Retailers under pressure as more foreign peers predicted to come

Foreign retail businesses who came and introduced modern trade methods, technology together with professional management skills, have posed 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% of Citimart’s shares and 30% of shares of Fivimart convenience stores. Meanwhile, conglomerate Lotte from the Republic of Korea acquired 70% of the Diamond Plaza shopping mall.

Foreign retail businesses who came and introduced modern trade methods, technology together with professional management skills, have posed a big challenge to Vietnamese retailers 

Thai retailer Berli Jucker Plc completed the purchase of Metro Cash & Carry Vietnam as part of its plan to become a leading player in the region. It also bought the Family Mart convenience store chain and changed its name to B’s Mart in 2013.

Another Thai retailer, Central Group, acquired 49% stake in NKT New Solution and Technology Development Investment Joint Stock Company, which owns Nguyen Kim, one of the largest electronics shopping centres in Vietnam. Apart from opening Robin Department Stores in Hanoi and Ho Chi Minh City, the group also owned Big C Vietnam after offering EUR920 million (US$1.05 billion) to France’s Casino Group.

France’s Auchan supermarket and Japan’s Seven Eleven have entered the Vietnamese market with five and nine stores, respectively.

Experts said that more foreign giants will continue to join Vietnam’s retail sector given the country is working to carry out its integration commitments.

Meanwhile, Vietnamese distributors are working hard to tackle their limitations in financial capital, purchasing power, infrastructure, professional workforce, and global ties.

Ho Chi Minh City is housing 207 supermarkets, 56% of which is owned by domestic retailers and the remainder by foreign rivals. 

Nguyen Phuong Dong, Vice Director of the municipal Department of Industry and Trade, said that Vietnamese firms still hold advantages in the number of supermarkets and convenience stores with proportion of 79% and 70%. 

However, sweeping solutions should be deployed by both local authorities and firms to protect domestic retailers from foreigners’ dominance as foreign distributors have sustainable supply of goods, said Le Thi Thanh Lam, Vice Chairwoman of Food and Foodstuff Association of Ho Chi Minh City.

Mời quý độc giả theo dõi VOV.VN trên

Related

Retailers join technology race to snag more customers
Retailers join technology race to snag more customers

Retailers are rushing to develop online sales by offering technological solutions to attract more customers.

Retailers join technology race to snag more customers

Retailers join technology race to snag more customers

Retailers are rushing to develop online sales by offering technological solutions to attract more customers.

Retailers urged to keep up with innovation trends
Retailers urged to keep up with innovation trends

VOV.VN - The retail industry has changed dramatically in the digital age where everything is connected, requiring retailers to continue to innovate to better serve customers’ diverse needs, speakers have said at a one-day summit held in Ho Chi Minh City.

Retailers urged to keep up with innovation trends

Retailers urged to keep up with innovation trends

VOV.VN - The retail industry has changed dramatically in the digital age where everything is connected, requiring retailers to continue to innovate to better serve customers’ diverse needs, speakers have said at a one-day summit held in Ho Chi Minh City.

Retailers see great opportunities with street food sales
Retailers see great opportunities with street food sales

The Vietnamese street food market, with estimated value of VND47 trillion, is now attracting big food supply chains and retailers.

Retailers see great opportunities with street food sales

Retailers see great opportunities with street food sales

The Vietnamese street food market, with estimated value of VND47 trillion, is now attracting big food supply chains and retailers.