'Price gouging' to make up for the rent?

Yesterday (August 17), a short video appeared on social media, recording a scene of a Japanese tourist who has been in Vietnam for many years going to Ben Thanh market (District 1, Ho Chi Minh City) to buy 3 pairs of socks for 700,000 VND, nearly 235,000 VND/pair.

Feeling that the price was too high, the Japanese customer bargained for all three pairs of socks for 60,000 VND, equivalent to 20,000 VND/pair. After a short period of bargaining, the kiosk owner at Ben Thanh Market agreed to sell them for 20,000 VND/pair. This price was 10 times lower than the first time the kiosk owner "shouted out the price".

Tourists were sold out when buying 3 pairs for 700,000 VND in total. The chemical substance was added to the rental price in photo 1. — Many foreign news agencies and newspapers have rated Ben Thanh Market as the place with the most expensive rent and transfer prices in the world. (Photo: Ky Hoa)

Also in this video, when asking at another kiosk in Ben Thanh market, a Japanese tourist received an invitation to buy a pair of socks for 150,000 VND/pair.

After this clip went viral online, many people said that Ben Thanh market has long been famous for its sky-high prices. Especially if you are a foreign tourist, it is very easy to get ripped off when coming to Ho Chi Minh City for the first time.

Some opinions say that the price level of goods in Ben Thanh market is more expensive than many other places because the purchase price and rental price of kiosks in the market are not cheap. Therefore, they have to "shout out" and "rip off" to make up for the rental price. However, "shout out" prices 10 times higher is unacceptable, especially for foreign tourists.

In a study by Savills in 2017, although a kiosk in Ben Thanh Market is very small, only a few square meters, the rental price here is considered "expensive". Many foreign news agencies and newspapers even rate Ben Thanh Market as the place with the most expensive rental and transfer prices in the world.

Specifically, the cost of renting a mini-space here is in the range of 30 million - 50 million VND per kiosk per month. The remaining centers are around 10 million - 27 million VND per month, depending on the location.

In addition to the rental price, Ben Thanh Market also has another form of stall transfer. Kiosks with an area of 2 - 4 m2 have a transfer price of about 1.2 billion - 2.5 billion VND. Thus, each square meter in Ben Thanh Market costs from 600 million to more than 1 billion VND.

According to a survey by reporters from the Journalists and Public Opinion Newspaper, at present, the rental and transfer prices of kiosks at Ben Thanh Market are still increasing compared to 6 years ago. The increase is equivalent to the land price in the area around Nguyen Hue walking street.

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