The political stability, pro-business environment and ‘golden age’ demographics which see 25% of the population comprising ages between 10 and 24 have attracted a series of famous retailers from Japan, Thailand, Korea and France, flocking to Vietnam and hoping to enter the market.

At a glance:

• Vietnam GDP grew by 7.38% in Q1/18.
• First six months of 2018 saw over 6.7 million international arrivals to Vietnam. This figure set to double by 2020.
• Under Silver Shores Investment Development Company Limited, VV Mall will add value to existing hotels to become an attractive retail destination.

Source: JLL Vietnam

In the recent years, Vietnam is one of the fastest growing countries in Southeast Asia. In Q1/18, Vietnam’s GDP grew by 7.38% and is higher than the expected growth 6.0-6.5% forecasted for 2016-2020. The strong economic growth is a result of favourable demographics, continued urbanization, industrialization and higher employment rate in the services sector along with a rising middle class.

Over the next two decades, Vietnam will be in a demographic golden age. Employment in manufacturing and services has increased 25% of the population is aged between 10 and 24; the median age is around 30. According to the Brookings Institute, Vietnam has the fastest-growing middle class in Southeast Asia – 18% per annum over the period 2016-20.

Economic and political reforms have spurred rapid growth, previously high inflation is now under control with the average inflation rate in 2018 about 3.5- 3.8% and the exchange rate remains stable over recent years. These factors continue to transform the country, with the fastest-growing middle class, providing one of the many catalysts for the rapidly growing tourism industry.

The industrial renaissance has driven corporate demand for hotels across the country. There were over 6,708,428 international arrivals into the country in the first six months of 2018, whilst visa exemptions, the introduction of new direct air routes and improved marketing efforts have boosted the country’s appeal to leisure travellers. This is set to double by 2020 reflecting the country’s growing status as a business destination and tourist hotspot.

Hosting APEC (Asia Pacific Economic Cooperation) in November last year generally brought much focus to Vietnam's stellar growth; specifically, Da Nang as one of Asia's emerging economies, further promoting its MICE (meetings, incentives, conferencing and exhibitions) capabilities internationally.

Da Nang City is the major economic hub of central Vietnam, as some referring to it as the Silicon Valley, and also one of the major resort destinations in Vietnam. 

International airlift has grown substantially. For APEC’s preparation, the expanded airport now has a capacity of circa 6.5 million arrivals per year. The airport is the third largest in the country after Noi Bai International in Hanoi and Tan Son Nhat in Ho Chi Minh City.

The potential of Da Nang is enormous as it is slowly gaining a reputation for its tech-savvy workforce. Over the year, there are a number of notable projects under the stages of planning and construction along the coastline, whilst several projects remain in various pre-feasibility stages as the market continues to receive solid interest from local and foreign developers. A highlight of today is the most modern commercial centre project - VV Mall associates with the reputable Crowne Plaza and a luxurious hotel brand- JW Marriott.

Located along the highway from Da Nang to Hoi An, with 35,000 square metres of leasable space, VV Mall will offer a wide array of brands to appeal to the retail appetite of local and tourist alike. This includes renowned fashion brands, international duty-free store, and restaurant with various cuisine. Notably, connected to Crowne Plaza, Crowne Games Club and JW Marriot Hotel (which will open in 2019), under the same developer Silver Shores Investment Development Company Limited, VV Mall will add value to the existing hotels to become an attractive retail destination.

At the conference “Da Nang – A New Retail Destination in Asia,” Mr Mark Thomas, the Board Director of Silver Shores, said: “Trust that our joint efforts from both VV Mall Management Service Company and JLL, there will be unlimited new business opportunities for our investors, the shopping mall now is under decoration and will soon open in June 2019.”

Based on the design concept that ‘Shopping in travelling and travelling while shopping,’ VV Mall will become one of the must-visit places in Da Nang for both domestic and international guests.

JLL proudly represents the exclusive marketing and leasing agent for this project. Led by Trang Bui, JLL has one of the most active leasing teams in Vietnam, dealing with many Fortune 500 and MNCs.

For more information about Da Nang's retail market, phone or email Xuan Pham of JLL via the contact details listed below.

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