Rentals should have decreased due to the current difficulties in the economy. Businesses are only willing to pay up to VND150 million per month for good retail spaces that used to cost VND200 million. If landlords insist on keeping their prices and leaving the property unoccupied for a year, they would lose out on as much as VND1.8 billion per year.
High rents translate to costlier products for consumers. However, consumers cutting back on spending and fierce competition from cheap goods online means businesses cannot raise prices to compensate for rising costs and rents.
Hence, I find landlords’ current mindset to be unreasonable.
Reader Phuong Vuong
The comment was left below an article on how many prime retail spaces in HCMC and Hanoi have remained unoccupied for years because landlords have been demanding exorbitant rents.
Many readers shared similar opinions:
Reader Tran Khoi:
“I used to run three stores but have recently combined them into one. This shift is not due to a decline in sales, but rather because I have transitioned to an online platform. 90% of my customers now shop online while only 10% visit the physical store.
Retail spaces are no longer important for my business and maintaining multiple stores is a waste. Investing in advertising is much more beneficial.
In the future, prime locations will only be crucial for food and beverage brands, but they are also struggling with fierce competition.”
Reader Henry Tran:
“This situation will not be good for the entire economy. Exorbitant rents will negatively impact industries that genuinely need spaces to operate and create jobs for the local population.”
Reader Dante Tran:
“When rentals in the city center are too costly, stores will flee. Leaving properties empty in the central business district can reflect badly on the city.
Even wealthy individuals would not want to rent a location on streets that are filled with empty houses. If this persists, such areas will gradually become abandoned after a few years. Excessive rents are killing local businesses because only multinational mega corporations can afford such prices. Small businesses, especially those owned by young people, are forced to move to the outskirts.
This makes it very difficult for industries that promote Vietnamese culture, such as food and fashion. Young people who want to open authentic Vietnamese restaurants can only find spaces to rent in districts far from the city center like HCMC’s Binh Thanh and Go Vap. Meanwhile, the downtown Districts 1 and 3 are filled with foreign brands.”
What are your thoughts on this topic?
*This opinion was translated into English with the assistance of AI. Readers’ views are personal and do not necessarily match Read’ viewpoints.
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