CB Richard Ellis (CBRE) Vietnam Director, Richard Leech, says there will be an increased number of premises for the retail market in Hanoi in 2011 with an additional area of 228,000sq.m compared to 2010.
Renowned trademarks penetrate Vietnam
Retail sales rose by 30 percent in 2010 which attracted many domestic and foreign investors to expand their trading. Retail sales centres are mainly concentrated in the Old Quarter and western area of Hanoi. The average GDP growth in Hanoi and Ho Chi Minh City is around 10 percent per year.
Mr Leech says higher incomes provide more chances for customers to shop at high quality commercial centres, but premises for retail sales still remain the same at 118,480sq.m.
Hang Da Market, which is scheduled to open in August 2011, has now completed its long-term hiring and plans to hire more for the short-term. Pico Hall, which will open in April, 2011 has already leased 70 percent of its premises. Vincom currently finished repairing while Trang Tien Plaza will be repaired in the near future. Meanwhile a series of well-known brand names plan to penetrate the Vietnamese market soon, including Aldo, Chopard, Dr.Marten. Restaurant and food services, market chains and electronics shops continue to grow rapidly.
2011 will see many more internationally known retail brand names appear in Vietnam, Mr Leech says.
Vietnamese consumers are familiar with commercial centres and supermarkets, however, smaller shops will still be popular in the city centre because of convenient transportation and brisk trade.
Due to limited venues in the centre, retail sellers have to expand their trading in the west of the city. Big retail sales centres in Dong Da, Cau Giay, Tu Liem and Ha Dong precincts will give the Hanoi’s retail market a facelift in the future.
With increasing demand and the rapid growth of urban residential areas, large-scale commercial centres will become popular in the future.
Savico Hanoi Company has announced the building of Savico Mega Hall on an area of 46,399 sq.m on Nguyen Van Linh Road, Gia Lam district, with an initial investment of more than US$25 million. Savico Megal Hall will be Hanoi’s biggest commercial centre when it is completed in November 2011. Half of the Savico Mega Hall retail space has already been rented. This is the first major independent shopping centre to be built in Vietnam according to the North American model. It will meet the demands of a modern life, according to Mr Leech.
Mr Leech adds that the supply of retail market space will have a breakthrough because of big projects such as Keangnam, with a total space of 62,000sq.m, and Pico Mall with an area of 30,000sq.m.
Many other projects to supply space for the retail market will be implemented in the future including Royal City with 230,000sq.m, Ciputra Shopping Mall (120,000sq.m) and U-Silk City (146,896sq.m).