Thai retail giant Central Retail posts 2023 revenue of $1.35 bln in Vietnam

Thai retailer Central Retail recorded revenue of THB49,330 million ($1.35 billion) from its Vietnam business in 2023, down 7.6% year-on-year, according to the firm’s consolidated financial statements.

The revenue figure includes THB130 million ($3.56 million) from the fashion sector, THB41,647 million from food products, and THB7,553 million from hardline products such as home products and electronic items.

The three figures were down 21.3%, 1.5%, and 31.2% year-on-year, respectively.

Reviewing the performance, Central Retail said consumers had remained cautious despite gradual economic growth. The company expects major impacts in the retail sector soon as Vietnam authorities have issued policies to stimulate the economy and consumption, such as lower value-added tax (VAT), reduced policy interest rates, and a higher minimum basic wage from July 2024.

Vietnam’s economic outlook remains sluggish due to softening global demand, it added.

In 2023, Central Retail launched seven outlets under the Tops market and go! supermarket brands. It also renovated and rebranded seven Big C! supermarkets into GO! malls and GO! hypermarkets.

As a result, by end 2023, Central Retail had 133 stores and 39 malls in 42 out of 63 localities in Vietnam, featuring 35.4 hectares of net selling space and 21.2 hectares of net leasable space.

As of end-2023, the Thai giant employed 13,609 people in Vietnam, lower than 14,387 as of end 2022 but higher than 12,971 as of end 2021.

Globally, Central Retail recorded revenue of THB253,015 million ($6.93 billion) in 2023, up 5.6% year-on-year. Thailand, its home market, accounted for the biggest portion of THB165,529 million, or 65.4% of the total.