Retailers now tend to set up shopping malls in the suburb areas of big cities, since the land in the inner cities has become too expensive, and it is nearly impossible now to seek large land plots for retail premises.
A series of shopping malls in the suburb areas have been put into operation in Hanoi. The shopping malls all have the much bigger areas than the shopping malls in the inner city, more than 100,000 square metres. These include Vincom Mega Mall in Royal City urban area (230,000 square metres), Ciputra Shoping Mall (120,000 square metres) or U-Silk City (146,896 square metres).
The land plots in the areas considered as the gateways to the city have become the ideal places for big modern, multi-functional shopping malls.
Advantageous location is always the most important factor that determines the success of retailers. In the past, retailers tried to scramble for the beautiful land plots, as near to the central area as possible, to set up retail premises. However, it is now nearly impossible to find large land plots in the inner city any more, while the prices have become sky high. A real estate developer reportedly accepted to pay 500 million dong per square metres to compensate the local residents on Hang Bai street in the centre of Hanoi, for site clearance. However, even with the huge sum of money, his plan failed completely.
It is also an impossible mission to find a land plot large enough for modern shopping malls in the areas around Hoan Kiem Lake.
The small land plots prove to be the biggest problem that hinders the establishment of multi-functional shopping malls. Meanwhile, shopping malls need to become more modern and multi-functional, in order to satisfy the demand of customers who have become choosier.
Therefore, Hanoi, for the last two years, has been witnessing a new wave of making investment in the retail premises in the suburb areas. Especially, the western areas have beenbustling with many projects, including Ciputra Shoping Mall (120,000 square metre), U-Silk City (146,896 square metres) or Keangnam Hanoi Landmark. Meanwhile, the southwest area has Vincom Mega Mall (A part of Royal City project) with 230,000 square metre, and the northeast has Savico Plaza Long Bien (120,000 square metres).
Suburb areas with large enough land plots for modern shopping malls have become the new shopping paradises in Hanoi.
The most outstanding characteristic of modern shopping malls is that they are the places where people can do many things, from shopping, entertainment to relaxation.
The “all-in-one” model has been followed by all the shopping malls established recently, including The Garden currently and Hanoi City Complex, Keangnam Hanoi Landmark, Savico Plaza Long Bien, U-Silk in the near future. In the mind of Hanoians, shopping malls nowadays are not only the places to buy things.
Vincom Megal Mall in Royal City Hanoi has made debut at No.72A Nguyen Trai. This is the largest ever and most modern shopping mall in Vietnam. The place has been attracting not only those who enjoy shopping but also other Hanoians, who want a place to relax. Thanks to its attractiveness, 60 percent of Vincom Mega Mall has been leased to retailers after one month.