SAN JOSE OFFICIALS have long known about mismanagement concerns surrounding Little Saigon’s signature commercial center. They’re taking action this month after San José Spotlight’s reporting and a lawsuit by merchants showed the extent of Vietnam Town’s neglect.

The city’s Planning, Building and Code Enforcement Department has ordered Vietnam Town management to remove barricades and garbage dumpsters blocking access to the plaza’s main parking garage by the end of Thursday. The garage’s closure had mystified business owners who said it needlessly choked out customer traffic, turning the plaza into a ghost town at certain parts of the day. Merchants have banded together and filed a lawsuit accusing the management organization — known as the Vietnam Town Condominium Owners Association — of ignoring grievances and wasting business improvement funds.

The city has also ordered plaza management to address several building violations — and obtain proper building permits — related to the alleged mismanagement issues. The city has given the Vietnam Town Condominium Owners Association a final compliance date of Sept. 22, 2026.

City officials maintained they were already probing the plaza issues when previously reached for comment by San José Spotlight. Their code enforcement case has been open since January, according to the city’s online code enforcement portal.

“The city has been aware of this for a long time, and they haven’t taken any action until now, probably because they look pretty bad now,” Jason Tran, owner of Pho This Way on Story Road, told San José Spotlight.

Merchants: long-ignored problems drove decline

A San Jose code enforcement spokesperson said a change in inspectors caused the city’s lengthy investigation into Vietnam Town’s code issues. The new inspector confirmed the issues with the garage closure Dec. 11, the day San Jose Spotlight first reported on the alleged mismanagement. Inspectors were scheduled to check the garage for compliance Friday, the spokesperson said.

Tran said he and other merchants were unaware the city was looking into the issues. City code enforcement workers have been historically spread thin and swamped by a backlog of cases.

“We hadn’t heard from them,” he said. “We tried to reach out to them and other government agencies but no one responded. The communication has been bad — lacking entirely. We need the city to follow up with us so we’re aware of what they ordered.”

On top of the parking garage issues, merchants said plaza management is towing cars out of the center’s few remaining spaces while rampant break-ins force shops to cover their windows with plywood. They said puzzling construction work has defaced certain buildings for no apparent reason.

“… The communication has been bad — lacking entirely. We need the city to follow up with us so we’re aware of what they ordered.”

Jason Tran, owner of Pho This Way in the Vietnam Town commercial center

Business owners also said management is squandering the plaza’s potential as an activated, thriving community space, charging merchants onerous fees for using communal areas for outdoor dining.

Representatives for the Vietnam Town Condominium Owners Association did not immediately respond to a request for comment.

Tran said he’s worried plaza management will feign compliance, but revert once the city turns away. Since San José Spotlight’s reporting on the merchants’ lawsuit, Tran said an influx of customers have come in to ask if something is finally being done to address Vietnam Town’s problems.

“We are not asking for special treatment — only to be heard, respected and supported,” Tran said. “The business owners here have invested their savings, their time and their hearts into this plaza. With the right leadership and cooperation, Vietnam Town could thrive and become a cultural and tourist destination San Jose is proud of, instead of a place where businesses are forced to struggle in silence.”

Contact Brandon Pho at brandon@sanjosespotlight.com or @brandonphooo on X.

This story originally appeared in San Jose Spotlight.