Vincom Retail, listed on the Ho Chi Minh Stock Exchange under the ticker VRE, is a leading retail real estate company in Vietnam. It owns and leases a wide range of commercial spaces with about 86 malls across the country. Formerly a subsidiary of Vietnam’s biggest conglomerate Vingroup, Vincom Retail was partially sold in April this year with Vingroup relinquishing its controlling stake.
In the first half of 2024, VRE recorded a surge in revenue of 15 percent reaching US$192.6 million as well as an increase in profit after tax of 3.9 percent year over year. This was mainly driven by sales of investment properties rising by 271.9 percent to US$30.3 million after handing over 149 shophouses compared to just 23 shophouses in the same period last year.
Notably, VRE has successfully opened three Vincom Plaza malls and one Vincom Mega mall so far this year. It had initially planned to open six malls this year, but one mall is set to be delayed until 2025.
VRE’s new malls align with a positive outlook for Vietnam retail space rentals. According to a report by CBRE released in July, in the second quarter of 2024, rental rates in the CBDs in Hanoi and HCMC reached US$180 and US$280 per square metre per month, up 11.3 percent and 18.5 percent year-on-year respectively.
Retail rental rates are projected to continue their upward trajectory in 2024, with an anticipated increase of 18 percent in CBDs and 9 percent in non-CBD areas. This positive trend could significantly benefit VRE through higher rental income and increased occupancy rates.
Disclosure: The author does not have any financial interest in VRE stock.See also: Vietnam’s Retail Industry: Overview 2024