A store of Mobile World Group (MWG) in Hanoi (Photo: cafef.vn) Hanoi (VNS/VNA) - With a scale of nearly 180 billion USD and an annualtwo-digit growth rate, the Vietnamese consumer retail market is being squeezedby foreign investors.
Recently, Arisaig Asia Consumer Fund Limited said that it had invested in threenew businesses in Asia, including Saigon Beer-Alcohol-Beverage Corporation(Sabeco), but the investment was not disclosed.
Previously, the fund continuously increased its ownership in Mobile WorldInvestment Corporation (MWG) from the end of last year.
Besides, it also holds 28.8 million shares of Vinamilk, worth more than 3.3trillion VND (143 million USD).
Arisaig Asia Consumer Fund is a member of Arisaig Partners, a company foundedin 1996, specialising in investing in consumer businesses with a scale of up to4 billion USD.
It focuses on investing in businesses of essential consumer goods andtechnology in Asia.
Of which, the proportion of Vietnamese stocks in the fund's portfolio is about3 percent, equivalent to 75 million USD.
Beside Arisaig Asia Consumer Fund, many foreign corporations and funds areseeking places to pour capital into the Vietnamese consumption retail pie.
The Mekong Enterprise Fund III, managed by private equity firm Mekong Capital,also invested in pawn shop chain F88.
Previously, this fund has successfully invested in many consumer retailbusinesses in Vietnam such as Golden Gate, MWG, and recently Pharmacity.
The General Statistics Office reported that Vietnam's retail sales of goods wasestimated at more than 3.7 quadrillion VND (equivalent to 161.7 billion USD)last year, an increase of nearly 18.9 billion USD (equivalent to 12.7 percent)compared to 2018.
This is the fourth consecutive year the market has a growth rate of over 10 percentand is forecast to continue growing and reaching 180 billion USD this year.
Tran Duy Dong, director of the Domestic Market Department under the Ministry ofIndustry and Trade, recommended taking advantage of the new opportunitiesoffered by the Europe-Vietnam Free Trade Agreement (EVFTA).
Domestic enterprises should carefully study the contents and rules to preparein advance, ready to take advantage of opportunities from the agreement, hesaid.
At the same time, strengthening business strategy management, businessstructure in accordance with domestic and international market conditions,meeting the diverse and increasing needs of consumers.
Nguyen Thi Thu Trang, director of the WTO Integration Centre under the VietnamChamber of Commerce and Industry, committed to not applying the mechanism ofchecking economic needs with EU retailers in the EVFTA, which would help EUinvestors have opportunities to expand their operations in Vietnam in the retailsector.
An economic needs test is a procedure whereby foreign-invested companies in thedistribution sector, which are allowed to provide commission agency services,wholesale and retail for all products manufactured in Vietnam and legallyimported into the country, must be met when establishing retail outlets./.
VNA
