Ho Chi Minh City retail shifts toward experiential formats despite cautious spending

International and lifestyle brands continued expanding.

Ho Chi Minh City’s retail market is steadily shifting toward experiential and immersive shopping environments tailored to local preferences despite cautious consumer spending in some segments.

According to JLL’s Asia Pacific Retail Market Dynamics Report, the city’s prime retail market is expected to maintain stable supply levels through 2026, whilst vacancy rates continue to trend downward.

In 2025, the market recorded strong leasing activity, with net absorption reaching nearly 8,000 sqm in Q4 and around 12,000 sqm for the full year.

City Centre locations continued to attract international retailers entering Vietnam, highlighted by the debut of French luxury perfume brand Diptyque at Saigon Centre in the fourth quarter.

Retailers such as Oh!Some, KKV, and Beneunder also grew their footprint throughout the year.

In Q4, Singapore’s The Green Party entered Aeon Bình Tân, whilst Zara opened a large-format 3,000 sqm store at Crescent Mall, signaling continued confidence from global fashion brands.

Prime retail supply in Ho Chi Minh City remained unchanged in Q4. For the full year 2025, total prime retail space increased by approximately 12,500 sqm following the addition of Saigon Marina IFC in the City Centre, bringing total prime supply to 96,500 sqm. City Fringe supply remained stable at 605,200 sqm.

Meanwhile, vacancy trends showed mixed performance across submarkets. In the City Centre, vacancy rose to 8.3% in Q4, up 5.6 percentage points year-on-year, although it improved by 2.3 percentage points quarter-on-quarter due to recent leasing activity.

In contrast, City Fringe performed more strongly, with vacancy declining to 2.7%, down 0.9 percentage points year-on-year, supported by flexible leasing strategies and broad-based demand.

Rental rates showed moderate growth despite market headwinds. In the City Centre, average gross asking rent at ground floor reached $235.9 per sqm per month in Q4 2025, up 0.6% quarter-on-quarter, though still down 1.4% year-on-year due to new supply from Saigon Marina IFC.

City Fringe rents continued to strengthen, reaching $66 per sqm per month, reflecting a 0.7% quarter-on-quarter increase and 3.1% year-on-year growth.