According to the General Statistics Office, in 2023, total retail sales of goods and consumer service revenue at current prices reached VND 6,231.8 trillion, up 9.6% over the previous year, of which retail sales of goods were estimated at VND 4,858.6 trillion, accounting for 78% of the total and up 8.6% over the previous year.
In the first quarter of 2024 alone, total retail sales of goods and consumer service revenue at current prices is estimated at VND 1,537.6 billion, up 8.2% over the same period last year.
In the face of such a vibrant market situation, according to the new real estate market report published by the Vietnam Real Estate Association (VARS), the occupancy rate of shopping malls has also improved, exceeding 90% with rental prices maintaining positive growth momentum.
Specifically, in the Hanoi market, the rental price of shopping malls is still maintained at a price range of 45-60 USD/m2/month.
For the leading bustling economic market like Ho Chi Minh City, the central area maintains a high price of up to 140 USD/m2/month. The suburban areas also have a slight increase in price, approaching 40 USD/m2/month.
The bustling shopping center is constantly attracting customers.
Speaking at the company's 2024 annual general meeting of shareholders, Vice Chairman of Vincom Retail Tran Mai Hoa said about future retail trends and which shopping mall models have good cash flow potential. Ms. Mai Hoa said that the structure of professional retail customers still choose shopping malls as the optimal option due to many factors.
Specifically, the cost of selling on online channels is relatively high; the habits of Vietnamese people in particular and Southeast Asian countries in general still prefer to experience shopping at shopping malls; not only selling goods, shopping malls also integrate places to eat, drink and have fun, so they are still places that attract customers to shop directly....
From the business perspective, Vincom Retail leaders believe that the economy and business environment in 2024 will be more prosperous than in 2023, so the retail market will continue to maintain its recovery momentum. The retail real estate rental segment is still expected to bring in a large source of revenue for the business in 2024.
Stimulate consumption from customer psychology
Expressing his views on the above situation, Mr. Nguyen Van Dinh - Chairman of VARS said that retail is one of the most dynamic economic sectors in Vietnam, capable of maintaining continuous and impressive growth rates for decades.
At the same time, after the Covid-19 pandemic, when a series of industries were severely affected, stagnant and up to now have not been able to recover, at the beginning of 2022, the retail industry immediately sent out signals of rapid recovery.
According to published data, for the whole year of 2022, total retail sales of goods and consumer service revenue are estimated at VND 5,679.9 trillion, up 19.8% over the previous year and up 15% over 2019 - the year before the Covid-19 pandemic.
"That shows that the commercial retail real estate market in Vietnam is still very attractive with a lot of room and potential for development," Mr. Dinh commented.
VARS Chairman said that retail is one of the most dynamic economic sectors in Vietnam.
In a more detailed analysis, VARS representative said that Vietnam possesses many factors capable of stimulating demand for the retail real estate rental segment.
Firstly, rapid population growth, urbanisation and income growth have created a huge demand for real estate, especially in the retail sector, as people seek more convenient living and shopping spaces.
Meanwhile, investment policies to improve transport infrastructure, including highway and urban railway construction projects, are facilitating more movement and connectivity between urban areas.
In particular, regarding consumer psychology, Mr. Dinh believes that consumers in Vietnam are becoming increasingly intelligent and have high demands for shopping experiences. They not only look for quality products but also demand diversity and convenience in purchasing.
This creates opportunities for retailers to develop new business models, including integrated shopping malls, dedicated entertainment and dining areas and product experience stores.
Multi-channel strategy is becoming more popular
Regarding the market supply outlook for the period 2024 to 2026, Savills Vietnam's report said that retail supply is expected to increase by 247,601 square meters from now to 2025, with four more shopping malls and 11 retail podiums.
Ms. Hoang Nguyet Minh - Senior Director, Commercial Leasing Department, Savills Hanoi believes that the retail market trend in the coming time will be shaped by factors such as increased spending on services, moving towards sustainable and environmentally friendly stores, along with a focus on providing unique experiences for customers.
In addition, the combination of online and offline shopping through multi-channel retail strategy is also becoming popular, providing a flexible and convenient shopping experience for customers.
Vietnam's retail real estate market in 2024 will face both opportunities and challenges.
However, the expert also emphasized that the prospect of Vietnam's retail real estate rental market in 2024 will face both opportunities and challenges.
On the one hand, the supply of retail real estate for lease is still limited, and reputable developers are holding the majority of high-quality supply, especially in the city center areas. This requires retailers to build good relationships and be willing to pay higher rents to access prime locations.
On the other hand, the number of reputable developers offering high-quality projects in suburban areas is increasing, creating opportunities for retailers to have more choices in terms of location and affordability.
Additionally, the challenge of limited supply in city centre areas persists, with only 0.4% of future supply located in the CBD, requiring retailers to continue to seek solutions and be flexible in their choice of locations and business models .
Source: https://www.nguoiduatin.vn/tiem-nang-but-toc-nao-cho-mang-bds-ban-le-viet-nam-trong-nam-2024-a663229.html
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