The latest figures on retail estate space suggest that Hanoi may becatching up with Ho Chi Minh City as the country’s most attractivedestination for retail development. Report by the Vietnam InvestmentReview.
According to the latest report from CBREVietnam, Hanoi has more total retail space than Ho Chi Minh City despitethe smaller population. Hanoi is home to around one million squaremetres of retail space, while Ho Chi Minh City has less than half ofthis total, at just 450,000 square metres.
The gapbetween the two cities will become even larger in 2015 when Hanoi is dueto have up to 2.2 million square metres, triple Ho Chi Minh City’spredicted total.
This low quantity of retail spacein Ho Chi Minh City has led to higher than average rents and limitedchoice for those seeking retail outlets.
Foreigncompanies looking to enter the Vietnam market, have typically beguntheir operations in Ho Chi Minh City due to its reputation as thecountry’s economic hub. However, these traditional conceptions may bechanging due to the recent growth of Hanoi.
“Hanoi isthe rising star, and we see that there is a shift of investment trendto the northern provinces of Vietnam, particularly Hanoi,” said RichardLeech, executive director of CBRE Vietnam.
BothStarbucks and Burger King are continuing their expansion plans, whileAuchan, one of the world’s largest hypermarket chains, is consideringchannelling 500 million USD into Vietnam over the next 10 years.Meanwhile, burger giant McDonald’s will enter the Vietnam market in2014.
Leech revealed that in March next year,Central Group, a renowned Thai retailer, will setup operations inHanoi’s Vincom MegaMall Royal City.
“This will causea remarkable change to Hanoi’s retail market because Central Group willbring hundreds of famous brands,” he predicted.
Anumber of large-scale retail developers are present in Vietnam. Thedomestic firm Vincom, owner of the new Vincom MegaMall Royal City enjoysvery high occupancy rates of around 95 percent.
InHo Chi Minh City, Coopmart is listed among the top 500 Asian retailers.The group is expanding to Hanoi later this year when they will opentheir second centre in the country which will supply more than 10,000square metres of retail area.
Singaporean retailerFairprice and Saigon Co.op have also received approval for a commercialjoint-venture and will open two supermarkets named Co.opXtra andCo.opXtraPlus in the near future.
The Koreancompany Lotte has been gradually consolidating its presence in Vietnamwith four centres already operating in Ho Chi Minh City, Dong Nai and DaNang. The fifth Lotte centre will be opened at the beginning of nextyear in Hanoi’s Mipec Tower, while the Lotte Hanoi Centre, its firstprivate Hanoi complex, will be opened in the second quarter of 2014.Lotte also has unveiled its plan to open 60 supermarkets in Vietnam by2020.-VNA
According to the latest report from CBREVietnam, Hanoi has more total retail space than Ho Chi Minh City despitethe smaller population. Hanoi is home to around one million squaremetres of retail space, while Ho Chi Minh City has less than half ofthis total, at just 450,000 square metres.
The gapbetween the two cities will become even larger in 2015 when Hanoi is dueto have up to 2.2 million square metres, triple Ho Chi Minh City’spredicted total.
This low quantity of retail spacein Ho Chi Minh City has led to higher than average rents and limitedchoice for those seeking retail outlets.
Foreigncompanies looking to enter the Vietnam market, have typically beguntheir operations in Ho Chi Minh City due to its reputation as thecountry’s economic hub. However, these traditional conceptions may bechanging due to the recent growth of Hanoi.
“Hanoi isthe rising star, and we see that there is a shift of investment trendto the northern provinces of Vietnam, particularly Hanoi,” said RichardLeech, executive director of CBRE Vietnam.
BothStarbucks and Burger King are continuing their expansion plans, whileAuchan, one of the world’s largest hypermarket chains, is consideringchannelling 500 million USD into Vietnam over the next 10 years.Meanwhile, burger giant McDonald’s will enter the Vietnam market in2014.
Leech revealed that in March next year,Central Group, a renowned Thai retailer, will setup operations inHanoi’s Vincom MegaMall Royal City.
“This will causea remarkable change to Hanoi’s retail market because Central Group willbring hundreds of famous brands,” he predicted.
Anumber of large-scale retail developers are present in Vietnam. Thedomestic firm Vincom, owner of the new Vincom MegaMall Royal City enjoysvery high occupancy rates of around 95 percent.
InHo Chi Minh City, Coopmart is listed among the top 500 Asian retailers.The group is expanding to Hanoi later this year when they will opentheir second centre in the country which will supply more than 10,000square metres of retail area.
Singaporean retailerFairprice and Saigon Co.op have also received approval for a commercialjoint-venture and will open two supermarkets named Co.opXtra andCo.opXtraPlus in the near future.
The Koreancompany Lotte has been gradually consolidating its presence in Vietnamwith four centres already operating in Ho Chi Minh City, Dong Nai and DaNang. The fifth Lotte centre will be opened at the beginning of nextyear in Hanoi’s Mipec Tower, while the Lotte Hanoi Centre, its firstprivate Hanoi complex, will be opened in the second quarter of 2014.Lotte also has unveiled its plan to open 60 supermarkets in Vietnam by2020.-VNA
