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 introducedmodern trade methods, technology together with professional management skills, haveposed 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 30percent of shares of Fivimart convenience stores. Meanwhile, conglomerate Lottefrom the Republic of Korea acquired 70 percent of the Diamond Plaza shoppingmall.
Thai retailer Berli Jucker Plc completed the purchase of Metro Cash & CarryVietnam as part of its plan to become a leading player in the region. It alsobought the Family Mart convenience store chain and changed its name to B’s Martin 2013.
Another Thai retailer, Central Group, acquired 49 percent stake in NKT NewSolution and Technology Development Investment Joint Stock Company, which ownsNguyen Kim, one of the largest electronics shopping centres in Vietnam. Apartfrom opening Robin Department Stores in Hanoi and Ho Chi Minh City, the groupalso owned Big C Vietnam after offering 920 million euros (1.05 billion USD) toFrance’s Casino Group.
France’s Auchan supermarket and Japan’s Seven Eleven have entered the Vietnamesemarket with five and nine stores, respectively.
Experts said that more foreign giants will continue to join Vietnam’s retailsector given the country is working to carry out its integration commitments.
Meanwhile, Vietnamese distributors are working hard to tackle their limitationsin financial capital, purchasing power, infrastructure, professional workforce,and global ties.
Ho Chi Minh City is housing 207 supermarkets, 56 percent of which is owned bydomestic retailers and the remainder by foreign rivals.
Nguyen Phuong Dong, Vice Director of the municipal Department of Industry andTrade, said that Vietnamese firms still hold advantages in the number ofsupermarkets and convenience stores with proportion of 79 percent and 70percent.
However, sweeping solutions should be deployed by both local authorities andfirms to protect domestic retailers from foreigners’ dominance as foreigndistributors have sustainable supply of goods, said Le Thi Thanh Lam, ViceChairwoman 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 30percent of shares of Fivimart convenience stores. Meanwhile, conglomerate Lottefrom the Republic of Korea acquired 70 percent of the Diamond Plaza shoppingmall.
Thai retailer Berli Jucker Plc completed the purchase of Metro Cash & CarryVietnam as part of its plan to become a leading player in the region. It alsobought the Family Mart convenience store chain and changed its name to B’s Martin 2013.
Another Thai retailer, Central Group, acquired 49 percent stake in NKT NewSolution and Technology Development Investment Joint Stock Company, which ownsNguyen Kim, one of the largest electronics shopping centres in Vietnam. Apartfrom opening Robin Department Stores in Hanoi and Ho Chi Minh City, the groupalso owned Big C Vietnam after offering 920 million euros (1.05 billion USD) toFrance’s Casino Group.
France’s Auchan supermarket and Japan’s Seven Eleven have entered the Vietnamesemarket with five and nine stores, respectively.
Experts said that more foreign giants will continue to join Vietnam’s retailsector given the country is working to carry out its integration commitments.
Meanwhile, Vietnamese distributors are working hard to tackle their limitationsin financial capital, purchasing power, infrastructure, professional workforce,and global ties.
Ho Chi Minh City is housing 207 supermarkets, 56 percent of which is owned bydomestic retailers and the remainder by foreign rivals.
Nguyen Phuong Dong, Vice Director of the municipal Department of Industry andTrade, said that Vietnamese firms still hold advantages in the number ofsupermarkets and convenience stores with proportion of 79 percent and 70percent.
However, sweeping solutions should be deployed by both local authorities andfirms to protect domestic retailers from foreigners’ dominance as foreigndistributors have sustainable supply of goods, said Le Thi Thanh Lam, ViceChairwoman of Food and Foodstuff Association of Ho Chi Minh City.-VNA
VNA
