Illustrative image (Photo: VNA) Hanoi (VNA) - Therise of local retailers via mergers and acquisitions is expected to balanceVietnam’s retail market, which had been dominated by foreign investors.
Inearly July, Lotte Mart Dong Da, the largest shopping mall in Hanoi of the Korean retail group, will be officially closed. This will be the first step of the retailer to gradually narrow its businessin Vietnam after 13 years of presence. Previously, Lotte Mart had announced agoal of opening 60 shopping centres across Vietnam by 2020, but so far, it has openedonly 15 shopping centres. The figure will reduce to 14 next month when Lotte Mart Dong Da stops its operations.
Last month, E-mart, the largest retailerin the Republic of Korea, announced the selling of its retail store business inVietnam to local firm Truong Hai Auto Corporation (THACO).
The move also marked the Korean retailer's withdrawalfrom Vietnam after more than five years.
Parkson,a luxury retail group in Malaysia, which has been present in Vietnam since 2005and developed a chain of high-end shopping centres in major cities such as HoChi Minh City, Hanoi and Hai Phong, has closed several of its shopping centres since 2015.
Incontrast, domestic brands have expanded their presence to dominate the moderndistribution segment.
Recently,Masan, with its vision to develop its retail arm into a one-stop shop for bothonline and offline shoppers, received a 400- million-USD investment from aconsortium led by Alibaba and Baring Private Equity Asia. As part of the deal,Masan will team up with Lazada, Alibaba’s Southeast Asian e-commerce unit, tostep up its online presence.
Therecent merger of VinCommerce JSC of Vingroup (retail), VinEco (agriculture),and Masan Consumer Holdings (consumer goods), meanwhile, aims to create a leading company of retail and consumer goods in Vietnam. The new company owns adistribution network of over 2,500 VinMart and VinMart+ stores across thenation along with a system of 14 high-tech farms of VinEco.
Inlate May, Sherpa Company Limited, a subsidiary of the Masan Group Corporation,has acquired a 20-percent stake in Phuc Long Heritage JSC, which owns one ofthe leading tea and coffee brands in Vietnam – Phuc Long, for 15 million USD.
Thismove is expected to help increase the strength of the Vietnamese brands, an𒉰dmeet the diverse needs of consumers.
Earlier, Saigon Union of Trading Co-operatives (Saigon Co.op) took over 18 stores and entire e-commerce retail system of France’s Auchan Retail in Vietnam.
VuVinh Phu, former President of the Hanoi Association of Supermarkets, stressedthat it's time to redraw the retail map of Vietnam with the occupation of domesticenterprises with big faces such as Masan and Saigon Co.op.
Hesuggested t💎he retailers seek more measures to maintain their firm footholds inthis industry./.
