Vietnam’s economy is poised for strong growth in the coming years, with The World Bank projecting a 6.1% growth in 2024 and 6.5% in both 2025 and 2026, driven by a combination of robust expansion in export, domestic manufacturing, and the recovery in tourism.
With strong core economic fundamentals, Vietnam is attracting significant foreign direct investment and a growing expat community, fueling the rise of a burgeoning middle class with increasing purchasing power. This favorable economic climate has created ample opportunities for shopping mall operators like Vincom Retail that can cater to the middle class’s growing demand for high-quality retail experiences.
Leveraging expertise and resources cultivated over the years, Vincom Retail has been rapidly expanding its operations, pioneering retail real estate formats and redefining customer experiences. With the company’s unwavering commitment to meeting the diverse needs of consumers across all segments, Vincom Retail is positioned for continued growth and resilience in an ever-evolving market.
Vincom Retail: Rapid Expansion Marked Significant Milestones
Over the past two decades, Vincom Retail has emerged as a dominant force in Vietnam’s retail landscape, reshaping how the country’s households, youth, and middle class spend their leisure time and money.
Back in 2004, at the heart of Vietnam’s capital Hanoi, a groundbreaking project was taking shape on Ba Trieu street, a central business district in Hanoi. The 21-story mixed-use twin towers was a testament to Vietnam’s burgeoning ambition and a bold vision for the future. Designed and constructed entirely by Vietnamese engineers and workers, the project was completed in a record-breaking 18 months, showcasing the nation’s growing technical prowess.
The opening of Vincom Center Ba Trieu marked a pivotal moment in Hanoi’s transformation. More than just a retail center, it symbolized Hanoi’s modernization and catalyzed urban renewal, paving the way for rapid development. This pioneering spirit, exemplified by Vincom, set the stage for the retail revolution that would reshape the Vietnamese landscape.
Since the groundbreaking success of Vincom Center Ba Trieu, Vincom Retail has substantially expanded its footprint with 88 shopping malls across 48 provinces and cities nationwide, cumulatively reaching approximately 1.84 million square meters of retail GFA, solidifying the company’s position as the premier mall owner and operator in Vietnam. Coupled with an annual footfall of nearly 200 million, Vincom Retail demonstrates its ability to capitalize on the nation’s burgeoning market of nearly 100 million people.
Vincom Retail: A Multi-Tiered Approach to Retail Dominance
Vincom Retail’s two-decade journey has been marked not just by rapid expansion, but also by multi-tiered mall format strategy. To cater to a broader spectrum of consumers, from budget-minded shoppers to high-end clientele, the company has adopted a multi-tiered approach to its shopping mall formats. This strategy has enabled Vincom Retail to withstand economic downturns, solidify its market position, and seize emerging opportunities.
Vincom Retail’s portfolio encompasses a range of formats, including flagship Vincom Centers, large-scale Vincom Mega Malls, community-oriented Vincom Plazas, and commercial streets.
In Vietnam’s major urban centers like Hanoi and HCMC, Vincom Retail’s iconic shopping mall development, such as Vincom Center Ba Trieu and Vincom Center Dong Khoi, have emerged as cultural landmarks and tourist attractions. These retail destinations set trends, from the latest fashion to cutting-edge entertainment, shaping consumer behavior and preferences.
For major metropolitan areas, Vincom Retail has implemented a strategy of developing large-scale Vincom Mega Malls. These sprawling complexes, situated in rapidly growing urban centers, provide a comprehensive mix of residential, commercial, and retail offerings. By strategically locating these mega malls in key economic hubs, Vincom has created vibrant destinations that attract both local residents and tourists.
In addition, Vincom Retail has capitalized on the rapid growth of Vietnam’s middle-income population and urbanization rate by developing high-quality Vincom Plaza shopping malls across the major provinces of the country.
Beyond traditional mall format, Vincom Retail pioneers new retail real estate concept with the commercial streets like Venice, K-Town, and Little Hong Kong. These developments, inspired by international models like Clarke Quay and Taikoo Li Chengdu, serve as vibrant community hubs, connecting local residents and tourists to a diverse range of retail, dining, and entertainment offerings.
Vincom Retail: The Trusted Platform and Partner for International and Local Brands
Vincom Retail’s pioneering spirit is also reflected in its role as a gateway for major foreign brands to access the Vietnamese market. The company has emerged as a strategic partner for both international and domestic brands seeking to expand their footprint in this dynamic market. Vincom Retail’s unique value proposition, which includes prime locations, expansive spaces, and a significant market share, has made it an attractive destination for retailers of all sizes.
Renowned international brands such as Zara, H&M, and Uniqlo have chosen Vincom Center as the location for their first stores in Vietnam, recognizing its potential to reach a discerning consumer base.
Beyond international brands, Vincom Retail has also played a pivotal role in the expansion of domestic brands. By offering a nationwide network of shopping malls, the company has provided a platform for local businesses to scale their reach and operations. Poseidon, Tân Việt, Pantio, Highlands and many other popular domestic brands, have successfully leveraged Vincom Retail’s presence to develop a countrywide store network.
Vincom Retail has demonstrated its commitment and support to its tenants, especially during challenging periods. In response to the COVID-19 pandemic, the company provided substantial financial support, totaling VND 3,357 billion, to help tenants weather the storm. This proactive approach has strengthened the strong partnerships between Vincom Retail and its retail partners.
To further boost the success of its tenants, Vincom Retail regularly implements marketing and promotional campaigns to attract footfall. These initiatives, which often involve cross-promotions and loyalty programs, help drive tenants’ sales and enhance the overall shopping experience of the shoppers. By fostering a vibrant retail atmosphere, Vincom continues to attract new brands and customers alike.
Vincom Retail: Strong Foundation and Pioneering Spirit Propels Future Success
Following two decades of experiences in developing and pioneering retail real estate, Vincom is charting an ambitious course for the future growth, fueled by new mall openings and the adoption of innovative retail real estate concepts, while continually adapting to the evolving needs of Vietnamese customers.
A key focus for Vincom Retail in the coming years is the development of its Life-Design Mega Mall model. These next-generation mall will redefine the traditional shopping mall experience, offering a diverse range of retail, dining, entertainment, and lifestyle options. Vincom Retail has recently annouced plans to launch two new Life-Design Mega Malls in 2025, with more unique and ambitious Mega Mall projects on the horizon.
Continuing the pioneering journey, Vincom Retail plans to develop more commercial street complexes, each boasting a distinct concept. These vibrant destinations will offer a captivating mix of shopping, dining, entertainment, and cultural activities. Through creating unique and immersive shopping experiences, Vincom aims to further elevate the retail landscape and attract a wider customer base.
With a 20-year foundation in mall development and operation, Vincom Retail is well-positioned for future growth. By continuing to expand, diversify its retail offerings, and pioneer innovative retail real estate concepts, Vincom Retail aims to solidify the company’s leading position in the industry and lead the future of retail in Vietnam, capitalizing on the country’s robust economic trajectory.
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