Vacant storefronts persist on Ho Chi Minh City’s prime retail streets

A survey by Tuoi Tre (Youth) newspaper on Thursday found that several central streets often described as retail ‘golden land’ like Hai Ba Trung, Nguyen Hue, Mac Thi Buoi, Dong Khoi, and Huynh Thuc Khang still have many street-level properties vacant after months on the market.

On Hai Ba Trung Street, a property manager named Trung said the landlord cut the monthly rent by about 30 percent, from VND120 million (US$4,600) to VND80 million ($3,050). Even with the reduction, the property has remained empty for three months.

Similar scenes were observed on Nguyen Thi Minh Khai and Ba Thang Hai Streets, where several adjacent storefronts displayed leasing signs.

A local property broker said many owners initially insist on high asking prices but eventually agree to deep discounts during negotiations to retain or attract tenants.

The vacancy trend is not limited to the city center.

Traditional commercial corridors are also feeling the strain.

On a short stretch of Nguyen Trai Street, Tuoi Tre reporters counted around 20 shops offering their premises for lease or transfer. 

The street was once known as Ho Chi Minh City’s fashion shopping hub.

Ngoc, who owns a fashion shop on Nguyen Trai Street, said she has been preparing to close for two months due to sluggish sales.

To clear inventory, she discounted products by up to 70 percent.

Her 32-square-meter shop rented for VND28 million ($1,070) per month.

Because she terminated the lease early, she lost nearly VND60 million ($2,300) in deposit money.

Despite advertising the space for transfer for four months, she received no inquiries.

Large retail spaces are also affected.

Nam, a motorcycle taxi driver at the Nguyen Trai-Nguyen Tri Phuong intersection, said a large ground-floor retail unit beneath the Kalai apartment complex has been vacant for about four months. 

The space was previously leased by a well-known coffee chain for around $6,000 per month but was returned due to high costs.

Market data underline the prolonged downturn.

Local real estate platform Batdongsan.com.vn reported that by the fourth quarter, demand for shophouse rentals in Ho Chi Minh City fell five percent from the previous quarter and 20-28 percent over the past three years.

Average inner-city rents declined 10-15 percent this year, yet leasing activity has not rebounded.

Previously, average shophouse rents ranged from VND108 million ($4,120) to VND116 million ($4,410) per month, rising to VND135 million ($5,140) by late 2024.

However, since October, rents have dropped sharply.

Some properties along Hai Ba Trung Street fell from VND140 million ($5,330) to about VND100 million ($3,800) per month, while a 150-square-meter shophouse on Nguyen Trai Street dropped from VND115 million ($4,380) to just VND70 million ($2,660) per month.

Experts said storefront closures during the peak shopping season reflect weakening purchasing power, rising operating costs, and a continued shift toward online shopping.

As a result, traditional street-front retail models face mounting pressure, forcing the market to adjust further to rebalance supply and demand.