According to the General Statistics Office, total retail sales of goods and consumer services in the last quarter of 2024 increased by 9.3% year-on-year. 

In 2025, the retail market is projected to reach US$350 billion, contributing 59% of the total national budget. 

Vietnam’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 Vietnam’s retail and commercial leasing sectors. 

“Compared to Thailand, Indonesia, or Singapore, Vietnam’s retail market is still developing. However, it has made significant strides post-COVID-19," said Matthew Powell, Director of Savills Hanoi. 

"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 Vietnam. 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 Vietnam as a key competitor among leading markets in the region.” 

Savills' data indicates that the total retail space supply in major cities like Hanoi and Ho Chi Minh City remained stable the fourth quarter of 2024. In HCM City, total supply increased by 1% quarter on quarter and 6% year on year. 

Meanwhile, Hanoi’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. 

“Vietnam Retail 2025” provides valuable insights into the growth of Vietnam’s retail sector, equipping investors, businesses, and retailers with the knowledge needed to shape effective strategies. 

At this event, 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, Vietnam’s retail sector continues to record year on year 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 Vietnam’s retail sector. 

Hanoi 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 with the participation of 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 Hanoi’s retail market in 2025-2026. 

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, according to Savills experts. 

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, experts suggested.

Vietnam retail on cusp of change

The Vietnamese retail industry is on the cusp of great change, experts say.