2

HO CHI MINH
Quarter 4 | Vietnam
Research & Forecast Report | Coliers International

Performance: Slight recovery after a painful period

Figure 1: HCMC Retail, Average Asking Rent
The retail sector was one of the most negatively affected sectors due
to the Covid-19 pandemic. There was a lot of space returned and 70.0 96%
some negotiations resulted in price adjustments of about 30%. Many 60.0 95%
50.0
big brands chose to close some of their branches or even shut down 94%
40.0
in Vietnam, such as Parkson, Big C and Auchan. Because of the 93%
30.0
prolonged Covid-19 situation, retail rent continued to go down in the 20.0 92%
10.0 91%
fourth quarter. In particular, the rents recorded a decrease of about
0.0 90%
10 USD/sqm/month compared to those in the same period in 2019.
However, the occupancy is still maintained at a high rate, over 1%
higher than that one in the same period.
Average Asking Rent Occupancy Rate
Supply: New supply in Q4
There is one new retail project in the fourth quarter, and that is Terra Source:ColliersInternational

Royal built in District 3 which adds a total of 7,712 sqm to the retail Figure 2: HCMC Retail, Supply by Year
market. Overall, the market welcomed 50,000 sqm from 7 new
2,000,000
projects in 2020, of which projects in the outskirts accounted for over
1,500,000
80% of the area. After undergoing renovation for months, Parkson
1,000,000
sqm
(Malaysia) took a large amount of space into operation, over 1,700
500,000
sqm at Parkson Saigontourist in District 1. Besides Uniqlo, another
0
Japanese brand, MUJI, also opened its household goods store in this
mall and is expected to raise the GFA to 2,000 sqm in this quarter.
Demand: Overall occupancy still high despite ongoing
Retail
pandemic Podiu
Demand for retail space for goods and services were stable despite m
the fall in the number of international arrivals. Many international Source:ColliersInternational
Depart
brands including Uniqlo, Giordano, ACE, H&M and Watson continued ment
Table 1: HCMC
Stores Retail, Upcoming Projects
increasing outlets in Vietnam in 2020, which shows overall foreign
retailors’ confidence in the Vietnam retail market despite the Covid- Shopping Exp ec ted
NameCenters
of Project District NLA
Comple tio
19 pandemic and this bodes well for the next few years for the (sqm)
n Year
Vietnam retail market. Socar Mall Thu Duc 40,000 1Q2021
City
Outlook: Expectation of recovery Central Mall East Thu Duc 39,000 1Q2021
Saigon City
HCMC retail market will welcome Socar Shopping Mall in Thu Duc City
Sense City Thu Duc 50,000 1Q2021
in the first quarter of 2021. In the later period, a variety of new supply East City
Saigon
will provide a large retail space of 430,000 sqm, mostly located in the
Elite Mall District 42,000 1Q2021
outskirts such as Vincom Megamall Grand Park (Thu Duc City) and 8
Elite Mall (District 8). It is predicted that in the last quarter of 2020 Vincom Thu Duc 45,000 4Q2021
and the first quarter of 2021, with the potential of a positive economic Megamall City
Grand Park Source:ColliersInternational
condition, increasing domestic consumption, and influences from FTA
and EVFTA, Vietnam retail market will be expected to improve.
Furthermore, UKVFTA will officially start on 1st January 2021, which
raises the capability of British brands investing in Vietnam retail
market. Besides, RCEP expresses the cooperation among ASEAN
countries and 5 other big economies including China, Japan, South
Korea, Australia, and New Zealand and hopefully this will provide an
influx of international tenants soon.
 9

Table 2: HCMC Retail, Notable Project

Name of Completio ARR Occupanc

Address NLA
No Location (USD/sqm
Project/ n (sqm) y Rate (%)
/month)

Research & Forecast Report | Coliers International

Quarter 4 | Vietnam
Building Year
1 SheratonSaigon 88 Dong Khoi District1 2003 750 120 99%
91 Nguyen Huu
2 The Manor 1 Binh Thanh 2006 2,000 22 99%
Canh
3 Opera View Lam Son Square District1 2006 1,260 54 100%
19 Lam Son
4 CaravelleHotel District1 2007 150 105 100%
Square
5 NewWorldHotel 76 Le Lai Street District1 2009 1,000 92 100%
HotelContinentalSai 132-134 Dong
6 District1 2009 200 90 100%
Gon Khoi
7 mPlaza Saigon 35 Le Duan District1 2009 6,830 60 90%
8 TheGardenMall 190 Hong Bang District5 2017 24,000 35 85%
91 Nguyen Huu
9 The Manor 2 Binh Thanh 2011 2,500 22 100%
Canh
10 TheOxygenMall An Phu Ward Thu Duc City 2011 5,000 18 99%
11 RexArcade 141 Nguyen Hue District1 2011 2,000 130 100%
12 ICON 68 @ BFT 45 Ngo Duc Ke District1 2011 8,000 90 90%

13 SaigonAirportPlaza 1 Bach Dang, Tan Binh 2013 7,623 22 95%

Ward 2
14 Imperia An Phu An Phu Ward Thu Duc City 2013 2,940 15 85%
15 PresidentPlace 93 Nguyen Du District1 2013 800 42 100%
16 Times Square 22-36 Nguyen Hue District1 2013 9,000 300 100%
Sunrise City - phase 23-25-27 Nguyen
17 District7 2014 3,500 35 96%
1 HuuTho
278 Nam Ky Khoi
18 TerraRoyal District3 2020 TBC TBC 100%
Nghia
Retail Podium
1 Diamond Plaza 34 Le Duan District1 1999 9,000 90.0 95%
Parkson 35 Le Thanh Ton
2 District1 2002 17,000 150.0 95%
SaigontouristPlaza Street
117 Nguyen Dinh
3 RomeA District3 2017 12,000 47.0 80%
Chieu
DepartmentStore
VincomCenter
1 772 Dien Bien Phu Binh Thanh 2018 50,000 100.0 90%
Landmark 81
VincomMegaMall 161 Ha Noi
2 Thu Duc City 2015 90,000 70.0 95%
Thao Dien Highway
35 Nam Ky Khoi
3 SaigonCenter District1 1996 55,000 160.0 95%
Nghia
LotteMartSaigon 469 Nguyen Huu
4 District7 2008 24,000 40.0 90%
South Tho
VincomCenterDong
5 72 Le Thanh Ton District1 2010 45,000 150.0 93%
Khoi
6 Vincom Plaza 3/2 3C Ba Thang Hai District10 2010 25,000 42.0 85%
7 LotteMartPhuTho 968 Ba Thang Hai District11 2010 24,500 40.0 80%
8 CrescentMall 101 Ton Dat Tien District7 2011 45,000 44.0 97%
9 Satra Pham Hung C6/27 Pham Hung District8 2011 11,528 20.0 83%
10 Van Hanh Mall 11 Su Van Hanh District10 2018 55,000 55.0 100%
242 Pham Van Thu Duc City 2019 110,000 30.0 100%
11 GigaMall
Dong
CrescentMallPhase 2019 18,000 30.0 90%
12 101 Ton Dat Tien District7
2
ShoppingCentre
Source:ColliersInternational
6

HA NOI Quarter 4 | Vietnam

Performance: Market stability on the horizon Figure 3: Hanoi Retail, Average Asking Rent
Research & Forecast Report | Coliers International

In the final quarter of 2020, Covid-19 cases remained

70.00
low, and
boosted social confidence resulting in the re- 60.00

USD/sqm/month
introduction of 50.00
communal political and social activies in Hanoi and 40.00
footfall in public
areas. After a challenging year, consumer confidence is 30.00
recovering
In particular, the average retail asking rent was 60 USD/sqm/month 20.00
and retail
which occupiers
represents and developers
an increase are seeing a vast
of 10 USD/sqm/month q-o-q. Market 10.00
improvement
occupancy rateinremained stable, with a marginal increase from 93% -
market
in 2019 conditions.
to 94% with increased average asking rents from USD 49.4 to
USD 60.49. Rental rate and occupancy rate in 2021 are expected to
keep the same or even improve, mainly due to the economic recovery
Source:ColliersInternational

Supply: New supply in non-CBD locations Figure 4: Hanoi Retail, Occupancy rate
The most recent completed project was Vincom
Mega Mall Ocean 100%
Park that officially opened in Gia Lam District in 80%
December 2020. This
60%
new shopping mall added 56,000 sqm of retail
space to the market. 40%
Not
Thereonly
are 20is new
thisprojects
the largest shopping
delivering 302,000mall
sqm of retail spaced 20%
developed by Vingroup, it
into the Hanoi market in 2021, within non-CBD areas. Key planned
0%
is also one
projects of thethe
include largest commercial
Vincom projects
Mega Mall Smart in Vietnam.
City, Lotte Ciputra Mall,
and Aeon Mall Hoang Mai Giap Bat, and this increased supply in the
outskirts may reduce the asking rent in the whole market.
Source:ColliersInternational
Demand: A recent increase recorded
Table 3: Hanoi Retail, Upcoming Projects
International retailers had the tendency to
focus on quality standards Expec ted
Name of NLA
and products within the market. The District Comple te
Project (sqm)
potential of the Vietnam market d ye ar
with nearly 100 million people and an Vinc om
Nam Tu
emerging and growing middle Me gamall 68,000 1Q2021
Smart Liem
class is boosting consumer spending power LotteCity
Ciputra
and keeping new entry Tay Ho 200,000 1Q2021
Mall
retailers interested despite the challenges of Source:ColliersInternational
2020.
Outlook: Benefited from international
agreements
Since FDI inflows in Vietnam is directly proportional to the demand
for retail market from oversea companies, many foreign developers
will make use of this trend and be dominant in developing complex
buildings with international standards, which will attract several
worldwide retail tenants. Many Foreign Trade Agreements that will
start or continue in 2021 will push demand for the retail market. In
particular, continuous activities of EVFTA will boost the trade
between Vietnam and EU Union, whereas UKVFTA will in charge of
Developers, however, expect that rents in Hanoi will gradually catch
enhancing Vietnam’s relationship with Great Britain, and RCEP is the
up with that in HCMC and that demand for office space in Hanoi will
link among Vietnam together with ASEAN and the other 5 big
continue increasing.
economies in the world. All of these will give Vietnam a hand to
attract more retailers from overseas.
 9

Table 4: Hanoi Retail, Notable Projects

ARR
Name of Completion NLA Occupancy
No Address Location (USD/sqm/
Project/Building Year (sqm) Rate (%)
month)

Research & Forecast Report | Coliers Internati onal

Quarter 4 | Vietnam
1 Central Building 31 Hai Ba Trung Hoan Kiem 1995 550 110.0 100%
2 International Centre 17 Ngo Quyen Hoan Kiem 1995 2,500 130.0 100%
3 Hanoi Tower 49 Hai Ba Trung Hoan Kiem 1997 2,515 55.0 100%
4 63 Ly Thai To Building 63 Ly Thai To Hoan Kiem 1998 650 120.0 90%
5 ICC Building 71 Nguyen Chi Thanh Dong Da 2006 2,900 16.0 100%
6 Pacific Place 83B Ly Thuong Kiet Hoan Kiem 2007 2300 67.0 100%
7 Opera Business Center 6B Trang Tien Hoan Kiem 2006 370 120.0 100%
8 Asia Tower 6 Pho Nha Tho Hoan Kiem 2008 300 107.0 95%
9 Sentinel Place 41A Ly Thai To Hoan Kiem 2011 700 45.0 100%
10 Sky City Tower 88 Lang Ha Dong Da 2010 5,400 65.0 100%
Mandarin Garden
11 Cau Giay
Residential 1 Hoang Minh Giam 2013 11,000 25.0 95%
12 Golden Place Me Tri Nam Tu Liem 2015 19,500 30.0 85%
13 Handico Tower Me Tri, Pham Hung Nam Tu Liem 2016 1,500 33.0 100%
14 Hong Kong Tower 243A La Thanh Dong Da 2018 4,500 24.0 93%
Retail Podium
1 The Garden (Bitexco) Me Tri Nam Tu Liem 2007 24,063 34.0 100%
2 Ho Guom Plaza Ha Dong Ha Dong 2013 23,380 20.0 100%
3 Lotte Department Store 54 Lieu Giai Ba Dinh 2014 21,480 60.0 90%
Department Store
Vincom Center Ba Trieu -
1 Hai Ba Trung
Tower A&B 191 Ba Trieu 2004 17,700 165.0 92%
Vincom Center Ba Trieu -
2 Hai Ba Trung
Tower C 191 Ba Trieu 2004 10,974 165.0 100%
3 Syrena 51B Xuan Dieu Tay Ho 2008 3,668 18.0 75%
4 Trang Tien Plaza 24 Hai Ba Trung Hoan Kiem 2013 12,000 145.0 70%
5 Savico MegaMall 7-9 Nguyen Van Linh Long Bien 2011 43,500 30.0 98%
Vincom Center Long
6 Long Bien
Bien KDT Vincom 2011 29,000 21.0 85%
7 Indochina Plaza Hanoi 241 Xuan Thuy Cau Giay 2012 17,000 25.0 70%
Vincom Mega Mall -
8 Thanh Xuan
Royal City 72A Nguyen Trai 2013 181,317 27.0 70%
Vincom Mega Mall -
9 Hai Ba Trung
Times City 458 Minh Khai 2013 83,950 47.0 100%
10 Aeon Mall Long Bien 2 Co Linh Long Bien 2015 72,000 17.0 100%
Vincom Nguyen Chi
11 Dong Da
Thanh 54A Nguyen Chi Thanh 2015 65,328 58.0 98%
Vincom Center Pham
12 Dong Da
Ngoc Thach 2 Pham Ngoc Thach 2016 20,250 59.0 100%
13 Artemis 3 Le Trong Tan Thanh Xuan 2017 27,000 33.0 90%
Vincom Center
14 Ba Dinh
Metropolis 29 Lieu Giai 2018 38,000 34.0 95%
15 Sun Plaza Ancora 3 Luong Yen Hai Ba Trung 2019 27,253 80.0 100%
Vincom Center Tran Duy
16 Dong Da
Hung 119 Tran Duy Hung 2019 45,000 44.0 90%
17 Aeon Mall Ha Dong Hoang Van Thu Ha Dong 2019 74,000 30.0 92%
Vincom Mega Mall
18 Gia Lam
Ocean Park Kieu Ky 2020 56,000 58.0 80%
Shopping Centre
Source:ColliersInternational
8

DA NANG
Performance: Slight recovery after suffering the
Quarter 4 | Vietnam

Figure 5: Da Nang Retail, Market Performance

Research & Forecast Report | Coliers International

second wave
Being the city that was worst affected by the second wave of the Average Rent Occupancy Rate
Covid-19 pandemic, Da Nang had to face a lot of difficulties, and
the retail market was not an exception. 60
120%

USD/sqm/month
Due to the severe impact of the Covid-19 pandemic, several stores 50
had to temporarily shut down. To promote demand for retail space, 100%
40 80%
some landlords cut up to 20 percent of the rental price for tenants. 30 60%
Nevertheless, the retail market saw a gradual improvement in 20 40%
10 20%
occupancy rate and an increase in average asking rent as it 0 0%
progressed in 2020.
Supply: No new supply
There was no new supply in
Source:ColliersInternational
this quarter because many
developers Figure 6: Da Nang Retail, Market Performance Trend
were still cautious and did
not know how long the
Average Rent Occupancy Rate
second wave
would take. In terms of the 35 99%
distribution among districts, 30 98%
32% of the
USD/sqm/month

As many stores shut down during the pandemic, the occupancy 25 97%
totalofretail
rate 95%area is fourth
in the locatedquarter
in was recorded to decrease by 3%
20
Son Tra, 31%
compared at Hai
to 2019. Chau after successfully controlling the
However, 96%
District,
pandemic, 31% the retail market in Da Nang had signs of recovery 15
95%
at Ngu
again. Hanh SontheDistrict
Particularly, average asking rent increased from the 10
and Thanh Khe District 5 94%
previous quarter to about 30 USD/sqm/month.
accounted for 6%. 0 93%
Outlook:
Demand:Boosting
A slightup decrease
retail market
in by
thethenumber
recoveryofof 2017 2018 2019 2020 2021F
tourism
tenants Source:ColliersInternational
The retail market in Da Nang will continue rising when the city Figure 7: Da Nang Retail, District Distribution
eventually welcomes more international tourists again, following
the trend since September 2020 when may retail outlets resumed Hai Chau Son Tra
sales due to increase in shopping demand from customers. It is Thanh Khe Ngu Hanh Sơn
expected that construction of several projects will resume and
supply at least 20,000 sqm of retail space to the market by end
2021. International Trade Agreements including EVFTA, UKVFTA,
and RCEP will be expected to boost the demand for the retail 31%
31%
market and contribute to the recovery in 2021.

32%

Source:ColliersInternational
 11

Table 5: Da Nang Retail, Notable Projects

ARR
Completion NLA (USD/ Occupancy

Research & Forecast Report | Coliers International

Quarter 4 | Vietnam
No Name of Project/Building Address Location
Year (sqm) sq Rate (%)
m/mo
1 Indochina Riverside Towers 74 Bach Dang Hai Chau 2008 5,251 nt h)
20.3 90%
2 HAGL - Lake View Residences 72 Ham Nghi Thanh Khe 2013 7,200 10.0 100%
Retail Podium
253-257 Hung
1 Hai Chau
Parkson Vinh Trung Plaza Vuong 2015 8,000 20.0 99%
Department Store
1 Danang Square 35 Thai Phien Hai Chau 2011 3,280 5.00 79%
910A Ngo
2 Son Tra
Vincom Plaza Ngo Quyen Quyen 2015 36,800 18.0 100%
3 LOTTE Mart 06 Nai Nam Hai Chau 2012 19,200 15.0 99%
08 Vo Nguyen Ngu Hanh
4
VV Mall Giap Son 2019 35,000 129.0 98%
Shopping Centre
Source:ColliersInternational

Copyright © 2020 Colliers International

Theinformationcontainedhereinhasbeenobtainedfromsourcesdeemedreliable.Whileeveryreasonableefforthas
been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers
areencouragedtoconsulttheirprofessionaladvisorspriortoactingonanyofthematerialcontainedinthisreport.