Many experts have pushed for a renovation of the traditional market model in big cities like Ho Chi Minh City as merchants are closing down their stalls over sluggish trading.

Although socio-economic activities have returned to the pre-pandemic state, many merchants at popular markets in Ho Chi Minh City, such as Ba Chieu, Ben Thanh, and An Dong, have decided to permanently shutter their shops.

When a Tuoi Tre (Youth) newspaper correspondent visited An Dong Market, the largest and oldest wholesale market in Ho Chi Minh City, in District 5 at around 5:00 pm on March 31, many shops were already closed.

“In the past, the market was usually open until 6:00 pm every day,” said a dried fish shop owner.

“However, as sales have slumped since the COVID-19 pandemic, many merchants went home early at around 4:30 pm.”

Owners of stalls that remained open at the time, meanwhile, either lazily scrolled through their smartphones or gossiped, as sellers outnumbered buyers.

A large number of stalls on the second and third floors of the market have been put up for rent under many offers for discounts and other favorable conditions.

Ben Thanh Market in District 1 and Ba Chieu District in Binh Thanh District are in a similar situation.

“Before the pandemic, the market was crowded and bustling,” said Thuy, a food stall owner at Ben Thanh Market. 

“Every stall, no matter where it was located, was always crowded. 

“But now even those in prime locations are empty of customers.”

Many business owners have failed to bear a combination of rental costs, taxes, and other fees, according to Thuy.

“Those who rented stalls from the lessors now can’t afford the rental costs, so they have to terminate their contracts,” the woman said.

“They are in financial distress.”

Revamp needed

Many experts said that the close-down of a host of businesses in the markets may signal a gloomy outlook for the traditional market model.

Tran Bang Viet, general director of management consultancy Dong A Solutions JSC, explained that as most Vietnamese people travel by motorbike, they prefer the convenience of the streetside economy, which allows them to stop by any shops along the streets to buy goods.

They tend to avoid such nuisances as parking their vehicles and the uncertainty of the price of goods sold in traditional markets.

The mushrooming of more convenient, cheaper distribution channels of consumer goods, especially in new residential areas, has also offered people a wide range of options.

In addition, with the advantages of easier management procedures and fewer costs, the online channel provides consumers with more convenience, such as door-to-door delivery services and attractive prices. 

“The recent COVID-19 outbreak was not the cause, but merely a catalyst that accelerated this process [of shifting from traditional marketing to modern, digital marketing]” said Viet.

“Until we change the above causes, we cannot do anything about the status quo of merchants leaving traditional markets.”

Ho Minh Chinh, a marketing expert, said that in order to survive, traditional markets in big cities like Ho Chi Minh City must change the way they operate and approach consumers.

Chinh mentioned traditional markets in the United States, which are hygienic, have traders list prices clearly, and are organized in a similar model to that of supermarkets, as an example for breakthrough changes.

“In the process of shifting to this new look, small traders alone cannot do it, but they need actions from market management boards and local authorities,” said Chinh.

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