"Gosts Run" from Expensive Site
The premises market in Ho Chi Minh City has been experiencing significant fluctuations recently. Many bustling business streets such as Le Van Sy, Nguyen Trai, Tran Hung Dao... have witnessed the withdrawal of famous brands due to sharp decline in purchasing power, not enough to cover rental and employee costs. There are sections of the road where 3-4 stores have continuously returned their premises.
Recently, the 3T egg cafe located at the corner of Truong Dinh Street and Dien Bien Phu Street (District 3) has closed and returned the premises.
Located next to this premises, in mid-2023, the famous Tu Phu coffee shop also announced its closure. At the time Tu Phu closed, the rental price of the premises of this coffee shop was about 280 million VND/month.
"This area has a high rental price, the road is one-way so customers are afraid to stop, not enough revenue will force brand owners to return the premises" - Mr. Cao Thanh Hoang, an employee at a store on Dien Bien Phu Street (District 3), said.
The premises that used to be Starbucks cafes on Han Thuyen Street (District 1) have been vacant since August 2024 and have not yet had tenants.
Not far away, along Dong Khoi Street (District 1), there are less than 1km, more than 10 vacant premises, some of which are quiet and waiting for tenants for many consecutive months. A few locations are being renovated to welcome guests.
"Although the price of premises in this area has decreased, there are still no tenants, because the costs of maintaining the center are high. A few big stores can stay, but most customers come to see and then leave," said Ms. Pham Lan Anh, a saleswoman on Dong Khoi Street.
Need to adapt to new business methods
According to data from the online real estate trading site Nha Tot, the rental price of retail townhouses in central districts of Ho Chi Minh City in January 2025 has decreased by an average of 10-18% compared to the end of 2024. In particular, District 1 and Binh Thanh District recorded a decrease of 20-32%.
Although rental prices have decreased, many premises are still vacant. On central streets such as Ly Tu Trong, Truong Dinh, Nguyen Thi Minh Khai... there are many advertisements for rent outside. Some large premises, although they have been leased since the COVID-19 pandemic, have not yet been asked by customers.
According to the Ho Chi Minh City Statistics Office, the business environment in the first phase of 2025 in Ho Chi Minh City has not had any positive changes when the number of enterprises participating in the market decreased by 7.5%. Notably, the number of enterprises withdrawing from the market increased by 14.6% over the same period.
The Ho Chi Minh City Business Association also said that the past time has been the rise of e-commerce. Most major brands have prioritized online sales and have achieved many successes. However, many businesses have not yet adapted to new business methods, new market trends make it difficult, and are likely to face the risk of being eliminated and bankrupt.
