A visit to Nguyen Phuc Nguyen Street near Dan Chu Roundabout in Nhieu Loc Ward on October 12 found shops largely quiet, with only a handful of customers browsing after 9 am.
The roughly 400-metre street is home to more than a dozen businesses selling domestic and imported ceramics and glassware, including bowls, plates, vases and household items.
Hien, owner of Dieu Hien ceramics shop, said sales had been sluggish for several years, with products selling slowly. She welcomed the street's official designation as a ceramics shopping destination but said it would take time to assess its impact, hoping greater publicity would eventually bring more customers.
According to Loan, a representative of Quyen ceramics shop, a 10 per cent discount offered for the street's launch on October 11 had done little to boost sales, while fierce price competition left little room for further reductions.
"A dozen bowls might cost VND 85,000 at one shop and VND 80,000 next door. Some shops sell almost at cost to attract customers who may buy other items," she added.
The Nhieu Loc Ward authorities officially launched Nguyen Phuc Nguyen ceramics street on October 11 to promote local commerce, improve the urban landscape and create a more attractive shopping environment.
However, traders said the initiative had yet to translate into stronger demand.
Many shops had lost wholesale customers, including restaurants and eateries, to cheaper suppliers in China, leaving them increasingly reliant on retail sales as domestic ceramics struggled to compete on price, Loan noted.
Demand has weakened over recent years, particularly since mid-2025, when economic pressures and changes to tax and invoicing requirements added to operating costs and administrative work.
Meanwhile, moving online has also proved difficult for ceramics retailers.
Customers often prefer to inspect products in person to assess their size, colour and design. Online photographs may not accurately reflect the items, increasing the risk of returns.
Ceramics are also vulnerable to damage during delivery, creating additional costs for sellers.
Shopping streets need more than shops
The slow start on Nguyen Phuc Nguyen Street highlights a wider challenge facing HCM City's specialist shopping streets: turning clusters of similar businesses into destinations that attract visitors and encourage spending.
Many such streets face rising rental costs, weakening demand and competition from e-commerce.
According to Dr Duong Duc Minh, deputy director of the Institute for Economic and Tourism Development Research, their difficulties could not be attributed to a single factor.
He pointed to changing market conditions, limited cooperation among traders and the challenge of transforming traditional retail clusters into recognisable destinations.
Minh said that while online shopping, malls and retail chains had increased competition, many specialist shopping streets lacked a clear commercial, cultural and tourism strategy, as well as distinctive branding, service standards and visitor experiences.
He suggested that each street adopt a development approach suited to its products and target customers rather than follow a uniform model.