notable that future supply in the central area accounts for the majority share, reaching 52%. Two major shopping mall projects—Marina Central Tower and Lancaster Legacy—are expected to be key contributors to this future supply. By 2027, the total future retail supply in the city is forecasted to reach approximately 150,270 square meters, reflecting the market’s long-term growth potential.

Stable retail occupancy rate

In Q1/2025, Ho Chi Minh City’s retail space maintained a stable occupancy rate compared to the previous quarter, recording a 2% YoY increase to reach 94%. Notably, occupancy in shopping malls increased slightly by 0.1% QoQ, offsetting a 1 percentage point decline in the occupancy of retail podiums. The year-on-year improvement was largely driven by strong leasing demand from sectors such as food & beverage (F&B), entertainment, home appliances, and furniture, alongside robust absorption at new developments.

Centre Mall Vo Van Kiet emerged as a new market highlight, opening with an impressive occupancy rate of 88%. Large tenants, each leasing over 500 square meters, accounted for 35% of the mall’s total leased area. These major tenants are primarily operating in four high-potential segments: entertainment, education, health & beauty, and home appliances & furniture—indicating the mall’s appeal and diversity in attracting leading brands.

Upcoming retail market trends

During Q1/2025, the average ground-floor rental rate in Ho Chi Minh City stood at VND 1.4 million/m²/month, representing a slight QoQ decline of 0.2% but a significant 9% YoY increase. The quarterly decrease was largely attributed to the relatively lower rental rates at the newly launched Centre Mall Vo Van Kiet. When excluding this project, the average market rent would have actually increased by 0.4% QoQ. 

The street-front retail segment is currently facing stiff competition from modern retail formats, particularly shopping malls. These malls offer a more diverse range of goods and services, attracting a larger consumer base. 

This trend is evidenced by the launch of several large-scale malls over the past three years—including Thiso Mall Sala, Parc Mall, Vincom Mega Mall Grand Park, and Centre Mall Vo Van Kiet—all of which achieved occupancy rates of at least 70%. In contrast, vacancy rates in street-front retail spaces have been rising, highlighting a shift in consumer shopping habits and the growing appeal of modern retail models. 

According to the Ho Chi Minh City Statistics Office, the total retail sales of goods and services in Q1/2025 reached VND 317 trillion, marking an impressive 14% YoY growth. Of this total, the retail of goods accounted for the largest share—approximately 46%—with a value of VND 147 trillion.

Outlook for the ho chi minh city retail market

To achieve the Ministry of Industry and Trade’s target of an 18% increase in total retail sales of goods and services in 2025, Ho Chi Minh City will need to focus on strictly controlling the quality of goods circulating in the market. Simultaneously, the city should enhance its export activities and effectively implement price stabilization programs for essential commodities, in order to stimulate and sustain consumer purchasing power.

2/ Ha Noi retail market in Q1-2025

Supply decline

An analysis of the supply structure shows the dominance of shopping malls in Ha Noi's retail property market. Currently, shopping malls account for the majority share of total retail supply, making up 63%.

In contrast, retail podiums—typically located on the ground floors of mixed-use buildings—contribute 17% of total retail supply. Department stores, which are generally larger in scale, represent only a small fraction, around 3%. This distribution highlights that shopping malls remain the primary format of retail real estate in the market.

Rental growth and fluctuating occupancy 

The retail market recorded notable improvements in rental rates during the past quarter. Ground-floor gross rents increased by 2% QoQ and a more remarkable 6% YoY. 

The main driver of this rental growth came from department stores, where rents surged by 14% YoY. Meanwhile, both shopping malls and retail podiums saw steady growth, each recording a 7% YoY increase. Notably, rental rates in the city center experienced a sharp jump, rising by 37% YoY to reach VND 4.5 million/m²/month. 

Shifts in retail leasing trends in Ha Noi 

The rising popularity of convenience stores is clearly illustrated by GS25’s aggressive expansion, opening six new outlets in Ha Noi during this quarter alone. In addition, the Fashion & Cosmetics sector has seen several successful leasing transactions in major shopping malls. 

Both domestic and international brands—including Pedro, Adidas, and May 10—have actively expanded their footprints by launching new stores, reflecting the strong appeal of this sector within the current retail landscape.

Fire safety regulations and their impact on retail

In this context, many small-scale retailers are facing considerable challenges in complying with the updated 2024 fire safety regulations for traditional townhouse-style properties. This has prompted a noticeable shift: smaller retailers are increasingly opting to lease space in modern shopping centers. 

These malls are typically developed and managed according to current fire safety standards, providing a safer and more professionally managed business environment. This trend is expected to reshape the city's retail market, with a growing concentration of commercial activity within large-scale, regulation-compliant retail complexes. 

Ha Noi prepares for a wave of major retail developments

 Looking ahead to 2026, the city is poised to welcome two major retail giants: Vincom Mega Mall Global Gate and the Grand World Commercial Complex. These projects are anticipated to form a multifunctional destination offering rich global culinary experiences, unique cultural discoveries, vibrant entertainment, captivating art exhibitions, extensive shopping options, and large-scale events. 

The emergence of these landmark developments is expected to significantly transform the retail landscape of Ha Noi, offering consumers more diverse and modern choices. 

“Leasing demands are shifting from F&B to Fashion & Cosmetics. Upcoming mega projects will deliver first-time experiences to Ha Noi consumers.” – Hoang Nguyet Minh, Senior Director, Commercial Leasing, Savills Ha Noi. 

Outlook for retail supply expansion in Ha Noi by 2027

The growth in supply is forecast to continue through 2026 and 2027. During this period, Ha Noi’s retail market is expected to gain an additional 257,670 square meters of leasable floor space from nine different projects. This substantial increase underscores the strong development potential of Ha Noi’s retail sector in the coming years, promising a dynamic and competitive market environment.

See more details in the Q1/2025 Market Brief from Savills just released.