Vinh City: Rental prices drop to record low, many businesses still have to close
(Baonghean) - Although there have been no cases of Covid-19 infection, many stores in Vinh City are currently operating poorly. Many of them have been forced to close. Many landlords have lowered prices to record lows but are still having difficulty finding tenants.
After Tet, Le Thi Mai and her husband, Ben Thuy ward, borrowed money to open a clothing shop on Vo Thi Sau street (Vinh city). Because this is a street with many students and many people passing by, Mai hoped that her business would be favorable in 2020. However, after only about a month of opening, she had to temporarily close her business due to sluggish sales.
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| Rows of closed kiosks in Truong Thi ward, Vinh city due to poor business. Photo: QA |
Ms. Mai sighed: “My husband and I saved up 100 million VND, borrowed more to have capital to do business, but since the Tet holiday until now, the number of customers has been only a few people each day, the shop is very deserted. Meanwhile, the rent for the 6-month contract has cost 30 million VND. I had to close the shop and meet the landlord to ask for a reduction in the rent, otherwise we will return the stall and cannot continue doing business in this situation…”.
Not only Ms. Mai but that is the common mentality of many shop owners in Vinh City. Most of them commented that there has never been a year when business was as gloomy as this year, most of the kiosks have closed, temporarily stopped operating, the rest have even returned the premises to find other ways to do business. To avoid prolonged losses, many business owners are forced to close their stores to reduce costs for premises, electricity, water, employee wages... and switch to increasing online sales. Signs for transferring and leasing business booths appear all over the streets.
In Hung Binh ward, although it is one of the central wards of Vinh city, with a high population density and a bustling number of buyers and sellers, it is now deserted and deserted. According to statistics, the whole ward has 319 business kiosks, but up to 70% of the kiosks are in a state of "dying" because of poor business. In the past week, 42 households have come to the ward office to submit a request to stop doing business because they cannot survive.
Mr. Ho Viet Thanh - Vice Chairman of Hung Binh Ward People's Committee commented: "If in the coming time, the epidemic situation is still complicated, the number of kiosks closing down and small traders applying to withdraw from the business sector will be even greater, leading to the collection of taxes and fees to pay into the budget will not be able to meet the set target".
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| Booth rental signs appear frequently on the streets but there are no tenants. Photo: QA |
Also due to the gloomy market, the rental price of business premises in Vinh City is currently "hitting rock bottom". On major roads in Vinh City, the rental price of premises fluctuated over 10 million VND/month, but now it has decreased by 2 - 3 million VND/month depending on the area.
For example, Nguyen Van Cu Street, the busiest business street in Vinh City, is currently being "hit" by the impact of Covid-19. If at the beginning of 2020, the rental price here ranged from 15 - 50 million VND/month, depending on location, area, and number of floors rented, it has now dropped sharply, currently only from 10 - 30 million VND/month. However, this is still a high number compared to the general level and very few people dare to spend money to rent at this time.
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| Nguyen Van Cu Street - the busiest business area in Vinh City - is also deserted and quiet. Photo: QA |
