Aeon to team up with Vietnamese retailers
Aeon to team up with Vietnamese retailers
Japanese retail giant Aeon has officially announced that it will team up with Vietnamese retailers Fivimart and Citimart, reported Vietnamplus.
Aeon General Director Okada has said the Japanese firm will contribute capital at a ratio of 30 per cent in Fivimart and 49 per cent in Citimart, after the company revealed its intention of teaming up with the Vietnamese retailers last October.
He added that as Viet Nam is a large market, it will be difficult for the company to succeed with its business without collaborating with local companies.
According to Aeon, the two Vietnamese retailers are robust enterprises, each of which runs about 20 supermarkets that are concentrated in Ha Noi and HCM City–the largest markets in Viet Nam.
Aeon will provide products under its "Top Value" brand name to Fivimart and Citimart for distribution, as well as coordinate with them to develop new products and expand supply networks.
The Japanese firm will also target building a chain of 200 stores, which is expected to generate combined annual revenue of 100 billion yen ($848.10 million) in Viet Nam.
The Fivimart chain is operated by Nhat Nam JSC, which is headquartered in Ha Noi's Hoan Kiem District. This firm plans to have 30 supermarkets nationwide by 2020 and achieve an annual growth rate of 30 to 50 per cent, according to company website.
Citimart had already changed its name to Aeon Citimart last November. The system is run by the Dong Hung Integration and Development Co. Ltd., which is based in HCM City's District 1 and announced online that it will aim to have 500 supermarkets across the country by 2025.
Aeon has invested for three decades in ASEAN markets, which contribute roughly 30 per cent of the Japanese retailer's total profits.
Competition is reportedly getting fiercer in Japan and Aeon's profits earned during the first nine months of 2014 were pegged at only 49.3 billion yen ($418.62 million), half of what it reported in 2013.
Aeon had also opened a shopping mall in HCM City in January, 2014.
