Toshin Development has invested in several prominent commercial real estate projects in Vietnam such as Saigon Centre, AB Tower, The Loop by Takashimaya Group (IPH), and most recently, Lancaster Luminaire.

The company has expanded its footprint in Ho Chi Minh City through strategic investments and joint ventures, focusing on premium retail spaces with a strong emphasis on customer experience.

Following its initial steps in Hanoi, the company is now accelerating its expansion with a new investment strategy to capture the rising demand for premium retail experiences.

Saigon Centre in Ho Chi Minh City – Toshin Development’s first investment project in Vietnam. Photo courtesy of Toshin Development

Savills Vietnam’s latest report indicates that global investors are gradually returning to the retail sector following a period of stagnation.

While the global retail investment share is projected to reach 12.4 per cent in 2025, capital flows have shown clear signs of recovery, particularly since the second half of last year.

At the same time, according to the World Bank, Vietnam’s middle class is growing at an annual rate of 10-12 per cent and is expected to account for 26 per cent of the population by 2026, becoming a key driver of premium consumption.

Nevertheless, Hanoi’s retail market is currently under significant pressure in terms of available space.

Occupancy rates at shopping centres have reached 86 per cent, while new supply remains limited and falls short of the stringent requirements set by international brands.

In the second quarter of 2025, Hanoi welcomed a wave of international brands, ranging from luxury to mid-range and mass-market, such as Dior Beauty, Prada Beauty, Beneunder, Oh Some!, and Mr DIY, among others.

This influx underscores the capital’s growing appeal and the real demand for high-quality retail space.

Savills also forecasts that Hanoi will add only around 10,600 square metres of high-quality rentable retail space over the next three years – a figure that falls significantly short of current market demand. This supply gap presents a substantial opportunity for international developers with strong capabilities, distinctive models, and proven operational experience, such as Toshin Development.

Although no official announcement has been made, market sources hint that Toshin Development is preparing to launch a major retail undertaking in Starlake, Tay Ho Tay.

Experts have identified Starlake – an emerging urban township in Tay Ho Tay – as a rising retail hub, thanks to its strategic location, well-developed infrastructure, international residential community, and premium service ecosystem.

"Starlake is gradually taking shape as a strategic destination for international brands. Many retailers are proactively seeking space in this area, especially as the market increasingly favours integrated models with clear positioning and professional operations," said Matthew Powell, director of Savills Hanoi.

The venture is expected to carry forward Takashimaya’s development philosophy, offering premium spaces, attentive services, and customer-focused design, while incorporating new elements that align with evolving market preferences such as high-end relaxation areas aimed at enhancing the overall customer experience.

The commercial space is expected to become a future landmark in Hanoi’s high-end retail market Photo courtesy of Toshin Development

Today’s premium retail developments increasingly aim for sustainable standards, incorporating refined architecture, integrated amenities, and operations aligned with international benchmarks.

Should the Toshin Development project go ahead, it would be expected to follow green design principles such as LEED certification, with emphasis on material selection, natural lighting, and service ecosystem consistency.

These factors would meet modern consumer expectations but also set the development apart from the rest of Hanoi’s competitive retail landscape.

Real estate experts believe the venture would play a pivotal role in redefining the high-end retail market in Hanoi. International brands familiar with Takashimaya’s rigorous standards in global markets would likely see the project as a prime location for flagship stores in the capital.

Toshin Development’s move would signal a new direction for Hanoi’s retail landscape, but also reaffirm the long-term confidence of international investors in Vietnam’s potential.

The upcoming groundbreaking ceremony in early August is expected to mark a new chapter for Hanoi’s premium retail market in the 2025–2030 period.