Business

Vietnam’s retail market witnesses major deals

Vietnam’s retail market has been stirred up recently by two huge deals that confirm the appeal the 100-million-strong market holds.
Vietnam’s retail market witnesses major deals ảnh 1E-mart Go Vap (Source: baodautu.vn)
Hanoi (VNA) - Vietnam’sretail market has been stirred up recently by two huge deals thatconfirm the appeal the 100-million-strong market holds.

On May 19, E-mart, the largestretailer in the Republic of Korea (RoK), announced that it will sell its retailstore business in Vietnam to local firm the Truong Hai Auto Corporation (THACO).

The move marks the Korean retailer's withdrawal from Vietnamafter nearly seven years.

The number of RoK products sold in E-mart outlets in Vietnam rose from 170 in the year it came to Vietnam to 1,200 by2020.

The E-mart deal comes after a 400 million USDinvestment from Chinese giant Alibaba in The CrownX, a company owned by the Masan Group Corporation, to operate the VinMartsupermarket chain.

The deal is one of the largest by Alibaba in SoutheastAsia since it bought Lazada in 2018 for 4 billion USD. It will allow Alibabaand Lazada to access a network of more than 2,000 outlets without having to spendtime and money establishing a distribution network. Consumers will also seeproducts sold in VinMart available on Lazada and can pick up orders from Lazadaat VinMart.

This is a perfect combination between the two giantsin the omni-channel retail trend, according to e-commerce expert Nguyen Huy.

Lazada has acquired a handsome share of Vietnam’se-commerce market and this deal is expected to help Alibaba speed up itsonline-to-offline (O2O) scheme in the country.

The leader of one small domestic supermarket said thatthat since Lazada entered Vietnam, foreign traders have penetrated more deeplyinto the market through trans-border trading activities, which posedifficulties for domestic production.

Merger and acquisition (M&A) experts said thatafter a period of relative silence, Vietnam’s retail market has entered a new stageof competition that is much fiercer than previously. M&A deals are forecastto continue to rise in the time to come.

The market has seen strong growth in recent years, of about10 percent annually to reach some 160 billion USD in value by 2020. Vietnam isconsidered one of the fastest-growing e-commerce markets in Southeast Asia, afteronly Indonesia./.


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#Vietnam’s retail market #E-mart #Truong Hai Auto Corporation (THACO) #The CrownX #Masan Group Corporation #Vietnam #Vietnam news #Vietnam News Agency
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