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PHOTO: VIET TUAN
Continued influx

Hanoi’s retail market constantly confirms its appeal with the
arrival of many international brands, though space issues remain.

| By MINH HOA

he Vietnamese market, both gen- ment is experiencing increased vibrancy one of the factors driving the growing
erally and specifically Hanoi, is with the expansion and opening of new interest of international brands in this
T becoming a popular destination stores. Premium brands are strategically market.” She also highlighted another cru-
among international brands, ranging from utilizing single-store locations in prime areas. cial factor contributing to the market’s
fast fashion to luxury and high-end retail. In Hanoi, particularly in the Hoan Kiem appeal: compared to neighboring countries
According to real estate consultants Savills, area, notably along streets like Ngo Quyen, such as Singapore, Thailand, and Indonesia,
the retail market in 2024 and 2025 is Ly Thai To, and Trang Tien, there has been the presence of international brands in
expected to become even more dynamic, a continuous influx and expansion of high- Vietnam is still limited. “This presents a
with Vietnam being recognized as a focal end brands since 2021. Notable names significant opportunity for brands looking
point in Southeast Asia for international include Louis Vuitton, Dior, Berluti, Tiffany to expand into the market, especially when
retail entities looking to expand their oper- & Co., Maje, Longchamp, and, most recently, taking their first steps here,” she explained.
ations, driving significant market demand. Piaget and Watches of Switzerland. According to the General Statistics Office
According to the Commercial Leasing of Vietnam (GSO), in the first eleven months
MAJOR BRANDS APPEARING Office at Savills Hanoi, both Vietnam in of 2023, the total retail sales of goods and
Hanoi is attracting attention as a hotspot general and Hanoi specifically are becoming consumer services nationwide at current
for retail development due to its rapid ideal destinations for international brands. prices reached VND5.66 quadrillion
urbanization, high population density, “Vietnam has emerged in the post-Covid- ($231.86 billion), a 9.6 per cent increase
rising number of households with average 19 period as a market of potential with compared to the same period of 2022.
incomes, and large workforce. These strong strong allure,” said Ms. Hoang Nguyet Notably, service revenue from accommo-
fundamentals have generated enormous Minh, Senior Director of Commercial Leas- dation and dining rose 15.3 per cent, while
retail demand in the capital’s market. ing at Savills Hanoi. “The increase in revenue from tourism grew 50.5 per cent.
Simultaneously, the high-end retail seg- domestic consumer spending is considered The retail sales of goods in the first eleven

40 | VIETNAM ECONOMIC TIMES | JANUARY 2024 en.vneconomy.vn