In Vietnam, Toshin Development continues to leave a significant mark on the commercial real estate landscape, with notable projects such as Saigon Centre, AB Tower, The Loop by Takashimaya Group (IPH), and its latest venture, Lancaster Luminaire. With an eye on enriching the retail experience, the company has carved a substantial niche in Ho Chi Minh City and is now setting its sights firmly on Hanoi, responding to a rising demand for premium shopping options.
Recent insights from Savills Vietnam reveal a noteworthy resurgence in global retail investment, projected to recover to 12.4% by 2025. Capital flows are steadily rebounding, particularly since the latter half of 2024. Simultaneously, Vietnam’s burgeoning middle class is expanding at an impressive clip of 10–12% annually and is poised to comprise 26% of the population by 2026, as highlighted by the World Bank. This socio-economic landscape is positioning Vietnam as a vital player in the realm of premium consumerism.
Despite the positive trends, Hanoi is grappling with a constrained retail market. The occupancy rates of shopping centers have climbed to 86%, yet the introduction of new spaces struggles to match the rigorous standards set by international brands. The second quarter of 2025 is on track to welcome a diverse range of entrants, including luxury names like Dior Beauty and Prada Beauty, along with more accessible brands such as Mr. DIY, highlighting Hanoi’s allure for quality retail options.
Experts are increasingly eyeing Starlake, an urban township in Tay Ho Tay, as a burgeoning retail hotspot. Its strategic location, robust infrastructure, and an international residential community make it a magnet for premium offerings. Matthew Powell, Director at Savills Hanoi, notes, “Starlake is gradually taking shape as a strategic destination for international brands,” as many retailers seek to plant their flags in this developing hub.
Forecasts from Savills indicate that Hanoi will see a mere addition of 10,600 square meters of high-quality retail space over the next three years, a striking mismatch with current demand. This discrepancy paves the way for seasoned international developers like Toshin Development to join the fray. Although details remain under wraps, sources suggest that Toshin is laying the groundwork for an expansive retail project in Starlake Tay Ho Tay. Expected to embody Takashimaya’s development ethos, the project promises premium retail venues, exceptional service, and refreshingly designed relaxation areas that will elevate the visitor experience.
Emphasizing sustainability, contemporary architecture, and an array of integrated amenities, Toshin Development’s upcoming project is anticipated to adhere to LEED green building standards. These features are not only in line with evolving consumer preferences but also strategically position the project in Hanoi’s bustling retail ecosystem. Real estate experts contend that this development could serve as a pivotal influence on the city’s high-end retail environment, potentially attracting international brands keen to establish flagship locations in the capital.
Toshin Development’s strategic maneuvers underscore a vibrant shift in Hanoi’s retail narrative, signalling sustained interest from international investors in Vietnam’s market potential. With a groundbreaking ceremony likely slated for early August, the city is on the cusp of a transformative phase for premium retail that may redefine the landscape from 2025 to 2030.
What is Toshin Development’s investment strategy in Vietnam?
Toshin Development is focused on creating luxurious retail spaces that enhance customer experiences, having already established a significant presence in Ho Chi Minh City and now expanding into Hanoi with a refreshed investment approach.
What challenges does the retail market in Hanoi currently face?
Hanoi’s retail market is experiencing pressure due to limited space and high occupancy rates, with shopping centers reaching an 86% occupancy while new developments fail to meet the leasing demands of international brands.
What is unique about the upcoming project in Starlake, Tay Ho Tay?
The new project in Starlake is set to embody sustainable practices and modern design while offering premium retail experiences, including upscale relaxation areas—elements that are increasingly important to today’s discerning consumers.
