In the remaining nine months this year, the city is expected to welcome an additional 66,244 sq m of retail space from five upcoming projects, the London-based real estate services company said in a blog overview of the country’s retail market.
The city’s retail space maintained a stable occupancy rate in Q1 2025 compared to the previous quarter, recording a 2-per cent YoY increase to reach 94 per cent.
New retail space supply in Ho Chi Minh City saw modest growth in Q1 2025, increasing by only 1 per cent quarter on quarter and 6 per cent YoY, bringing the total retail area to 1.6 million sq m, according to Savills.
The city’s retail space maintained a stable occupancy rate in Q1 2025 compared to the previous quarter, recording a 2-per cent YoY increase to reach 94 per cent.
Notably, occupancy in shopping malls increased slightly by 0.1 per cent QoQ, offsetting a 1 percentage point decline in the occupancy of retail podiums.
The street-front retail segment is currently facing stiff competition from modern retail formats, particularly shopping malls. These malls offer a more diverse range of goods and services, attracting a larger consumer base.
According to the Ho Chi Minh City statistics office, the total retail sales of goods and services in Q1 2025 reached VND 317 trillion, marking an impressive 14-per cent YoY growth. Of this, the retail sales of goods accounted for the largest share—approximately 46 per cent—with a value of VND 147 trillion.
To achieve the ministry of industry and trade’s target of an 18-per cent rise in total retail sales of goods and services in 2025, Ho Chi Minh City will need to focus on strictly controlling the quality of goods circulating in the market.
Simultaneously, the city should enhance its export activities and effectively implement price stabilisation programmes for essential commodities to stimulate and sustain consumer purchasing power, Savills recommended.
Hanoi is also preparing for a wave of major retail developments. The growth in supply is forecast to continue through 2026 and 2027. During this period, the city’s retail market is expected to gain an additional 257,670 sq m of leasable floor space from nine different projects.
Fibre2Fashion News Desk (DS)
