Thailand’s Central Retail plans several investments in the Mekong Delta province of Soc Trang, including a Go! mall in Soc Trang town and mini go! supermarkets in a few districts.
Central Retail Vietnam executives submitted the investment proposals Wednesday at a meeting with Soc Trang Vice Chairman Lam Hoang Nghiep. They also said that the retailer aims to purchase and sell agricultural products from the province, including the Vinh Chau onion, a local specialty.
Welcoming the proposal, Nghiep asked relevant agencies to aid the retailer with administrative procedures towards bidding for the project’s land lots this December. He urged Central Retail to cooperate distributing the Soc Trang’s farm produce across Vietnam as also invest in a commercial center in the province.
Having entered Vietnam in 2012, Central Retail now runs 39 malls and 370 clothing stores in 41 out of the nation’s 63 provinces and cities. Its brands include the Go hypermarket, Tops Market supermarket and the Nguyen Kim electronic supermarket.
In February, the biggest retailer of Thailand disclosed a $1.45 billion investment plan in Vietnam for the 2023-2027 period as it looked to expand its market presence in the country.
CEO Yol Phokasub said Central Retail saw Vietnam as a high-potential market with continuous economic growth.
Phokasub said the retailer’s growth in Vietnam will be based on the two successful models of GO! malls and GO! hypermarket.
This year, it plans to launch five or seven new GO! Supermarkets offering fresh food and affordable fashion products. This will be a significant addition to its current network of five branches.
Last year, Central Retail received an investment certificate to build a VND432 billion ($17.42 million) commercial center in the Mekong Delta province of Bac Lieu. The 25,000-square-meter center, based on the Go! format, will include a supermarket, cinemas, restaurants and entertainment facilities, among other services.
Also last year, the retailer discussed with authorities a plan to build a mall in the Mekong Delta province of Dong Thap. The province has recommended six locations for the project.
Central Retail reported a revenue of THB14.12 billion ($416.95 million) from its Vietnam operation in the first quarter of 2023, a 0.7% increase year-on-year.
In Vietnam, “food products” was the main revenue generator for the retailer at THB12.11 billion ($357.43 million), an 8.6% growth year-on-year; followed by furniture, appliances, and tools at THB1.98 billion ($58.58 million), a 30.2% decline; and fashion products at THB32 million ($944,789), a 3% year-on-year drop.
Central Retail Vietnam also earned a rental & services income of THB484 million ($14.29 million) in Q1/2023, a 41% surge year-on-year.