Cushman & Wakefield Global Cities Retail Guidecushwakeretail.com/reports/apac/Vietnam_Hanoi_Retail...Fanny Ice Cream, Twitter Beans Coffee, Baskin Robbins, Passio Café, Paris Gateaux,

0Cushman & Wakefield | Hanoi | 2019

HANOICushman & Wakefield

Global Cities Retail Guide


HANOIOVERVIEW

Hanoi, Vietnam’s capital, has been for thousands of years the political, cultural, historical and educational center of the country. With the fast growth of the economy and worldwide integration, Hanoi is quickly catching up with Ho Chi Minh City to become one of the largest economic centers in Vietnam. In 2018, Hanoi contributed over 10% to national GDP.

With the expansion of Hanoi’s administrative boundaries to cover an area four times larger, it is now the 17th largest capital in the world by land area. The city, despite the economic recession which happened almost at the same time as its geographical expansion, has always met its GDP growth target and indeed exceeded the Municipal People’s Committee’s target.

With nearly 8 million residents, Hanoi has huge potential for the development of modern retail by both domestic and foreign companies. The retail space in the city (defined here as shopping centers, department stores and retail podiums) has grown six-fold within four years, to reach nearly 1,150,000 sqm in net leasable area by the first quarter of 2019.

Decentralization has driven market performance. New supply has most often been located outside the Central Business District (CBD). Rentals in non-CBD areas have constantly dropped as supply has surged, leading to an increase in vacancy rates in these areas.

In the prime CBD, the retail supply has not changed but the demand along with rental rates have continued to rise. Streets such as Trang Tien, Ly Thai To, Le Thai To are the dominant retail streets in Hanoi CBD, and now have the highest rental rates in Vietnam.

Over 26 million tourists visited Hanoi in 2018, tourists spent a total of $4bn USD in the city.


NGO QUYENNgo Quyen, especially in and around the Sofitel Metropole Hanoi is a prominent and recognized retail luxury corner with Louis Vuitton, Salvatore Ferragamo, Bally, Chopard, Mont Blanc, Cartier and continues to be the prime destination for locals and tourists alike.

LY THAI TOLy Thai To is the most premier retail location with numerous high-end fashion tenants and many internationally recognized retailers, such as Prada, Starbucks Coffee, Bon Mua,

HANG BONGNearly one kilometer in length, Hang Bong is a prime street in the Old Quarter of Hanoi and also in the prime Central Business District (CBD). The street extends from the crossroad of Hang Bong - Hang Gai - Hang Trong –Hang Hom through to the former city gate Cua Nam (South Gate). In addition to its two-way traffic, the street is also popular among pedestrians and attracts many tourists.

Historically, Hang Bong used to be a street which produced cotton to make clothes or winter blankets. Nowadays, Hang Bong has become one of Hanoi’s busiest streets for shopping with a diverse range of art galleries, silk shops, clothing shops, grocery stores and coffee shops. It is also home to a number of boutique hotels, foreign cosmetics shops (e.g. The Face Shop, Yves Rocher, The Body Shop, and It’s Skin), fashion shops (e.g. Reebok, Adidas, Li-ning, Crocs and other local privately-owned fashion boutiques), as well as coffee shops (all privately-owned) and grocery stores (HaproMart and several privately-owned convenient stores).

TRANG TIENLocated in the prime Central Business District (or HoanKiem District), Trang Tien is one of Hanoi’s most historic and well-known streets. Besides having two-way traffic, it is also a popular pedestrian street for tourists – especially those from overseas. Trang Tien Street has been consistently among the most visited places in Hanoi largely because of its proximity to the Old Quarter and also its famous cultural offerings with well-displayed bookstores and art galleries.

In addition, the street is home to the famous Trang Tien Plaza (where a number of prestigious brands like Louis Vuitton, Salvatore Ferragamo, Burberry, Dior, and Versace are present) and a number of fashion shops –including NEM Women’s Fashion, Pazzion, Jimmy Choo, and Van Laak, and also restaurants and cafes – including El Gaucho, Trang Tien Ice Cream, Highlands Coffee, Swing Lounge, Pizza 4P’s, Givral Café, Fresh Garden Bakery and Café BBQ.

HANOIKEY RETAIL STREETS & AREAS


BA TRIEUSpreading over 1.9 kilometers across Hoan Kiem and Hai Ba Trung districts, Ba Trieu is a major street that stretches from Hoan Kiem Lake to Dai Co Viet Street. It is a one-way traffic street that leads to 19 other roads.

Ba Trieu is one of Hanoi’s more popular shopping streets for the fashion-wise consumer. Besides the famous Vincom City Center (Towers A, B and C), there are also local fashion boutiques (e.g. Nem. Elise, C&T, Format, Daisy, Zenda), coffee shops and restaurants (e.g. Starbucks, KFC, Mondo Gelato, Khang Japanese Restaurant, BooCiti Café, Indochine 1915 Restaurant).

It is important to note that Ba Trieu has been included in many retailers’ wish lists as a prime location for new stores. This is since the opening of Vincom City Center –Tower A&B in 2004, one of the first and also most prominent shopping centers in Hanoi.

HANOIKEY RETAIL STREETS & AREAS

HAI BA TRUNGLocated in Hoan Kiem District (the prime Central Business District), Hai Ba Trung is a 3-kilometre long and two-way traffic street that crosses and leads to ten other roads.

Besides having major office buildings, the street is also home to a variety of electronics shops that sell televisions, cameras, camcorders, speakers, air conditioners and refrigerators, among others.

On the other hand, the majority of fashion shops, cafes and restaurants are concentrated in the retail podiums of major buildings on the street – e.g. Hanoi Towers, Central Building, Sun City Building and Capital Building. In addition to these, other retailers present on Hai Ba TrungStreet include Highlands Coffee, Paris Gateaux, The Coffee Bean & Tea Leaf, Alfresco’s, Jackson's Steak House, Ceilo 13 Lounge and Moschino.

LY THUONG KIETNearly 1.8 kilometers in length, Ly Thuong Kiet is a major two-way traffic street located in the Central Business District, stretching from Le Thanh Tong to Le Duan and crossing nine other streets (all concentrated in the CBD). Two most notable buildings on this street are the Pacific Place complex, consisting of grade A offices, retail podium, grade A serviced residencies and the five-star Melia Hotel. Pacific Place is home to Highlands Coffee, Lacoste and The Rooftop Bar.

F&B and non-F&B retail stores are widely present on Ly Thuong Kiet Street. Fashion shops include Mango, Lacoste, Vietnam Designers’ House and other local fashion boutiques. A wide range of coffee shops and restaurants are also present, including Starbucks (located in Lan Vien Hotel and overlooking Hang Bai and Ly Thuong Kiet streets), Fanny Ice Cream, Twitter Beans Coffee, Baskin Robbins, Passio Café, Paris Gateaux, Highlands Coffee, Vèdette Café, Tonkin Coffee, The Rooftop Bar, Fuse Bar, Kimono Restaurant and other local privately-owned restaurants.


HANOIMARKET OVERVIEW

KEY AREAS/ STREETS/ SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT TYPICAL RENT

Trang Tien High-end Christian Dior, Christian Louboutine, Van Laak, Trang Tien Ice Cream, El Gaucho, Highlands Coffee, Givral, Café BBQ

US$ 80-200/ sqm/ month

Hang Bong Middle The Face Shop, Yves Rocher, The Body Shop, It’s Skin, Reebok, Adidas, Crocs, Triump, Vera, privately-owned coffee shops, local art galleries, silk shops, and clothing shops


Ly Thai To High-end Prada, Milano US$ 150/ sqm/ month

Ngo Quyen High-end Louis Vuitton US$ 150-180/ sqm/ month

Ba Trieu Middle Starbucks, KFC, Mondo Gelato, Ray Ban eyewear US $60-100/ sqm/ month

Vincom Center Ba Trieu Middle Karren Millen, Axara, DKNY, Nike, Sisley, FCUK, Valentino Creation, US Polo, Charles & Keith, Aldo, Accessorize, Mango, Jeep, Bata, Adidas, Bossini, Giordano, Levi's, The Face Shop, Kanebo, Shiseido, Ninewest, Elizabeth Arden

US$ 50 - 150/ sqm/ month

Hai Ba Trung Middle Alfresco’s, Paris Gateaux, Highlands Coffee, The Coffee Bean & Tea Leaf, Jackson’s Steak House, Ceilo 13 Lounge, Moschino, privately-owned electronic product stores


Ly Thuong Kiet Middle Mango, Starbucks (overlooking Hang Bai and Ly Thuong Kiet streets), Baskin Robbins, Passio Café, Paris Gateaux, Highlands Coffee, Vedette Café, The Rooftop Bar, Lift Bar, Kimono Restaurant, Vietnam Designers’ House


Indochina Hanoi (Iph) Middle/ High-end Levi's, Sembonia, Nike, The Body Shop, Yves Rocher, Adidas Neo, Akemi, It's Skin US$ 30/ sqm/ month

Vincom Mega Mall –Royal City

Middle Lacoste, Sisley, Levi's, Adidas, Giordano, The United Colors of Benetton, Valentino Creations, Nine West, Shiseido, The Face Shop, Skinfood, Yves Rocher

US$ 45/ sqm/ month

Vincom Mega Mall –Times City

Middle Adidas, Aldo, Bata, FCUK, Giordano, Guy Laroche, Levi's, Nine West, Noir, Swarovski, Valentino Creations

US$ 40/ sqm/ month

Lotte Center Hanoi Middle Korloff, Furla, Clarins, Clé de Peau, Alizabeth Arden, Kose, Lancôme, L'Occitane, Mernard, Naris, Sisley, L'Oréal, The Face Shop, Vichy, Yves Rocher, Bata, Clarks, Geox, Bonia, Braun Buffel, Morgan de Toi, Valentino Creations, Esprit, Giordano, Guess, Levi's, Giovani, Valentino Rudy, Reebok

US$ 70/ sqm/ month

Aeon Mall Long Bien Middle JYSK, Canifa, Trananh, Aeon Supermarket, Highland Coffee, Dream Games, CJ CGV Cineplex, tiNiWorld

US$ 72/ sqm/ month

Vincom Center Tran Duy Hung

Middle Vinmart, CGV Cineplex, OVS, Al Fresco, Dookki, Zozo Sushi, Runam, Phuc Long Tea & Coffee, Charles & Keith, Tommy Hilfiger


Vincom Center Lieu Giai Middle Vinmart, Highlands Coffee, CGV Cineplex, Pizza Company, Starbucks Coffee, Aka House, Al Fresco’s US$ 32-90/ sqm/ month


VINCOM CENTER BA TRIEUVincom Center Ba Trieu is considered a premier shopping center in Hanoi due to its strategic location and it being one of the few centers that provides a shop, work and leisure environment. Vincom is preferred by new-to-market brands for brand awareness and for maximising sales due to the high footfall at the center. Vincom has attracted brands such as Zara, Bornga, Adidas, LK Bennet, Phuong Nam Bookstore. This center also features CGV Cineplex and many other leisure concepts.

HANOISHOPPING CENTERS

INDOCHINA PLAZA HANOI (IPH)Indochina Plaza Hanoi provides retail, office and residential services. IPH is located close to a number of universities, skytrain stations and highways and has numerous famous international tenants such as Adidas, Nike, Levi’s, Sembonia, The Body Shop, Phuc Long Coffee, Starbuck’s and CJ CGV Cineplex. Indochina Plaza is known as one of Hanoi’s most popular shopping centers.

VINCOM MEGA MALL – ROYAL CITYVincom Mega Mall – Royal City, which is known as the biggest underground mega mall in Southeast Asia, is home to a number of both domestic and foreign brands including H&M, Decathlon, Robins Department Store, Lacoste, Sisley, Yves Rocher, Adidas, Dr. Marten, Lock&Lock, Sony. Royal City is connected to the Hanoi ring road and sky train stations.

VINCOM MEGA MALL –TIMES CITYVincom Mega Mall – Times City was built as a modern urban mall with eco-friendly architecture. The mall is divided into several functional areas including luxury apartments, a high-end retail center, a leisure area, restaurants, general hospital, 5-star hotel and schools. Located about 3km south of the CBD, Time City has become one of the most attractive destinations for international retailers such as Valentino Creations, Calvin Klein, H&M, FCUK, Adidas, Pizza Hut, Guy Laroche and Osaka BBQ.

LOTTE CENTER HANOILotte Center Hanoi provides a wide range of services consisting of a department store, residences, offices and hospitality. Located on two main lines and among an area of high expatriates concentration, Lotte Center attracts many international retailers e.g. MAC Cosmetics, Bvrgari, Versace, L’Oréal, Vichy, Esprit, Baskin Robins, plus domestic Vietnamese companies.

TRANG TIEN PLAZATrang Tien Plaza occupies a prime location right in Hoan Kiem Lake at the corner of Trang Tien and Hang Bai Streets. The project positions itself as high-end with presence of many luxury brands namely Dior, Cartier, Louis Vuitton, Burberry. Trang Tien Plaza is the most luxury retail project within Hanoi city core.


HANOINEW DEVELOPMENT WATCH

DEVELOPMENT TO WATCH OUT FOR

AEON MALL HA DONG

Total Scheme Size NLA 95,000 sqm

Opening Date Est. 2020

Consumer Profile Middle Class

ABOUT THE DEVELOPMENT

AEON Mall Ha Dong is the second shopping mall in Hanoi powered by AEON Retail which has already experienced the success in the Vietnam market. The upcoming shopping mall is located in the vibrant south where population density is experiencing significant growth and commercial space supply is booming. Infrastructure developments are making the area well-connected to the CBD, especially after the launch of Metro line 2 which is estimated to be completed by 2023.


Hanoi has been selected as one of the top ten cities for food in the world by Sherman’s Travel. Vietnam’s national dish “Phở” has also been named as one of the top five street foods in the world by Global Post.

HANOIFOOD & BEVERAGE

KEY AREAS

CONSUMER PROFILE FOOD & BEVERAGE OPERATORS

TYPICAL RENT

Ma May Locals, tourist Private owned Not official rent/ use their own property

Hang Buom Locals, tourist Private owned US$30-40/sqm/month

Ta Hien Mainly tourist Mainly private owned US$30/sqm/month

Xuan Dieu Mainly expatriates Vine Restaurant and Wine bar, Alfresco US$10-20/sqm/month

The food and beverage market in Hanoi has seen rapid growth across many sectors, from fast food through to luxurious dining. The economic crisis did not appear to impact F&B, as affordable eateries dominate the market.

F&B streets for example Ma May and Hang Buom attract both tourists and locals. Xuan Dieu is the F&B hot spot for expatriates, while the old-quarter is still the most famous restaurant area in Hanoi.

No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

© 2019 Cushman & Wakefield LLP. All rights reserved.

MAI VOHead of Business Development & Retail ServicesCushman and WakefieldTel: +84 83823 7968 Ext. 138Mob: +84 903 786 [email protected]

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Cushman & Wakefield Global Cities Retail Guidecushwakeretail.com/reports/apac/Vietnam_Hanoi_Retail...Fanny Ice Cream, Twitter Beans Coffee, Baskin Robbins, Passio Café, Paris Gateaux,