The Ho Chi Minh City Department of Industry and Trade held a seminar on August 19 titled “Developing Outlet Centers in Ho Chi Minh City – Breakthrough Opportunities and New Growth Momentum for Trade, Services and Tourism.”
At the seminar, Nguyen Nguyen Phuong, Deputy Director of the municipal Department of Industry and Trade, said that Ho Chi Minh City has significant potential to develop the outlet model thanks to its large market, strong business community and favorable conditions for developing modern shopping centers.
Outlet centers allow official brands to sell products at discounts of 30-70 percent compared with their original prices.
From an investor’s perspective, Le Hong Thuy Tien, General Director of the Imex Pan Pacific Group (IPPG), proposed that the city focus on removing two major obstacles to the development of premium outlets, including the legal framework and an on-site tax refund mechanism.
She also urged Ho Chi Minh City to put in place stable policies and a consistent legal framework that would apply throughout the life of projects, rather than being limited to two- or three-year pilot periods. This would give investors and international brands greater confidence to make long-term investment decisions.
Tran Huu Linh, Director General of the Domestic Market Surveillance and Development Department under the Ministry of Industry and Trade, suggested that Ho Chi Minh City include the downtown duty-free shopping model in its planning and combine it with outlet centers to create a “double discount effect.” Under this model, consumers could purchase products at discounted prices while also benefiting from tax refund policies.
The model is expected to stimulate purchasing among both international visitors and domestic consumers while keeping spending in Vietnam rather than allowing money to flow overseas.
To implement the model, the Director General of the Domestic Market Surveillance and Development Department said that the city should promptly review its strategic land reserves, particularly areas near airports and major transport corridors. It should also develop tax and land incentives to attract international outlet operators.
In addition, the city should proactively plan suitable locations, establish promotional mechanisms and connect outlet centers with the tourism system to maximize their potential.
