Modern markets cannot lure visitors

The modern markets located on golden land plots in the center of the capital city cannot attract small merchants and customers. Why?

Several years ago, in a plan to build Hanoi into a modern city, Hanoi’s authorities, decided to build big modern markets, believing that the markets will become bustling trade centers in the capital city. However, to date, one year after the markets were built and put into operation, the markets remain completely deserted.

Modern but unattractive

The Cua Nam Market is located on a 900 square meter golden land plot in the center of Hanoi. The 280 billion dong market has 13 floors above ground and four underground floors with a total area of 10,000 square meters. The construction work has been designed to serve as both a traditional market and office building. The first underground floor is reserved for vegetable, fish, meat, consumer goods and dried food kiosks. The second underground floor is reserved for parking. Meanwhile the floors above ground will be used as offices.

The Cua Nam Market was officially opened on July 13, 2010, which means that it has been put into operation for eight months. However, though the market is modern and has an advantageous location, it remains very quiet. A salesman at the market said that there are very few visitors to the market, including on Saturdays and Sundays.

OCD Plaza Shopping Mall, which was once O Cho Dua Market, is facing the same situation. The shopping mall is built on an area of 600 square meters, and has seven floors, including one underground floor reserved for parking. However, Lao dong reporters have reported that only 1-2 kiosks at the market were opened when they visited. Some offices were leased by companies, while the majority of the booths here remained closed. An officer working at the parking lot said that many small merchants have shut down their kiosks after a short time of operation.

The Hang Da Shopping Mall center with five floors above the earth and two underground floors, located on a 3700 square meter plot of land on Hang Da street in the ancient quarter of Hoan Kiem, has 8349 square meters of retail premises for leasing. The project has a total investment capital of 220 billion dong. The construction started in early April 2009 and completed in October 2010.

Five months after the market was put into operation, it still does not lure many visitors. Vu Danh Hoa, Deputy Director of Hang Da Trade Company, said though the number of visitors is not as high as expected, business is stable. According to Lao Dong, brewery and fabric kiosks now have few customers because the demand decreased after Tet holiday. Meanwhile, vegetable, seafood, food and consumer goods booths receive visitors every day.

Chu Thi H, a small merchant at the Hang Da Shopping Mall said it is true that the number of visitors to Hang Da is higher if compared with the number of visitors to other new markets. However, nowadays the number of visitors to Hang Da is much lower than that in previous days, when there was the old Hang Da Market. However, H hopes that when second, third and fourth floors are put into operation in April, the number of visitors will be higher.

Unsuitable design?

When asked why Hang Da still cannot attract as many visitors as expected, Hoa said that the market was planned to be put into stable operation since December 2010. However, many small merchants think that sales will go slowly in the first phase of operation, therefore, they are not in a hurry to lease kiosks or leave kiosks idle. However, Hoa has affirmed that in April, the second, third and fourth floors will be operational because booths are nearly fully occupied.

Vu Vinh Phu, Chair of the Hanoi Supermarket Association, said the new markets cannot attract small merchants and visitors because of unsuitable designs and bad programming. Though the new markets have modern designs, they lack ventilated space, and their parking lots are inconvenient. At some new markets, visitors even have to pay for parking. “If people just want to buy vegetables or some fish and food and they have to pay 3000-5000 dong for parking a motorbike, they would rather buy food in street markets rather than in modern markets.

Phu has also warned that the overly high lease for retail premises will keep small merchants away. The State should set up a reasonable quota for leases , and offer suitable preferential policies, so as to create best conditions for small merchants to lease booths in the newly built markets.

Also according to Phu, together with attracting small merchants to markets, the city’s authorities should remove small markets or vendors that gather on street pavements,. When the street markets are removed, streets will become neat and tidy, while local residents will go to modern markets to purchase goods.- Laodong

Tags: vietnam retail industry, Vietnam retail market