Ho Chi Minh – Hanoi - Danang

RETAIL
QUARTER 2 2020
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ECONOMIC OVERVIEW
Quarter 2 | Vietnam

GDP
Overall, the country's gross domestic product (GDP) recorded a 1.81% growth in the first 6 months of 2020. In the second
quarter of 2020, GDP is estimated to increase by 0.36% over the same period last year. This is the lowest growth rate in
10 years. This quarter faced certain difficulties to maintaining business operations when the Government applied the
social distancing policy to prevent the spreading of COVID-19 pandemic.
CPI
The average consumer price index (CPI) in the first 6 months increased by 4.19% compared to the same period in 2019,
this is the highest growth rate in the past 5 years. Specifically, CPI in the second quarter of 2020 has decreased by
1.87% compared to the previous quarter and increased by 2.83% over the same period in 2019. Notably, CPI in June
2020 increased by 0.66% compared to the previous month. The main reason is due to high gasoline prices in 3
consecutive sessions after a long series of declines since the Chinese New Year and pork prices continued to rise in the
first days of June.

FDI
Total foreign investment in Vietnam as of June 20, 2020, including newly registered capital, adjusted registered capital
and value of capital contribution and share purchase of foreign investors reached nearly 15.7 billion USD, down 15.1%
over the same period last year. In which, there are 1,418 newly licensed projects with the registered capital of nearly
8.5 billion USD, down 17.7% in the number of projects and up 13.8% in the registered capital against the same period
last year.
Retail sale
In the second quarter of 2020, total estimated retail sales of consumer goods and services reached USD49 billion, down
5.8% compared to the previous quarter and down 4.6% compared to the same period last year. before. For the first 6
months of 2020, total retail sales of consumer goods and services reached USD102 billion, down 0.8% over the same
period last year.
International arrival
The Government continues to apply social distance rules to prevent COVID-19 pandemic, hence, so far Vietnam has not
opened international tourism until the end of the second quarter of 2020. The source of international visitors mainly
comes from foreign experts and labors works in Vietnam, so as of June 2020, international visitors to Vietnam reached
3.7 million, down 55.8% over the same period last year. Specifically, international visitors to Vietnam in June only reached
8.8 thousand, the lowest level in many years, down 61.3% over the previous month and down 99.3% over the same
period last year.
Trade balance
In the second quarter of 2020, the export turnover reached US $ 57.98 billion, down 9% from the same period last year
and down 8.3% compared to the first quarter of this year. In the second quarter of 2020, import turnover reached
USD57.68 billion, down 9.1% compared to the same period last year and down 3% compared to the first quarter of this
year. Conclusion, Vietnam economy record a trade surplus at USD300 million.
Figure 2: Vietnam Import-Export, 2015-2021F Figure 1: Vietnam International Arrivals, 2015-2020F

Exports Imports Trade Balance International tourist arrivals Growth rate

300 20 40%
250 30%
15
million arrival

200 20%
USD billion

150 10 10%
100
0%
50 5
-10%
0
2015 2016 2017 2018 2019 2020F 2021F 0 -20%
-50 2015 2016 2017 2018 2019 2020F

Source: Colliers International Source: Colliers International

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RETAIL - HO CHI MINH

Research & Forecast Report | Colliers International

Quarter 2 | Vietnam
Performance: Current tenants got discount Figure 3: HCMC Retail, Average Asking Rent
from developer & Occupancy
Some retail centers applied a temporary 10-20% discount to
rental rate to help tenants overcome difficulties caused by Average asking rent Occupancy rate
COVID-19. The average occupancy rate was 5% higher
80.0 100.0%
compared to the same quarter last year.

Supply: No new supply 60.0 80.0%

Source: ColliersInternational
Due to severe impacts of the pandemic, there was no new
40.0 60.0%
supply in this quarter as the launch plans of retail centers were
delayed. Currently, vacant space of retail podium, department
20.0 40.0%
stores and shopping centers are 3878 sqm, 3800 sqm, and
44240 sqm respectively. 0.0 20.0%
2015 2016 2017 2018 2019 2020F
Demand: On the way to recovery
Although some shopping malls were temporarily closed in the Source: Colliers International
first month of the second quarter of 2020 (social distancing
period), retail market showed signs of growing again. Figure 4: HCMC Retail, Supply by Year
However, the development was not as strong as expected in
2019, due to the severe consequences that the pandemic Retail podium Department stores Shopping centers

brought. The source of foreign tourists was constrained 1,600,000

because the international routes for foreign tourists had not

1,200,000
opened yet, so the operation of the retail shops had not been
satisfactory.
sqm

800,000
Outlook: New retail centers tended to be
located in non CBDs 400,000
The projects scheduled to open in the second quarter were
delayed to the remaining quarters of 2020. Five new retail -
2015 2016 2017 2018 2019 2020F
centers will provide 236,000 sqm to the market if they went
according to plan. Besides, new retail centers tended to move Source: Colliers International

to District 9 in order to reach residents living far from CBDs

and contribute to the creation of new urban areas. Table 1: HCMC Retail, Supply by Year

In addition, the EVFTA agreement coming into force in August Expected

Name of
2020 seemed to encourage foreign brands to enter Vietnam District NLA (sqm) Completion
Project
Year
retail market.
Socar Sala 2 60,000 4Q2020

Elite Mall 8 42,000 4Q2020

Central Mall
9 39,000 4Q2020
West Saigon
Sense City
9 50,000 4Q2020
East Saigon
Vincom
Megamall 9 45,000 4Q2020
Grand Park
Source: Colliers International

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Table 2: HCMC Retail, Notable Properties

ARR
Occupan
Name of Completion NLA (USD/s
No Address Location cy Rate
Project/Building Year (sqm) qm/mo
(%)
Quarter 2 | Vietnam
Research & Forecast Report | Colliers International

nth)
1 Sheraton Saigon 88 Dong Khoi District 1 2003 750 120.0 98%
2 The Manor 1 91 Nguyen Huu Canh Binh Thanh 2006 2,000 22.0 100%
3 Opera View Lam Son Square District 1 2006 1,260 54.0 100%
4 Caravelle Hotel 19 Lam Son Square District 1 2007 150 105.0 100%
5 New World Hotel 76 Le Lai Street District 1 2009 1,000 92.0 100%
Hotel Continental Sai
6 132-134 Dong Khoi District 1 2009 200 90.0 95%
Gon
8 mPlaza Saigon 35 Le Duan District 1 2009 6,830 60.0 92%
9 The Garden Mall 190 Hong Bang District 5 2017 24,000 35.0 85%
10 The Manor 2 91 Nguyen Huu Canh Binh Thanh 2011 2,500 22.0 100%
11 The Oxygen Mall An Phu Ward District 2 2011 5,000 18.0 99%
12 Rex Arcade 141 Nguyen Hue District 1 2011 2,000 130.0 100%
13 ICON 68 @ BFT 45 Ngo Duc Ke District 1 2011 8,000 90.0 90%
14 Saigon Airport Plaza 1 Bach Dang, Ward 2 Tan Binh 2013 7,623 22.0 98%
15 Imperia An Phu An Phu Ward District 2 2013 2,940 15.0 100%
16 President Place 93 Nguyen Du District 1 2013 800 42.0 95%
17 Times Square 22-36 Nguyen Hue District 1 2013 9,000 300.0 100%
23-25-27 Nguyen Huu
18 Sunrise City - phase 1 District 7 2014 3,500 35.0 96%
Tho
278 Nam Ky Khoi
19 Terra Royal District 3 2020 TBC TBC 100%
Nghia
Retail Podium
1 Diamond Plaza 34 Le Duan District 1 1999 9,000 90.0 95%
Parkson Saigontourist 35 Le Thanh Ton
2 District 1 2002 17,000 150.0 95%
Plaza Street
117 Nguyen Dinh
3 RomeA District 3 2017 12,000 47.0 80%
Chieu
Department Store
Vincom Center
1 772 Dien Bien Phu Binh Thanh 2018 50,000 100.0 90%
Landmark 81
Vincom Mega Mall
2 161 Ha Noi Highway District 2 2015 90,000 70.0 95%
Thao Dien
35 Nam Ky Khoi
3 Saigon Center District 1 1996 55,000 160.0 95%
Nghia
Lotte Mart Saigon
6 469 Nguyen Huu Tho District 7 2008 24,000 40.0 90%
South
Vincom Center Dong
7 72 Le Thanh Ton District 1 2010 45,000 150.0 93%
Khoi
8 Vincom Plaza 3/2 3C Ba Thang Hai District 10 2010 25,000 42.0 85%
9 Lotte Mart Phu Tho 968 Ba Thang Hai District 11 2010 24,500 40.0 80%
10 Crescent Mall 101 Ton Dat Tien District 7 2011 45,000 44.0 97%
11 Satra Pham Hung C6/27 Pham Hung District 8 2011 11,528 20.0 83%
12 Van Hanh Mall 11 Su Van Hanh District 10 2018 55,000 55.0 100%
13 GigaMall 242 Pham Van Dong Thu Duc 2019 110,000 30.0 100%
15 Crescent Mall Phase 2 101 Ton Dat Tien District 7 2019 18,000 30.0 90%
Shopping
Centre
 7

RETAIL – HANOI

Research & Forecast Report | Colliers International

Quarter 2 | Vietnam
Performance: On the road to recovery Figure 5: Hanoi, Office, Average Asking Rent
Thanks to Vietnam 's effective control and prevention of the
spread of coronavirus in Vietnam, Ha Noi retail market was 60.00
steadily getting back on track. The asking price and
occupancy rate of some retail podiums and shopping centers 50.00

USD/sqm/month
in CBDs increased gradually compared to the first quarter of 40.00
2020. For example, the asking rent of Central Building raised
30.00
from 75$/m2 to 110$/m2 and the asking rent of Vincom
Shopping Centre Ba Trieu raised from 150$/m2 to 180$/m2. 20.00
On the other hand, the asking price in non-CBDs still
10.00
decreased or remained the same.
-
Supply: Future suppliers continued to 2015 2016 2017 2018 2019 2020F
postpone their opening day
Source: Colliers International
Since Q12020, there had not been any change recorded as
no newcomer entered the market. However, if Vietnam were
still able to remain the COVID-19 situation controllable, Figure 6: Hanoi, Office, Average Occupancy
upcoming projects would more likely to put into operation on
Rate
schedule. The two projects including Vincom Megamall Ocean
Park and Vincom Megamall Smart City were projected to be 95%
placed in service in Q42020.
90%
Demand: There was not much of an
improvement 85%
%

Uniqlo expanded its business in Vietnam within 6 months

80%
regardless of COVID-19 (3 stores in Ho Chi Minh City and 1
store in Ha Noi). As a result, it is likely that Ha Noi retail market 75%
is going to embrace a fifth Uniqlo store. Muji, another brand
coming from Japan announced the opening of its first store in 70%
2015 2016 2017 2018 2019 2020F
Ho Chi Minh City, somehow predicting that the market is going
to become more competitive in the future. Source: Colliers International

Although shopping centers were given permission to re-

operate after the social distancing, the flow of visitors were not
Table 3: Hanoi, Office, Coming projects
crowded as it used to be, resulted in the retail sales have not
recorded signs of prosperity. GFA Completion
Property District
(sqm) year
Outlook: The potential of retail centers in Lotte Ciputra
Tay Ho 200,000 1Q2021
Mall
residential areas Vincom Mega
As the pandemic crisis is taking place around the world, the mall Ocean Gia Lam 56,000 4Q2020
Park
possibility which Vietnamese government re-open to Vincom Mega
Nam Tu
international visitors is unlikely to happen. Therefore, the mall Smart 68,000 4Q2020
Liem
City
number of visitors to retail centers located in CBDs might
Source: Colliers International
remain low in the coming time while retail centers located in
residential areas seem to welcome a larger number of visitors
in comparison with the last quarter.

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Table 4: Hanoi Retail, Notable Properties

Name of Project/ Completion NLA ARR Occupancy

No Address Location
Quarter 2 | Vietnam
Research & Forecast Report | Colliers International

Building Year (sqm) (USD/sqm/month) Rate

1 Central Building 31 Hai Ba Trung Hoan Kiem 1995 550 110.0 100%
2 Hanoi Tower 49 Hai Ba Trung Hoan Kiem 1997 2,515 55.0 100%
63 Ly Thai To
3 63 Ly Thai To Hoan Kiem 1998 650 120.0 95%
Building
71 Nguyen Chi
4 ICC Building Dong Da 2006 2,900 16.0 100%
Thanh
5 Pacific Place 83b Ly Thuong Kiet Hoan Kiem 2007 2,300 67.0 100%
Opera Business
6 6b Trang Tien Hoan Kiem 2007 370 120.0 100%
Center
7 Asia Tower 6 Pho Nha Tho Hoan Kiem 2008 300 107.0 100%
8 Sentinel Place 41A Ly Thai To Hoan Kiem 2010 700 45.0 100%
9 Sky City Tower 88 Lang Ha Dong Da 2010 5,400 65.0 100%
Madarin Garden
11 1 Hoang Minh Giam Cau Giay 2013 11,000 25.0 98%
Residential
12 Golden Place Me Tri Tu Liem 2015 19,500 30.0 100%
13 Handico Tower Me Tri, Pham Hung Tu Liem 2015 1,500 33.0 100%
14 Hong Kong Tower 243A La Thanh Dong Da 2018 4,500 24.0 90%
Retail Podium
Vincom Center Ba
1 191 Ba Trieu Hai Ba Trung 2004 17,700 180.0 90%
Trieu - Tower A&B
Vincom Center Ba
2 191 Ba Trieu Hai Ba Trung 2004 10,974 180.0 100%
Trieu - Tower C
4 Syrena 51B Xuan Dieu Tay Ho 2008 4,153 33.0 99%
5 Trang Tien Plaza 24 Hai Ba Trung Hoan Kiem l2008 12,000 160.0 70%
7-9 Nguyen Van
6 Savico MegaMall Long Bien 2011 43,500 34.0 96%
Linh
Vincom Center
7 KDT Vincom Long Bien 2012 29,000 25.0 83%
Long Bien
Indochina Plaza
8 241 Xuan Thuy Cau Giay 2012 17,000 30.0 71%
Hanoi
Vincom Mega Mall 181,31
9 72A Nguyen Trai Thanh Xuan 2013 35.0 70%
- Royal City 7
Vincom Mega Mall
10 458 Minh Khai Hai Ba Trung 2014 83,950 52.0 98%
- Times City
Aeon Mall Long
11 2 Co Linh Long Bien 2015 72,000 20.0 100%
Bien
Vincom Nguyen 54A Nguyen Chi
12 Dong Da 2015 65,328 65.0 98%
Chi Thanh Thanh
Vincom Center 2 Pham Ngoc
13 Dong Da 2016 20,250 60.0 99%
Pham Ngoc Thach Thach
14 Artemis 3 Le Trong Tan Thanh Xuan 2017 27,000 40.0 90%
Vincom Center
15 29 Lieu Giai Ba Dinh 2018 38,000 38.0 95%
Metropolis
16 Sun Plaza Ancora 3 Luong Yen Hai Ba Trung 2019 27,253 86.0 89%
Vincom Center
17 119 Tran Duy Hung Dong Da 2019 45,000 50.0 90%
Tran Duy Hung
Aeon Mall Ha
18 Hoang Van Thu Ha Dong 2019 74,000 34.0 92%
Dong
Shopping Centre
The Garden
1 Me Tri Tu Liem 2007 24,063 40.0 100%
(Bitexco)
2 Ho Guom Plaza Ha Dong Ha Dong 2013 23,380 25.0 95%
Lotte Department
3 54 Lieu Giai Ba Dinh 2014 21,480 67.0 90%
Store
Department Store
 7

RETAIL - DANANG

Research & Forecast Report | Colliers International

Quarter 2 | Vietnam
Performance: Both occupancy and price Figure 7: Danang Retail, Market Performance
decreased
Average Rent Occupancy Rate
Overall, the performance was not much different from Q1
30.00 100%
2020 as the real estate market in almost all segments had
25.00
been impacted negatively since the middle of last year. 95%
20.00

USD/sqm/month
Moreover, the decrease in number of tourists for a half year
due to COVID-19 have led to the gloomy retail market. 15.00 90%
However, there was a slight difference in the rent price, for 10.00
example project Indochina Riverside Towers, raising their 85%
5.00
average rent price from 22.5$/m2 to 29$/m2 because of some
- 80%
changes in business strategies (focus on big brand tenants).
Retail Podium Department Shopping center
Store
Supply: No new supply
Source: Colliers International
Up to this point, total NLA of retail sector remained the same
with approximately 114.730m2, including 12.450m2 retail
podium, 8.000m2 department stores and 94.280m2 shopping Figure 8: Danang Retail, Market Performance
Trend
centers. Until Q2 2020 this figure had not increased because
there were no suppliers entering the market, almost all new Average Rent Occupancy Rate

projects were on hold due to some legal problems as well as

influences from COVID-19. Especially, Vien Dong Meridian 15.0 100%
Tower project located in CBD had been revoked by the state
80%
USD/sqm/month

after many years delayed in construction. 10.0

60%
Demand: Decreased significantly
40%
Since the market situation was not quite positive, the demand 5.0

for retail space had not been as much as before. It seemed 20%

that no one intended to expand business to Da Nang at this 0.0 0%

moment, many retailers had even had to narrow their business 2017 2018 2019 2020F

scale and end the contract before due date because of the Source: Colliers International

drop in number of customers, especially customers coming

from tourists. Figure 9: Danang Retail, Market Performance
Trend
Outlook: Quickly return to normal if Covid-19 is
under control
As Vietnam still remained closed to foreign tourists, many
businesses in Da Nang might focus on domestic travelers in
the following time. They need to adapt quickly so as to serve
this segment, for example changing or improving some
business products and customer service process. In addition,
landlords should share the issue with tenants so they are able
to maintain their retail stores instead of transform the entire
business structure into online business models.

Source: Colliers International

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Table 5: Danang Retail, Notable Properties

Quarter 2 | Vietnam
Research & Forecast Report | Colliers International

Name of Completion NLA Occupancy

No Address Location ARR (*)
Project/Building Year (sqm) Rate
Indochina Riverside
1 74 Bach Dang Hai Chau 2008 5,251 29.0 90%
Towers
HAGL-Lake View
2 72 Ham Nghi Thanh Khe 2012 7,200 12.0 100%
Residences
Retail Podium
Parkson Vinh Trung 253-255-257 Hung
1 Hai Chau 2011 8,000 25.0 99%
Plaza Vuong
Department Store
1 Da Nang Square 35 Thai Phien Hai Chau 2011 3,280 6.25 79%
Vincom Plaza Ngo
2 910A Ngo Quyen Son Tra 2015 36,800 23.0 100%
Quyen
3 LOTTE Mart 06 Nai Nam Hai Chau 2016 19,200 19.0 99%
Ngu Hanh
4 VVmall 8 Vo Nguyen Giap 2019 35,000 25.0 80%
Son
Shopping Centre

Copyright © 2020 Colliers International

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has
been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers
are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.
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RESEARCH AND ADVISORY

David Jackson Nhu Khuong
+84 906 925 935 +84 909 680 997
David.jackson@colliers.com nhu.khuong@colliers.com

Winnie Lam
+84 765 595 616
Winnie.lam@colliers.com

Deutsches Haus Ho
Chi Minh City, 3rd
Floor, 33 Le Duan
Blvd, District 1,
HCMC, Vietnam
700000

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