The wave of businesses vacating retail spaces persists in Ho Chi Minh City due to various economic challenges, leaving numerous prime areas overrun by motorbike taxi drivers or marred by graffiti and advertisements.

On Le Van Sy Street, which connects District 3 and Phu Nhuan District and hosts hundreds of clothing businesses, a noticeable trend of closure and relocation is evident among the stores. 

Amidst the active storefronts, several have recently shut down or relocated. 

In some instances, clusters of three to four stores have ceased operations simultaneously, while entire rows of larger premises have vacated street corners. 

Many of the remaining stores display signs advertising clearance sales as they prepare to close down and return the rented premises to their proprietors. 

Currently, more than 20 storefronts along this thoroughfare are available for rent.

Nguyen Van Thuan, the owner of a fashion store on Le Van Sy Street, recounted opening his shop in 2019 and perseverance through the COVID-19 pandemic. 

In 2023 and early this year, a sharp decline in purchasing power resulted in a loss of revenue, making it impossible to cover rent and staff costs.

Consequently, Thuan made the difficult decision to temporarily close his business and return the premises, opting to wait for more favorable economic conditions before considering reopening. 

Similarly, many stores that once thrived with fashion, cosmetics, or food and drink retail along Nguyen Trai Street in District 5 and District 1, and Hai Ba Trung Street in District 3 and District 1, now stand unoccupied.

Even prominent streets like Le Loi Boulevard in District 1 remain vacant, serving as resting spots for motorbike taxi drivers or locations for vandalism and advertisements.

Nguyen Phuoc Hung, permanent vice-president of the Ho Chi Minh City Union of Business Associations (HUBA), attributed the trend of vacant retail spaces to the closure of several stores by large retail brands such as The Gioi Di Dong (Mobile World) and FPT, while smaller shops and restaurants face sluggish sales amid myriad challenges.

According to HUBA, the substantial rise in inexpensive consumer goods from China has placed considerable pressure on Vietnamese businesses. 

The unregulated trend of online advertising and sales, particularly live-streaming, is viewed as a threat that suffocates the survival opportunities for small manufacturers, disrupts traditional pricing standards, complicates quality assurance, and results in widespread tax evasion.

HUBA reports significant declines in purchasing power within the commercial and retail sectors, with certain industries experiencing decreases of up to 60 percent. 

It forecasts further declines of 10 percent in the coming months.

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