Vietnam WTO entry signals expansion for retail biggies

The German Metro Cash & Carry plans to open four more outlets – one each in Ho Chi Minh City and neighboring Dong Nai province, Hanoi, and the central Nha Trang city.

Henry O.E. Birr, vice chairman, International Affairs, said the company would invest US$17 million in each outlet.

It has six outlets in Vietnam – two in HCMC and one each in Hanoi, Can Tho city in the Mekong Delta, Danang, and Hai Phong – which have annual revenues of €200 million ($259.5 million).

Recently Metro Group Buying (MGB), its purchase associate, opened a procurement office in HCMC.

MGB will buy mainly textile and garment, footwear, furniture, and seafood for global distribution via Metro’s network in 28 countries.

It will also check origin of goods and help local producers with exports.

MGB has purchased Vietnamese goods worth $50 million in the past nine years. It exports some €5 million ($6.4 million) worth farm produce a month from this country.

Parkson retail group, a leading Malaysian shopping mall operator, plans to invest about $70 million to open 10 stores in commercial hubs like Hanoi, Danang, Can Tho, and Ba Ria-Vung Tau.

It recently opened its second outlet in Hai Phong.

Tham Tuck Choy, general director of Parkson Vietnam, said the expansion into the north was prompted by the business prospects promised by the country’s WTO membership.

Leading European retail group Vindemia plans to open a Big C superstore in Danang this year, tapping a market forecast to have plenty of room for foreign players.

It has several outlets in northern Vietnam and one in HCMC.

Source: Thanhnien News