Central Retail incurs 6% drop in Jan-Sept revenue from Vietnam

Thailand’s top retailer Central Retail posted revenues of nearly THB35.48 billion ($1.09 billion) in Vietnam in the first nine months of this year, down 6.6% year-on-year due to exchange rate fluctuations.

The company’s Q2 financial statements showed that Vietnam contributed over 17% of its global earnings of THB201.88 billion during the nine-month period.

The firm said the decline was largely driven by the Thai baht’s appreciation against the Vietnamese dong. Measured in dong, revenue in Vietnam actually grew 7% year-on-year.

The total Vietnam revenues included THB31.6 billion ($975.18 million) from food products, THB7 million ($216,080) from fashion products, and THB3.88 billion ($119.77 million) from hardline products such as home appliances and electronic items.

Vietnam remains Central Retail’s second-largest market, behind only Thailand, where it earned THB40.04 billion ($1.24 billion) in the period.

With this performance, Central Retail ranks among the top retail players in Vietnam by revenue, alongside MWG’s Bach Hoa Xanh chain, which posted revenue of VND34.4 trillion ($1.31 billion) and Masan’s WinCommerce chain with VND28.4 trillion ($1.08 billion).

Central Retail Corp plans to press ahead with an aggressive expansion in Vietnam despite flat earnings, targeting a major upgrade of its retail network and a sharp increase in investment.

In the final quarter, the Thai retailer aims to renovate Big C supermarkets and reopen its GO! Thang Long mall in Hanoi and GO! Dong Nai facility after refurbishment.

The company said it has approved a new three-year plan that replaces its earlier mid-year growth roadmap. Under the updated strategy, capital expenditure for Vietnam will double compared with the previous plan, supporting the rollout of 10-12 new GO! shopping malls and 23–25 go! supermarkets over the next three years.

Central Retail is targeting annual growth of more than 10% in the market. The goals represent a significant upgrade from its earlier targets of opening 4-6 malls, 12–15 supermarkets, and achieving 5-6% growth.

The retailer currently operates 330 stores across 26 provinces and cities in Vietnam.