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CBRE: Lower oil prices and reduced interest rate benefit Vietnam retail market

Richard Leech, managing director of CBRE Vietnam, recently provided optimistic comments about the positive influence of the economic recovery together with lower oil prices and reduced interest rate, which are believed to boost Vietnamese consumer spending in 2015. In details, lower oil prices will lead to lower transport costs, resulting in lower commodity prices. Together with reduced interest rate, Vietnamese consumer spending was greatly stimulated last year, and this trend will continue in 2015. Up to year-end 2014, revenue of retail and service sector reached to nearly VND3,000 trillion. retail supply is increasing in both major cities Hanoi and HCMC and will continue its upward trend in 2015, enough to compete against other regional countries. Toward year-end 2015, Hanoi will have 900,000sqm of retail floor from trade centers, while HCMC will have 600,000sqm.

Source: vnexpress