Will Danny Green, the New Tenant After Soya Garden, Phin Deli, and MIA, Break the “Curse” of the Two-Year Turnover at the Ngã Sáu Phù Đổng Location?

“The “Curse” of Two Years Since Phuc Long’s Departure?”

Despite its modest size, the rental price for this property has always been sky-high due to its dual frontage. As a result, the premises at 325 Ly Tu Trong, located at the bustling Phu Dong intersection, have always been a subject of special interest for retailers and consumers in Ho Chi Minh City.

Recently, the premises changed hands once more, with the new tenant being Danny Green – an organic food brand with a decade-long history.

Phuc Long Coffee and Tea House had rented this space for five years at a rate of $14,000 per month. When the landlord increased the rent to $25,000, Phuc Long decided to move out. Both Soya Garden and PhinDeli were rented at the same rate of $25,000. After PhinDeli’s departure, the rent was slightly increased to $26,000 (approximately 700 million VND), and the premises were leased by MIA Supermarket. Due to the challenging market conditions, the landlord has decided to maintain the rent at $26,000 for the time being.

Since Phuc Long left in 2019, it seems that no subsequent tenants have been able to stay for more than two years. Phin Deli and MIA only managed to stay for about a year each. Moreover, both Soya Garden and Phin Deli faced setbacks and had to retreat.

After appearing on the Vietnamese version of Shark Tank, Soya Garden, founded by Hoang Anh Tuan, secured an investment from Egroup, led by Shark Nguyen Ngoc Thuy. Egroup invested a total of 100 billion VND in Soya Garden and inaugurated its 50th store at the Phu Dong intersection in July 2019.

However, due to the COVID-19 pandemic and other factors, Soya Garden encountered difficulties and decided to close stores across the country. By mid-2021, they had officially vacated the premises at the Phu Dong intersection. Currently, the Soya Garden chain has shut down, and Egroup – Shark Thuy is going through an uncertain phase.

Following Soya Garden’s departure, due to the peak of the COVID-19 pandemic, it wasn’t until November 2021 that the next tenant, Phin Deli, backed by Nova F&B of Novaland, took over the premises. Unfortunately, Novaland faced significant financial challenges in 2022, and Phin Deli had to vacate the expensive premises after just one year.

Just a month or two after Phin Deli returned the premises, MIA quickly replaced them, opening their store in November 2022.

In an interview with MIA CEO Tran Anh Tuan towards the end of 2022, when the market was still vibrant, he shared: “MIA plans to stay committed to this location for the long term and not ‘run away’ early. We will not rent for just one year but at least three, as long as the landlord doesn’t make it difficult by increasing the rent by 20% to 30% to $50,000 per month, for example.”

However, a year later, things have changed significantly. With the economy still struggling and consumers continuing to tighten their belts, MIA has decided to vacate the premises despite the landlord not increasing the rent. Additionally, negotiations between MIA and the landlord seem to have been quite tense, as the premises were only put up for rent again in March 2024.

Can Danny Green Break the “Curse”?

On the other hand, due to the still-gloomy economic outlook and the challenge of finding a tenant who can afford the $700 million VND monthly rent, it wasn’t until June 2024 that Danny Green began promoting their new store, officially opening it in July 2024.

According to their website, “DannyGreen Joint Stock Company, formerly known as Seagull ADC Co., Ltd., is a member company of Seagull ADC Agricultural Development Joint Stock Company, established with the main task of distributing wholesale and retail products of Seagull ADC to the market.”

In the latest sharing by Mr. Tran Phong Lan, CEO of Seagull ADC and Danny Green, Danny Green’s products are produced at three large-scale farms in Tay Ninh, Hau Giang, and Ninh Thuan, with a future project in Dak Lak.

“Several years ago, consumers would pay around one million VND for a 2kg Japanese-imported netted melon. Now, we can offer the same quality product, grown in Vietnam with Japanese seeds, for just a few hundred thousand VND.

With over a decade of reputation and brand presence in the market, Danny Green’s netted melon products have obtained GAP certification from Japan and the USDA in the US, and we are preparing for European certification. However, the journey to bringing our branded products to the European market remains challenging,” shared Mr. Tran Phong Lan.

The product that made Danny Green famous is their range of netted melons named after ocean themes: Organic Ocean Emerald, Ocean Goddess, Ocean Kim Ngan, and Ocean Duchess. This may be due to Mr. Tran Phong Lan’s background as a sea captain. Their main product lines include organic vegetables and fruits, canned netted melons, and processed products.

Danny Green’s products are primarily distributed through mid-range and high-end supermarket systems such as GO! Vietnam, Tops Market, Co.opXtra, MM Mega Market, Annam Gourmet, and Farmers Market. They have also opened four Danny Green Biomarkt stores: three in Ho Chi Minh City and one in Can Tho.

So, what is Danny Green’s financial strength? In an interview with BSA in 2018, Mr. Tran Phong Lan revealed: “Currently, the cost of our netted melon and gourd greenhouses is around 5 billion VND per hectare. Some greenhouse systems for fruit trees may be cheaper, but they still range from 2 to 3 billion VND per hectare. That’s a significant amount, as it translates to an investment of 200 to 300 million VND per 100 square meters.”

In 2022, he also mentioned that they were preparing a 120-hectare farm in Ninh Thuan with 15 greenhouse systems to produce high-quality netted melons comparable to those from Japan.