Vietnam market accounts for 24% of Thai retail giant’s revenue

Thailand’s Central Retail posted a revenue of THB236.245 billion ($6.79 billion) in 2022, up 21% year-on-year, of which the Vietnamese market accounted for 24%, according to the retail giant’s latest report.

With revenue in Vietnam rising 34% year-on-year in 2022, Central Retail said it had secured its positions as the largest international retailer in Vietnam, as well as the top hypermarket and second lifestyle mall brand in the country, covering 40 out of 63 cities and provinces.

Looking at Vietnam’s promising future, Central Retail has announced investment plans totaling THB50 billion ($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 THB150 billion ($4.31 billion) within five years.

Central Retail said its food business in Vietnam gained a total revenue of THB40.613 billion ($1.16 billion) last year, up 37% year-on-year. The company operated 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 THB10.843 billion ($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 THB1.739 billion ($50.01 million) in Vietnam in 2022, up 69.02% year-on-year.

Central Retail has been expanding its presence in Vietnam with the opening of two Tops Market supermarkets in the Mekong Delta city of Can Tho and northern coastal city of Hai Phong last December.

Earlier in 2022, the retail giant announced plans to build supermarkets and stores in the Mekong Delta provinces of Bac Lieu and Dong Thap, and the central provinces of Quang Binh, Nghe An, and Binh Thuan.

Its home country Thailand was Central Retail's biggest market, accounting for 69% of its revenue in 2022, while the figure for Italy was 7%.

The fashion revenue from the Italian market, featuring nine stores under Rinascente brands, reached THB13.921 billion ($398.43 millionn) last year.

At home, Central Retail recorded a revenue of THB42.943 billion ($1.23 billion) from food, THB62.008 billion ($1.77 billion) from hardline products, THB41.576 billion ($1.19 billion) from fashion sales, and THB6.257 billion ($179.08 million) from property business.