Customers line up to enter a VinMart+ store in HCM City. — Photo Masan Group
HÀ NỘI — Việt Nam’s retail market has seen strong growth recently, and its enthusiasm is also reflected in successful deals to inject capital from foreign investors into potential domestic retailers.
In 2016, more than 50% of Việt Nam’s retail market share was owned by foreign companies, but today Vietnamese retailers account for around 70-80% of the number of outlets across the country. Notably, Vietnamese companies have worked together to gain a foothold in the retail market. The most striking example is the merger between Masan Group and Vingroup, becoming one of the largest retail and production chains in Việt Nam.
In fact, Vietnamese retail businesses have aligned and found their strengths to grow. In particular, major retail companies in Việt Nam have developed multi-channel sales to keep up with the development of the digital technology era.
They also produced agricultural products, foodstuffs and consumer goods themselves to bring to customers, thereby minimizing intermediaries and reducing costs to improve price competitiveness in the market.
Economic experts say it’s time for Vietnamese companies to confidently redraw Việt Nam’s business map, act together, firmly master the distribution system and be ready to open doors to welcome Vietnamese products at the service of national consumers.
Vietnamese retail enterprises not only changed their production and business models to adapt to the COVID-19 pandemic and meet consumer needs, but also continuously attracted new sources of foreign investment capital. .
Specifically, Masan and Korean conglomerate SK Group announced the signing of an agreement to purchase shares of The CrownX (the Consumer-Retail platform that owns Masan Consumer Holdings and WinCommerce) worth a total of $345 million. dollars. After the transaction, Masan and SK’s ownership ratio in The CrownX is 85% and 4.9%, respectively.
In addition to SK Group, a group of investors including Alibaba and Baring Private Equity Asia invested $400 million to acquire a 5.5% stake in The CrownX in May 2021. The continued inflow of capital from foreign investors showed Masan’s potential. “Point of Life” – “All-in-one” strategy from offline to online.
Danny Le, Managing Director of Masan Group, said the SK Group’s investment agreement affirmed the company’s belief in the success of the “mini-mall” model nationwide, adding that the Masan’s next step is to accelerate digitization to fully meet essential consumer needs, from products to services across offline and online channels.
A recent survey by Vietnam Report JSC showed that the retail channel still plays an important role in the distribution of goods and the link between production and consumption. In particular, the modern retail system previously accounted for only 30% of consumers’ shopping needs, but when many traditional markets are still closed, chain stores and supermarket systems have struggled to respond quickly.
According to retail expert Vũ Vinh Phú, it is time to redraw the retail map of Việt Nam with domestic companies dominating the market. In particular, large companies today are focusing on multi-channel development. They engage in all stages, from production to retail, or cooperate with each other to bring products directly to consumers, helping to reduce costs and improve competitiveness, he said. —VNS
https://vietnamnews.vn/economy/1156941/domestic-businesses-redraw-viet-nams-retail-map.html
By Viet Nam News
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
