Modern retail supported by large young population and a growing economy - 2nd highest urban population in the region and growing. - Consistently high GDP growth. Full report: http://www.savills.com.vn/research_articles/31141/156704-0

2. HA NOI
DA NANG
HCMC
Over 22 years
First to Market
68,000 sqm
Leased in 2016
US$ 200 mil
2016 residential sales
SAVILLS VIETNAM
Over 5.2 M sqm
under Savills
management
The most
innovative
Advisory Services in
Viet Nam
Over USD 100M pa
Number one for
transactions
2

3. EVOLVING
Modern retail supported by a large young population
and an expanding economy
• 2nd highest urban population in the region and growing.
• Consistently high GDP growth.
GDP Growth %
Urban Population 2016 (Mil)
% Urbanisation
Spending Consumption growth (%) 2016
45.3
4.9
5.0
141
INDONES
IA
54%
6.1
7.0
45.3
PHILIPPINES
44%
7.3
MYANMA
R
18.5
35%
2.9
3.1
35.8
THAIL
AND 52%
LAOS
7.32.7
40%
VIETN
AM
6.7
7.0
31.5
34%
7.0
6.7
3.3
21%
CAMBO
DIA
1.9
0.6
5.6
100%
SINGAPO
RE
5.0
6.0
23.3
75%
MALA
YSIA
-0.6
1.9
0.3
78%
BRUNEI
40%
Key
Savills Vietnam | 3

4. Retail Density (m2
/pax) | Source: Savills
Source: GSO, 2017
EVOLVING
Low retail density with growth potential to catch regional peers.
Overpriced, Unavailable? Shoppercations Affecting Performance
Source markets
15.4
12.7
11.1
9.9
9.4
8.7
8.3
7.3
6.8
6.6
3.5
Singapore
Bangkok
Tokyo
Taipei
Seoul
Bali
Phuket
Kuala
Lumpur
Sydney
Hongkong
HCMC
Chinese
27%
South Korea
15%
US Taiwan
6% 5%
Japan
7%
Top ten APAC cities by tourist spend (US$ billion)
Source: Mastercard, 2017
Source: GSO, 2017
US$18 US$7.5Inbounds Vietnamese tourists
overseas spendbillion billion
1
2
3
4
5
6
7
8
9
10
20
International visitor yearly growth up: 18%.
Bangkok Singapore Beijing Kuala Lumpur Jakarta Ha Noi HCMC
0.89 0.75 0.65 0.64 0.44 0.17 0.13
4

5. Ha Noi & HCMC forecast.
CBD
Non CBD
52%
27%
10%
15%
15%
6%
18%
57%
Occupancy
Vacant
Supermarket
Shopping Centre
Others
Deparment Store
98%
HA NOI
2%
HCMC
87%
13%
45% 50%
30%27%
14%
16%
8%
9%
HCMC developing faster
Shopping centres dominate
High CBD premium supply
Abundant supply Abundant competition
2010
2017
2010
2017
Annual average
take up 2014 -2016
Supply
2018 - 2020
70,000m2
760,000m2
HANOI
Annual average
take up 2014 - 2016
Supply
2018 - 2020
120,000m2
650,000m2
HCMC
85%
15% US$35
/m2
/mth
94%
6%
US$53
/m2
/mth
Savills Vietnam | 5

6. Demographics, Globalisation & Technology
Large, growing youth skewed labour force changing demand
dynamics
Tech users
Source: GSO, 2016
2009
2025
14%
64%
22%
67%
24%
9%
0-14 15-59 60+
20162007
• Internet user (% Pop)
• Smartphone user (% Pop)
52%
20%
• Increasing credit card use
38%
Spare Time Online
Spare Cash Spend
Family
52% 48%
Smartphone
24%
Laptop/pc
21%
Sport &
exercise
27%
Friends
12%
TV
9%
Music
2%
Other
38%
Fashion
32%
Hi-tech
41%
Travel
34%
Home Style
37%
Entertainment
9 Mil
Source: Ministry of Communication, 2017
Source: Infocus Mekong, 2017
Source: Nielsen, 2016
Source: Statebank, 2017
EVOLVING
6

7. Globalization and international exposure encourages diversity and more brands
Adapting to & loving online retail
3%
4
brands
38%
32%
17%
9%
149
brands
2007 2016
Global brands eyeing Viet Nam. F&B, retail and services leading the charge.
Source: National Office of Intellectual Property of Viet Nam
Source: VECITA, 2017
Source: VECITA, 2017
Click & Buy E-commerce diversifying
2015 2020f
US$4 BIL
US$11 BIL
2013 2016
647
90
13 13
13,510
682
93
20
Online auction
Online shop Online promotion
Online trading
Special retail store
Restaurant
Education
Manufacturing
Services
Savills Vietnam | 7

8. Source: Euromonitor, 2017
Theme
restaurants
23% Art
Gallery
13%
Clinic
1%Outdoor
sport
11%
Pet park
15%
Organic
greenhouse
16%
Live Music
9%
Indoor Sport
11% Science
Museum
1%
Consumption 2011 - 2016
Convenience store density (,000/store)
Wanting More
10% 10%
-2%
7%
18%
13%
17%
Japan 2.3
Taiwan 2.4
Hongkong 5.3
Singapore 6.2
Thailand 6.9
China
24.9
Vietnam 54.4
Phillipines
40.9
Australia 8.7
Malaysia 7.4
Newzealand 3.1
South Korea 2.1 Source: Savills, Nielsen & National statistics, 2016
Source: Savills survey, 2017, sample size: 500
EVOLVING
Electronics Pharmacies JewelleryApparealModern
Grocery
Lifestyle
& Beauty
Leisure
8

9. AWARD WINNING
INTERNATIONAL RECOGNITION
Best Property Consultancy in Viet Nam
8 consecutive years 2010 to 2018
Best Real Estate Agency in Viet Nam & APAC
8 consecutive years 2010 to 2017
Savills retained its title as The
Times Graduate Employer of
Choice for Property for ninth
consecutive year.
Savills has topped the real estate
agents/advisors in the 2017 UK
Business Superbrand chart for the
eighth consecutive year.
Ahead of all industry competitors
Savills Vietnam | 9

10. Sustainable retail development. When revenue exceeds gross occupancy cost. (GOC).
Total Selling Price
Margin
Construction
Land Cost
Investment Cost
OPERATING
DEVELOPMENT
Population Disposable
Income
Fixed
Expanses
Discretionary
Spending
Categories
Clothing
F&B
Health
ECONOMIC RENT
%
Entertainment
%
%
%
10

11. NOI
Net Lettable Areas (NLA) x $/m2
Rent
Net Operating Income (NOI) / % YIELD
Sales/
Revenue
Gross Occupancy
Cost
AFFORDABLE
RENT
MARKET
RENT
MARKET
COMPARABLES
AND BENCHMARKING
GOC
$/m2
A. $/m2
B. $/m2
C. $/m2
Insurance
Tax
Wages
Rent
(Net Operating Income)
Savills Vietnam | 11

12. OUR SERVICES
This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used
as a basis for any contract, prospectus, agreement or other document without prior consent. Whilst every effort has been made to ensure its
accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is strictly copyright and
reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research.
Troy Griffiths
Deputy Managing Director
+84 (0) 933 276 663
TGriffiths@savills.com.vn
Pham Van Dai
Head of Research - HCMC
+84 (0) 933 276 663
PVanDai@savills.com.vn
Do Thu Hang
Associate Director - Ha Noi
+84 (0) 912 000 530
DThuHang@savills.com.vn
Please contact us for further information:
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