Vietnam retail sales reported soaring

Vietnam retail sales grew at 13 per cent last year, with food and beverage, apparel and household appliances leading the way, according to Savills Vietnam. The country’s Ministry of Industry and Trade has estimated total revenue generated from retail sales and consumer services reached US$191 billion last year. Vietnam retail sales accounted for $143.3 billion of that figure, or more than 75 per cent.

The highest growth was recorded in precious stones and metals, wood and building materials, food, household appliances, and garments.

Sales from accommodation and catering services grew by 9.1 per cent to $23.3 billion, accounting for 12.3 per cent of the total retail sales.

Retail space supply

The supply of retail space in Vietnam increased by more than 28,000sqm last year with two new shopping centres opening and  several others changing format or closing. Total stock was approximately 1.3 million sqm, up 9 per cent year on year and the average gross rent rose 2 per cent quarter on quarter.

This year, Savills predicts, new supply in CBD locations will be only 31,700sqm with another 215,000sqm becoming available in non-CBD districts.

Outlook

Meanwhile, the ministry predicts total revenue from retailing and consumer services will increase at an average of 13 per cent this year, reaching $255.5 billion.

Between 2021 and 2025, the predicted growth rate is 14 per cent with total revenue reaching $484.58 billion by 2025.