Retail newcomers optimistic about growth
Retail newcomers optimistic about growth
New comers to the retail market are insistent on expanding their business, despite low consumption.
At its recent shareholder meeting the management of Hanoi-based Son Ha Corporation, a leading industrial stainless steel product manufacturer in the domestic market, said the company would expand its Hiway supercentre system in the north of the country.
The Hiway supercentre system is managed by Hiway Vietnam JSC and was developed by Son Ha and its foreign partners for a total investment of $40 million. Son Ha holds a 75.8 per cent stake in the project.
Hiway has opened two supercentres in Hanoi: Hiway Ha Dong and Hiway Ngoc Khanh, and is about to open a third in Hanoi’s Tu Liem district of a similar scale to the BigC Thang Long supermarket.
With active financial support from state giant Bank for Investment and Development of Vietnam (BIDV), Hiway Vietnam envisages launching 10 more supercentres in Hanoi over the next five years.
Another example is Ho Chi Minh City-based Ocean Group, which made its debut in the retail market in 2012 with its Ocean Mart system managed by Ocean Retail JSC.
Last year Ocean Retail posted revenues of VND1.1 trillion ($52.3 million) and profits of nearly VND10 billion ($476,000).
Ocean group has mulled developing a network of 70-80 supermarkets and trade centres across the country by 2015 and has the goal of becoming one of the leading retail brands in Vietnam.
Ocean Retail now manages eight Ocean Marts (mostly in Hanoi).
One of the company’s current priorities is promoting convenience stores in high density residential areas, as well as in medium and high-end living blocks.
Though retail is not the core business of these companies, they have different advantages and are making great strides toward positioning themselves firmly in the Vietnamese market.
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