Why is Da Nang Retail Market attractive?
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.
HO CHI MINH 18 June 2018 - Vietnam's growing retail market has attracted the attention of many foreign retailers. The political stability, pro-business environment and 'golden age' demographics which see 25% of the population being between 10 and 24 years of age has attracted a series of famous retailers from Japan, Thailand, Korea and France, flocking to Vietnam and hoping to enter the market.
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 favorable demographics, continued urbanization, industrialization and higher employment rate in the services sector along with a rising middle class.
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 million 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 travelers. This is set to double by 2020 reflecting the country's growing status as a business destination and tourist hotspot.
Hosting APEC 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 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. There are three UNESCO World Heritage Sites located within 100 km of Da Nang along a coastline of scenic beaches, including the famous My Khe Beach which attracted 819,377 international tourists in Q1/2018.
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. A key opportunity for Da Nang relies on improving flight connectivity, evidenced by AirAsia Thailand started operating a Bangkok-Da Nang route in April 2017, and further growth in such flights to larger travel hubs with Europeanconnections are also welcomed.
The potential of Da Nang is extremely 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 center project - VV Mall associates with the reputable Crowne Plaza and a luxurious hotel brand- JW Marriott.
Located along highway from Da Nang to Hoi An, with 35,000 square meters 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.
As the Deputy General Manager of Silver Shores, Mr. Xu also mentioned: "Da Nang's retail market is recently potential and in high demand. Then, we are very confident that the attractive project will become a new shopping destination for both local and foreign customers".
Based on the design concept that 'Shopping in traveling and traveling 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.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.