Limited Supply, Increasing Competiton: The Evolution Of HCMC’S Retail Market

Table of CONTENt 1. HCMC continues to attract international brands 2. Consumer experience as the competitive edge

HCMC’s retail market enters a new phase

HCMC’s retail market remained relatively stable in Q1/2026 despite limited new supply entering the market. As high-quality retail space becomes scarce, the sector is gradually entering a new competitive phase, where consumer experience and brand positioning are becoming more important for landlords and tenants. 

Market performance during the first three months of the year showed that constrained supply continued to influence rental rates, occupancy levels, and expansion strategies among retailers. 

According to Savills Q1/2026 Market Report, total retail supply in the city remained at 1.6 million m2 across 160 projects, with no significant new developments launched. 

Although leasing activity softened slightly following the exit of several large F&B and entertainment tenants in non-central areas, overall occupancy remained above 90%. This reflects the continued appeal of projects with strong locations, efficient operations and the ability to generate stable footfall. 

Average ground-floor rents declined marginally QoQ to VND 1.6 million/m2/month, due to temporary closures of several high-rent areas at Saigon Marina IFC for space restructuring. Excluding this factor, overall rental levels remained broadly stable. 

According to Savills, future supply until 2028 is expected to add only 50,000 m2 of new retail space. As a result, competition for quality retail locations is expected to intensify further. 

Despite the limited supply in Q1/2026, consumer spending continued to provide positive support for the retail market. 

In the first quarter, total retail sales and consumer service revenue in HCMC reached VND 475 trillion, growing 13% YoY. According to projections from the People’s Committee, this growth could continue at an average of 12–13% annually through to 2030. 

The continued strength of consumer spending is encouraging many brands to expand their store networks, particularly within large-scale shopping centres. 

HCMC continues to attract international brands  

Savills observed that many international brands continue to view the city as a key market within their Viet Nam expansion strategies, particularly in fashion, sportswear and premium retail segments. 

Central locations remain the preferred choice for luxury brands due to their strong brand visibility and access to high-spending consumer groups.

Alongside European and American retailers, many Asian brands are also expanding their presence, particularly in athleisure, cosmetics and lifestyle categories. Brands such as Wilson, Pop Mart, Salomon, AAPE and New Era are selecting major shopping centres to strengthen their presence and engage younger consumers before expanding further across regional markets. 

According to Tran Pham Phuong Quyen, Senior Manager, Retail Leasing, Savills HCMC, international retailers are no longer simply seeking retail space, but are increasingly prioritising projects that can support brand positioning and deliver a consistent consumer experience. 

Quyen shares, “International brands today prioritise projects capable of generating high-quality footfall and supporting long-term brand positioning strategies. For many retailers, shopping centres are no longer just places to sell products, but also spaces to build experiences and connect with consumers.”  

Consumer experience as the competitive edge 

Alongside the expansion of international brands, domestic retailers are also rapidly increasing their presence within shopping centres, particularly across F&B, café and lifestyle segments. 

Savills data shows that the F&B sector currently accounts for approximately 30 to 40% of new leasing transactions across many shopping centres. Local brands such as Nagocha, Every Half Coffee Roasters and Phê La are expanding through concepts that place greater emphasis on customer experience and spatial design. 

At the same time, concepts such as pop-up stores, brand activations and themed experiential spaces are becoming increasingly common as retailers seek to strengthen direct engagement with consumers. 

According to Quyen, the retail market is seeing increasingly clear differentiation between shopping centre models. Projects capable of continuously refreshing their tenant mix, maintaining experiential activities and establishing a distinct consumer destination will hold stronger competitive advantages in the long term. 

As consumers place greater emphasis on experience-led retail, shopping centres are evolving beyond traditional retail into spaces for entertainment, interaction, and social connection. With new supply expected to remain limited over the next few years, market competition is likely to shift further from the quantity of space to the ability to create compelling consumer ecosystems and sustain long-term appeal for both tenants and shoppers. 

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