Japanese food companies increase presence in Vietnam

Despite the increasing number of outlets, the market share of mobile retailer The gioi Di dong, which belongs to Mobile World Investment Corporation (MWG), has stayed unchanged at 42 per cent, thus, MWG has to find ways to solve its growth problems. RELATED CONTENTS: Cambodia ops, grocery arm fail to meet MWG’s expectations Consumer electronics retail losing its appeal Thai investment fund buys MWG shares for $11m MWG 2017 growth prospects uncertain MWG plans foreign expansion Mobile World makes it into Top 50 again MWG make VND165 billion profit in two months MWG sets $1 billion revenue target for 2015 MobileWorld: the best working place in Vietnam MWG share price dives ahead of listing Mobile phone and consumer electronics outlets see no growth According to newswire VnExpress, MWG’s business report for the first half of 2017 revealed that the company’s revenue and after-tax profit were more than VND31.2 trillion ($1.4 billion) and VND1 trillion ($44 million), respectively, producing a growth of 59 and 28 per cent compared to the same period last year. Of the total, the revenue from online sales was nearly VND2.6 trillion ($114.4 million), nearly double of the corresponding period last year. This…... [read more]

The demand for goods at the end of this year is increasing rapidly creating an excellent opportunity for business to boost production and marketing but it also allows counterfeit products to be sold alongside real quality ones. Counterfeit goods are being sold not only in markets and retail shops but also in large department stores and supermarkets. Recently, the Toan Thanh Company, which imports White Care body wash, found many counterfeit products on the selves of a number of supermarkets, shops and convenience stores. The SHTT Winco Company, the authorised distributor of the US Homeland Company for the Magic Bullet blender in Vietnam, discovered a number of the fake products in electronic shops in Ba Dinh district in Hanoi and 10th district in Ho Chi Minh City. A representative from a company that imports products from international fashion houses said that nearly 90 percent of luxury fashion items in Vietnam are not the real thing. Moreover, some popular Vietnamese brand names including Viet Thy, FOCI, Ninomaxx are also being counterfeited. As soon as they have released a new collection, fake copies are sold in the markets at half the price of the original ones. Since the beginning this year, the Market Management Department has more than 11,000 cases of trading counterfeit goods. Worryingly, most of them are medicines, foods, cosmetics and cigarettes, which have a direct impact on consumers’ health. Famous brand names are most likely to be faked and the time that it fakes the copies to appear in…... [read more]

Public Health Minister Wittaya Buranasiri said that emphasis would be placed on products under the “One Tambon One Product,” or “OTOP,” program and all kinds of processed, cooked, and ready-to-eat foods. Minister Wittaya explained that these products should be upgraded to the primary good manufacturing practice (GMP) standards. GMP is a component of quality assurance at the processing level to warrant that products are consistently produced and controlled to meet the quality standards appropriate to their intended use. GMP, defined by law and under surveillance of the Ministry of Public Health, comprises seven categories: locations and buildings; equipment and machinery; production and processing control; sanitation; maintenance and cleaning; personnel; and sanitary operations. These categories also cover operations in food production, packaging, and storage under sanitary conditions to safeguard against contamination as well as health hazards, and to ensure safe consumption. Minister Wittaya assigned the Food and Drug Administration and the Department of Medical Services to provide training for entrepreneurs in all provinces. This would assure Thai and ASEAN citizens that they would be offered safe and quality food. He said that the products certified by the GMP standards would be distributed for sale at shopping complexes and convenience stores in Thailand and other ASEAN countries. He believed that GMP certification would increase Thailand’s income by at least 100 billion baht annually. The Secretary-General of the Food and Drug Administration, Mr. Pipat Yingseree, said that there are currently about 20,000 OTOP producers across the country, or 200-300 in each province on…... [read more]

Aware of the need for Thailand to prepare for the changing energy situation, the Asian Development Institute for Community Economy and Technology (adiCET), in Chiang Mai Rajabhat University, has launched a project to create a green community, known as “Chiang Mai World Green City.” The objective is to develop a model community that applies smart technologies and renewable energy sources into a green life style. This prototype of a green city is striving to be fully sustainable, so that it will be able to cope with the coming energy crisis and adverse impacts from climate change and global warming. Based on the concept of offering communities ideas to survive in the future, the Chiang Mai World Green City seeks to tackle economic and poverty problems, as well. It also serves as a center for organizing exhibitions on renewable energy and green technologies that are important for the environment, as well as distributing clean technology systems and organic products. The Chiang Mai World Green City is situated on an area of 500 rai, or about 200 acres, at the Saluang-Keelek Campus of Chiang Mai Rajabhat University in Mae Rim district. It is divided into three zones. Zone A: Smart Community The Smart Community combines residential, office, and business area, covering 100 rai, or 40 acres. The community business area comprises a convenient store, a restaurant, and a coffee shop. These businesses are the training centers and outlets for agricultural and local products from Chiang Mai and the surrounding communities. The Smart…... [read more]

Passengers flying during the Lunar New Year season, or Tet in Vietnamese, will enjoy much improved service at the Ho Chi Minh City airport, Dang Tuan Tu told Tuoi Tre (Youth) newspaper. The Vietnamese Lunar New Year falls on February 8, but demand for air travel normally soars a week before the holiday. Tan Son Nhat therefore has more than a month to enhance its service quality, as ordered by the Ministry of Transport, in the wake of a quality assessment report that pinpointed myriad shortcomings at Vietnam’s busiest airport earlier this month. “We are upgrading the free Wi-Fi connection at both the domestic and international terminals, which is expected to come on stream by December 20,” Tu said. The Wi-Fi service at the airport has been criticized for being weak and almost unusable, according to the report conducted by the Civil Aviation Authority of Vietnam. “The upgraded Internet system will have 10Gbps speed with multilpe hotspots, guaranteeing stronger and more reliable access for passengers,” the airport director said. While both arriving and departing passengers currently have to wave down taxis in the same area, a new taxi zone will open to passengers on December 20, helping to reduce the overload there, Tu added. In 2016, a five-story parking lot is also expected to be put into use to reduce pressure on the current venue. The 68,000 square meter parking space, including a taxi zone, will be connected to the arrival hall of the domestic terminal through an underground pathway,…... [read more]

It has encouraged women and youth unions and businesses to set up more than 200 mobile kiosks to provide essential goods for rural people, employees at industrial parks, low income earners and hospital patients. The city has stockpiled Tet goods valued at nearly VND7,500 billion for the price stabilization programme. As many as 7,500 mobile kiosks and convenience stores have offered lower prices than market levels at residential areas and traditional markets. The Municipal Department of Industry and Trade has assigned the Saigon Union of Trading Cooperatives (Saigon Co.op), Saigon Trading Group (Satra), and Ba Huan company to work closely with local businesses to carry out the programme at the peak of the Tet holiday from January 1 to 25, 2014. The city will closely monitor market prices and trade frauds to nip any violations in the bud.... [read more]

Director Vo Van Quyen of the Ministry of Industry and Trade (MoIT) Domestic Market Department said the retail sector in Vietnam has experienced an average annual growth rate of nearly 16% over the past four years. “However, all of the growth has come from foreign retailers entering the market,” Quyen said and the domestic economy has actually experienced “a drop in the number of retail establishments”. As of the end of 2014, foreign companies had invested in 80 supercentres, 50 specialised small shops and 250 convenience stores in Vietnam Quyen said, adding that 10 retailers from Europe and Asia dominated the nationwide retail market. Quyen said the foreign retailers are having a profound effect on the economy due to their superior business experience and managerial skills and ‘they are better equipped financially to expand their infrastructure in Vietnam compared to their domestic counterparts”. Director General Phan Chi Dung of the Light Industrial Department in turn said the competitiveness of domestic companies is limited due to lack of access to credit, small production scale and lack of management experience. Most importantly, they simply are not professional in their approach to retailing and lack the skills to lay out detailed business and marketing plans he said, adding that few have taken the time to specifically identify a unique selling proposition that distinguishes them from their competitors. Another important part of the business plan Dung said is distribution, or in other words, discerning precisely how customers will buy from the company. For example,…... [read more]

In mid-2014, a man from New Zealand, with US$50 million and backed by a Hong Kong’s leading retail group, came to Vietnam quietly. He was Kent Thai, president of Kent Sing, who traveled the country for three months and met with dozens of Vietnamese businesses to discuss investment opportunities. The businessman wanted to look for land plots in advantageous positions with the areas of at least 50,000 square meters on which he planned to develop hypermarkets. Kent Thai, like many other foreign investors, believed that Vietnam was a promising land for retailers. But his plan has not been realized because of many reasons. The Vietnamese market of modern retail has had many deals completed recently. French Auchan Group, for example, announced the plan to invest US$500 million investment in the Vietnamese retail sector for the next 10 years. In mid-2015, Thai billionaire Pattapong Iamsuro stated he would spend 64% of Berli Jucker’s assets to take over Metro Cash & Carry Vietnam in a deal worth 655 million euros. A report showed that Vietnam’s retail industry now generates 6.3 million jobs and makes up 15% in Vietnam’s GDP growth. The total retail turnover in the first 10 months of the year reached VND2.026 trillion, an increase of 10.7% compared with the same period last year. There are about 8,500 markets in Vietnam, 1.3 groceries, nearly 500 convenience stores, 750 supermarkets and 132 shopping malls. According to Euromonitor and Nielsen, both are market survey firms, modern retail can be classified into four…... [read more]

As planned, the group will sign a cooperative deal with a Vietnamese partner to open the first store in 2017. Stores in Vietnam will be managed by Japanese staff. The first 7-Eleven convenience store will be opened in HCM City. In the initial period, the Group will send 4 Japanese staff to transfer Japanese trading methods to their Vietnamese colleagues and develop the stores’ specialities. Seven & I Holdings is Japan’s leading retail group which owns 38,000 stores in the world.... [read more]

BSC prompted top bosses at a Baltimore project to realize that if they managed to wipe out negligence, operating costs worth US$13.2 million would be saved. Meanwhile, the convenience store chain Store 24 boldly shelved its strategy for entertainment services costing hundreds of millions of dollars as it had delivered outcome far short of expectations. The above stories of changes in multinational companies are just two examples about BSC implemented in conglomerates which were mentioned by Mr. Howard Rohm, president of the BSI when he was addressing the audience at the international seminar in HCMC on October 24, and in Hanoi on October 27. The event, entitled “Strategic Planning & Strategy Execution Using Balanced Scorecards”, was hosted by BSV, the only authorized partner of BSI in Vietnam, Laos and Cambodia and also a member of the PACE. BSI’s official presence in these countries offers its copyrighted methodology of strategic planning and strategy execution seen as the company’s distinctive footprint. The BSC is not only a phenomenon when it comes to the world’s prevailing strategic management tools, but also a provider of real values for business community in Vietnam. Helping organizations transform themselves The concept of the BSC first came to prominence in a 1992 article by Drs. Kaplan and Norton. The article, published in the Harvard Business Review revolutionized global conventional thinking regarding strategic planning and strategy execution, as well as performance measurement and management. In Vietnam, the BSC concept has been popularized among the business community and management and…... [read more]

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