VietNamNet Bridge – Trang Tien Plaza, the most luxurious shopping center and amusement park in Hanoi has also been hurt by the economic crisis, though a bright prospect was projected for it on the day of opening.

Located in the central area of Hanoi, close to the legendary Hoan Kiem Lake, designed to be luxurious, Trang Tien Plaza was believed to attract a lot of beautiful people in Hanoi.

The shopping center and amusement park seems to become more splendid since the day Jonathan Hanh Nguyen, a big businessman--known as the owner of the “branded goods’ empire” poured a lot of money into it.

Resuming its operation in April 2013 after four years of interruption, the “shopping paradise” has caught the special attention from the public. However, the public’s special attention is not enough to help Trang Tien Plaza’s business run smoothly.

Trang Tien Plaza only receives a few of visitors every day. It is getting so deserted that a lot of businessmen say they “feel compassion” for the investors.

Fengshui expert Kieu Quang Dung, while mentioning Trang Tien Plaza, said: “Its disease needs to be treated urgently, or it would turn into a “gaudy tumor” in the central area of Hanoi.”

Nguyen Van Duc, Deputy Director of Dat Lanh Real Estate Company, Deputy Chair of the HCM City Real Estate Association, also thinks that it is necessary for Trang Tien Plaza to restructure its business, or it would not be able to pick itself up in the future.

In fact, the unsatisfactory business of Trang Tien Plaza is foreseeable. A lot of high end shopping malls in HCM City turned up and then disappeared or changed their operation modes to survive the current difficulties.

Kumho Asiana Plaza Saigon in the central district 1 in HCM City is a typical example. The one-time large shopping mall has turned into a food center.

Other high end shopping centers have reported the 20-40 percent decrease in sales in comparison with the same period of the last year.

In Hanoi, Trang Tien Plaza, though located on a “golden land” at the center of Hanoi, has also tasted the bitterness of the economic downturn.

Businessmen nowadays whisper in each others’ ears that Grand Plaza, developed by IDJ, a big name in the real estate sector, has become a “pathetic loser” in the “shopping mall game.”

The unprofessional way of management has turned Grand Plaza, which was introduced as the “shopping paradise” into the “deserted paradise.”

“It is very dangerous to go to the open sea in the storm,” Duc commented. “I think Trang Tien Plaza’s investors need to shelter themselves at this moment, when the economic difficulties make the purchasing power decrease.”

“It is clear that the investors would suffer if they suspend the operation of the shopping mall. But I think they would rather lose some money than incurring the loss which might be 5-7 times bigger,” he added.

Explaining the failure of shopping mall projects, Duc attributed to the low demand in the context of the economic recession and the unreasonable urban infrastructure development programming.

“There are too many shopping malls,” Duc noted. “The laws have made investors become exceedingly optimistic and prompted them to pour money into shopping center projects.”

Chi Mai