Ha Noi, 27 February 2025 – Savills is hosting the “Viet Nam Retail 2025: Opportunities in Real Estate” event at L7 West Lake Ha Noi by Lotte, Tay Ho District, Ha Noi. The event is proudly sponsored by three leading real estate firms: Masterise Homes, Keppel, and OSI Holdings (Oriental Square). Under the theme “Opportunities in Real Estate,” the event brings together top experts across Asia-Pacific in retail, commercial leasing, real estate development, and key related industries. Discussions focus on emerging market trends, growth opportunities, and strategies for retail expansion in Viet Nam, providing valuable insights for businesses looking to tap into the country's dynamic retail sector.
According to the General Statistics Office, total retail sales of goods and consumer services in Q4/2024 increased by 9.3% year-on-year (YoY). In 2025, the retail market is projected to reach US$350 billion, contributing 59% of the total national budget. Viet Nam's 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 affluent young consumers, the rapid growth of e-commerce, increasing tourism, and strong investment from global brands. These elements significantly contribute to Viet Nam's retail and commercial leasing sectors.
Matthew Powell, Director of Savills Ha Noi, commented: "Compared to Thailand, Indonesia, or Singapore, Viet Nam’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 Viet Nam. With a young population and strong purchasing power, the country is becoming an attractive destination for major retail corporations. Over the period 2025–2030, we expect even stronger growth, positioning Viet Nam as a key competitor among leading markets in the region.”
Savills Q4/2024 data indicates that the total retail space supply in major cities like Ha Noi and Ho Chi Minh City remained stable. In Ho Chi Minh City, total supply increased by 1% quarter-on-quarter (QoQ) and 6% YoY. Meanwhile, Ha Noi’s retail supply remained stable quarterly, with a 2% annual increase. Shopping malls continued to dominate the market, accounting for 63% of the total supply. The market also saw the emergence and expansion of next-generation retail centres, integrating diverse amenities to enhance customer experiences.
In this dynamic and competitive market, keeping up with industry developments, in-depth analyses, market outlooks, and key factors influencing brand expansion is essential. “Viet Nam Retail 2025” provides valuable insights into the growth of Viet Nam’s retail sector, equipping investors, businesses, and retailers with the knowledge needed to shape effective strategies.
Matthew Powell, Director of Savills Ha Noi, stated: “Viet Nam’s retail market is undergoing rapid transformation. Through “Viet Nam Retail 2025”, in partnership with leading real estate developers such as Masterise Homes, Keppel, and OSI Holdings, and featuring expert insights from key figures in retail, real estate, and related sectors, Savills aims to deliver meaningful analysis and forecasts. Our goal is to help businesses seize opportunities and confidently navigate the challenges ahead.”
Asia-Pacific Retail Market Overview
Commenting on the retail market in the APAC region, Nancy Wong, Senior Manager, Research & Consultancy at Savills APAC, stated that retail sales are expected to maintain their growth momentum in 2025. Among APAC countries, Viet Nam’s retail sector continues to record YoY growth, ranking second only to India.
Additionally, international tourist arrivals in the region are set to improve further in 2024, with many destinations forecast to fully recover by 2025. This will positively contribute to the growth of Viet Nam’s retail sector.
Before the pandemic, mainland China was the most significant source market for regional tourism. However, a decline in visitor numbers from this market has led to an overall contraction in the APAC tourism sector.
Regarding the retail outlook, Wong anticipates that demand for retail space in 2025 will be driven by food and beverage brands, sports fashion, fitness, and wellness concepts. This trend is largely attributed to the increasing focus on healthy lifestyles and the rising popularity of outdoor activities.
On the challenges front, escalating geopolitical tensions may disrupt supply chains and heighten global economic uncertainty. Moreover, policy shifts under the new US administration led by Trump are introducing further unpredictability. Despite these factors, the retail leasing market is expected to show relatively positive prospects in the short term, with a gradual recovery anticipated across most markets in 2025.
Understanding Consumer Behaviour
Ralf Matthaes, Managing Director of IFM Research, observes that consumers are entering 2025 with a cautious mindset. Consumer confidence remains at 54 index, while 41% of consumers noted 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.
Meanwhile, the rapid shift towards e-commerce continues to reshape shopping habits, particularly among younger consumers for essential goods. To adapt, retailers need to invest in digital platforms, optimise the customer journey, and foster loyalty through seamless shopping experiences.
Viet Nam Real Estate Market Overview
Neil MacGregor, Managing Director of Savills Viet Nam, provided an analysis of the macroeconomic landscape, the performance of individual real estate segments, and the key drivers shaping Viet Nam’s property market.
Viet Nam’s retail sector remains vibrant, with the strong expansion of supermarket chains and F&B brands. Meanwhile, demand in central areas has surged, driven by the entry of luxury brands.
In other segments, MacGregor highlighted the growing trend of office relocations to non-central areas, coinciding with an increase in new supply. The hospitality sector is experiencing a robust recovery, supported by a surge in travel demand in 2024, while a significant pipeline of future supply is set to reshape the market.
Meanwhile, supply is gradually improving, yet sales prices remain high. The secondary market has shown strong growth, particularly in emerging Tier-2 cities. In the villa and townhouse segment, the increasing supply of high-end projects has intensified competition with more affordable private homes.
According to experts, factors such as rising remittance inflows and a growing number of millionaires are also influencing the real estate market.
Valuable Lessons from the Shanghai Retail Market
Stephanie Lau, Senior Manager, Retail Tenant Rep at Savills China, highlights two key trends shaping Shanghai’s retail landscape: the rapid rise of athleisure and the shift of retailers from shopping malls to high-street stores.
Athleisure - blending sportswear with everyday fashion - is gaining significant traction in China, reflecting changing consumer lifestyles. Brands like Lululemon, a pioneer in this segment, are expanding aggressively to meet the growing demand for stylish yet functional apparel.
Another notable shift is the increasing number of international brands moving away from shopping centres to establish standalone stores on prime shopping streets such as Nanjing Road. Brands like Gentle Monster, Aesop, and Supreme are expanding their high-street presence to strengthen brand visibility, create immersive retail experiences, and foster direct customer engagement. According to Lau, this strategy enables brands to have greater control over store design, marketing initiatives, and revenue optimisation by capitalising on high footfall locations.
These trends offer valuable insights into the Viet Nam market. As consumer behaviour evolves, retailers in Viet Nam can consider expanding high-street store formats in key locations to enhance brand awareness and customer experience. Additionally, tapping into the growing athleisure trend presents an opportunity, as local consumers increasingly prioritise a blend of fashion, convenience, and an active lifestyle.
Impact of Legal Factors on Viet Nam’s Retail Market
At the event, Tran Manh Hung, Managing Partner at BMVN International LLC, provided key legal updates affecting the retail sector, including the impact of international commitments, business location trends, and government restructuring.
Under the CPTPP roadmap, the Economic Needs Test (ENT) requirement was initially set to be lifted on 15 January 2024. However, its removal has been repeatedly delayed, creating challenges for businesses seeking expansion. The expert also highlighted legal hurdles related to retail locations, from ownership rights to complexities in obtaining construction permits and fire safety certifications.
Additionally, ongoing government restructuring - including the planned merger of the Ministry of Finance and the Ministry of Planning and Investment, alongside adjustments in market regulation structures - is expected to slow down licensing procedures. On the other hand, the pilot decentralisation programme for retail licensing in Ho Chi Minh City is seen as a breakthrough, offering opportunities to drive growth and streamline approval processes for retailers nationwide.
Workforce and Hiring Challenges in the Retail Sector
Nguyen Thu Trang, Brand Director of Manpower, ManpowerGroup, shared insights on labour market trends and recruitment challenges. According to Manpower’s survey, over 76% of employers in the APAC region struggle to find skilled talent. To attract and retain employees, businesses are implementing various strategies, including salary increases, more flexible policies on working hours and locations, enhanced internal training, and an expansion of temporary workforce hiring.
Trang analysed that the turnover rate in the retail sector is currently 25%, which places significant pressure on businesses. Key soft skills that employers seek include adaptability, a problem-solving mindset, teamwork, and creativity. Additionally, there is a growing demand for skills in customer experience management, digital technology, and data analysis.
The Future of Viet Nam’s Retail Property Market
Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Ha Noi, and Tu Thi Hong An, Senior Director of Commercial Leasing at Savills HCMC, shared insights and forecasts on the retail property market’s outlook.
The discussion covered total supply, occupancy rates, and future growth potential. Notably, a comprehensive retail property map detailing shopping centres, retail podiums, and malls was unveiled, providing brands with a clearer understanding of expansion opportunities in Viet Nam.
Experts also examined the demand across various segments, including shophouses, retail podiums, shopping centres, and department stores. Key factors such as tenant interest, occupancy rates, service costs, and the advantages and limitations of each retail format were analysed in depth.
The two experts also provided an overview of major cities in northern and southern Viet Nam, highlighting expansion opportunities for retail brands. Minh commented: “Ha Noi 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 Ha Noi’s retail market in 2025-2026.”
Regarding the southern market, An 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”.
“Viet Nam Retail 2025” event is proudly supported by Viet Nam’s leading real estate developers.
Masterise Homes
Over the past decade, Masterise Homes has made its mark with a portfolio of high-end to ultra-luxury real estate projects. Beyond delivering exceptional quality, the company has set a global benchmark as the first and only Vietnamese developer to place Viet Nam on the world’s branded real estate map, boasting the country’s largest collection of branded residences.
By forging strategic partnerships with leading global brands, Masterise Homes curates an elevated living experience that appeals an international clientele. In addition to shaping the residential market, the developer has played a pivotal role in advancing Viet Nam’s luxury retail landscape. Its premium commercial spaces, such as the highly anticipated Marina Central Tower, are set to redefine Grade A office and high-end retail offerings in Ho Chi Minh City.
Keppel
As a global asset manager and operator from Singapore, Keppel is renowned for its commitment to sustainable urban development. Over past three decades, Keppel has grown into one of the largest foreign investors in Viet Nam with a high-quality portfolio, including Grade A offices, residential properties, retail malls, integrated townships and serviced apartments that redefine modern living in Ha Noi and Ho Chi Minh City. With a strong presence in Viet Nam, Keppel continues to shape the sustainable future of real estate with innovation and excellence. Hanoi Centre shopping mall, Keppel’s upcoming retail development at 175 Nguyen Thai Hoc, Ba Dinh, Ha Noi, is set to be a major retail destination in the heart of the capital.
OSI Holdings
OSI is an integrated real estate developer committed to delivering high-quality, sustainable projects that add long-term value to Viet Nam’s urban landscape. Currently, OSI is the reputable investor behind Oriental Square – the first Grade A building to be completed in the Starlake area. With a strong presence in Ha Noi, Ho Chi Minh City, and other emerging regions, OSI continues to set new benchmarks in real estate development.