Leading Korean retailer aims for 2,500 convenience stores in Vietnam

The Korean retailer will build giant stores, supermarkets and various other types of commercial facilities in Viet Nam's commercial hub.Korean newswire Yonhap said the signing ceremony in Seoul on September 9 was attended by key officials from both sides, including E-Mart CEO Lee Gap-su and HCM City Party Committee secretary Dinh La Thang.The company also plans to expand imports of non-food items like clothes and toys and food products like fruits and fisheries.E-Mart opened its first Vietnamese outlet in HCM City's Go Vap District last December."We expect to increase our investment in HCM City, Viet Nam's economic centre, in various…... [read more]

Nguyen Thu Ha has abandoned traditional markets on her afternoon shopping trips in favor of a more convenient option. Uncomfortable with the crowds and dubious origins of the food, the 35-year-old from Hanoi now prefers to spend her money in the convenience stores that are mushrooming across the city. “The quality in convenience stores is guaranteed, unlike grocery shops and traditional markets,” she said. “That's why I go to them now.” Like Ha, many shoppers are turning to convenience stores, encouraging foreign retailers to expand their presence in the market. The number of convenience stores had increased to over 1,500…... [read more]

The country is attractive to retailers, with a market of more than 93 million people, relatively young population and an estimated GDP of US$220 billion. Vietnam has been named on the list by US global management consulting firm A.T. Kearney since 2008. According to the firm’s latest Global Retail Development Index (GRDI), convenience stores and mini-marts are the fastest-growing segment in the country.  Circle K and FamilyMart entered Vietnam in 2009 and are expanding rapidly. FamilyMart now has about 100 stores across the country and plans to have more than 800 stores by 2020.  Japanese retailer 7-Eleven also plans to…... [read more]

VietNamNet Bridge - Vietnam is witnessing the strong expansion of small supermarket and convenience store chains applying high-tech solutions in sales, storage and customer management. Vietnam is listed among the 30 attractive retail marketsVietnam is listed among the 30 most attractive retail markets and has returned to the sixth position in GRDI (global retail development index) as announced by AT Kearney.A survey by Kantar Worldpanel found that one-third of Vietnamese households bought things at small supermarkets and convenience stores at least once and 10 times a year on average. ... [read more]

How did the Shop & Store Vietnam get started?As the industry continues to embrace the wider international community, being attracted by over 95 million people and accounted as young population of consumers with 60 percent are aged under 30, multinational retail and franchise groups have taken active steps to penetrate the market in Vietnam.According to the Ministry of Industry and Trade, within 10 years, from 2007 to 2016, Vietnam had witnessed the arrival of 164 foreign franchises bringing 201 brands. Food & Beverage franchises comprise 40 percent of those, including KFC, Lotteria, Jollibee, Pizza Hut, Starbucks, McDonald’s, Domino’s Pizza, Popeye’s…... [read more]

Last week, the Republic of Korea (ROK)’s GS Retail announced plans to launch the first GS25 convenience store in Ho Chi Minh City this year. GS Retail and SonKim Group established a joint venture last month.“We chose Vietnam as our first overseas market because its economy is growing very rapidly these days and those aged 35 or younger make up about 57% of its population,” said a GS Retail’s representative. “Our business in Vietnam is expected to lead to an annual profit of tens of billions of won, including royalties and dividend income.”GS Retail’s future targets include China and Cambodia.…... [read more]

With the growing spending power of middle class consumers, the Vietnamese retail market is in need of new and modern outlets. And for many investors, the race has begun. Vietnamese conglomerate Vingroup is expected to hire 10,000 employees to serve its expansion of supermarkets and convenience stores this year.The company says it will launch about 50 supermarkets and 360 convenience stores.But it is foreign investors that are driving the growth of the local convenience store market. In February, US chain Circle K opened its 100th outlet in Ho Chi Minh City. It has planned to launch 150 convenience stores in Vietnam this…... [read more]

If you were in the business of opening convenience stores in Vietnam this year, it’s been another big one.However, the continued emergence of the channel hasn’t been without its fallouts. DisruptionAccording to a presentation by Ho Chi Minh City-based market research firm Decision Lab this month, convenience stores are disrupting Vietnam’s out-of-home food service industry ‘in a fundamental way.’Tracking performance since April 2016, data from the agency’s Foodservice Monitor*, which is based on thousands of continuous online interview responses by consumers in Ho Chi Minh City, Hanoi and Da Nang, suggests that the continued expansion of convenience chains like Family…... [read more]

Enhancing investment in Vietnam Recently, when talking with  VIR , Yasuo Nishitohge, general director of AEON Vietnam Co., Ltd., said that Vietnam has great potential in the retail sector, so expanding business in the country is necessary.In early 2017, AEON Group signed an agreement to cooperate with Vietnamese BIM Group, a diversified group of companies concentrating on three main business sectors, including tourism development and real estate investment, food-agriculture, and commercial services, to develop an AEON Mall in Hadong district, Hanoi. Meanwhile, in Ho Chi Minh City, this Japanese retailer is promoting the construction of its third shopping mall.“We are behind…... [read more]

In February 2017, Seven-Eleven Japan began advertising for staff to operate its first retail establishment in Vietnam, which will open in Ho Chi Minh City in the near future.The expansion of the Seven-Eleven brand into Asia first began when US based Southland Corp., the original founder of the 7-Eleven chain, entered Taiwan back in 1980.Subsequently, in 1991, Seven-Eleven Japan acquired US based Southland Corp. and then in turn was acquired by Japanese retail giant Seven & I Holdings Co. In 2014, Seven-Eleven Japan, as a then subsidiary of Seven & I Holdings Co., successfully opened its first outlet in Beijing,…... [read more]