RoK’s GS25 to open convenience stores in Vietnam

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]

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]

In its latest “Vietnam Food and Drink Report” released last Friday, Research and Markets said that the Vietnamese economy would not be immune to the current crisis but the country’s outlook appeared promising. They forecast a real GDP growth of 2.9 percent in 2009, a downward revision from the previous forecast of 5 percent. However, Vietnam is expected to outperform much of Asia in 2009-10, resuming rapid growth by 2011, according to the report. “Vietnam’s mass grocery retail sector has witnessed the most activity this quarter,” it said, citing the intention announced in April 2009 of the Japanese convenience store chain, FamilyMart to open its first Vietnamese outlet in HCM City in September, in partnership with the local distribution company Phu Thai. “Although the convenience retail sector is expected to be the slowest-growing format in the country over the forecast period, growth is still expected to be an impressive 81.7 percent to 2013, and FamilyMart is hoping to establish a strong foothold in the country before demand for the convenience format really takes off, said Research and Markets. “This quarter has also seen Saigon Co-op announce plans to expand its supermarket chain from 35 stores to approximately 50 by the end of this year. Supermarket sales are forecast to increase by 97.4 percent by 2013 and Saigon Co-op is hoping to take advantage of this,“ it added. The drinks industry saw Anglo-South African brewer SABMiller buy out local partner Vietnam Dairy Products Joint Stock Company (Vinamilk) in March 2009, leaving…... [read more]

Meanwhile major department store Takashimaya and Japan based 7-Eleven stores are planning to open their first establishments in Ho Chi Minh City sometime in early to mid-2016. These Japanese retailers, however, are not necessarily experiencing universal success in their Vietnam operations, leaving many leading economic experts to question whether they have the savvy to survive. Local retailers in Asia are beginning to transform themselves from family-run shops to full-fledged commercial businesses, said Nagahisa Oyama, Aeon's representative in Vietnam. We fully expect competition with local businesses will gain in intensity over the next few years, said Mr Oyama, and we are moving to stock our stores with strong private-label products to help us stand out from competitors. Aeon has also dissolved all relationships with local Vietnamese business partners after experiencing too many difficulties and questionable business practices, said Mr Oyama. FamilyMart also cut its ties with its local businesses partners citing an inordinate number of difficulties as well— saying when tying up with local firms, companies need to investigate their proposed partners very carefully. Both Japanese chains have also come up short on their originally announced expansion plans for Vietnam. Japanese supermarket operator Aeon has unveiled plans to expand its private brands for the Vietnam market to roughly 2,300 items by fiscal 2017, working with local manufacturers to develop relevant products. The Japanese retail giant is betting heavily on the Vietnam market to help turnaround its sagging sales and profits worldwide. Notably, last December Aeon announced the first closure of a…... [read more]

Dec 26 - Thai shares closed higher for a second straight session on Monday in thin trading as strong November trade data briefly invigorated the market in an otherwise quiet day. Dec 26 - Thai shares closed higher for a second straight session on Monday in thin trading as strong November trade data briefly invigorated the market in an otherwise quiet day. The benchmark stock index, which ended up 0.35 percent, or 5.25 points, rose as much as 0.47 percent after data showed customs-cleared exports rose 10.2 percent in November. A Reuters poll had forecast a 1.55 percent rise. The percentage gain was the highest for a month since February, and paired with a 3 percent rise in imports produced a trade surplus of $1.54 billion, triple the expectation. Gains were broad-based, with Airports of Thailand leading the rise by adding 1.6 percent. Convenience store chain CP All PCL climbed 1.2 percent, pushing the consumer sector higher, while the country's biggest bank by market value, Siam Commercial Bank, added 1.4 percent. Vietnam shares erased early gains of up to 0.2 percent to finish 0.3 percent lower as consumer staples declined. Vietnam Dairy Products JSC and Saigon Beer Alcohol Beverage Corp lost 1.2 percent and 1.5 percent, respectively. The energy sector was dragged down by a 1.5 percent fall in Petrovietnam Gas Joint Stock Corp shares. Stock markets in Singapore, Malaysia, Indonesia and the Philippines were closed for Christmas.... [read more]

Tech trader to open 350 food stores next year Minh Tam HCMC – Mobile World Investment Corp. (MWG), better known as The Gioi Di Dong which retails mobile devices and other electronic items, is looking to expand its convenience store chain Bach Hoa Xanh (green grocery) by opening some 350 food stores next year. MWG’s general director Tran Kinh Doanh told the Daily that the new stores will mainly be located in Tan Phu and Binh Tan districts of HCMC. The corporation will also run a distribution center of fresh products to supply these stores. He said MWG will continue streamlining the model and improving governance and operation of Bach Hoa Xanh to boost revenue by 10 times over the current VND2.5 trillion (US$110 million). MWG will add more new stores nationwide by early- or mid-2018 if the existing outlets perform well. Bach Hoa Xanh, officially launched in October 2015, is a food store chain whose model is similar to those of Co.op Food and Satrafoods. There are 30-50 Bach Hoa Xanh outlets operating on a trial basis with total capital of VND20-50 billion in the 2015-2016 period. As of December 22, Doanh said, The Gioi Di Dong had launched 50 green grocery stores, with total investment capital of less than VND50 billion (US$2.2 million), as planned. They are situated in three wards of Binh Tan District, with each gaining average turnover of VND1 billion (US$43,945) per month. Doanh said overall sales of Bach Hoa Xanh are still modest, compared…... [read more]

Hanoi (VNA) - The property and retail conglomerate Vingroup JSC (Vingroup) has denied information that it plans to sell its supermarket chain VinMart to the US convenience store giant 7-Eleven, local media reported. Le Khac Hiep, Vice Chairman of Vingroup, said that Vingroup will not sell its supermarket chain VinMart at any price. “Firstly, Vingroup will never sell its Vietnamese brands to foreign investors,” said Hiep. “Secondly, Vingroup will not sell its retail chain, which is developing well on the way to become the group’s second spearhead business unit.” In Vietnam, Vingroup holds the largest share of the retail market, and it has the fastest development speed – with about 1,000 supermarkets and convenience stores nationwide. “Vingroup is exceeding other competitors regarding market coverage, growth rate, business scale and prospects.” “Vingroup is also determined to build a reputable, efficient retail business that can connect local production to customers in order to develop a safe, standardised consumption industry for Vietnamese people.” In addition, the retailer expects to be strong and competitive enough to protect and promote local businesses in the consuming production chain, he added. The statement was made a few days after the Australia-based retail news publisher Inside Retail reported last week that 7-Eleven “plans to enter Vietnam by taking over Vingroup’s VinMart chain”. In a statement from the US last year, 7-Eleven said it will build stores and convert “existing locations”. Now, industry insiders are saying the group will swallow VinMart , but there has been silence from both…... [read more]

Daiso opens third parity shop Uyen Vien By Uyen Vien - The Saigon Times Daily HCMC – Daiso’s third convenience store selling products at the same price of VND39,500 was opened on July 2 at 431 Le Hong Phong in District 10, HCMC. Each parity shop in Daiso’s chain will supply domestic consumers with 20,000 products imported from Japan, said Nguyen Duc Duy, manager of Daiso convenience store chain. Daiso had aimed to open twenty stores in HCMC in 2009 - 2012. However, high rent for shop space hindered the company’s extension scheme, said Duy. Daiso’s third store is one of ten parity shops planned to be opened in HCMC in the 2014-2020 period. It is also looking for other business premises which must be street-front, ground-floor areas of at least 150 square meters each. Japanese convenience stores such as Hachi Hachi, Tokutokuya, Akuruhi, Daiso and the like are preferred by local consumers. The abundance of products, various designs and reasonable prices of Japanese imports have won the confidence of local customers and the Japanese community living and working in Vietnam. Daiso is a large franchise parity shop chain in Japan, established in 1972. It has 2,500 stores in Japan and more than 500 others in the U.S., Canada, Romania, Dubai, Russia, Arab, Singapore, Thailand, Malaysia and Vietnam.... [read more]

Japan's 7-Eleven convenience store chain is quietly recruiting three positions on Jobstreet.com, an online recruitment website in Vietnam, though it is still to announce the opening of its first store in the country. The Seven System Vietnam JSC (7-Eleven) is recruiting for three positions, the website said: a quality assurance manager, a fresh food associate, and a marketing associate. Applicants must have three years of experience and two years of experience for the first two position while no experience is necessary for the third position, and will work in Ho Chi Minh City. 7-Eleven expects to open its first store in Vietnam by Spring 2017. These recruitment efforts are the first step in those plans coming into reality. The chain is owned by the Seven & I Holdings Group, with more than 60,000 stores in 18 countries and regions in the world. In mid-2015 its US-based subsidiary, 7-Eleven Inc., clinched a licensing agreement with Seven System Vietnam, established by IFB Holdings, which currently runs the Pizza Hut chain and other eateries in Vietnam, to open the first 7-Eleven store in the country. The first store will be in Ho Chi Minh City, making Vietnam the 19thcountry where 7-Eleven has a presence. Seven & I Holdings plans to have 100 stores in the first three years and 1,000 after a decade. Located in District 3, Seven System Vietnam has 500 employees. The brand has entered Vietnam during a tough period of competition among convenience store brands. In 2015, Japan's FamilyMart and…... [read more]

MWG to open hundreds of new stores in 2017 Chi Thinh HCMC - Mobile World Investment Corp. (MWG), better known as The Gioi Di Dong, is looking to expand its convenience store chain Bach Hoa Xanh by opening some 100-200 new stores next year, the company said at a conference on November 8. Currently, over 30 Bach Hoa Xanh outlets are operating on a trial basis, mostly in HCMC’s Binh Tan District, with each having average turnover of VND1 billion (US$44.79) per month. MWG will add more new stores if the existing outlets get positive results, Nguyen Duc Tai, chairman of the corporation, told investors at the conference, where he presented his corporation’s business plans for 2017, including specific plans for its chains Thegioididong.com, Dienmayxanh.com, Bach Hoa Xanh and online shopping chain Vuivui.com. Tai said Bach Hoa Xanh store chain and online shopping site Vuivui.com will be the focus of development from 2019 to 2025 while Thegioididong.com and Dienmayxanh.com will continue to increase their mobile and electronics retail market share. Thegioididong.com is holding a market share of 38% and Dienmayxanh.com with 17%. In January-September, MWG opened over 400 new outlets, taking the total of both chains to 1,000. According to MWG, the convenience chain store Bach Hoa Xanh is aimed at serving housewives who want to buy consumer goods and food. MWG said its revenue in the first nine months of this year reached VND30.78 trillion, up 76% year-on-year, meeting 90% of the corporation’s annual target. Its after-tax profit also…... [read more]




Links Topics : http://news.c10mt.com/2017/08/roks-gs25-to-open-convenience-stores-in.html