Demand for prime retail space on the rise in HCMC's downtown: Savills Vietnam

Savills data reveals that F&B, sports, and cosmetics retailers led leasing activity across the region in the second half of 2023. Outdoor retailers are also expanding, while entertainment and experience-based brands are taking up more space in shopping centers.

According to the company’s statistics, retailers in F&B (food and beverage), sports and cosmetics led leasing activity across the area in the second half of 2023 and the first months of 2024.

Savills Vietnam noted that retail activity in Ho Chi Minh City was stable with occupancy rates remaining unchanged at 92.5% quarter-on-quarter.

By category, fashion had 50% of transactions, followed by F&B with 20%, and health and beauty with 15%.

Giang Huynh, Deputy Director of Savills Research & S22M, held that the HCM City retail market is on a strong growth trajectory driven by several positive factors, including rising income and population prospects, continuously improving retail quality, and economic development.

According to Statista, a German online platform that specialises in data gathering and visualisation, the Vietnamese luxury goods market had revenue of $957.22 million in 2023. The industry is forecast to generate revenue of $992.20 million in 2024, up 3.65% year-on-year.