Hanoi, Vietnam’s capital has been for thousands of years the political, cultural, historical and educational centre of the country. However, with the fast growing of the economy and worldwide integration, Hanoi is quickly reaching Ho Chi Minh City to become one of the largest economic centers in the country.
With the expansion of the administrative boundaries of the capital city of Hanoi to cover an area four times larger, it is now the 17th largest capital in the world by land area. The city, despite the economic recession which happened almost at the same time with its geographical expansion, has always met its GDP growth target and indeed exceeded the Municipal People’s Committee’s target. With approximately seven million people in the metropolitan area and some three million in the urban district, Hanoi has a huge potential for the development of modern retail by both domestic and foreigners’ companies. In a very short time period (Q2/2011 to Q2/2012, the total retail market supply has increased sharply by 41% from 463,985 sq.m to 652,127 sq.m.
In the CBD, the retail supply has not changed but the demand along with rent rate continues to rise, whereas it is decreasing in the newly developing areas. Some main streets such as Trang Tien, Ly Thai To, Le Thai To serve as the centerpiece of this retail dominance, and now have the highest rentals rate in Vietnam.
Vincom Center & Vincom Gallaries
Vincom Center & Vincom Gallaries is considered a premier shopping center in Hanoi due to its strategic location and is one of a few centres that provides a shop, work and leisure environment. Vincom is preferred by new-to-market brands in terms of branding as well as maximisation sales through strong foot traffic numbers. Vincom has a different retail strategy and attracts brands like Apparel brands are FCUK, Naf Naf, LK Bennett and flagship electronic store such as Best Caring and also features Megastar Cineplex.
Trang Tien is one of Hanoi’s highest retail rental rate locations. With the re-introduction of Trang Tien Plaza in late 2012, this will become the most high-end retail street with high-end brands like Chanel, Hermes, Dior, etc.
Ngo Quyen, especially in and around the Sofitel Metropole Hanoi is a prominent and recognized retail luxury corner with Louis Vuitton, Salvatore Ferragamo, Bally, Chopard, Mont Blanc, Cartier and continues to be the prime destination for locals and tourists alike.
Ly thai to
Ly Thai To is the most premier retail location with numerous high-end fashion tenants and internationally recognized retailers and global brands such as Gucci, Milano, Zegna and Hugo Boss.
LE THAI TO
Le Thai To is identified as a prime retail strip opposite Hoan Kiem Lake. Recent years, the presence of some international brands like MAC, Clinique and Estee Lauder show it as a favorite choice for sophisticated customers.
|KEY AREAS / STREETS/SHOPPING CENTERS||Consumer Profile||MAJOR RETAILERS PRESENT||TYPICAL RENT RATE ($/SQ.M)||RANGE OF UNIT SIZES|
|Trang Tien||High end user||Burberry, Louis Vuitton, Dior||80 - 200||n/a|
|Ly Thai To||High end user||Gucci, Milano||150 - 200||n/a|
|Le Thai To||High end user||Playboy, MAC||50 - 120||n/a|
|Ngo Quyen||High end user||Louis Vuitton||150 - 180||n/a|
|Ba Trieu||Low Medium - Middle end user||Cle de Peau, Ducati||50 - 80||n/a|
|Vincom Center Hanoi (Shopping center)||Middle end user||Naf Naf, FCUK, Morgan De Toi||30 - 150||n/a|
Data as of August 2012
Hanoi has been selected as one of the top ten cities for food in the world by Sherman’s Travel and Vietnam’s national dish “Phở” has been also named as one of the top five street foods in the world by Global Post.
The food and beverage market has seen massive and rapid growth from fast food through to luxurious dining. The economic crisis did not appear to impact on F&B as cheap eateries dominate this market and the cultural environment sees people dining out not dining in.
F&B streets for example Ma May, Hang Buom attract both tourists and locals. On the other hand, Xuan Dieu is the F&B hot spot for expatriates while the old-quarter is still the most famous restaurant precinct.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATORS INCLUDING||RENT RATE (USD/SQM)|
|Ma May||Local, tourist||Private owned||Not official rent/use their own property|
|Hang Buom||Local, tourist||Private owned||30-40|
|Tong Duy Tan||Local, tourist||Private owned||Not official rent/use their own property|
|Ta Hien||Mainly tourist||Mainly private owned||30|
|Xuan Dieu||Mainly expatriates||Vine Restaurant and Wine bar, Alfresco||10 - 20|
Data as of August 2012