In Vietnam, Toshin Development has invested in several landmark commercial real estate projects, including Saigon Centre, AB Tower, The Loop by Takashimaya Group (IPH), and most recently, Lancaster Luminaire.
With a vision to create luxurious retail spaces focused on customer experience, the company has built a strong presence in Ho Chi Minh City through strategic investments and joint ventures. Now, Toshin Development is accelerating its growth in Hanoi with a refreshed investment strategy to meet rising demand for premium retail experiences.
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Saigon Centre in Ho Chi Minh City – Toshin Development’s first investment project in Vietnam. Photo courtesy of Toshin Development |
According to Savills Vietnam, global investors are gradually returning to the retail sector after a prolonged slowdown. The global retail investment share is projected to reach 12.4% in 2025, with capital flows showing signs of recovery, particularly since the second half of 2024. At the same time, Vietnam’s middle class is expanding at an annual rate of 10–12% and is expected to account for 26% of the population by 2026, according to the World Bank, making it a key driver of premium consumption.
Despite this momentum, Hanoi’s retail market is under pressure due to limited space. Shopping center occupancy rates have reached 86%, but new supply remains scarce and often falls short of international brands’ stringent requirements. In Q2 2025, Hanoi welcomed a wave of international entrants, ranging from luxury to mid-range and mass-market, including Dior Beauty, Prada Beauty, Beneunder, Oh!Some, and Mr. DIY among others. This influx highlights the capital’s growing appeal and the demand for high-quality retail space.
Experts have also identified Starlake, an urban township in Tay Ho Tay, as an emerging retail hotspot, citing its strategic location, strong infrastructure, international residential base, and premium service ecosystem.
“Starlake is gradually taking shape as a strategic destination for international brands. Many retailers are proactively seeking space in this area, especially as the market increasingly favors integrated models with clear positioning and professional operations” said Matthew Powell, Director of Savills Hanoi.
Savills forecasts that Hanoi will add only about 10,600 sqm of high-quality retail net leasable area over the next three years, far below what the market currently demands. This gap presents a significant opportunity for international developers with strong track records, distinct concepts, and operational expertise, such as Toshin Development.
Although no official announcement has been made, market sources suggest that Toshin is preparing to launch a major retail project in Starlake Tay Ho Tay. The project is expected to carry forward Takashimaya’s development philosophy, offering premium retail spaces, refined service, and customer-centric design, while introducing new elements such as upscale relaxation areas aimed at enhancing the overall visitor experience.
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A commercial space in Starlake Tay Ho Tay is expected to become a future landmark in Hanoi’s high-end retail market. Photo courtesy of Toshin Development |
Modern luxury retail developments increasingly incorporate sustainable practices, sophisticated architecture, integrated amenities, and international-standard operations. Toshin Development’s upcoming project is expected to follow LEED green building standards, emphasizing sustainable materials, natural lighting, and a consistent service ecosystem. These elements not only meet evolving consumer expectations but also help the project stand out in Hanoi’s competitive market.
Real estate experts believe the development will play a defining role in reshaping Hanoi’s high-end retail landscape. International brands familiar with Takashimaya’s global standards are expected to view it as a prime location for flagship stores in the capital.
Toshin Development’s latest move not only signals a shift in Hanoi’s retail trajectory but also reaffirms international investors’ long-term confidence in Vietnam’s market potential. The project’s groundbreaking ceremony, expected in early August, will likely mark the beginning of a new chapter for premium retail in Hanoi from 2025 to 2030.
