Central Retail has announced an investment of $1.45 billion to expand its presence in Vietnam, and AEON Mall plans to open 30 AEON Mall and 100 AEON MaxValu Supermarket in Hanoi, while WinCommerce plans to open another 1,000 stores. At the same time, Saigon Coop sets the target of being the leading company in supermarket retail segment.
The recent report on the retail market in Ho Chi Minh City for the first quarter of 2023 released by Cushman & Wakefield shows that there has not been new supply on the market. The trend of renovating and restructuring premises is still ongoing in many shopping centers with the desire to improve rental efficiency and improve tenant planning, thereby upgrading and repositioning the shopping center.
Therefore, the occupancy rate has increased slightly to 90% compared to the previous quarter but still low compared to the same period last year. This is due to the facts that the new supply of Thiso Mall building is still in the process of being filled, many retail spaces are temporarily closed due to tenants entering or undergoing renovation, and some shopping centers are in the process of being upgraded and rearranged.
Rents still grew thanks to upgraded retail spaces, along with the overall improvement of the retail market, reaching $50.50/m2/month, up 2.4% QoQ and up 7 .1% over the same period last year.
Cushman & Wakefield recorded a wave of expansion of the fashion industry after a period of slowing down. Specifically, the 5th MUJI store (2,000m2) has been opened and at least 2 new stores are under plan in the coming time. Meanwhile, the 16th UNIQLO store (1,700m2) opened on March 30. AEON's 17th store will be opened at AEON Mall Tan Phu Celadon (1,600m2).
In addition, Cushman & Wakefield also recorded a market share race between domestic and international giants. Specifically, Central Retail has announced an investment of $1.45 billion in the period 2023-2027, setting a target of 600 stores in 2027, complying with environmental and sustainability standards. AEON Mall plans to expand 30 AEON Mall by 2030, 100 AEON MaxValu Supermarket in Hanoi by 2025 and expand into fast fashion with the brand My Closet (September 2022).
Similarly, Mega Market also opened 3 new supply warehouses within the last 12 months in Sa Pa (May 2022), Binh Thuan (July 2022), and Thanh Hoa (March 2023).
Meanwhile, WinCommerce plans to open 1,000 more stores and achieve a 25% increase in store revenue this year, and at the same time shift to small models (multi-convenience stores, mini supermarkets) in both urban and rural areas. Saigon Coop sets the goal of being no.1 in supermarket retail by promoting digitalization and e-commerce, integrating AI technology to understand customers and improve experience.
A recent report by the Ministry of Industry and Trade shows that Vietnam's retail industry currently has a market size of $142 billion, and the market is forecast to grow to $350 billion by 2025, contributing 59% of GDP.
In fact, domestic enterprises still dominate with about 70-80% of selling points across the country. There are big names with thousands of points of sale such as WinMart, Co.op Mart, Bach Hoa Xanh, etc. However, the fact that foreign retailers pour capital into the Vietnamese market also puts certain pressure on the market share of domestic retailers. This also motivates Vietnamese businesses to find ways to compete.
Compiled by VietnamCredit