Retailers under pressure as more foreign peers predicted to come
Foreign retail businesses who came and introduced modern trade methods, technology together with professional management skills, have posed a big challenge to Vietnamese retailers.
Foreign retail businesses who came and introduced modern trade methods, technology together with professional management skills, have posed a big challenge to Vietnamese retailers (Photo: VNA)HCM City (VNA) – Foreign retail businesses who came and introduced
modern trade methods, technology together with professional management skills, have
posed a big challenge to Vietnamese retailers.
They have so far dominated Vietnam’s retail landscape through merge and acquisition (M&A), joint venture and foreign direct investment (FDI) activities.
Japanese retail giant Aeon bought 49 percent of Citimart’s shares and 30 percent of shares of Fivimart convenience stores. Meanwhile, conglomerate Lotte from the Republic of Korea acquired 70 percent of the Diamond Plaza shopping mall.
Thai retailer Berli Jucker Plc completed the purchase of Metro Cash & Carry Vietnam as part of its plan to become a leading player in the region. It also bought the Family Mart convenience store chain and changed its name to B’s Mart in 2013.
Another Thai retailer, Central Group, acquired 49 percent stake in NKT New Solution and Technology Development Investment Joint Stock Company, which owns Nguyen Kim, one of the largest electronics shopping centres in Vietnam. Apart from opening Robin Department Stores in Hanoi and Ho Chi Minh City, the group also owned Big C Vietnam after offering 920 million euros (1.05 billion USD) to France’s Casino Group.
France’s Auchan supermarket and Japan’s Seven Eleven have entered the Vietnamese market with five and nine stores, respectively.
Experts said that more foreign giants will continue to join Vietnam’s retail sector given the country is working to carry out its integration commitments.
Meanwhile, Vietnamese distributors are working hard to tackle their limitations in financial capital, purchasing power, infrastructure, professional workforce, and global ties.
Ho Chi Minh City is housing 207 supermarkets, 56 percent of which is owned by domestic retailers and the remainder by foreign rivals.
Nguyen Phuong Dong, Vice Director of the municipal Department of Industry and Trade, said that Vietnamese firms still hold advantages in the number of supermarkets and convenience stores with proportion of 79 percent and 70 percent.
However, sweeping solutions should be deployed by both local authorities and firms to protect domestic retailers from foreigners’ dominance as foreign distributors have sustainable supply of goods, said Le Thi Thanh Lam, Vice Chairwoman of Food and Foodstuff Association of Ho Chi Minh City.-VNA
They have so far dominated Vietnam’s retail landscape through merge and acquisition (M&A), joint venture and foreign direct investment (FDI) activities.
Japanese retail giant Aeon bought 49 percent of Citimart’s shares and 30 percent of shares of Fivimart convenience stores. Meanwhile, conglomerate Lotte from the Republic of Korea acquired 70 percent of the Diamond Plaza shopping mall.
Thai retailer Berli Jucker Plc completed the purchase of Metro Cash & Carry Vietnam as part of its plan to become a leading player in the region. It also bought the Family Mart convenience store chain and changed its name to B’s Mart in 2013.
Another Thai retailer, Central Group, acquired 49 percent stake in NKT New Solution and Technology Development Investment Joint Stock Company, which owns Nguyen Kim, one of the largest electronics shopping centres in Vietnam. Apart from opening Robin Department Stores in Hanoi and Ho Chi Minh City, the group also owned Big C Vietnam after offering 920 million euros (1.05 billion USD) to France’s Casino Group.
France’s Auchan supermarket and Japan’s Seven Eleven have entered the Vietnamese market with five and nine stores, respectively.
Experts said that more foreign giants will continue to join Vietnam’s retail sector given the country is working to carry out its integration commitments.
Meanwhile, Vietnamese distributors are working hard to tackle their limitations in financial capital, purchasing power, infrastructure, professional workforce, and global ties.
Ho Chi Minh City is housing 207 supermarkets, 56 percent of which is owned by domestic retailers and the remainder by foreign rivals.
Nguyen Phuong Dong, Vice Director of the municipal Department of Industry and Trade, said that Vietnamese firms still hold advantages in the number of supermarkets and convenience stores with proportion of 79 percent and 70 percent.
However, sweeping solutions should be deployed by both local authorities and firms to protect domestic retailers from foreigners’ dominance as foreign distributors have sustainable supply of goods, said Le Thi Thanh Lam, Vice Chairwoman of Food and Foodstuff Association of Ho Chi Minh City.-VNA
You should also see
Investor confidence gains traction on improved business climate
Better investment climate, with simplified administrative producers and special incentives, has helped improve investor confidence, thus catalysing investments from a wider pool of both domestic and international investors for socio-economic development.
See more
Business
Dong Nai province ready to ride Japanese investment wave
The southern province of Dong Nai stands ready to prepare the best conditions to welcome investors, especially those from Japan, Secretary of the provincial Party Committee Nguyen Hong Linh said on April 24.
Business
Airlines requested to increase flights during upcoming holiday
The Civil Aviation Authority of Vietnam (CAAV) has asked Vietnam's airlines to consider increasing the number of flights from Hanoi and HCM City to localities on April 27, and from localities back to Hanoi and HCM City on May 1 to meet the demand for air transportation during the April 30 - May 1 holidays.
Business
Tra fish export to UAE jumps 67% in Q1
Vietnam’s tra fish export to the United Arab Emirates (UAE) reached more than 7 million USD in the first quarter of this year, a rise of 67% against the same period last year, according to statistics of the General Department of Customs.
Business
Vietnam seeks to remove obstacles in upgrade of securities market
The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.
Business
Ca Mau: Conference connects Vietnamese, Chinese firms
A networking conference was held in the Mekong Delta province of Ca Mau on April 24, in a bid to connect 54 local enterprises, mostly operating in the seafood sector, to their Chinese peers.
