VietNamNet Bridge - Thai billionaires in recent years have been successively disbursing money in deals to take over Vietnamese businesses, planning to turn Vietnam into a market that consumes many Thai goods.

The opinion of well-informed circles says Central Group of Chirathivat, Thailand’s richest billionaire, has successfully taken over Pico, a Vietnamese large home appliance distribution chain.

The deal has wrapped up, but it is still unclear about the proportion of shares Central Group has acquired. Some sources said 49 percent of Pico’s shares have been transferred to the Thai business.

Just within one year, Central Group has been increasing its presence in Vietnam. It opened the first Robins shopping mall center in Hanoi in April 2014, then spent $4 billion on the opening of the second one in HCM City.

In early 2015, Central Group bought 49 percent of stakes of NKT, the company that runs Nguyen Kim, a 21-shop home appliance distribution chain.

The recent moves taken by Central Group in Vietnam show that the Thai business is trying to expand its business in the retail market after it failed to do so in China.

Nguyen Kim is believed to be a strong brand in the south of Vietnam, but it remains unfamiliar in the north. 

Therefore, the Central Group’s decision to take over Pico is believed to be a strategic step by the Thai business aiming to conquer the northern market.

Nguyen Kim plans to open 50 shops nationwide by 2019, while Pico, which now has six shops, expects to open over 20 shops in the time to come.

Retailing is believed to be the most lucrative business field in Vietnam, and has been eyed by Thai investors for a long time.

Chirathivat, the Thai billionaire, noted that the Vietnamese market with 90 million in population, 60 percent of whom are working age, is clearly a promising retail market.

The German research firm Statista estimated that the Vietnamese retail market may obtain total revenue of $100 billion per annum by 2016, of which consumer electronics would make up $10 billion.

Regional retail groups all see Vietnam as their key market once the AEC (ASEAN Economic Community) forms, slated for the end of the year.

A branding expert noted that golden opportunities have appeared for Thai businessmen to grab. A lot of home appliance chains have gone downhill recently because of the stiff competition in the market. 

The owners of many large home appliance distribution chains, therefore, are thinking of selling the chains to get money for debt payment. 

And it is the right time for Thai businessmen to take over the chains at reasonable prices.

Tran Thuy