Thailand retail giant Central Group is once again targeting Vietnam’s resilient economy and growing middle class to expand its brand in the southeast Asia nation.
Central Group plans to invest 30 billion baht in Vietnam over the next four years to hike investment to 100 billion baht over the next five years from 38.5 billion baht last year.
Olivier Langlet, chief executive of Central Retail Vietnam, revealed the company aims to boost sales from 8% to 15% and become the No.1 omnichannel platform for food and property in Vietnam by expanding its retail presence to cover 55 out of 63 provinces from 40 provinces.
Langlet announced the company will promote sales growth by strengthening core businesses nationwide, including the expansion of stores in the food category and enhancement of GO! Malls, the launch of private label products, and the development of mixed-use projects to strengthen the property business.
“The company aims to capture merger and acquisition opportunities to accelerate business expansion, setting its sight on Vietnam as a key strategic location for sourcing raw materials and products for Central Retail Corporation in Thailand.”
Langlet said the company’s continued success in Vietnam is down to its resilient economy and added the country will this year boast the fastest-growing ASEAN economy with a GDP growth of 6.5%.
“The urbanisation trend is moving fast which affects the retail landscape. We see opportunities for growth, especially in provincial areas where we could bring our ecosystem with the mall and hypermarket model.”
The World Data Lab reported Vietnam’s middle class is the fastest growing in southeast Asia. They said middle class households spend between US$11 and $110 per capita daily, and nearly 25% of the nation’s consumer spending belongs to those in the 45 to 65 age bracket.
Central Group expanded its retail business into Vietnam in 2012 and it remains one of the company’s key markets, accounting for 22% of total sales.
Central Retail Vietnam has a customer base of over 12 million people and operates 370 malls and stores in the country.
SOURCE: Bangkok Post