Commercial activities and consumer services in 2022 recovers strongly as Covid-19 went under control. According to the General Statistics of Vietnam, in 2022, the total sales of consumer goods and services increased by 19.8% over the previous year, estimated at 5,679.9 trillion VND. In which, total retail sales of goods were estimated at VND 4,475.9 trillion, up 14.4% over the previous year.
Also according to the General Statistics Office, total tourism revenue is estimated at 24.5 trillion VND, up 271.5% over the previous year. The number of international tourists to Vietnam in the whole year was recorded at 3.66 million arrivals, 23.3 times higher than in 2021. In which, visitors from Asia account for nearly 2.6 million arrivals, and 3,3 million are arrivals via aerial transportation.
In 2022, multiple shopping centers are planning or are already carrying out renovation and change their layout. This is a positive development of the market as outdated retail premises are getting upgraded to meet the demand for high-quality retail space in the market. Hung Vuong Plaza is currently undergoing renovation and is expected to re-enter the market in 2023.
According to the latest Cushman & Wakefield report, the total active retail space reached 1,052 million sqm. This includes Thiso Mall, a new shopping center in the East of HCMC in Q4 2022, contributing about 33,000 m2 to the total supply. Four projects are expected to launch in 2023, namely Central Premium plaza, Vincom Megamall Grand Park, Sunrise City Central and Emart 2 on Phan Huy Ich Street, contributing more than 116,000sqm of new retail space.
Together with the renovation/relocation as well as the increase of new supply by the end of 2022, this quarter's occupancy rate reached 88%, lower year-on-year and quarter-on-quarter. Rents recorded positive growth thanks to new and upgraded supply, reaching US$49.3 USD/sqm/month.
Upcoming supply from Thu Duc City includes commercial centers and residential community commercial centers: Services for residents, food & beverage, home decoration, lifestyle & entertainment.
The upcoming supply from District 1 is mainly community commercial centers: High-end fashion brands, employee-oriented personalized services, and tourist-oriented entertainment.
Table of prominent brands entering, expanding and relocating in Ho Chi Minh City's retail market
Notably in Q4, Diamond Plaza reopened on December 16, 2022 after renovation, with many high-end and luxury brands such as Jo Malone, Chanel, Lilliput, % Arabica, Beauty in the Pot hotpot,... Thiso Mall (Thu Duc City) officially came into operation in late 2022 - early 2023, meeting the needs of both affordable and high-end consumers: Uniqlo, Starbucks, Highlands Coffee, Pizza 4P's, Levi's, Adidas, Valetino Creation. The Thao Dien area, Thu Duc district is gradually becoming a center of entertainment and high-class dining with an array of new brands such as Runam, Yen Sushi, L'Usine...
Besides the entry and expansion of international brands, domestic brands also grew significantly with rapid expansion throughout the market. Retail brands are paying more attention to product experience space in their store design, providing a more comprehensive and well-rounded experience for customers.
