Traders at Da Nang Supermarket "cry" because of the price of premises

SGGPO 11/01/2023 21:26

Many small traders at Da Nang Supermarket are struggling because the rent is twice as high as traditional markets while business is sluggish.

Scattered people go to Da Nang Supermarket. Photo: XUAN QUYNH

Difficulty on top of difficulty

According to records, Da Nang Supermarket (Thanh Khe District, Da Nang City) has few buyers. On the ground floor, not only the jewelry counters in front of the lobby are empty, but the food counters often have more sellers than buyers. They try to clear out their goods, arrange their goods, and then sit and "wait for customers".

The vegetable and onion section of Da Nang Supermarket has more sellers than buyers. Photo: XUAN QUYNH

Ms. Tran Thi Lua, a trader in lot 206 of the vegetable and onion area, said that from 2020 to now, Da Nang Supermarket Company Limited has increased prices twice. The first time in 2020, the rental fee for businesses on the first floor (clothing, footwear, accessories) increased by 30%; for businesses on the ground floor (food, foodstuffs, spices, additives, etc.) increased by 60%. In 2023, the unit will make the next adjustment, the rental price will increase by 40% compared to the previous time.

“The rental cost before the 40% increase was nearly VND700,000. Meanwhile, people rarely come here because the market is surrounded by street vendors. Many people find it inconvenient because if they want to visit the market, they have to go through the Dien Bien Phu - Nguyen Tri Phuong underpass. The cost of a whole day here is about VND1,000,000, while if you can only sell 2 bunches of vegetables all day, what profit is there?” Ms. Lua said.

Having been in business for about 13 years, Ms. Tu Thi Thuong, lot 211 of the vegetable and onion area, said that the traders from traditional markets moving from the old Bai Tho Supermarket and continuing to do business here was motivated by Da Nang City. In 2002, Da Nang built Bai Tho Supermarket, and the traders did business in area B. By 2009, the entire Bai Tho Supermarket area was handed over to a business to build a commercial center project. In 2011, the traders in area B were moved to the current Da Nang Supermarket (Area D) invested and exploited by the business to rent business premises.

“Before being relocated to do business here, the city had advocated that it would stabilize business and trading for small traders at this market as well as other traditional markets in the area with reasonable rental prices like other markets,” Ms. Thuong was upset.

Many kiosks closed. Photo: XUAN QUYNH

Similarly, the entire clothing, footwear, and apparel area on the first floor had no customers in sight. Meanwhile, many kiosks there were closed.

It is expected that on November 2, the People's Committee of Da Nang City will have a meeting with relevant units to find a suitable solution.

Risk of closure

According to Mr. Tran Thanh Hoang, Director of Da Nang Supermarket Market Company Limited, one of the reasons for having to adjust the rental price of business premises at the market is because the land rental price according to the new cycle that the company has to pay has increased dramatically.

If in the 2014-2019 cycle, the project's land rent was more than 580 million VND/year, then in the 2020-2024 cycle, the land rent increased to more than 2,122 billion VND/year (an increase of more than 360%).

In the 2014-2019 cycle, the People's Committee of Da Nang City had a policy of supporting rental costs for small traders through land rental support, with a total support of more than 1.1 billion VND. In the 2020-2024 cycle, the unit has not received the above support.

Da Nang Supermarket Market Company Limited hangs a sign to rent space to find a source of income. Photo: XUAN QUYNH

The company has repeatedly sent official dispatches to the People's Committee of Da Nang City and departments and branches requesting attention to support for land rent as in the 2014-2019 cycle, which was more than 1.1 billion VND/year for the cycle from 2020 onwards. However, up to now, the company has not received any response on whether or not to support land rent as in the previous cycle.

"From the side of the traders, they have moved from the public market, so there must be some policy for the people. In the past, there was support, now there is support or not, Da Nang City should have an answer. If the People's Committee of Da Nang City does not support as before and approves the price proposed by the Da Nang City Department of Finance at 393,000 VND/ ^m2 /month, on December 1, 2023, the company will be forced to close the market. Currently, the unit still owes 450 million VND in late payment fees and the land rent for 2023 has not been paid because there is no source," said Mr. Hoang.

According to Mr. Hoang, the company has proposed to the Department of Finance of Da Nang City the maximum unit price of 681,000 VND/ ^m2 /month, however, the maximum unit price in the draft that the Department of Finance submitted to the People's Committee of Da Nang City is 393,0000 VND/ ^m2 /month. With the unit price of the Department of Finance, it can only cover 52% of the land rent and the company must pay an additional 48%.

Source: https://www.sggp.org.vn/tieu-thuong-cho-sieu-thi-da-nang-khoc-rong-vi-gia-mat-bang-post712355.html