Retailers shift to standalone stores as Vietnam CBD space tightens

Malls are adding entertainment and multi-brand concepts.

Vietnam’s retail market is shifting away from central business districts as limited CBD supply forces brands to pursue standalone, high-traffic locations, according to CBRE's Asia Pacific Retail Trends Q1 2026.

The trend is reshaping expansion strategies in major cities, particularly Ho Chi Minh City and Hanoi, even as consumer sentiment shows early signs of recovery in 2026.

Consumer confidence improved in the first two months of the year, with shoppers gradually moving from strict cost-cutting to more selective spending. However, rising inflation and higher oil prices are expected to weigh on the outlook in the coming months, keeping overall sentiment cautious.

A key challenge for the sector is the lack of new retail supply in CBD areas. As a result, retailers are increasingly exploring standalone properties in high-footfall locations, while some are expanding into non-CBD districts that offer better availability and flexibility. Demand remains strongest in CBDs, but space constraints are accelerating this geographic shift.

Despite continued interest from Chinese lifestyle and food-and-beverage brands seeking entry into the Vietnamese market, landlords remain wary.

Concerns center on the aggressive expansion strategies of these retailers, prompting property owners to prioritize stable, long-term tenants.

Landlords are also diversifying mall offerings by introducing new concepts such as exhibition and entertainment spaces to boost foot traffic and enhance customer experience.

Meanwhile, multi-brand retail developments are gaining popularity among both domestic and international shoppers.

Retailers are also showing a growing preference for standalone flagship stores on high streets, signaling a shift away from traditional shopping center formats.

Technology adoption is rising, with retailers using AI for efficiency and features like virtual try-ons. Omnichannel strategies are also expanding to capture Gen Z and Gen Alpha consumers.

Beyond retail, Vietnam is positioning itself as a rising destination for concerts and large-scale events, with developers leveraging these activities to promote brands and drive property sales.

Looking ahead, the shift toward standalone retail formats will require businesses to better navigate licensing processes to avoid delays.

The report also noted that ongoing economic uncertainty is expected to push landlords and tenants to collaborate more closely, particularly in balancing turnover-based and fixed rental strategies to mitigate risk.