VietNamNet Bridge – A property developer has decided to lease retail premises for free to help establish the “world of Vietnamese goods”.

Hoa Binh Company announced that it has reserved 25,000 square meters of retail premises at Hoa Binh Green City, a shopping mall on Minh Khai Street in Hanoi, to lease to Vietnamese businesses for free.

The tenants must be Vietnamese businesses, which specialize in trading Vietnamese goods and have profits of no more than 15 percent.

A representative of JMC, a fashion shop, which has fulfilled the procedures for leasing the retail premises, said no foreign brand would be accepted there.

The developer did not set a limitation on the free lease duration. In the immediate time, the businesses which can satisfy the requirements would sign leasing contracts for one to five years.

Nguyen Huu Duong, general director of Hoa Binh Company, said the move aims to help Vietnamese businesses boost the sale of their products.

He noted that under upcoming free trade agreements, the tariff barrier will be removed by 2018.

From that time, the agreements’ member countries will have the right to set up shopping malls in Vietnam, which will force Vietnamese businesses to compete fiercely with foreign ones.

Meanwhile, the high rent would cause difficulties for them because it would increase the cost of products by eight to 10 times.

However, Duong stressed that only businesses which make profits of no more than 15 percent would be welcomed.

The tenants will also have to pledge to sell products at quoted prices, or the lessor will cancel the leasing contracts.

The director of a business in Hanoi said he is considering the opportunity at the Hoa Binh Green City.

He said Vietnamese goods cannot be cheap because manufacturers must pay high technology royalties, retail rent and other kinds of expenses.

However, if manufacturers can get retail premises for free, they will be able to lower the selling prices and make their products more competitive with goods from China and Thailand.

Dr. Pham Tat Thang, a renowned trade expert, praised the proposal of the Hoa Binh Green City developer, saying it would benefit consumers, manufacturers and the developer as well.

Thang noted that it is difficult for retail developers to find tenants now as the real estate market remains stagnant and gloomy and the economy still sluggish.

After offering retail premises for free, the developer would not be able to collect rent, but would still get benefits as it would attract more customers who would possibly buy apartments in the apartment – shopping mall complex.

Thanh Mai