Mai Vo, Director of Retail Services of Cushman & Wakefield Vietnam, said that in the next two years, catering service, fashion, and healthcare will be the driving forces that spur the growth of retail industry.
This transition follows the prominent trend mentioned in the Cushman & Wakefield annual report entitled "Main Streets Across the World".
This report stated that commercial centers have high-end brands, but now owners and developers are reducing their reliance on these brands and adding catering service, healthcare, and experiences for users.
Tourism expenditure is also one of the growth dynamics of the retail sector, as visitors’ spending in commercial centers accounts for a large portion of sales.
Cushman & Wakefield's Asia-Pacific Managing Director of Research, Sigrid Zialcita, said Asia-Pacific tourism not only boosts retail sales but also shapes sales trends for the region.
In Vietnam, Mai Vo said that in the next 10 years, the new high-income class will appear and direct the development of high-end retail goods such as cars, luxury apartments, and villas.
In the central areas, the demand for commercial townhouses remains high due to fierce competition among brands. As a result, the rental fee is pushed up, even by double digits in central districts of Ho Chi Minh City and Hanoi.
The handshake of e-commerce and commercial centers
According to Cushman & Wakefield, the retail market in Vietnam expanding rapidly, with 400,000 square meters added by 2018, and by 2020, the total retail space is expected to reach four million square meters.
Along with the development of the retail sector, Cushman & Wakefield said that Vietnam’s e-commerce will witness strong growth in the coming years as this relatively new industry has remarkably achieved nearly US$4 billion of revenue and is expected to reach US$10 billion by 2020.
"While the traditional retail model has recognized the importance of a digital retail platform, e-commerce giants are expanding its influence on existing retail stores. Finding a way to combine all-in-one retail or an omnichannel retail is the most important part of this process, "said Zialcita.