Vietnamese retailers expand networks

By buying rivals and expanding networks, Vietnamese retailers are dominating the domestic retail market.

The Vietnamese retail market has been busy with an M&A deal in which VinMart is taking over Queenland Mart.

Vietnamese retailers expand networks



Eight Queenland Mart will change identification after the deal wraps up. Of these, seven supermarkets will become VinMart and one VinMart+.

This is the first takeover deal by VinMart in HCMC market where the number of the supermarkets and convenience stores in the city was raised to 52.

VinMart, a subsidiary of Vingroup, has made a series of M&A deals recently. Prior to that, it took over Fivimart and Shop & Go with 87 shops.

Saigon Co-op, another big Vietnamese retailer, also moves ahead with its strategy to enlarge its network.

Most recently, in June 2019, the retailer acquired Auchan Retail after the French group announced the departure from Vietnam. With the deal, Saigon Co-op has taken over 15 supermarkets and more than 200 workers.

Most recently, in June 2019, the retailer acquired Auchan Retail after the French group announced the departure from Vietnam. With the deal, Saigon Co-op has taken over 15 supermarkets and more than 200 workers.

 


However, analysts commented that if considering coverage, Saigon Co-op is still no match to VinMart, which now owns 2,100 VinMart supermarkets and VinMart+ convenience stores.

Several years ago, economists showed concern that Vietnamese retail chains would be swallowed by foreign players who have bigger capital and more experience. However, contrary to all predictions, it is foreign retailers, which have had to leave the market.

Metro, Auchan, Casino Group and Parkson all have left Vietnam after many years of taking losses. Meanwhile, 7-Eleven, a giant, still cannot easily implement its plan to expand quickly in Vietnam.

When opening the first shop in Vietnam, the retailer affirmed that it would have 100 convenience stores by 2020. It also stated that 7-Eleven would be present throughout the country with 1,000 shops by 2027.

However, to date, 7-Eleven has only 21 sale points, implementing 20 percent of the plan to have 100 shops in the first three years of operation.

GS25 from South Korea six months ago stated that it would open 2,500 convenience stores after 10 years of presence in Vietnam. After two months, the chain now only has 32 shops.

Vu Vinh Phu, a respected trade expert, commented that the strong rise of VinMart and Saigon Co-op has inspired other Vietnamese retailers.

However, he warned that the 2019-2020 period would witness more competition between Vietnamese and foreign retailers, and between modern and traditional retail channels.

An analyst, agreeing with Phu, said that VinMart and Saigon Co-op are powerful, but it is still too early to say Vietnamese retailers control the domestic retail market.

Thanh Lich 

Local retailers can seize the lion's share

Local retailers can seize the lion's share

Vietnamese retail companies are in pole position to seize the lion’s share of the market, especially after some foreign businesses have left the country.  

Some foreign retailers leave Vietnam’s $180 billion market - Why?

Some foreign retailers leave Vietnam’s $180 billion market - Why?

Some foreign retail groups have left Vietnam recently. Is this because the retail market is no longer attractive?

 
 

Other News

.
Three border crossings to reopen in Quang Ninh
Three border crossings to reopen in Quang Ninh
BUSINESSicon  11/01/2022 

China will resume customs clearance at three border crossings in Quang Ninh Province from January 11, according to the Ministry of Industry and Trade.

Largest-ever support package to strengthen farmers
Largest-ever support package to strengthen farmers
BUSINESSicon  11/01/2022 

The Government has just submitted a support package of VND350 trillion (US$15.43 billion) for socio-economic recovery and development to the National Assembly.

Real estate market anxiously awaits new regulations
Real estate market anxiously awaits new regulations
FEATUREicon  10/01/2022 

The National Assembly this morning began discussing the amending of eight laws.

Tet online sales kick off one month before Tet
Tet online sales kick off one month before Tet
FEATUREicon  10/01/2022 

Everything now can be purchased online, from food for Tet parties to smartphones.

Banks begin to hike deposit interest rates
Banks begin to hike deposit interest rates
BUSINESSicon  11/01/2022 

In October, the average interest rates on bank deposits for six months and 12 months were 4.7 per cent and 5.5 per cent, down half a percentage point from a year earlier, according to Bao Viet Securities Company.

Riding the wave in Vietnam’s real estate market in 2022
Riding the wave in Vietnam’s real estate market in 2022
BUSINESSicon  11/01/2022 

The real estate market has ended a year of profound impacts with some very encouraging news as both domestic and foreign developers are finally speeding up the construction of new projects.

Garment and textiles face reality of fierce global rivalry
Garment and textiles face reality of fierce global rivalry
BUSINESSicon  11/01/2022 

Vietnam’s garment and textile sector has reached the 2021 export target, but is confronted with ever-growing competition from the Asian continent as well as other markets.

Positive indicators light up footwear trade to US
Positive indicators light up footwear trade to US
BUSINESSicon  10/01/2022 

Vietnam is emerging as one of the largest suppliers of footwear and leather accessories to the United States, opening more opportunities for domestic companies to exploit the world’s largest market for these goods.

Goods congestion at border gates needs to be solved before Tet: Deputy PM
Goods congestion at border gates needs to be solved before Tet: Deputy PM
BUSINESSicon  10/01/2022 

Deputy Prime Minister Le Van Thanh has requested ministries, sectors and localities to closely coordinate with Chinese agencies to speed up customs clearance, striving to have no congestion of cargo trucks at border gates before Tet.

HCM City businesses overcome economic 'storm'
HCM City businesses overcome economic 'storm'
BUSINESSicon  10/01/2022 

Many enterprises in HCM City have successfully contributed to the economic recovery and development of the city after the pandemic.

VIETNAM BUSINESS NEWS JANUARY 10
VIETNAM BUSINESS NEWS JANUARY 10
BUSINESSicon  10/01/2022 

Gov’t sets deadline for completion of Long Thanh airport

Positive outlook for insurance stocks as 2022 arrives
Positive outlook for insurance stocks as 2022 arrives
BUSINESSicon  09/01/2022 

State capital divestment planning and the removal of limitations on foreign ownership are expected to drive insurance stocks to flourish in 2022.

AmCham Vietnam to promote increased trade and investment ties in Vietnam
AmCham Vietnam to promote increased trade and investment ties in Vietnam
BUSINESSicon  09/01/2022 

AmCham will continue to work on lowering barriers to trade and creating a high-standard, transparent, and stable business environment in Vietnam.

Economic prospects for the world and Vietnam
Economic prospects for the world and Vietnam
BUSINESSicon  09/01/2022 

The severity and persistence of inflation worldwide have surprised most central banks and organizations that offer economic forecasts. 

Hanoi completes nearly 546,000 square meters of floor area in 2021
Hanoi completes nearly 546,000 square meters of floor area in 2021
BUSINESSicon  09/01/2022 

Despite the ongoing impacts of the Covid-19 pandemic, housing development is still being promoted.

Vietnam's seafood exports beat yearly target, rake in US$8.9 billion
Vietnam's seafood exports beat yearly target, rake in US$8.9 billion
BUSINESSicon  08/01/2022 

Thanks to large-scale production in the last months of 2021, the seafood export value for the whole year rose 6% compared to 2021 reaching more than US$8.9 billion.

First US firm orders 100 VinFast electric cars at CES 2022
First US firm orders 100 VinFast electric cars at CES 2022
BUSINESSicon  08/01/2022 

Artemis DNA has become the first US firm to place an order to purchase 100 electric cars of VinFast following the Vietnamese automaker’s new model debut at the technology exhibition CES 2022 in Las Vegas (USA).

Vietnam becomes major manufacturer of Nike sports shoes
Vietnam becomes major manufacturer of Nike sports shoes
BUSINESSicon  08/01/2022 

Vietnam has surpassed China to become the major manufacturer of Nike sports shoes.

Vietnamese banks facing bad debt increases
Vietnamese banks facing bad debt increases
BUSINESSicon  08/01/2022 

Despite the negative impacts of the Covid-19 pandemic, the credit of the country economy in 2021 witnessed an increase of 13 percent compared to last year. The bad news is an unavoidable rise of bad debts in many banks.

Prices escalate, people rush to hunt for land in hot market
Prices escalate, people rush to hunt for land in hot market
FEATUREicon  10/01/2022 

Price escalation is occurring everywhere, from rural to urban areas. People are buying land at surprisingly high prices.

 
 
 
Leave your comment on an article

OR QUICK LOGIN