In times where more and more people have been going to supermarkets, the traditional markets have had to modernise in order to stay competitive.
Traditional markets face difficulties
The traditional market has always played an important part in Vietnamese life. However, they have also faced great difficulties with the rise of large supermarket chains.
Nguyen Thanh Binh, a manager of Binh Tay Market in HCM City, said currently, the wholesale market has decreased dramatically. The number of export goods to Cambodia, Singapore and Indonesia fell because many traders left the market.
Huong, a trader said in recent five years, the business has slowed down though the prices stay reasonable.
The types of goods that have not been selling well mostly are bags, make-up products or footwear. Other markets in HCMC including Ben Thanh, Tan Dinh, Ban Co, An Dong and Da Chieu also quieted down. A porcelain and glass merchant in An Dong Market, Le Thanh Phu said that fewer consumers go to traditional markets these days. "This includes not only locals but tourists and overseas Vietnamese" he said.
Traders realised one of the reasons for the slow down is poor facilities. Many markets were built dozens of years ago, and do not live up to modern standards. Even Ben Thanh Market, considered one of the best in HCMC experiences flooding during the rainy season.
The small display tables often do not have room for all the goods of their owners, who instead display their wares on the walkways. Unofficial markets, selling goods of unknown origin, have also taken business away.
The Retailers Association said there are 9,000 traditional markets and the retail markets currently distribute 80% of goods, but the number is decreasing.
Traditional markets do have some advantages over modern supermarkets, for example there is not the same relationship between customer and merchant. If this type of bond is made, customers often get preferential treatment, such as being able to return items or receiving discounts.
One example of the potential of modernising markets may be seen at the Lam Son Square Project of Jones Lang Lasalle, the largest real estate corporation in India. The project has attracted many traders, with cheap kiosk rentals of only VND150 million (USD7,787) per kiosk for 10 years. The project also included economists to train and advise the traders in business.
