Vietnam Retail Real Estate Forecasted to Grow Strongly in 2023
In 2022, the retail market in general and townhouses in particular recovered with a better occupancy rate, but the recovery has not reached the level of the pre-COVID-19 period. — Photo tapchixaydung. Many retail brands are looking at Vietnam because the economy is strong, and they see the potential. Brands are diverse and range from luxury to mid-market brands, said Nick Bradstreet, head of Asia Pacific Retail, Savills. For example, Lotte is completing a new project, and it is expected to welcome international brands. Besides, large cities such as Ha Noi, Da Nang and HCM City, “tourist hubs, like Hoi An, present opportunities, especially for pop-up stores during the high season. All the ingredients are there for Hoi An, it just needs a well-planned and well-designed shopping centre. E-commerce is now a vital sales avenue, and retailers have physical and online stores. However, physical stores deliver the experiential side of retail and can demonstrate the strength of a brand, its products, and its people. This plays an important role in how people feel about a brand and loyalty comes from that. Savills has seen people return to stores post-COVID, and physical spaces are important, Bradstreet said. The rental price of retail space also recorded an increase against the COVID-19 period. Of course, the recovery is still not as the performance before the pandemic due to the impacts of the economic situation at present and the landlords' psychology of comparison in the price at present against that in the pre-pandemic However, the retail real estate market in Vietnam has high competitiveness, so retailers must constantly innovate to survive. For the occupancy rate, the market still needs to continue adjusting to increase this rate in the near future.
Tags : retail market townhouses Vietnam brands e-commerce