The current situation is different from the past when retailers had to scramble for premises, though rents were sky high. On Nguyen Van Linh street in Hai Chau district, rents previously ranged from VND70 million to VND200 million a month.

A five-story house with frontage width of 5 meters, for example, were rented for VND80 million a month. Meanwhile, a 200 sq m house with frontage width of 10 meters were rented for VND170 million.

However, rents have been cut by half because of low demand. 

A 4-storey house, with a lift and area of 105 sq m on Nguyen Van Linh street, which was used for an English language center in the past, with rent of VND45 million a month, is now offered for lease for VND25 million. 

Meanwhile, Hoang, the owner of retail premises on Hoang Hoa Tham street, told VietNamNet that the tenant has given back the premises after one year of unsuccessful business.

“Their head office in HCM City has gone bankrupt, so the branch in Da Nang also has to shut down,” Hoang explained, adding that the rent of the 3-storey house with floor area of 80 sq m was VND40 million a month.

But now Hoang is asking for only VND25 million a month. He is willing to accept monthly, instead of yearly or biannual payments.

Le Linh, the owner of a spa chain, has decided to shut down a spa facility on Hoang Hoa Tham street, though she had spent VND1 billion to re-decorate the premises.

“In current difficult conditions, people have to cut spending on luxury services,” she said.

According to Da Nang Statistics Office, the municipal authorities granted 3,490 new business registration certificates in the first 10 months of the year, down by 8.7 percent over the same period in 2022. The number of businesses resuming operation fell by 26.6 percent.

In related news, Cushman & Wakefield said that two streets in Vietnam have been included on a list of streets with the most expensive retail premises in the world. One of them is Dong Khoi street in district 1 in HCM City ($390 per 18 square feet) and the other is Trang Tien street in Hanoi ($334 per square feet).

Ho Giap