Emart, South Korea's largest discount chain, has announced that it plans to tap into the Vietnamese market by investing US$200m in the country by 2020.
Agreement signed with Ho Chi Minh city
The company will sign a memorandum of understanding (MOU) with the city of Ho Chi Minh for the investment expansion. The signing ceremony will be attended by the two parties’ key officials including Emart CEO Lee Gap-su and Dinh La Thang secretary of the Party Committee of Ho Chi Minh City.
Under a strategic partnership, the South Korean retail giant will build hypermarkets, supermarkets and various other types of commercial facilities in Ho Chi Minh City, as well as expand the investment in the local social development.
Expanding to non-food categories
Emart opened its first Vietnamese branch in the Go Vap district of Ho Chi Minh City in December last year, which is a 12,000 square meter hypermarket. It also operates a toy library in the city and has donated 10,000 motorcycle helmets for children as it's involved in social activities in Vietnam.
The company has plans to expand its imports of non-food products to the country, including clothes and toys and household products, as a way of enhancing mutual cooperation.
Great growth potential for retailing in Vietnam
Vietnam’s retail sales rose 7.4% year-on-year in August and it is predicted to reach US$109b in 2017.
Thanks to a free trade agreement, Vietnam has welcomed foreign retailers to invest in the country. Convenience store giant 7-Eleven has announced that it will join the fray this year, following its domestic rivals such as FamilyMart and Aeon. Meanwhile, the fierce competition also leads to more market consolidation activities. For example, Thailand’s Central Group acquired Big C, while TCC group bought Metro Vietnam.
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