Ha Noi (VNA) – The local retail market remained promising, head of CBRE Viet Nam’s retail business section Rik Mekkelholt said at a seminar reviewing the market in Ha Noi on Nov. 8.
Total retail sales are expected to reach 45.2 billion USD this year, up 25 percent over last year’s 37.5 billion USD, a good growth rate according to Mekkelholt. Consumer spending is expected to hit 53 billion US in 2010.
“The rate has been maintained over the last three years, and we expect to see the same growth in the coming years.”
With 90 percent of goods still being sold at traditional street markets and small stores, Mekkelholt said, “It’s quite a change this year to have 140 super/hyper-markets, 20 trade centres and some one million sq.m of space for retail businesses developing.”
Increasing income had contributed to the development, said Mekkelhot. National per capita income was now at about 726 USD a year, up 23 percent year on year.
The country’s high economic growth and its commitment to fully open to the retail market in 2009 were driving both international and local retailers to the area, he said.
“While foreign firms including big names like Tesco, Wal-Mart and Carrefour are ready to enter the market, domestic players are actively expanding their networks.” Local Ha Noi Trade Corporation (Hapro) has also far developed seven supermarkets and fifteen convenience stores in the capital city.
Meanwhile, supply of retail spaces was limited Mekkelholt said.
HCM City ’s thirteen trade centres now provide 140,000 sq.m of space, but occupancy rate has hit 99 percent. Ha Noi’s six trade centres with 100,000 sq.m are almost fully occupied.
Some new 720 sq.m are being developed in the two cities and are expected to be available by the end of 2011.
As a result of supply-demand unbalance, rental rates have touched an average 40 USD per sq.m per month since the end of the third quarter this year and even hit 200 USD in central business areas.-Enditem
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