Thailand’s largest retailer, Central Retail, has disclosed its biggest investment in Vietnam at 50 billion baht, or around $1.45 billion, in the 2023-2027 period to expand its market presence in the country.
According to its CEO Yol Phokasub, Central Retail sees Vietnam as a high-potential market that posted continuous economic growth. With the firm’s strong foothold in the country, it has set a five-year roadmap to continue its expansion here, allocating 50 billion baht over the next five years.
He told Bangkok Post on Sunday said his group invested more than 10 billion baht to expand its retail business in Vietnam during 2012-2022. Central Retail has more than 340 stores with a total gross floor area exceeding 1.2 million square meters across 40 provinces in all parts.
Central Retail Vietnam CEO Olivier Langlet echoed Phokasub, saying that his company recorded rapid sales revenue growth in the country, from 300 million baht ($8.7 million) in 2014 to 38.6 billion baht ($1.12 billion) in 2021.
He added Vietnam's economy would continue to grow despite global uncertainties, with GDP growth expected to increase by 6.7% and 7.2% in 2023 and 2024, respectively, compared with 3.5% a year in Thailand over the next two years. This will make Vietnam Southeast Asia's fastest-growing market.
Vietnam’s current population is about 100 million people. The Vietnamese retail market is estimated to be worth $49.7 billion, projected to expand by 10-12% per year.
According to Central Retail, its Vietnam subsidiary wants to grow its food business nationwide to reinforce its leading position in the nation’s hypermarket segment by rebranding and renovating 10 GO! branches and expanding Tops Market and Mini Go! branches by adding 8-10 outlets to better serve local consumers.
Langlet said his firm plans to renovate 10-12 branches of Nguyen Kim, an electronics and home appliance chain, and add 3-5 new branches, including stores in its GO! malls.
Under the expansion plan, Central Retail Vietnam aims to increase the number of stores to 600 across 57 of the 63 provinces in Vietnam by 2027, with the gross floor area projected to reach 2 million square meters, he disclosed.