Thailand’s largest retailer, Central Retail, eyes to invest in a Mini GO! supermarket chain in Thua Thien-Hue province, according to Central Retail Vietnam CEO Olivier Langlet.
The executive made his proposal at a meeting with Thua Thien-Hue Chairman Nguyen Van Phuong on Wednesday. In particular, the Thai retail giant plans to build the chain in Huong Thuy and Huong Tra town.
In Huong Thuy town, local authorities have already agreed to allocate about 5,100 square meters for the project and aim to conduct land auction in 2024.
The project in Huong Tra town had its master plan for supermarket development approved, while local authorities plan to begin land auction in November this year.
Langlet said Central Retail is the biggest foreign retailer in Vietnam with over 340 stores and commercial centers in 40 out of 63 provinces and cities, and that the firm is willing to conduct long-term cooperation with Thua Thien-Hue.
In reply, Phuong affirmed the province would provide the best conditions for Central Retail’s investment. He also highlighted Thua Thien-Hue's advantages of high-quality local products, including 56 agricultural goods per the One Commune One Product, a nationwide program promoting diversified farm produce among localities, and rising consumption driven by the growing number of tourists.
In Thua Thien-Hue, Central Retail already operates a mall under the GO! brand in Hue town.
Thua Thien-Hue’s retail sales grew 13.8% year-on-year to VND9,996 billion ($426.4 million) in the first quarter of this year, according to provincial data.
Food and foodstuff accounted for the biggest portion of VND3,829 billion ($163.33 million), up 9.5%; followed by wood and construction materials worth VND1,406 billion ($59.98 million), up 24.7%; and petroleum and fuel worth VND1,432 billion ($61.08 million), up 23%.
Central Retail posted a revenue of 236.245 billion baht ($6.79 billion) in 2022, up 21% year-on-year, of which the Vietnamese market accounted for 24%. The group said its food business in Vietnam gained a total revenue of 40.613 billion bhat ($1.16 billion) last year, up 37% year-on-year. The company operates 38 hypermarket units under the Big C and GO! brands, and 37 supermarket units under the Lanchi, Tops Market, and GO! brands.
Regarding hardline products, Central Retail operated 52 Nguyen Kim supermarkets in Vietnam and reaped a revenue of 10.843 billion baht ($311.8 million) in 2022, up 20.61% year-on-year.
From the property side of the business, including rental and service incomes of plazas, the retailer earned 1.739 billion baht ($50.01 million) in Vietnam in 2022, up 69.02% year-on-year.
Looking at Vietnam’s promising future, Central Retail has announced investment plans totaling 50 billion baht ($1.45 billion) to expand its network in Vietnam over the next five years. In particular, it is planning to open up to seven Go! mall establishments this year and enlarge its network to 57 localities in Vietnam, targeting sale revenue of 150 billion baht ($4.31 billion) within five years.