Photo courtesy of VN Express

Hanoi's prime retail locations are witnessing a significant tenant exodus as businesses prioritize online operations over physical storefronts. Retailer Thai Hoang, among many affected, vacated his 40-square-meter shop on Thai Ha Street due to stagnant sales, despite receiving a rent discount from his landlord. This shift mirrors a broader trend, as retailers vacate popular streets like Kim Ma and Hue amid the e-commerce boom, even as landlords slash rents.

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The downturn in physical retail is evidenced by over 30 vacant shops on Kim Ma and Nguyen Thai Hoc Streets, traditionally home to fashion and F&B outlets. Property broker Mai Loan highlighted the ongoing slump in townhouse rentals, with small shops struggling despite prime locations. Batdongsan reported a 22% decline in interest for private housing in Hanoi since last year, and townhouse rents have dropped 13-37% from their 2025 peaks.

Experts attribute the decline to rising e-commerce sales and the appeal of integrated shopping malls. Mai Vo of CBRE Vietnam noted that this marks a structural shift in consumer habits, driving down standalone retail appeal. Hoang Nguyet Minh from Cushman & Wakefield Vietnam pointed out that rising rents and outdated properties are also factors. The F&B and fashion sectors have been particularly affected, as brands opt for malls and online platforms over high-street locations.

Looking forward, this shift presents opportunities to secure prime locations at reduced rents given the current market supply. Despite the challenges, some see potential in this rebalanced market landscape.

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  Adapted by ASEAN Now · VN Express · 30 Apr 2026

Not quite surprising as one finds the same chinese crap sold for double or triple the price in the stores compared to the prices on internet.