Vietnam Facility Management in Malls Market

Vietnam Facility Management in Malls Market valued at USD 2.7 billion, driven by retail expansion, urbanization, and smart tech adoption for efficiency and sustainability.

The Vietnam Facility Management in Malls Market is valued at approximately USD 2.7 billion, based on a five-year historical analysis. This growth is primarily driven by the rapid expansion of the retail and commercial real estate sectors, increasing consumer spending, and the rising number of shopping malls across the country. The demand for professional facility management services has surged as mall operators seek to enhance customer experience, operational efficiency, and sustainability through the adoption of smart technologies and green building practices.

Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their high population density, robust economic growth, and accelerated urbanization. These cities are witnessing a boom in retail development, with commercial real estate area in Ho Chi Minh City rising significantly and new office space and malls being constructed. The concentration of shopping malls and entertainment venues in these urban areas further solidifies their position as market leaders.
In 2023, the Vietnamese government strengthened regulations to improve the standards of facility management services in malls. The National Technical Regulation on Construction Works QCVN 06:2022/BXD issued by the Ministry of Construction mandates compliance with safety, fire protection, and environmental standards for commercial buildings, including malls. Service providers must obtain mandatory certifications and adhere to operational guidelines covering fire safety, energy management, and waste reduction, aligning facility management practices with international standards and enhancing service quality in the retail sector.

Vietnam Facility Management in Malls Market Segmentation

By Type:

The facility management services in malls can be categorized into various types, including Hard Services, Soft Services, Integrated Facility Management Solutions, Sustainability & Energy Management Services, Specialized Services, and Others. Among these, Hard Services, which encompass technical maintenance, HVAC, electrical, and security systems, are crucial for ensuring the operational efficiency and safety of mall environments.

Soft Services, including cleaning, landscaping, and waste management, play a significant role in enhancing customer experience and maintaining the aesthetic appeal of malls. The integration of smart building technologies and sustainability initiatives is increasingly shaping service delivery, with energy management and workplace experience gaining prominence.

By End-User:

The end-users of facility management services in malls include Retail Chains, Shopping Malls, Entertainment Venues, Food Courts, Corporate Offices, Institutional & Public Facilities, and Others.

Retail chains and shopping malls are the primary consumers of these services, requiring comprehensive management solutions for smooth operations, regulatory compliance, and enhanced customer satisfaction. The growing presence of entertainment venues and food courts within malls further diversifies demand for specialized facility management services.

Vietnam Facility Management in Malls Market Competitive Landscape

The Vietnam Facility Management in Malls Market is characterized by a dynamic mix of regional and international players. Leading participants such as JLL Vietnam, CBRE Vietnam, Savills Vietnam, Cushman & Wakefield Vietnam, Vingroup, BIM Group, Novaland Group, RCR Vietnam, Sodexo Vietnam, ATALIAN Global Services Vietnam, Thainam Facility Services, TKT Cleaning, AEON Delight Vietnam, PMC Building Services and Engineering, ADEN Vietnam contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Facility Management in Malls Market Industry Analysis

Growth Drivers

Increasing Urbanization:

Vietnam's urban population is projected to reach approximately 40% in future, up from 37% in 2020, according to the World Bank. This rapid urbanization drives the demand for malls, necessitating efficient facility management services. The urban population growth translates to an increase in foot traffic and consumer spending, with urban areas expected to contribute approximately 70% of the national GDP in future. This trend underscores the need for professional facility management to maintain operational efficiency in malls.

Rising Disposable Income:

The average disposable income in Vietnam is expected to rise to approximately $2,900 per capita in future, reflecting a significant increase from $2,500 in 2020. This growth in disposable income enhances consumer purchasing power, leading to increased spending in retail environments, including malls. As consumers seek enhanced shopping experiences, mall operators are increasingly investing in professional facility management services to meet these expectations and improve overall customer satisfaction.

Expansion of Retail Sector:

The retail sector in Vietnam is projected to grow to $180 billion in future, up from $150 billion in 2020, as reported by the Ministry of Industry and Trade. This expansion is driven by the proliferation of shopping malls and retail outlets, which require effective facility management to ensure operational efficiency and customer satisfaction. The growth of the retail sector creates a robust demand for specialized facility management services, enhancing the overall shopping experience in malls.

Market Challenges

High Competition:

The facility management market in Vietnam is characterized by intense competition, with over 200 registered companies vying for market share. This saturation leads to price wars and reduced profit margins, making it challenging for new entrants to establish themselves. The competitive landscape necessitates differentiation through quality service offerings and innovative solutions, which can strain resources for smaller firms trying to compete with established players.

Regulatory Compliance Issues:

Facility management companies in Vietnam face stringent regulatory requirements, including building codes and safety standards. Non-compliance can result in fines and operational shutdowns, impacting business continuity. The complexity of navigating these regulations can deter investment in facility management services, as companies may lack the expertise to ensure compliance. This challenge is compounded by frequent changes in regulations, requiring ongoing adaptation and vigilance from service providers.

Vietnam Facility Management in Malls Market Future Outlook

The future of the Vietnam facility management market in malls appears promising, driven by technological advancements and a growing emphasis on sustainability. As smart technologies become more integrated into mall operations, facility management services will increasingly focus on enhancing efficiency and customer experience. Additionally, the shift towards sustainable practices will likely influence service offerings, as consumers and businesses alike prioritize eco-friendly solutions. This evolving landscape presents opportunities for innovation and growth within the sector.

Market Opportunities

Technological Advancements:

The adoption of smart technologies, such as IoT and AI, presents significant opportunities for facility management in malls. These technologies can optimize energy usage and enhance security, leading to cost savings and improved operational efficiency. By leveraging these advancements, facility management companies can offer innovative solutions that meet the evolving needs of mall operators and consumers alike.

Sustainable Practices Adoption:

The increasing consumer demand for sustainability is driving malls to adopt eco-friendly practices. Facility management services that focus on sustainability, such as waste reduction and energy efficiency, can capitalize on this trend. By implementing green initiatives, companies can not only enhance their market appeal but also contribute to environmental conservation, aligning with global sustainability goals.