Hanoi’s Retail Market Sees Strong Growth Momentum
In recent months, Hanoi’s retail market has recorded a series of positive signals. According to the Hanoi Statistics Office, total retail sales of goods and consumer service revenue in Hanoi reached VND 171.5 trillion in the first two months of 2026, up 13.2% year-on-year. Of this, retail sales of goods accounted for VND 112.9 trillion, representing 65.8% of the total and increasing by 15.8%.
Experts note that the recovery of domestic consumption and improving consumer confidence are creating a sustainable demand base, supporting continued growth in the retail sector. At the same time, Hanoi is becoming an increasingly attractive market for international brands, driven not only by strong economic growth but also by its young population and expanding middle class.
Savills Vietnam’s Q1/2026 Market Report indicates that total modern retail supply in Hanoi reached approximately 1.7 million sqm, with shopping centres continuing to dominate. Occupancy stood at 89%. Notably, outer areas are gradually emerging as key destinations, with a growing concentration of projects reshaping the city’s retail landscape.
The West Lake West area is benefiting from this positive momentum.
Photo: Toshin Development
According to Avison Young, Hanoi’s retail market is increasingly shifting toward depth over scale, focusing on operational quality and enhanced customer experience rather than rapid supply expansion. This trend has accelerated the northward expansion strategies of major brands.
Alongside this shift, location strategies are also evolving. While central locations were previously prioritised for their established footfall, many brands are now turning to master-planned urban areas with long-term growth potential. Areas with strong fundamentals such as strategic location, integrated planning, and a well-developed ecosystem like Starlake are increasingly favoured, creating new momentum for premium retail developments.
International Brands Seek New Growth Poles
The “northward expansion” trend is evident in the strategies of several international retailers, notably Takashimaya, the premium Japanese retail group, which is advancing its expansion into the Hanoi market.
Following its success in Ho Chi Minh City with Saigon Centre, Takashimaya is reportedly set to expand into Hanoi, with a planned location at Westlake Square Hanoi, a Grade A commercial development in the Tay Ho Tay area. This expansion is driven by Toshin Development, the real estate developer of the Takashimaya Group. The project reflects Toshin Development’s long-term vision of developing commercial assets in locations that combine strong positioning, comprehensive planning, and a well-established urban ecosystem such as Starlake.
Westlake Square Hanoi derives its appeal from its prime location in Tay Ho Tay, envisioned as Hanoi’s future administrative, technology, and commercial hub. The area is witnessing rapid development of office buildings, hotels, R&D centres, and high-end residential projects. At the same time, ongoing improvements in infrastructure, landscape, and public parks are attracting residents, tourists, and a growing base of highly skilled professionals, forming a diverse customer base for future retail activities.
Westlake Square Hanoi occupies a prime position in West Lake West - an emerging focal point of Hanoi’s retail market.
Photo: Toshin Development
Phase 1 of Westlake Square Hanoi comprises a 10-storey tower with a total gross floor area of approximately 43,000 sqm, expected to be operational from Q3/2027. The project will host the first Takashimaya Department Store in the capital, marking the brand’s official entry into Hanoi.
Ms Mai Vo, Head of Retail Services at CBRE Vietnam, commented:
“Starlake West Lake West is undergoing rapid transformation with the emergence of a new retail destination for young consumers, bringing together premium lifestyle trends and next-generation retail concepts. In the coming period, the launch of Westlake Square Hanoi, developed by Toshin Development, together with the presence of Takashimaya, is expected to become a key catalyst, positioning West Lake West as Hanoi’s next retail hub.”
A representative from Toshin Development added:
“The introduction of Westlake Square Hanoi will contribute to a broader transformation of Hanoi’s premium retail market, aligning with long-term urban growth and evolving consumer demand.”
The project emphasises green design and multi-layered experiences.
Photo: Toshin Development
With strong long-term growth drivers, Hanoi’s premium retail market is not only expanding in scale but also being redefined spatially, with new growth poles emerging beyond the traditional central districts.
At the forefront of this shift is Westlake Square Hanoi - the project bringing the first Takashimaya Department Store to the capital. Once operational, it is expected not only to add high-quality retail supply but also to set a new benchmark for retail and commercial development in Starlake West Lake West and Hanoi as a whole.
