Hanoi (VNA) - Retail outlets with plummetingrevenues and shopping mall owners are among the many affected by COVID-19, and whilemany of the latter have begun offering support to the former to help soften theblow, there are many still struggling.
Most retailers in Hanoi have temporarily closedtheir doors because of social distancing measures which have now been extendedfor another week to help contain the spread of the SARS-CoV-2 that causes the disease.
Pham Van Tung, who owns a clothing store on HueStreet in downtown Hanoi, said his business has been hit badly by COVID-19.Revenue is sinking but he must still pay over 20 million VND in rent everymonth. If the situation does not improve soon, he said, he may have the lease terminatedor sublet the premises, since he cannot handle the financial strain any longer.
Retailers in shopping centres such as Vincom Plazas,AEON, and Big C are in no better position. Prior to social distancing measuresbeing imposed, supermarkets and shopping malls had already seen visitor numbersfall 40-50 percent, while guests at restaurants had tumbled 20-30 percent on weekdaysand even 50 percent on weekends, with revenue down 40 percent.
Amid widespread closures, retail tenants are now pleadingfor relief from landlords.
A representative of luxury fashion retailer GiordanoVietnam said that last year it opened three outlets, but is currently only able to maintainone.
Than Duc Viet, Deputy General Director of the May 10garment firm which has around 250 outlets around the country, said that notonly small retailers but also major players like May 10 are struggling to covertheir fixed costs, particularly rentals, which are typically among retailers’biggest expenses.
To address the issue, Vincom Retail, which operates VincomPlazas, has announced a relief package worth 300 billion VND (about 12,751,000 USD) to support affectedcommercial tenants nationwide. The relief will be in the form of rental reductions,and Vincom also plans to offer deals and discounts to coax back shoppers.
According to the Vietnam Association of Retailers,Hung Thinh Retail - the owner of Moonlight Plaza, Saigon Mia, and Vung TauMelody - has slashed its rentals by 20 to 40 percent as a short-term measure./.
Hanoi office market has good performance in Q1: CBRE
The Hanoi office market fared relatively well in the first quarter this year despite the COVID-19 pandemic, according to CBRE Vietnam.
