HO CHI MINH CITY: Shop-house rents in Ho Chi Minh City are continuing to decline as businesses scale back physical retail operations and return leased premises, highlighting broader changes in Vietnam’s retail market.
Vacant commercial properties have become increasingly common along major retail corridors such as Nguyen Hue, Dong Khoi, Ham Nghi and Nam Ky Khoi Nghia streets, while similar trends are emerging in other established commercial areas across the city.
Property brokers said demand for retail space weakened in the first half of this year, while the supply of available shop-houses increased by 20% to 30% compared with the same period last year.
To attract tenants, many landlords have lowered rents, reduced deposit requirements and offered longer fit-out periods.
According to data from Batdongsan.com.vn, asking rents for shop-houses across Ho Chi Minh declined in the second quarter.
Some inner-city commercial areas recorded rental declines of up to 25% compared with the previous quarter, while city-centre locations saw rents fall by nearly 9%.
The decline follows a brief recovery in 2025 and reflected mounting challenges facing retailers.
Operating costs continue to rise while consumer spending remains uneven.
According to the General Statistics Office, Ho Chi Minh’s consumer price index increased by 5.7% in the first five months compared with the same period last year, with 10 of 11 categories of goods and services recording price increases.
Market observers said the slowdown is not only cyclical but also reflected structural changes in the retail sector.
Cao Thi Thanh Huong, deputy director of research at Savills Ho Chi Minh City, said shop-houses had long benefitted from high pedestrian traffic, strong brand visibility and limited supply, allowing landlords to charge premium rents.
However, the rapid expansion of eCommerce and omnichannel retail models has reduced retailers’ dependence on physical storefronts as their primary sales channel.
“Physical stores are no longer the sole driver of revenue. They are increasingly becoming part of a broader ecosystem that combines both online and offline sales,” she said. — Viet Nam News/ANN
