The retailing battle is getting fiercer as in
the first half of March, three foreign giants including Takashimaya, Aeon and
Temasek announced projects for Vietnam.
So,
around 20 leading retailing groups have invested in Vietnam. Meanwhile,
domestic retailers’ performance has not been going smoothly.
In
March early, Takashimaya Singapore committed to rent 15,000 square meter of
retailing area in five floors of Saigon Centre Project Phase 2. Giving reason
to give priority to invest in Vietnam, Yoko Yasuda—Managing Director of
Takashimaya Singapore said that Vietnam’s retailing market is starting a new
development period with an increasing number of medium-income earners.
Another
well-known retailer Aeon Group (Japan) also officially launched operation in
Vietnam by inaugurating Aeon Vietnam Co Ltd on March 2. As planned, in this
September, the newly established company will build Aeon-Tan Phu Celadon trade
centre in Tan Phu Dist with an expected investment size of US$100 million.
Mr
Motoya Okada, Managing Director of Aeon Group assessed, Vietnam is attracting
much foreign investment and will become one of developed hubs of Asia. The
customer group which the group is aiming at is the people with medium income.
By 2020, Aeon will build around 20 more retail centres in many regions of
Vietnam.
Similarly,
Malaysia’s WCT Group has the Platinum Plaza shopping mall project capitalized
at US$600 million in Binh Chanh Dist, HCM City.
Notably,
a lot of foreign retailers decided to cooperate with local firms. Nguyen Thi
Tranh, General Director of Saigon Co-op Investment and Development Joint Stock Co
(SCID) was quoted as saying that work on the largest trade centre complex
covering 4 hectares was kicked off in Tan Phong Ward, Dist 7, HCM City. The
project is under cooperation between SCID and Mapletree, a member of Temasek
Holding with a view to provide shopping, eating and leisure services to HCM
City residents as well as foreigners living here.
E-Mart,
South Korea’s biggest retail group also entered Vietnam through setting up a
joint venture with Vietnam’s U&I Group (headquartered in Binh Duong province).
The E-Mart Vietnam Joint Venture has an initial investment capital of US$80
million and plans to open a chain of 52 supermarkets until 2020. Japanese
retailer Mitsukoshi Isetan Holdings also is considering business in Vietnam.
Right
after making debut in Vietnam, Aeon Group’s General Director Nishitohge Yasuo
said that over one third of 130 retail outlets will be for Japanese brand
names, which has been done by Metro Cash & Carry and Lotte Mart system.
In
2011, Big C exported US$21 million worth of Vietnamese products to foreign
countries, up 20% on year, mainly basa, shrimp, coffee or ready-made chilli
sauce, furniture, appliances.
Lotte
Group is doing the same but in another aspect; the group brought Vietnamese
products into 97 supermarkets in South Korea, accounting for 15% in the
imported product structure in Lotte Mart system. Lotte group also will continue
putting Vietnam-made products into China and 28 supermarkets in Indonesia.
However,
a series of retail supermarkets had to be closed, such as Fivimart Dist 7 after
stopping doing business in five supermarkets in the southern region. People
said that this failure is attributed to regional factors (market share, space
rental cost, human resources…) because 13 Fivimart supermarkets are successful
in the north.
Co.op
Mart also had to close 3 of 32 supermarkets last year due to problems in
renting space and poor performance, the firm’s Deputy General Director Nguyen
Thanh Nhan said.
Market
research firm A.T Keaney Company assessed that Vietnam’s retail market is
blossoming. In this gold period, consumers are seeking and getting used with
new shopping modes and international brand names.
VietBiz24
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