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First rent-free trading centre opens in Ha Noi

Update: September, 01/2014 - 09:26
The Hoa Binh Green City project in Minh Khai street.— File Photo

HA NOI (VNS) — Viet Nam's first rent-free trading centre, located at the Hoa Binh Green City project in Minh Khai street, will bring great opportunities to local businesses, experts said.

Nguyen Huu Duong , Hoa Binh Group Chairman, on Thursday signed a management agreement with CBRE Viet Nam to prepare Hoa Binh Green City for the launch of V+, the People's Shopping Mall and Supermarket, by the end of this year, according to CBRE Viet Nam.

V+, Hoa Binh Group's community marketplace is reportedly offering quality conventional and organic groceries and fresh produce from Viet Nam at lower prices than those of other big shopping malls and supermarkets. The marketplace aims to promote domestic goods and support Vietnamese producers, farmers and family businesses. Hoa Binh Group is offering free rent to retailers for an unlimited time.

CBRE will manage this project from the set-up to the operational stage and follow best practices in international management, it said. After the project opening, CBRE will be responsible for the smooth operations of the entire retail component and maintain it according to international standards.

The Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper quoted Duong as saying eligible local enterprises would rent stalls for selling goods, covering a total area of 25,000 square metres, at the trading centre in the Hoa Binh Green City residential region.

The enterprises will sell products made in Viet Nam and limit sales profits to below 15 per cent, Duong said.

Enterprises often sell their products at high prices,to cover the high cost of rent, Duong explained. For example, the real selling price of each shirt or pair of shoes is only VND200,000-300,000 but the actual price has become much higher.

With free rent at V+, local businesses may reduce their selling prices and must only pay for electricity and water consumption and a management fee for CBRE, he said.

"The concept is certainly a challenge, but it is exciting to be part of this project. After all, once it is opened, it will be beneficial for shoppers and retailers alike," said Ulf Bieler, CBRE Viet Nam Head of Asset Services.

"This is a great opportunity for Vietnamese retailers to sell their quality Vietnamese products in a safe, clean environment, built and managed according to international standards, at a price that will enable them to compete with more established supermarkets and hypermarkets," explained Richard Leech, CBRE Viet Nam Executive Director. — VNS

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