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Tag: hanoi

  • Petrovietnam and KEPCO Speed up Talks on Ninh Thuan 2 Nuclear Project

    Petrovietnam and KEPCO Speed up Talks on Ninh Thuan 2 Nuclear Project

    Petrovietnam and South Korea’s Korea Electric Power Corp have accelerated negotiations to construct Vietnam’s Ninh Thuan 2 nuclear plant. Workers have already cleared 97.5 per cent of the site land.

    Chief Executive Le Manh Cuong met KEPCO President Kim Dong-cheol in Seoul on Tuesday. They met to advance technology, investment, and project financing frameworks for the commercial nuclear facility.

    Land Clearances and Financing Talks

    Hanoi assigned Petrovietnam to lead development of the Ninh Thuan 2 station to revive nuclear power generation. In July, the Ministry of Industry and Trade confirmed KEPCO as the primary foreign partner candidate following preliminary discussions with Vietnamese authorities.

    Site preparation in Ninh Thuan province is almost complete. Petrovietnam confirmed that remaining clearance operations will finish shortly. That clears a key requirement before commercial construction agreements can proceed.

    South Korean Reactor Push in Southeast Asia

    KEPCO presented its delivery of the Barakah nuclear power plant in the United Arab Emirates as an operational blueprint for Vietnam. The four-reactor Barakah complex represents Seoul’s main export reference. It gives KEPCO an edge in discussions over procurement models and long-term project debt financing.

    Choosing KEPCO creates a deliberate split in Vietnam’s nuclear procurement program. Hanoi previously designated Russia’s state atomic agency Rosatom to develop the separate Ninh Thuan 1 project. The strategy distributes technological reliance across competing nuclear suppliers rather than committing to a single foreign vendor.

    Power Demand and Grid Readiness

    Vietnam shelved nuclear power planning in 2016 because of cost constraints and fiscal discipline. Rising baseload electricity demand from industrial clusters has forced trade officials to bring atomic power back into the long-term national power development master plan.

    Factories and industrial operators in Vietnam face ongoing grid capacity constraints as export manufacturing expands. High-capacity nuclear baseload addresses supply reliability. However, commercial terms and safety licensing still require bilateral government approvals.

    Next, Hanoi and Seoul will run financial structuring reviews while Petrovietnam finishes the final 2.5 per cent of site clearance work.

  • China’s Meiyijia Opens Two Ohmee Stores at Petrolimex Stations in Hanoi

    China’s Meiyijia Opens Two Ohmee Stores at Petrolimex Stations in Hanoi

    Chinese convenience chain Meiyijia has opened two Ohmee Express stores at Petrolimex petrol stations in Hanoi following its entry into Vietnam in April. The pilot tests a forecourt retail model in the chain’s first overseas market.

    The tie-up links China’s largest convenience operator with Vietnam’s dominant petroleum distributor. Meiyijia runs more than 40,000 stores in its domestic market.

    Pilot Sites on Hanoi Arteries

    Both outlets operate on Ngoc Hoi and Nguyen Quy Duc streets in Hanoi. They stock packaged food, drinks and daily necessities alongside standard fuel station services.

    Petrolimex deputy general director Nguyen Ngoc Tu said the partnership supports plans to convert traditional petrol stations into multi-service commercial hubs. The strategy responds to shifts in vehicle energy use and digital payments.

    Fuel Forecourt Competition in Vietnam

    Forecourt retailing gives convenience operators a direct way to bypass street-level real estate bottlenecks in Southeast Asia. Securing prime roadside retail space in Hanoi and Ho Chi Minh City carries steep rents and heavy competition from players like Circle K, WinMart+ and GS25. Partnering with a state-backed fuel network gives Meiyijia immediate roadside access and built-in vehicle traffic without negotiating individual retail leases.

    Customer conversion presents the main operational challenge. Petrol buyers in Vietnam make brief refuelling stops on motorbikes. Basket sizes stay modest unless the forecourt store offers quick food service or payment utilities that draw riders off their bikes.

    Cross-Border Expansion from Guangdong

    Meiyijia entered Vietnam in April under the Ohmee banner, selecting the country for its first international expansion. Founded in Guangdong in 1997, the company built its domestic network on a low-cost franchise model. It penetrated lower-tier Chinese cities before expanding into higher-density urban centres.

    Results from the two Hanoi pilot stores will determine whether Meiyijia and Petrolimex roll out the Ohmee Express format across the fuel distributor’s nationwide network of filling stations.

  • Former Bamboo Airways Chairman Barred from Leaving Vietnam over $1.7M Tax Debt

    Former Bamboo Airways Chairman Barred from Leaving Vietnam over $1.7M Tax Debt

    Vietnamese immigration authorities have barred former Bamboo Airways chairman Le Thai Sam from leaving the country over VND44.06 billion ($1.7 million) in unpaid corporate taxes.

    The restriction follows a formal request submitted on Sept. 3 by the tax department in Gia Lai province, where the airline accumulated the arrears. Officials confirmed the travel ban applies to Sam directly as the carrier’s beneficial owner.

    Under Vietnamese regulations, authorities define a beneficial owner as an individual who directly or indirectly controls at least 25 per cent of a company’s voting shares or charter capital. Provincial tax officers stated that the exit ban will remain in effect until Bamboo Airways settles the entire outstanding balance through the National Public Service Portal.

    Leadership Shifts and Ownership Transfers

    Sam joined the private carrier in 2022 and built up a controlling stake to become its largest individual shareholder. He took over as chairman from July 2023 to February 2024 before shifting to the role of standing vice chairman.

    A brief return to the chairmanship in August 2025 ended after about a month, when his investor consortium transferred the carrier back to property developer FLC Group. Sam stated at the time that the managerial and capital demands of running the airline had outstripped his group’s financial capacity, though he pledged to remain accountable for operations during the restructuring phase.

    Sam vacated the chairman role in mid-November 2025 while retaining his seat on the board of directors. He also remains general director and legal representative of Viet Bamboo Airways Cargo JSC and several related entities.

    Turbulence in Private Aviation

    Aviation operators across Southeast Asia continue to grapple with heavy debt loads and fleet restructuring following years of market volatility. Vietnamese tax regulators have increasingly turned to personal travel bans against corporate representatives to force prompt settlements on unpaid fiscal liabilities.

    FLC Group is working to stabilise Bamboo Airways’ domestic flight schedules as the carrier resolves legacy tax debts with provincial authorities.

  • Vingroup Deputy Chair Pham Thu Huong Enters Global Top 1,000 Wealthiest at $4.5B

    Vingroup Deputy Chair Pham Thu Huong Enters Global Top 1,000 Wealthiest at $4.5B

    Vingroup deputy chairwoman Pham Thu Huong entered the world’s 1,000 wealthiest people on Friday as her net worth climbed to US$4.5 billion. Shares in the Vietnamese conglomerate reached a record VND256,000 (US$9.82), adding nearly US$200 million to her personal fortune in a single trading day.

    The 57-year-old executive ranked 963rd on the Forbes real-time billionaire index after gaining 4.67 per cent in valuation during the session. She has climbed 443 positions since February, when she first joined the global ranking in 1,406th place. Huong now ranks as the second-richest woman in Southeast Asia, trailing only Indonesian data center operator DCI Indonesia co-founder Marina Budiman, who controls an estimated US$6 billion fortune.

    Record Conglomerate Rally

    Vingroup shares have advanced 51 per cent since the start of the year, expanding wealth across the group’s founding family. Pham Nhat Vuong, Huong’s husband and the chairman of Vingroup, expanded his net worth by 36 per cent over the same period to US$39.3 billion.

    Vuong reached 54th place on the global wealth table on Friday. His personal fortune increased by US$1.6 billion in 24 hours, making him one of the five biggest single-day wealth gainers worldwide.

    Southeast Asian Wealth Shifts

    Regional market trends tracked across Southeast Asia show Vietnam’s large diversified groups capturing substantial equity gains this year, outpacing broader regional indices. Other Vietnamese business figures on the global list include Vietjet Air chairwoman Nguyen Thi Phuong Thao, who ranked 1,099th with US$3.9 billion, alongside Vingroup leader Pham Thuy Hang.

    Trading desks in Hanoi will monitor whether Vingroup can defend its record share price above VND256,000 as third-quarter earnings disclosures approach.

  • Viettel Wins 240 MHz Spectrum to Enter Dominican Republic

    Viettel Wins 240 MHz Spectrum to Enter Dominican Republic

    Vietnam’s Viettel secured 240 MHz of spectrum in the Dominican Republic to deploy 4G and 5G networks across the Caribbean nation. The award expands the group’s overseas operations into an 11th foreign market after international revenue rose 23.9 per cent to USD 3.34 billion in 2025.

    Telecommunications regulator INDOTEL approved the license transfer under Resolution No. 073-2026 on August 19, 2026. The 20-year allocation covers frequencies across the 700 MHz, 2.3 GHz, and 3.6 GHz bands, combining low-band reach for remote regions with mid-band capacity for high-density mobile broadband.

    Terms of the Caribbean Concession

    Viettel Global, the international investment arm of the Hanoi-based group, won the airwaves in a competitive tender. The company is setting up a local operating business to construct the physical network and run consumer and enterprise digital services.

    Chairman and chief executive Tao Duc Thang said the group plans a long-term network build focused on modern infrastructure, with priority given to connecting underserved and rural communities across the country.

    Exporting the Southeast Asian Playbook

    The Caribbean venture follows an expansion strategy Viettel has used across Southeast Asia, Africa, and Latin America. The group operates across 10 overseas markets and holds the top mobile subscriber share in seven of them, sustaining nine straight years of double-digit international revenue growth.

    Viettel has 90 days from the August 19 resolution to finalize and sign the concession agreement with INDOTEL before breaking ground on network infrastructure.

  • Mixue Closes 89 Overseas Stores as First-Half Profit Drops 15%

    Mixue Closes 89 Overseas Stores as First-Half Profit Drops 15%

    Mixue cut its overseas footprint by 89 stores in the first half of 2026, driven by closures across core Southeast Asian markets Vietnam and Indonesia.

    Net profit fell 15 percent year on year to 2.32 billion yuan, even as total revenue edged up 2.3 percent to 15.2 billion yuan ($2.26 billion). Group filings show higher selling and distribution expenses ate directly into margins across its franchise network.

    Rising Distribution Costs Squeeze Margins

    The Henan-headquartered drinks giant operated 63,987 outlets globally by June 30, with 59,609 locations in mainland China. That leaves roughly 4,378 international stores, concentrated heavily in Southeast Asia where the brand sells budget soft-serve ice cream and milk tea.

    Mixue did not publish country-level closure totals for Vietnam or Indonesia. The company stated in its interim report that reducing store density improved individual unit quality and created a cleaner base for sustainable operations.

    Franchisee economics have tightened across the region. Rapid street-level expansion in major cities sparked cannibalisation between neighbouring outlets, forcing operators to absorb higher logistics costs on imported syrups and packaging without room to raise retail prices.

    Rebalancing Southeast Asian Footprints

    Vietnam was Mixue’s first international market when the chain launched in Hanoi in 2018. By September 2024, the brand ran 1,304 stores across the country, according to its Hong Kong listing prospectus filed in early 2025.

    Mass-market tea and coffee chains in Southeast Asia now face heavier competition from local discounters and Chinese rivals copying the low-price franchise playbook. Mixue’s retreat from sheer store count growth signals that overseas networks cannot rely solely on relentless opening schedules to deliver profit.

    Investors now await Mixue’s updated capital-raising timeline in Hong Kong, where full-year store productivity figures will test whether the overseas pruning protected operating cash flow.

  • Techcombank CEO Jens Lottner Earns $650,000 in First Half

    Techcombank CEO Jens Lottner Earns $650,000 in First Half

    Techcombank chief executive Jens Lottner earned nearly VND17 billion ($650,000) in the first half of 2026, marking a 29 per cent pay increase from a year earlier.

    The figure accounted for more than half of the VND32.9 billion the Hanoi-based private lender paid across its executive leadership, board of directors, and supervisory board during the six-month period.

    Executive compensation at Techcombank

    Reviewed half-year financial statements show total leadership remuneration grew by more than 6 per cent year on year. Lottner personally received VND16.9 billion in salary and performance bonuses, averaging roughly $108,000 a month.

    General staff pay shifted upward at a slower pace. Bank employees earned an average of VND46 million a month in total compensation over the same six months, up 4.5 per cent from the prior year.

    International leadership in Vietnamese banking

    Lottner, a German national with a doctorate in economics from Dresden University of Technology, took the helm at Techcombank in August 2020. His career spans three decades in financial advisory and commercial banking across Asia and Europe, including tenures at McKinsey & Company, Boston Consulting Group, and Siam Commercial Bank in Thailand.

    Private lenders across Southeast Asia have consistently relied on senior expatriate executives to overhaul consumer banking, digital platforms, and credit underwriting. Securing that regional experience requires compensation packages that sit well above local market baselines.

    Investors now look to Techcombank’s third-quarter earnings disclosures to assess whether retail loan growth and fee income justify the bank’s operational spending.

  • Vietnam Gold Prices Drop to Lowest Level Since July

    Vietnam Gold Prices Drop to Lowest Level Since July

    Gold prices in Vietnam dropped on Saturday morning to their lowest level since July 22, tracking an overnight tumble in global bullion markets.

    Saigon Jewelry Company gold bars declined 1% to VND148.7 million ($5,700.59) per tael, which equates to 37.5 grams. Gold rings slipped 0.99% to VND149.7 million per tael, bringing the total decline for domestic gold to 2.68% so far this year.

    Global Bullion Tumbles on Rate Bets

    The domestic retreat tracked sharp losses across international trading desks. Spot gold fell 2.9% to $4,567.23 per ounce on Friday, marking its lowest reading since August 20. U.S. Gold futures for December delivery settled down 2.9% at $4,529.9 per ounce.

    Traders liquidated positions after Federal Reserve Chairman Kevin Warsh indicated that inflationary pressure remains persistent. The comments prompted markets to price in higher odds of monetary tightening rather than immediate policy relief.

    Domestic Retail Demand Reacts

    The drop reversed an earlier weekly rally that lifted global prices to a high of $4,696.18 on Tuesday. Gold ended the week down 2.9% overall.

    In Vietnam, physical gold remains a primary retail savings vehicle and an inflation hedge. When global spot prices swing rapidly, domestic jewellery retailers adjust their buy and sell spreads within hours to protect inventory margins.

    Market participants now shift their attention to the upcoming Federal Reserve policy meeting in September to gauge whether physical bullion demand in Asia will face further currency and interest rate headwinds.

  • Bogg Moves Production to Vietnam Following 10 Million Dollar Tariff Hit

    Bogg Moves Production to Vietnam Following 10 Million Dollar Tariff Hit

    American bag maker Bogg has begun shifting its manufacturing footprint to Vietnam after absorbing a $10 million tariff penalty on its China-based production lines.

    The move lands as the foam-tote brand surpassed $100 million in annual revenue and crossed $400 million in cumulative lifetime sales. Founder and chief executive Kim Vaccarella built the business around washable EVA foam bags, relying on Chinese factories for more than a decade before import duties forced a supply-chain overhaul.

    Supply chain retooling and raw material costs

    Concentrating production in China left the company exposed when cross-border tariffs surged over the past year. Vaccarella said Bogg started shifting manufacturing orders into Vietnam to reduce that tariff drag, while managing swings in the price of raw EVA polymer across global markets.

    The supply revamp coincided with a broader retail push. Bogg added six retail partners and entered roughly 200 new storefronts across the United States, placing inventory into fashion chains including Anthropologie and Urban Outfitters as well as specialty sellers like The Container Store. Wholesale accounts now generate about 40 per cent of total sales, with direct-to-consumer digital channels and Amazon supplying the balance.

    The factory shift across Southeast Asia

    Bogg is following a path well worn by international footwear and apparel brands that have spent the past five years building secondary production hubs in Southeast Asia. For mid-sized consumer labels, diversifying out of coastal China protects operating margins, but it also creates fresh logistical friction as Vietnamese factories face tighter capacity and fluctuating feedstock costs.

    Vaccarella turned down a nine-figure buyout offer to keep Bogg independent, and the company is now preparing its first proprietary retail stores alongside an eventual international expansion.

  • Sumitomo Mitsui Trust Expands to Vietnam Through Asset Management Joint Venture

    Sumitomo Mitsui Trust Expands to Vietnam Through Asset Management Joint Venture

    Sumitomo Mitsui Trust Group will enter Vietnam’s asset management sector by forming a joint venture with a state-owned bank to capture shifting retail investment flows.

    The Tokyo-based financial group plans to launch the venture as early as next year. The partnership targets domestic household wealth as rising personal incomes push savers beyond cash deposits, real estate, and physical gold.

    Targeting Vietnam’s Retail Capital

    Vietnamese households hold the bulk of their personal assets in traditional savings accounts, bullion, and property. Sumitomo Mitsui Trust expects growing affluence across the country to accelerate demand for mutual funds, equities, and fixed-income products.

    The joint venture will use the state bank’s branch reach and domestic client network to distribute investment vehicles. Japanese asset managers have increasingly looked abroad to deploy capital expertise as Southeast Asian economies expand their domestic financial markets.

    Japanese Lenders Push Into Southeast Asia

    Japanese financial groups continue to seek fee-generating asset management businesses across ASEAN to offset low domestic loan margins. Vietnam remains a focal point for institutional capital because of sustained factory investment and urban wage growth.

    Regulatory approval for the joint venture and the final equity structure between the two banking institutions will dictate the official rollout date next year.

  • Vietnamese Dong Strengthens as Dollar Drops to VND26,330 at Vietcombank

    Vietnamese Dong Strengthens as Dollar Drops to VND26,330 at Vietcombank

    Vietcombank lowered its selling rate for the US dollar by 0.11 percent to VND26,330 on Tuesday morning, reflecting broad softness across international foreign exchange desks.

    The drop in official banking channels contrasted with Vietnam’s parallel market, where the greenback climbed 0.19 percent to VND25,970.

    Divergence in local currency trade

    Commercial lenders adjusted rates as global demand for the dollar faltered. Currency dealers operating in the unofficial market logged modest buying interest, keeping the gap between bank counters and private money changers unusually narrow.

    Vietnamese importers and consumer brands track these daily currency fluctuations closely to price incoming shipments of electronics, packaged goods, and retail inventory.

    Global pressures and trade sanctions

    In international currency trade, the dollar struggled to retain ground against major peers. The euro traded slightly higher at $1.1668, near a three-month high, while sterling gained 0.1 percent to $1.3639, holding near a six-month peak.

    Market participants weighed fresh policy actions from Washington, where US Treasury Secretary Scott Bessent announced an expansion of sanctions against Iran on Monday. Bessent warned foreign entities to sever commercial ties or risk expulsion from dollar clearing networks.

    Ray Attrill, head of FX strategy at National Australia Bank, noted in a podcast that the measures could trigger a modest reversal of dollar weakness seen late last week.

    Traders across Asian financial hubs are watching whether Treasury yield management and the expanded sanctions framework will halt the dollar’s downward drift before the next fixing.

  • Chip Boom Pushes Vietnam, Philippines Towards High-Income Status

    Chip Boom Pushes Vietnam, Philippines Towards High-Income Status

    Economic development in Southeast Asia is being significantly reshaped by the growth of the semiconductor industry. This expansion is now positioning both Vietnam and the Philippines to potentially achieve ‘high-income’ country status, a classification currently held only by Singapore and Brunei among the 11 ASEAN members.

    Semiconductors Drive Economic Ascent

    The semiconductor sector is increasingly viewed as a critical pathway for these nations to overcome the ‘middle-income trap,’ a challenge where countries struggle to transition from industrial economies to knowledge-based, high-value ones. This strategic focus on advanced manufacturing is attracting substantial foreign investment and fostering technological advancements.

    For retailers and consumer brands operating in these markets, an upgrade to high-income status would signal a significant increase in purchasing power and a more sophisticated consumer base. This could lead to shifts in demand for premium products, advanced electronics, and a wider array of services, prompting businesses to adapt their strategies for product sourcing, pricing, and distribution.

    Implications for Retail and Consumer Markets

    The economic growth spurred by the chip industry is expected to boost average incomes, translating into greater disposable wealth for consumers in both Vietnam and the Philippines. This change will likely lead to an expansion of the domestic consumer market, making these countries even more attractive for international brands and investors looking for new growth opportunities.

    RetailNews Asia has been closely monitoring the strategic investments in the tech and manufacturing sectors across Southeast Asia, noting how such shifts often precede significant changes in consumer spending patterns and retail infrastructure development. The potential for Vietnam and the Philippines to join the ranks of high-income nations underlines a broader trend of economic diversification and upward mobility within the ASEAN bloc, promising a dynamic future for the region’s retail and consumer landscape.

  • Hanoi Property Flippers Struggle Amid Market Downturn and High Mortgage Rates

    Hanoi Property Flippers Struggle Amid Market Downturn and High Mortgage Rates

    Property buyers who invested in under-construction apartments in Hanoi are facing difficulties in selling their properties due to falling prices and high mortgage rates. These speculators had capitalized on the previously increasing prices, expecting to make a profit upon re-sale. However, the prices have ceased to rise and have even plunged in some localities, putting these speculators under pressure to sell off their properties.

    Investors who bought early were offered a grace period for their interest rates. This period is now coming to an end, subjecting them to high fluctuating rates. For instance, Thuy Vy, a 35-year-old investor, purchased a one-bedroom apartment in Gia Lam Commune in 2024 for VND3 billion (US$114,300). She planned to sell it for a profit once the construction was completed, but despite reducing the asking price by VND150 million, she is struggling to find a buyer. The situation is similar for other investors who bought apartments during 2024-2025.

    Market Updates

    According to a recent market report by the Vietnam Association of Realtors, many projects are now in the handover phase, and buyers are required to pay the remaining 45% of their investment. Online property platform Batdongsan’s historical data shows that prices in several Hanoi localities have dropped from their peaks by about 8% to 13%.

    Real estate brokers reveal that many speculators are moving away from short-term flipping strategies, focusing on selling their properties as quickly as possible, even if it means incurring losses. Duc Trung, a broker specializing in east Hanoi apartments, noted a 20-30% rise in the number of property owners looking to sell their apartments compared to the start of the year.

    Concerns and Predictions

    Pham Duc Toan, CEO of real estate agency EZ Property, suggested that it’s now challenging to sell apartments, especially those launched during the 2024 market boom. Borrowing costs remain high, making secondary buyers cautious. Vo Huynh Tuan Kiet, Director of the Residential Market at CBRE Vietnam, agreed that as property prices continue to rise, the market could reach a saturation point where sellers are unwilling to lower prices and buyers are wary of risks.

    Several research firms predict that selling pressure from highly leveraged investors will heighten as a large supply of properties is set to enter the market. The situation is exacerbated by high bank lending rates, with mortgage rates now standing at 12-14%, and even 15-16% in many cases. Consequently, market liquidity has taken a hit, with the property absorption rate dropping to 20-30% in the first half of the year, down from 50-60% in the latter half of 2025.

    Questions & Answers

    What is the current state of the Hanoi property market?
    The Hanoi property market has fallen into a slump, with falling prices and high mortgage rates dampening sales.

    How are speculators responding to the current conditions?
    Many speculators who had earlier invested in under-construction properties are now struggling to sell their units. Some are even willing to sell at a loss to offload their properties quickly.

    What is the outlook for the Hanoi property market?
    The outlook remains uncertain. Market liquidity has been hit, borrowing costs are high, and a large supply of properties is set to enter the market, which could further intensify selling pressures.

  • Hanoi’s Prime Western Land on Sale: Priced from $40M with Residential Development Opportunities

    Hanoi’s Prime Western Land on Sale: Priced from $40M with Residential Development Opportunities

    Next month, Hanoi authorities are set to auction a two-hectare plot of land located in the city’s western region. The initial entry price has been established at VND1.06 trillion, or approximately US$40 million, which equates to VND52.9 million per square meter.

    Land Auction in An Khanh Commune

    The plot of land is situated in the An Khanh Commune, positioned 22 kilometers away from the city center. The auction will be conducted by the Lac Viet Auction Partnership Company. The land is zoned for commercial residential development, opening up possibilities for significant business ventures.

    The auctioning process will be conducted through multiple rounds of sealed bids, with at least five rounds expected to occur. Each incremental bid will be increased by VND10 billion. Bidders are required to place a deposit equivalent to 20% of the starting price to participate in the auction.

    An Khanh Commune is home to a population of 102,000. Its close proximity to Thang Long Avenue has catalyzed the establishment of several significant residential projects such as Sudico Nam An Khanh, HaDo Charm Villas, and Vinhomes Thang Long.

    Hanoi’s Revenue from Land Transactions

    In the previous year, Hanoi set a new record in its revenue from land-related transactions, generating VND107.9 trillion. This figure surpassed its intended target by 125% and was over twice the amount earned in the previous year. This revenue constituted 15% of the city’s total income.

    Looking forward, Hanoi has set a target to earn a total revenue of VND3.7 quadrillion from 2021 to 2030. Of this amount, about 21.6% is expected to be derived from land transactions.

    Questions & Answers

    What is the starting price for the land auction in An Khanh Commune?
    The starting price is VND1.06 trillion, or approximately US$40 million.

    What type of development is permitted on the auctioned land?
    The land is zoned for commercial residential development.

    What percentage of Hanoi’s total revenue from 2021 to 2030 is expected to come from land transactions?
    About 21.6% of the total revenue is projected to come from land transactions.

  • E-Commerce Boom Sparks Exodus from Hanoi’s Prime Retail Spaces Despite Slashed Rents

    E-Commerce Boom Sparks Exodus from Hanoi’s Prime Retail Spaces Despite Slashed Rents

    Despite steep rent discounts offered by landlords, numerous stores in prime retail locations in Hanoi are shutting down, unable to withstand the pressure from the burgeoning e-commerce industry. Last month, Thai Hoang, a 39-year-old retailer, abandoned his spacious 40-square-meter clothing store on Thai Ha Street, a renowned fashion destination in the city. Even when faced with a 6% reduction on the monthly rent of VND35 million (approximately USD1,330), declining sales led Hoang to relocate his business online.

    A Shift in Retail Trends

    Several businesses situated on prominent retail streets such as Thai Ha, Kim Ma, and Hue have followed a similar trajectory in recent months, vacating their premises despite landlords’ desperate attempts at retention through double-digit discounts. On Kim Ma and Nguyen Thai Hoc Streets, well-known for their blend of fashion stores and food and beverage outlets, a significant number of “for lease” and “for sale” signs can be observed.

    Mai Loan, an experienced property broker in Hanoi, identifies the townhouse segment as being in a prolonged slump, with small, narrow properties with limited parking struggling to maintain viability even in prime locations.

    Not Just a Temporary Setback

    Statistics from the online listing platform Batdongsan indicate a 22% drop in private housing interest in Hanoi since the end of last year, with average asking rents for townhouses in certain areas dropping by 13-37% from their 2025 peaks.

    Mai Vo, director of retail services at property consultancy CBRE Vietnam, suggests that this lack of tenants in prime locations is not a temporary downturn but signifies a major market shift. In the past, businesses were willing to pay premium prices for central street locations for branding purposes. However, the rise of e-commerce and integrated shopping malls has drastically altered consumer behavior, diminishing the allure of standalone retail outlets.

    The Market Rebalances

    In response to this shift, landlords are compelled to reduce rents to retain tenants. “Adjusting rents is a sign that the market is rebalancing,” Vo added. Rapidly rising rents in previous years have also reduced the competitiveness of townhouses, with many properties deteriorating and unable to meet branding requirements, thus becoming less appealing.

    Hoang Nguyet Minh, general director of property consultancy Cushman & Wakefield Vietnam, added that the pressure from stringent urban management and sidewalk regulations had also made it difficult for many food businesses to continue operating in small, narrow spaces. However, she believes that this presents an opportune moment to secure prime business locations as the market currently has ample affordable supply.

    Questions & Answers

    Why are retail businesses in Hanoi vacating their premises?
    Many businesses are struggling to survive amid the e-commerce boom, with declining sales forcing them to relocate their businesses online.

    What factors are leading to this trend?
    The rise of e-commerce and integrated shopping malls have significantly affected consumer behavior, reducing the attractiveness of standalone retail outlets, even in prime locations.

    How is the market responding to this shift?
    The market is responding by rebalancing, with landlords reducing rents to retain tenants. Meanwhile, businesses are adapting by shifting their focus to online sales.