HCMC’s largest garment market delays rent hike after vendors’ threat to leave

It informed protesting shopkeepers in Dai Quang Minh Market, District 5, Tuesday that hereafter it would raise rents once a year and not every six months as it used to.

Its plan to increase rents by 50-130 percent in two installments — in June and January next year — caused 138 out of 150 vendors at the market to threaten they would close their shops.

If effected, a three-square-meter stall would have seen its rent go up from VND3 million (US$130) a month to VND6 million on June 1 and VND8 million next January.

Satraseco has also doubled the lease term to two years and reduced the deposit from three months to two.

But the shopkeepers, whose names have been changed to protect their identity, remain unhappy.

“The big rent hike is the key problem, and so delaying it will not be helpful”, Thanh, a vendor, said.

He said vendors opposed the unilateral imposition and wanted the management to speak with them first.

If no agreement is reached by July 1, the date for signing new contracts, they would all shut their shops, he said.

Satraseco CEO Pham The Hanh told VnExpress that rents at Dai Quang Minh Market are very low, and the hikes are meant to bring them in line with market prices.

The rent increase would benefit the shops because the company would use the increased revenues to improve infrastructure, including repairing the drainage system and pathways and building new restrooms, he said.

Poor infrastructure has been a major complaint for vendors, as walls leak and there is only one restroom for 150 vendors.