Many FMCG distributors, including Shop&Go and Auchan, have had to leave Vietnam. However, though the competition in the FMCG market is cutthroat, it is still very attractive.

In April, Petrolimex revealed a plan for a chain of convenience stores where 1,500-2,000 product items would be available.

The petroleum product distributor has a large network of 2,500 filling stations all over the country, and strategic partner JX Nippon Oil, which has experience in this field.

At this moment, Petrolimex only sells products related to petroleum, such as insurance policies and lubricants.

In August 2017, South Korean press reported GS25 would team up with Son Kim to set up a joint venture in Vietnam. Just five months later, in January 2018, it opened the first shop in district 1, HCMC.

To date, Son Kim Retail has opened 40 GS25s in HCMC and plans to open 2,000 shops within 10 years.

However, The Gioi Di Dong is the most clear-headed investor. In 2015, it launched Bach Hoa Xanh, a hybrid model between a general supermarket and a convenience store.

In 2017, it had 283 shops. The figure rose to 405 in 2018 and 500 this year, which is expected to increase to 700 by this year end.

2018 was an important year for Bach Hoa Xanh as the brand decided to relocate the old shops located deep in residential quarters to main roads with high traffic density.

Digiworld joined the FMCG market as a supplier, not retailer. In 2017, Digiworld poured money into two sectors – healthcare and FMCG.

Even Thaco, an automobile manufacturer, plans to open shopping malls throughout the country.

At the 2019 shareholders’ meeting, Thaco confirmed that in the future, it will open shopping malls under the ‘one stop – many services’ model – an automobile showroom, supermarket, food court, retail shop, restaurants, children entertainment center, cinema and a conference center.

The Gioi Di Dong now not only distributes smartphones, but it also sells drug, watch and food. FPT Retail has taken Long Chau drug retail chain and plans to open 70 drug stores this year.

As the mobile phone market is getting saturated, phone distribution chains are selling many other products together with mobile phones to earn extra money.

FMCG sales in Vietnam's convenience stores grow strongly: Nielsen report

As consumer demand for convenience soars across Southeast Asia, Vietnam saw strong growth of 13 per cent in Fast Moving Consumer Goods (FMCG) sales growth in convenience stores in the past year.  

M. Ha