Retail real estate market witnesses surge in new projects

July 31, 2023 | 09:18
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The retail real estate market in Vietnam is gearing up for a significant growth spurt as several major players from both local and foreign shores embark on a series of ambitious ventures across the country.
Retail real estate market witnesses surge in new projects

Noteworthy entrants such as MM Mega Market, Central Retail, and AEON Group are leading the charge in the retail landscape, opening new shopping centres and supermarkets with an eye on the promising prospects of Vietnam's retail sector.

Among the notable developments is AEON's substantial investment of $250 million in a 30,000 square-metre shopping centre project situated along the National Highway No.22 in Hoc Mon district, Ho Chi Minh City. This project is set to bolster AEON's presence in the Vietnamese market and enhance its offerings to local consumers.

South Korean retail giants are also making significant strides in Vietnam, capitalising on the strengthening bilateral ties between the two countries. Lotte Group, in particular, is making headlines with its largest-ever project in Vietnam, an expansive 354,000sq.m complex.

With a soft opening on July 28, and an official inauguration on September 22, Lotte Mall West Lake Hanoi will house an impressive array of 233 brands, with 25 making their debut in the Vietnamese market, and 28 marking their entry into the bustling capital of Hanoi. Additionally, the complex will showcase 32 flagship stores, further enriching the retail landscape in the region.

The ambitious venture will include the Lotte World Aquarium, covering over 9,000sq.m and boasting the distinction of being Hanoi's largest indoor aquarium. Moreover, the aquarium will house the largest acrylic dome aquarium in Southeast Asia.

Beyond Lotte's endeavours, the Vietnamese retail landscape is seeing an active revamp and expansion by local players such as Vincom Retail and Kido Group. Vincom Retail, with its robust business and operational plans, is poised to introduce two new shopping centres this year. These centres, namely Vincom Mega Mall Grand Park in Thu Duc, Ho Chi Minh City, and Vincom Plaza Ha Giang in Ha Giang, are set to cover a combined retail floor area of 55,000sq.m.

Vinhomes Corporation recently unveiled its ambitious Mega Grand World project. The multifaceted complex, nestled in Hanoi's Ocean City, is projected to span nearly 18.7 hectares and accommodate over 800 commercial shop units. With an impressive 35,000sq.m already under active trading, even before its scheduled December 2023 launch, Mega Grand World is garnering considerable attention.

As the retail market flourishes with a blend of domestic and foreign players, SonKim Retail, a prominent Vietnamese enterprise, has secured a substantial $20 billion investment contract with International Finance Corporation (IFC). The collaboration is aimed at fuelling SonKim Retail's expansion plans for its GS25 store network in Vietnam from 2022 to 2025. This strategic move signals the company's dedication to bolstering its presence in the region and capitalising on opportunities presented by the thriving retail landscape.

With an influx of retail real estate projects backed by both local and foreign investors, Vietnam's retail sector is poised for an exciting period of growth. These developments are poised to not only transform the retail landscape but also contribute significantly to the country's economic development in the foreseeable future.

Foreign investors flock to Vietnam's real estate market Foreign investors flock to Vietnam's real estate market

Vietnam's real estate sector has emerged as a highly desirable destination for international investors, ranking second only to the manufacturing and processing industry, with over 1,100 projects amounting to $66.4 billion of foreign investment.

South Korean retailers extend reach South Korean retailers extend reach

South Korean companies are showing significant interest in Vietnam’s flourishing retail sector, seeking to seize opportunities presented by the nation’s robust economic growth and sizable working-age population.

By Tri Lam

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