New Asian retailers fuel growth

• Hanoi market recorded net absorption of 3,400 sqm in Q4, with City Fringe contributing 3,560 sqm while City Centre saw slight negative absorption of 160 sqm. For 2025, excluding Vincom Nguyen Chi Thanh’s exit for conversion, total net absorption reached 5,000 sqm.
• Asian lifestyle and entertainment retailers like Oh!Some, KKV and Beneunder expanded strongly throughout the year. Q4 continued to feature a new 500 sqm KKV store at Vincom Ba Trieu, while Pop Mart opened its first Hanoi store at Aeon Mall Ha Dong.

Hanoi Centre completes construction and opens some stores in late 2025 but will only operate fully from early 2026

• Hanoi Centre in City Centre completed construction and opened some stores in late 2025 but will only operate fully from early 2026. Therefore, Hanoi market has not officially recorded any new prime mall supply in 2025.
• Centre vacancy rate slightly inched up to 4.6% in Q4, a 1.2 ppts y-o-y increase, due to store closures and relocations under competitive pressure. City Fringe vacancy dropped 0.9 ppts y-o-y to 6.1%, driven by diverse demand supported by flexible landlord leasing strategies.

Rents marginally increase amid competitive pressure

• In Q4 2025, City Centre averagegross asking rent at ground floor sustained steady growth at USD 134.4/sqm/month, rising 3.0% y-o-y, comparable to 2023-24 rental escalation rates.
• City Fringe gross asking rent remained stable q-o-q at USD 54.7/sqm/month but dropped 1.9% y-o-y due to supply changes. However, on a project basis, average rents maintained growth momentum with 2-3% annual increases.

Outlook: The market is poised to benefit from an influx of high-quality developments over the next three years

• City Centre will officially welcome Hanoi Centre, covering up to 42,000 sqm in Q1 2026. City Fringe will continue witnessing construction of major malls like Westlake Square Hanoi, Thiso Mall West Westlake and Vinacomex Capital One, providing over 80,000 sqm in 2027-28.
• F&B, lifestyle and entertainment sectors, particularly business models targeting Gen Z and children, are expected to maintain sustainable growth. Meanwhile, increasing competitive pressure should drive tenant mix innovation and creative business model development.