Finding a way out for traditional markets.

Business activity at many traditional markets in Ho Chi Minh City is quite sluggish; there are more sellers than buyers... this is a common occurrence. Ho Chi Minh City has a plan to reduce the size and upgrade markets to develop services and tourism , but implementation is still struggling.

Investing billions, reaping meager profits.

On weekends, Ben Thanh Market (District 1) attracts a large number of visitors, but mostly tourists. Ms. T., the owner of a stall selling confectionery and fruit there, said that purchasing power has decreased by more than 50% after the Covid-19 pandemic. “Each stall in this market was invested with billions of dong, but now we're literally just picking up pennies because of the lack of customers. Even our regular business groups, which usually order large quantities from other provinces and cities, have been cut off for various reasons,” Ms. T. said.

Binh Tay Market is deserted. Photo: HAI NGOC

While shopping at Binh Tay Market (District 6), we observed dozens of stalls closed, displaying "for rent" or "for sale" signs, concentrated in the clothing section. Ms. L., the owner of stall number 895, reported that the number of customers at the market is very low, even more so on weekends. "I open my shop from morning until evening and have no customers. This situation has been going on since the beginning of the year. Now I'm just trying to hold on as long as I can; if the situation doesn't improve, I'll probably close down," Ms. L. shared.

Moving through the cosmetics business area, I inquired with a vendor at Phuoc Vinh stall, and the situation was similar. The stall owner said that they mainly supply goods to long-time regular customers and hardly have any new ones. Many of their old customers have switched to buying online compared to before. In the area specializing in candies and jams, vendors enthusiastically greet customers, constantly asking what they need and what they're looking for. Ms. NA, the owner of stall number 676, said that occasionally a few tourist groups come to visit and take pictures, but they don't buy anything.

Hoa Hung Market (District 10) is also experiencing a situation where "there are many sellers, but few buyers." Some stalls closed early due to a lack of customers. Ms. LT, the owner of a shoe stall, said she had put up a "for sale" sign because business was slow and revenue wasn't enough to cover expenses…

Many worries

Ms. V., a long-time vendor at Xom Chieu Market (District 4), estimates that after deducting all expenses, she only earns between 70,000 and 150,000 VND per day. According to Ms. V., this income was very good a few decades ago, but now it's less than her pension. Next to Ms. V.'s stall, many vendors have signs advertising their stalls for sale, with prices ranging from several hundred million to billions of VND per stall, depending on location. Regarding the news of upgrading Xom Chieu Market to a modern style, Ms. V. said she and other vendors are quite hesitant: “Business is slow now. If the market is upgraded, vendors will have to pay all sorts of additional fees, and there's no guarantee that purchasing power will improve. Markets like Binh Tay and Ben Thanh mainly cater to tourists; traditional customers have decreased significantly compared to before.” Previously, the Ho Chi Minh City People's Committee had planned to renovate and upgrade Xom Chieu Market into a commercial center and market, but this has not yet been implemented due to funding constraints.

The concerns of many small traders in traditional markets in Ho Chi Minh City are understandable. Even An Dong Market (District 5), one of the markets upgraded into a modern commercial and service center, remains quite deserted. This market specializes in wholesale and retail clothing, confectionery, and other goods for people in Ho Chi Minh City and southern provinces, but now purchasing power is weak. Recently, the An Dong Market Management Board organized training sessions to encourage traders to livestream sales on social media alongside direct business. However, only a few traders implemented it effectively; the rest admitted that they are older and find it difficult to adapt to the new sales method.

The Ho Chi Minh City Department of Industry and Trade has developed plans and strategies to optimize the system of traditional markets in the city. Specifically, the plan aims to reduce the number to 216 markets (a reduction of 17 markets); of these, 199 markets will remain in their current state, and 34 markets will be demolished, relocated, or repurposed. According to the Ho Chi Minh City Trade Development Plan until 2025, with a vision to 2030, the city will not increase the number of markets in the inner city area. New markets will only be developed when there is a need to relocate traders from demolished or relocated markets. The focus will be on repairing and upgrading existing markets to meet the buying and selling needs of the people, combined with tourism development. Markets that are operating inefficiently and have an area of ​​800-1,000m2 or more will be reviewed and selected for upgrading and repurposing into modern distribution models based on socialized capital...

Learn how to retain customers.

Mr. Nguyen Nguyen Phuong, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, believes that shrinking the scale of inefficient traditional markets is inevitable in the current fiercely competitive environment. However, business owners themselves must be agile, approaching customers across multiple platforms, serving both direct and online sales; improving service quality; avoiding price gouging, inflated prices, and mixing in low-quality goods… In reality, consumers now have too many choices when shopping, so to "retain" customers, small business owners must learn and adapt more.

THI HONG - HAI NGOC

Source: https://www.sggp.org.vn/tim-loi-thoat-cho-cho-truyen-thong-post763506.html