Asian brands drive HCMC retail demand as prime occupancy hits 96.6%

Asian retailers in F&B, fashion and lifestyle expanded in Ho Chi Minh City during Q3 2026, pushing prime retail occupancy to 96.6%. Vacancy in the central area fell to 2.85%, while asking rents in non-central districts rose 8% year-on-year to US$57.9 per sq m per month.

Asian brands in food and beverage, fashion and lifestyle are driving demand for retail space in Ho Chi Minh City, helping sustain high occupancy rates even as some existing tenants scale back. According to CBRE Vietnam, The Matcha Tokyo, Yamazaki, Wilson and Lukfook all expanded in the central area during the third quarter of 2026. Suburban retail space also saw increased demand from Vietnamese, Chinese and Japanese brands.

The trend follows a broader push by Asian retailers earlier this year. Savills reported that sportswear, cosmetics and lifestyle brands including Pop Mart, AAPE, New Era, Wilson and Salomon selected major HCMC malls in the first half of 2026 to reach younger consumers. Food and beverage businesses accounted for around 30 to 40 per cent of new leasing transactions at many malls.

Knight Frank Vietnam put the occupancy rate for prime retail space at 96.6 per cent in the third quarter, up 2.4 percentage points year-on-year. CBRE reported that vacancy in central HCMC fell to 2.85 per cent, compared with 4.8 per cent in areas outside the centre.

Asking rents in non-central areas reached US$57.9 per square metre per month, up 8 per cent year-on-year, reflecting stronger demand in new residential areas and large shopping malls. HCMC has approximately 1.3 million square metres of retail space.

Consumer spending has also supported the expansion. HCMC's total retail sales of goods and consumer service revenue reached nearly VND1.49 quadrillion (US$57.80 billion) in the first nine months of 2026, up 13.8 per cent year-on-year, according to city statistics. Retail sales of goods alone rose 17.2 per cent.

Knight Frank reported no new prime retail developments in the third quarter and expects limited new supply before 2027. However, Cushman & Wakefield forecasts that the city could add around 286,500 square metres of retail space between 2026 and 2029, mostly outside the centre. Asian brands are expected to continue supporting retail demand, but properties with strong foot traffic, suitable tenant mixes and distinctive shopping experiences are better positioned to attract retailers, while new suburban supply could intensify competition among malls.