The signing of regional trade agreements has made the Vietnamese market more attractive to international retailers and this segment is expected to be highly competitive, Savills Vietnam
said in a report released Wednesday.
During 2015, foreign and domestic players were active in closing M&A deals in the retail sector. Among them, Thailand’s Central Group purchased 49% of Nguyen Kim electronics supermarket, Japan’s AEON acquired 30% of Fivimart and 49% of Citimart.
, Vietnam’s largest private real estate developer, bough an 80% stake of Giang Vo Exhibition Center and 100% of Vinatexmart
, the apparel supermarket chain of state-controlled Vietnam National Textile and Garment Group (Vinatex).
A large number of international retailers such as South Korea’s E-Mart, France’s Auchan have entered Vietnam and are expanding rapidly in Vietnam, a market of more than 90 million consumers with growing middle-income class and consumerism.
Regarding the condominium segment, the number of apartments sold in Hanoi reached more than 6,400 units in the fourth quarter (Q4) of 2015, representing a decline of 3% quarter-on-quarter (qoq) but a massive increase of 86% year-on-year (yoy).
The total primary stock was 16,000 units, increasing 9% qoq and 79% yoy. There were 22 existing and 11 new projects, providing 8,000 units, down 8% qoq, according to the report.
Savills noted that Tu Liem district, in the west of the city, had the greatest sales with a 20% market share. Grade B continued to lead the market with more than 60% share.
The office segment saw the entrance of three projects, supplying approximately 81,000 square meters, pushing the city’s office stock to rise 5.5% qoq and 5.8% yoy. In 2016, 16 projects will come online providing more than 260,000 square meters.
Hotel stock increased 5% qoq and 11% yoy due to the entrance of one newly ranked four-star and two new three-star hotels. The average occupancy was up 12 percentage points (ppts) qoq and six ppts yoy, Savills Vietnam added.