Ho Chi Minh City Retail Market 2026: Opportunities for Foreign Brands and Investors

Ho Chi Minh City’s retail property market remained resilient in the first quarter of 2026, supported by limited new supply, high occupancy, and continued expansion among food and beverage (F&B) and fashion retailers. Prime ground-floor rents averaged US$236.4 per square metre per month in central locations and US$66.3 in city-fringe locations. This article examines market conditions, leading retail segments, location considerations, and market-entry opportunities for foreign brands and investors.

What is the outlook for Ho Chi Minh City’s retail market in 2026?

Ho Chi Minh City offers Vietnam’s largest and most commercially developed consumer market. Since its administrative expansion in July 2025, the municipality encompasses the former Ho Chi Minh City, Binh Duong, and Ba Ria–Vung Tau, with a combined population exceeding 14 million. This expanded economic area brings together a major commercial centre, industrial and manufacturing clusters, port infrastructure, and established tourism destinations.

For retail investors and international brands, however, location assessments must remain highly granular. Consumer profiles, footfall, rental costs, infrastructure, and competitive intensity vary considerably between the established urban core, city-fringe areas, and the newly incorporated territories.

In the established retail property market, limited new supply and high occupancy continue to support rents. F&B and fashion account for much of the current leasing activity, while luxury retail, healthcare, wellness, and experience-led concepts are creating additional opportunities.

Ho Chi Minh City retail market performance in Q1 2026

According to JLL’s Q1 2026 retail market report, the retail properties covered by its Ho Chi Minh City survey recorded approximately 701,700 square metres of net leasable area. No new prime retail space was completed during the quarter.

The overall vacancy rate stood at 4.2 percent. Vacancy was higher in the city centre, at 8.4 percent, than in city-fringe locations, where it stood at 3.7 percent.

Indicator	City centre	City fringe
Vacancy rate	8.4%	3.7%
Ground-floor gross asking rent	US$236.4 per sq m/month	US$66.3 per sq m/month
Medium-term rental outlook	3–5% annual growth	3–5% annual growth

Ground-floor gross asking rents increased by 4.2 percent year-on-year. The substantial difference between central and fringe rents reinforces the importance of matching location costs with customer profile, sales expectations, store format, and brand positioning.

The market recorded negative net absorption of approximately 4,900 square metres during the quarter. JLL attributed this primarily to lease expiries, tenant departures, and asset repositioning. This indicates portfolio adjustment and tenant rotation rather than a broad collapse in demand. Savills similarly reported that occupancy remained above 90 percent despite the exit of several large tenants.

Investor takeaway: Ho Chi Minh City’s retail property market remains tight, but high occupancy does not guarantee commercial success. New entrants must validate store-level demand, occupancy costs, catchment characteristics, and competitive density before committing to a lease.

Which retail segments offer the strongest opportunities?

F&B and fashion currently provide the clearest leasing opportunities, while healthcare, wellness, and experiential concepts are emerging as complementary growth areas.

Food and beverage

F&B continues to generate significant leasing activity, ranging from international restaurant and coffee chains to specialised and locally adapted concepts.

The segment can provide a relatively accessible entry point, but operators must assess:

• Menu localisation and consumer price sensitivity;
• Food licensing and hygiene requirements;
• Import duties and procedures for foreign ingredients;
• Supply-chain consistency;
• Delivery-platform economics;
• Labour availability and training; and
• Occupancy costs relative to projected turnover.

A successful concept in another Asian market may still require considerable adaptation to Vietnamese tastes, spending patterns, and service expectations.

Fashion and luxury retail

Premium, luxury, and mid-market fashion brands continue to pursue selected locations. Saigon Centre has strengthened its luxury offering through tenants including Moschino, Coach, and The Hour Glass, reinforcing its positioning as a destination for international premium brands.

Luxury entrants should consider more than population size or headline income growth. Relevant factors include the concentration of affluent consumers, international tourism, brand awareness, product pricing after duties and taxes, and access to suitable flagship locations.

Mid-market brands may find stronger economics through city-fringe malls or a combined online and offline model, provided pricing and product selection are aligned with local demand.

Healthcare and wellness

Healthcare and wellness services are becoming more visible within mixed-use and retail developments. New F&B and healthcare tenants at Saigon Marina IFC illustrate the diversification of tenant mixes in prime properties.

Potential opportunities include:

• Dental and specialist clinics;
• Aesthetic and skincare services;
• Fitness and recovery facilities;
• Preventive healthcare;
• Premium personal care; and
• Health-oriented retail and F&B concepts.

These businesses must assess Vietnam’s sector-specific licensing, professional qualification, foreign ownership, advertising, and product registration requirements before selecting premises.

Experiential retail

Shopping centres are increasingly seeking concepts that increase dwell time and repeat visits. Interactive stores, entertainment, education, fitness, dining, and mixed-format spaces can help differentiate physical retail from e-commerce.

The commercial case still depends on measurable demand. Experiential features should support customer acquisition, conversion, or retention rather than merely increasing store fit-out costs.

Major shopping centres and retail positioning

Ho Chi Minh City’s shopping centres serve different customer groups and brand strategies.

Retail destination	General positioning	Potential fit
Saigon Centre and Takashimaya	Central, premium, and luxury-led	Luxury, premium fashion, beauty, jewellery, and flagship stores
Saigon Marina IFC	Prime mixed-use positioning	F&B, healthcare, wellness, and premium services
Vincom Center	Multiple formats and locations	Fashion, beauty, lifestyle, entertainment, and F&B
Crescent Mall	Established city-fringe destination	Family, lifestyle, fashion, and F&B concepts
SC VivoCity	Large-format, family-oriented retail	Entertainment, dining, fashion, and consumer services
AEON Mall	Destination and family shopping	Mass-market and mid-market brands, F&B, and leisure
Parkson	Department-store format	Selected fashion, cosmetics, and lifestyle brands

Note: Tenant mix, availability, rent, and commercial terms should be confirmed directly with each property operator.

Although legacy district names remain widely used commercially, Vietnam’s two-tier local government model abolished the district level in July 2025. Businesses should therefore confirm the current ward-level address and relevant local authorities when registering premises, applying for licences, and preparing contracts.

Also Read: How to Update Your Company Address After Vietnam’s Provincial Merger

City centre or city fringe: Which location is more suitable?

The right location depends on the brand’s customer base, pricing, format, and expansion strategy.

Consideration	City centre	City fringe
Visibility	High-profile locations and strong brand exposure	More dependent on mall and catchment strength
Customer base	Affluent residents, office workers, tourists, and business visitors	Residential communities, families, and repeat local customers
Rental cost	Significantly higher	More accessible
Typical format	Flagship, luxury, premium service, or showcase store	Larger store, family format, entertainment, or mass-market concept
Main risk	High occupancy costs and sales-pressure requirements	Lower visibility or weaker demand if catchment selection is poor
Strategic value	Brand building and prestige	Scale, repeat demand, and potentially stronger rent-to-sales economics

A central flagship may be appropriate for a premium international brand seeking visibility. A city-fringe location may offer better unit economics for businesses dependent on larger premises, frequent local visits, or mid-market pricing.

Brands should avoid selecting sites solely on the basis of headline rent or prestige. Footfall quality, customer conversion, co-tenancy, accessibility, competing brands, lease conditions, and total occupancy cost are more reliable decision criteria.

Market-entry options for foreign retail brands

Retail market entry involves both commercial and regulatory decisions. A foreign brand may enter through direct investment, franchising, licensing, distribution, or a strategic local partnership.

Entry model	Potential advantage	Key consideration
Wholly foreign-owned enterprise	Greater control over the brand, operations, and customer experience	Higher establishment and compliance requirements
Franchise	Faster expansion using local capital and operating knowledge	Franchise registration, disclosure, quality control, and partner selection
Local distributor	Lower initial operating commitment	Reduced control over pricing, positioning, and customer data
Licensing	Asset-light route for established intellectual property	Brand protection and quality-control risks
Joint venture or strategic partnership	Local market knowledge and shared resources	Governance, decision rights, profit allocation, and exit arrangements
Online-first entry	Allows demand testing before substantial store investment	E-commerce, tax, product, import, and data compliance still apply

The appropriate structure depends on the product category, foreign ownership rules, licensing requirements, desired level of control, investment budget, and long-term expansion plan.

Due diligence checklist for retail market entry

Before signing a lease or appointing a local partner, foreign brands should evaluate:

1. Consumer demand: Define the target customer, expected spending, purchase frequency, and local product preferences.
2. Entry structure: Compare direct investment, franchising, licensing, distribution, and partnership models.
3. Product compliance: Confirm registration, labelling, safety, import, and sector-specific requirements.
4. Location economics: Model rent, service charges, fit-out costs, deposits, staffing, utilities, and expected sales.
5. Lease conditions: Review rent escalation, turnover rent, exclusivity, permitted use, handover conditions, and termination rights.
6. Partner credentials: Conduct commercial, legal, financial, and reputational due diligence on franchisees, distributors, and suppliers.
7. Tax exposure: Assess corporate income tax, value-added tax, import duties, withholding tax, and transfer-pricing implications.
8. Intellectual property: Register relevant trade marks before launching or disclosing the brand to potential partners.
9. Employment: Plan recruitment, employment contracts, payroll, social insurance, and work permits for foreign personnel.
10. Expansion strategy: Determine whether the first location will test demand, establish a flagship presence, or serve as the basis for a wider network.

What are the main risks for new retail entrants?

The market’s high occupancy and rental growth can create pressure to secure space quickly. However, premature lease commitments may expose a new entrant to high fixed costs before its business model has been validated.

Key risks include:

• Selecting a prestigious location without sufficient target-customer demand;
• Underestimating fit-out and total occupancy costs;
• Applying a regional product or pricing strategy without local adaptation;
• Choosing a distributor or franchisee without adequate due diligence;
• Overlooking product registration, import, or sector licensing requirements;
• Weak trade mark and intellectual-property protection;
• Misjudging the effect of duties and taxes on retail pricing; and
• Expanding before the initial format demonstrates sustainable unit economics.

Key takeaways

Ho Chi Minh City’s retail market in 2026 shows high occupancy, constrained new supply, and moderate rental growth. F&B and fashion remain the most active leasing segments, while luxury, healthcare, wellness, and experience-led formats present more targeted opportunities.

The city centre offers visibility, affluent customer access, and flagship positioning, but at substantially higher rental costs. City-fringe locations may provide stronger rent-to-sales economics and access to growing residential catchments.

Foreign brands should treat site selection as one part of a broader market-entry decision. Consumer research, entry structure, licensing, tax, product compliance, partner due diligence, and lease economics must be assessed together before capital is committed.