Major retail developers are setting up expansion plans in Vietnamese cities, photo Le Toan

Just three months after launching AEON Xuan Thuy, the first general merchandise store outside an AEON shopping mall in Hanoi, the Japanese retailer is preparing to open a second similar store within the next two quarters.

AEON Vietnam currently operates two such locations outside shopping malls, one in Hanoi and one in Ho Chi Minh City, as part of its broader strategy to become a leading retail corporation.

Apart from the large supermarkets located inside its shopping malls and the general merchandise stores, the company also launched the AEON The Nine model, which is a compact mini store mainly selling food and daily necessities, often found in high-end complex buildings.

Meanwhile, the convenient store model AEON MaxValu is situated in residential areas and office buildings in the north.

“We will continue to develop large-scale shopping malls. In addition, we also have flexible models in terms of scale to suit the needs of the local community and the specific conditions of each area,” an AEON Vietnam representative said.

AEON currently has nine supermarkets along with 20 MaxValu locations in Vietnam. By the end of 2025, the company plans to launch Tan An Shopping Mall in the Mekong Delta province of Long An, marking its expansion into the region. Additionally, the company aims to open 3-4 more super supermarkets nationwide.

AEON is not alone in this expansion. WinCommerce, the retail arm of Masan Group, is also growing rapidly with three distinct formats: Winmart, a chain of large supermarkets located in shopping malls, WiN stores present on streets and residential areas, and WinMart+ Rural, a chain of minimarts specifically for rural areas.

By the end of 2024, WinCommerce had nearly 4,000 supermarkets and convenience stores. In 2025, Masan aims to open 1,000 new stores, averaging three new locations per day.

According to the Ministry of Industry and Trade’s forecast, the size of Vietnam’s retail market may reach $350 billion by 2026. In the race to increase market share, many retailers have opened new stores and developed more suitable models to optimise the customer experience.

The expansion of retail chains is fuelling the demand for prime retail spaces, particularly in Hanoi and Ho Chi Minh City. Data from CBRE shows that the average rent in central areas of Hanoi and Ho Chi Minh City in 2024 increased significantly, by 16.2 per cent and 15.4 per cent respectively compared to the same period of the previous year, reaching $173 and $280 per square metre each month.

CBRE forecasts that in 2025, Hanoi will welcome an additional approximately 115,800sq.m of new net leasable area, while Ho Chi Minh City will add nearly 40,000sq.m.

Phan Thanh Huyen, an analyst at the Analysis Department of VNDirect Securities, commented that the gravity from the retail market and the expansion of models have helped maintain the appeal of the commercial real estate market this year. The demand for leasing commercial spaces remains high, especially in the two major cities of Hanoi and Ho Chi Minh City.

“Major retail space developers are continuing to push forward with expansion plans in Vietnam. Many international brands such as AEON Mall, Lotte Shopping, and Vincom Retail are all planning to open new shopping malls in key urban areas,” Huyen said.

According to Nguyen Thi Bich Van, director of communications at Central Retail Vietnam, the company is set to open its GO! hypermarket in the northern province of Hung Yen in July this year.

Central Retail is one of the largest multi-format foreign retailers in Vietnam, operating nearly 300 stores and 42 shopping centres across 32 localities nationwide.

“Our large shopping malls are often located in urban areas such as Hanoi, Ho Chi Minh City, and Danang,” Van noted. “The construction of a complex of nearly 16,000sq.m in Hung Yen city, a medium-sized urban area, is a bold and daring move.”

According to Pham Xuan, senior director and head of Business Development at Cushman & Wakefield Vietnam, transitioning from a shophouse of retailers to a shopping centre offers numerous advantages. One of the primary benefits is the higher customer volume, as shopping centres typically pull in more shoppers, especially those located in busy areas or connected to public transportation like metro lines.

“People often visit malls to browse and end up purchasing items they like. Additionally, a contemporary shopping centre can significantly enhance a retailer’s brand image compared to a smaller, potentially outdated shophouse,” Xuan told VIR.

Furthermore, shopping centres frequently organise promotional events and marketing campaigns, providing valuable opportunities for individual retailers to increase their visibility and attract customers.

“There is also potential for synergy with other retailers, as being located near complementary businesses can draw customers seeking various products,” Xuan added.