return icon

Shophouses left idle for half a year as retailers suspend business

Shophouses, which are considered ‘money spinners’, have been unused for many months amid the impact of the pandemic. They cannot be sold or leased.



The shophouse on the first floor of an apartment building in HH Linh Dam residential quarter has been closed for months after a convenience store selling low-cost Japanese products moved out.

The shophouse faces Linh Duong Street near a 12-storey apartment building with thousands of households. However, the shophouse cannot find tenants.

Other shophouses in the area with thousands of consumers are in the same situation. Before the pandemic broke out, they were coveted by retailers, even though the average rent was high, VND30-50 million a month.

At HUD3 Linh Dam apartment building, after a private clinic moved, three shophouses have been left idle. The shophouses are located in positions less advantageous than HH Linh Dam as they are hidden behind a building so they are very difficult to lease.

A shophouse covering an area of 70 square meters at the Rainbow apartment building is also unoccupied, after a Soya Garden shop shut down.

Many shophouses and kiosks on first floors of apartment buildings in Hanoi have few tenants and most them sell clean food, medicine, or run eateries and cafes.

The retail premises remain unleased because of the high rents. Hoa, a worker at a clinic, said while other tenants in the area got support from landlords who reduced the rent, her clinic couldn’t. The owner of the clinic decided to give back the premise and move to another location.

Luu Thi Ngan, the owner of a clean food shop in Linh Dam, said the rent of retail premises at apartment buildings are still high, while sales have dropped sharply because of the pandemic. As revenue is not high enough to cover the rent, retailers are suspending their business and giving back retail premises.

Nguyen Duy Linh, the representative of a brokerage company, said the shophouses at apartment buildings mostly serve demand for essential goods and services of local people, so large brands don’t set up their outlets there. The retail premises are mostly used for convenience stores, groceries, cafes, and drug stores. The premises with large area are used for gyms, but many gyms have shut down.

The unoccupied premise rate is increasingly high. Landlords now are under pressure as they have to pay money to maintain the premises.

Covid-19 has caused retail revenue to drop sharply, impacting the domestic retail property market. Many shop owners have had to suspend their business and give back their premises to landlords.

To attract tenants, many landlords have to offer flexible payment methods and price discounts. Some landlords accept payment monthly instead of once every six months. Meanwhile, the rents have been lowered by 20-30 percent to help ease the financial burden on tenants. Also, they offer preferences for parking lots and service fees.

Unable to lease premises, many landlords have tried to sell them but have found no buyers.

Linh said landlords bought the shophouses from project developers before at high prices, so they set high rents and now want to sell them at high prices. Buyers won’t accept high prices at this time.

“It’s now more difficult to lease shophouses than apartments, because the demand for accommodation always exists,” he said.

According to CBRE Vietnam, a real estate service provider, retail premises have to compete with shopping malls. Hanoi expects to have 49,000 square meters of new retail premises in from Vincom Mega Mall Smart City project in the fourth quarter. About 300,000 square meters of retail premises are expected to join the market in 2022-2024. 

Duy Anh

Villa rent plummets, villa owners told to pay tax

Villa rent plummets, villa owners told to pay tax

The income of the owners of villas and street-front houses has dropped dramatically over the last year because of low demand. Many owners have been told to pay tax if their revenue is over VND100 million a year.

Foreign retailers make quiet landing as domestic counterparts shut down

Foreign retailers make quiet landing as domestic counterparts shut down

Many shops hit hard by Covid-19 have had to close, but some foreign retailers have taken advantage of the opportunity to scale up their business in Vietnam.  



Vietnamese economy to do well in 2022: experts


Two die in elevator accident at Hanoi building

Will Vietnamese "unicorn" Coin98 be listed on Coinbase?

If this turns out to be true, US investors will have easier access to Coin98. This would open a new development period for Vietnamese Blockchain startups.

VN jumps eight notches in WEF’s Travel & Tourism Development Index

Vietnam’s travel and tourism sector has jumped eight steps despite two years of slowdown caused by the pandemic, according to the World Economic Forum’s (WEF) latest study.

VN real estate bonds shackled by rules

Although experts believe that rating agencies are an indispensable element of a healthy and transparent market, and a significant fundraising channel, real estate developers may suffer hurdles due to stringent bond issuance rules.

Vietnam Int’l Fashion Tour helps promote national culture, tourism

The debut version of the Vietnam International Fashion Tour (VIFT) will get underway in 2022 and 2023 across five cities and provinces, with the aim of popularizing the country’s culture and tourism to the world, said organisers.

Foreigners’ joint ownership of seaports, airports in Khanh Hoa mustn’t be allowed

When discussing the draft resolution on special policies on a trial basis in Khanh Hoa province on May 24, many National Assembly deputies showed concern about the foreign ownership of seaports and airports.

Vietnam-Asia DX Summit 2022 opens in Hanoi

The Viet Nam-Asia Digital Transformation (DX) Summit 2022 opened in Ha Noi yesterday, where experts are examining ways to further utilise the...

Reaching growth target a challenge for this year: NA chair

National Assembly Chairman Vuong Dinh Hue yesterday day expressed his concern that this year’s growth target will be hard to reach.

Hai Phong tops Public Administration Reform Index for first time

Hai Phong and the Ministry of Justice topped the Public Administration Reform Index (PAR Index) of 2021, based on feedback collected from more than 79,000 people about administration reforms in 63 localities and 17 ministries in Vietnam.

Thai retail corporation to sell some 1,000 tonnes of lychees

Thailand's retail corporation Central Retail in Vietnam plans to put on shelves about 1,000 tonnes of lychee this year, with first batches of the fruit from Bac Giang province transported to its supermarkets after a ceremony on May 25.

Facebook ads in Vietnam to be charged 5 percent VAT from June 1

Facebook ads in Vietnam will be subject to a 5 percent value added tax (VAT) beginning from June 1. owner successfully calls for $3.5 million of capital

The investment in True Platform is one of the largest ever seed-round investment deals in a technology startup in Southeast Asia.

Hanoi to spend VND60 billion for civil servants to study for master’s, doctoral degrees

Under a project on improving the quality of its personnel, Hanoi plans to spend VND61 billion to send civil servants and public employees to training courses for master’s and doctoral degrees in Vietnam and overseas.

Japan helps Vietnam with earth observation satellite project

JICA has signed a loan agreement with the Vietnamese Government to provide a Japanese ODA loan worth over 18,870 million yen for the Disaster and Climate Change Countermeasure project using the earth observation satellite.