The wave of business premises being returned is spreading in Ho Chi Minh City.

According to observations by reporters from the News and Nation Newspaper, on many streets once considered "prime" for brand recognition in Saigon, Ben Thanh, Xuan Hoa, Vuon Lai, Cho Quan, Cho Lon wards... such as Cach Mang Thang Tam, Ly Tu Trong, Dong Khoi, Hai Ba Trung, Nguyen Trai, Nguyen Dinh Chieu, 3 Thang 2..., many premises have "for rent" signs.

Many properties, even those left vacant for too long, have deteriorated and become unsightly, detracting from the urban landscape. According to real estate brokers, asking rents on central streets in Ho Chi Minh City are currently ranging from 100 to 300 million VND per month, depending on size and location.

On Nguyen Trai Street, once considered the most vibrant " fashion capital" of Ho Chi Minh City, the business atmosphere is unusually quiet. Mr. Hung, a fashion store owner, said that the section from number 2 to number 31 Nguyen Trai Street used to be bustling with customers, especially during the end-of-year holidays. However, since the COVID-19 pandemic, only a few shops have managed to stay open, with many premises having closed and remained vacant for over two years.

Mr. Hung shared that the rent for commercial space in the Nguyen Trai street area is usually 50 million VND per month or more, not including fixed costs such as staff, taxes, electricity, water, etc.

"The costs are very high, while the number of customers is dwindling. Furthermore, the prolonged economic downturn has reduced purchasing power, while the explosion of social media and e-commerce has resulted in much lower online prices compared to traditional stores," Mr. Hung stated.

Speaking to reporters, Mr. Nguyen Dong Duong, representative of the Vietnam Real Estate Brokers Association, said that this phenomenon of returning leased premises shows a clear mismatch between rental prices and the actual capacity of businesses to withstand them, especially in the retail, F&B, and service sectors.

According to Mr. Duong, many landlords are still maintaining high rental prices while tenants' businesses and revenues are declining, operating costs are increasing, and consumer behavior has shifted strongly towards online shopping and integrated shopping malls.

"The main reason lies in the fact that rental prices are pegged at high levels, no longer reflecting actual cash flow. In addition, the market is having to weed out inefficient business models and rental prices that are no longer compatible with the current context," Mr. Duong commented.

Based on this experience, Mr. Duong suggested that landlords should proactively adjust rental prices, offer flexible payment terms, and share risks with tenants to maintain the profitability of the premises. Businesses, on the other hand, need to restructure their business models, optimize usable space, and choose locations based on actual efficiency, rather than focusing solely on prime locations.

At the same time, Mr. Duong also suggested that appropriate tax policies and support for converting the function of long-vacant spaces are needed to avoid wasting urban resources and create conditions for a sustainable market recovery.

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