Asian brands drive demand for HCMC retail space

HCMC's retail property market continues to attract Asian brands in food and beverage, fashion and lifestyle, supporting high occupancy rates as some existing tenants scale back.

According to CBRE Vietnam, The Matcha Tokyo, Yamazaki, Wilson and Lukfook expanded in central HCMC in the third quarter of 2026. Demand for suburban retail space also increased among Vietnamese, Chinese and Japanese brands.

The trend follows a broader expansion by Asian retailers earlier this year. Savills reported that sportswear, cosmetics and lifestyle brands including Pop Mart, AAPE, New Era, Wilson and Salomon selected major HCMC malls in the first half of 2026 to reach younger consumers. Food and beverage businesses accounted for around 30-40% of new leasing transactions at many malls.

The expansion has helped sustain occupancy. Knight Frank Vietnam put the occupancy rate for prime retail space at 96.6% in the third quarter, up 2.4 percentage points year-on-year.

Shoppers at a mall in HCMC. Photo by VnExpress/Quynh Tran

CBRE reported that vacancy in central HCMC fell to 2.85%, compared with 4.8% in areas outside the center.

Asking rents in non-central areas reached US$57.9 per square meter per month, up 8% year-on-year, reflecting stronger demand in new residential areas and large shopping malls.

Consumer spending has also supported retail expansion. HCMC's total retail sales of goods and consumer service revenue reached nearly VND1.49 quadrillion (US$57.80 billion) in the first nine months of 2026, up 13.8% year-on-year, according to city statistics. Retail sales of goods alone rose 17.2%.

International brands are increasingly prioritizing store locations, customer access and shopping experiences alongside securing retail space.

HCMC has approximately 1.3 million square meters of retail space. Knight Frank reported no new prime retail developments in the third quarter and expects limited new supply before 2027.

However, Cushman & Wakefield forecasts that the city could add around 286,500 square meters of retail space between 2026 and 2029, mostly outside the center.

Asian brands are expected to continue supporting retail demand, but not all developments will benefit equally.

Properties with strong foot traffic, suitable tenant mixes and distinctive shopping experiences are better positioned to attract retailers, while new suburban supply could intensify competition among malls.