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Thailand’s largest retailer, Central Retail Corporation (CRC), is expected to invest 50 billion baht (about $1.45 billion) in Vietnam between 2023 and 2027 to expand its market presence, according to the Bangkok Post.
According to CRC CEO Yol Phokasub, Vietnam is a promising market with steady economic growth.
CRC has spent more than 10 billion baht ($290 million) on its retail operations in Vietnam between 2012 and 2022.
Central Retail Vietnam now has over 340 stores in 40 provinces with a total floor area of over 1.2 million m2.
The company’s revenue in the country rose rapidly, from 300 million baht ($8.7 million) in 2014 to 38.6 billion baht ($1.1 billion) in 2021.
“Despite the uncertainties, the Vietnamese economy continues to thrive. Vietnam’s GDP is expected to increase by 6.7% and 7.2% in 2023 and 2024, respectively, compared to Thailand’s 3.5% expected each year for the next two years. As a result, Vietnam will be the fastest growing market in Southeast Asia,” said Olivier Langlet, General Manager of Central Retail Vietnam.
The Vietnamese retail market is expected to reach USD 49.7 billion each year, an increase of 10-12% per year.
Urban population grew along with modern trade. For example, the group is predicted to represent 13% of the total retail market in Vietnam by 2027, up from 8% in 2016.
Furthermore, the number of international tourists is expected to rise again this year, with 19 million arrivals this year, rising to 21 million arrivals in 2025.
With these encouraging signs, Central Retail Vietnam plans to expand its food business across the country to consolidate its leading position in the Vietnamese hypermarket market. To meet consumer demand, the company has been renamed and 10 GO! branches and extensive Tops Market and Mini go! by adding 8 to 10 outlets.
Langlet stated that the company is committed to growing its fresh and non-food categories to increase customer traffic. In addition, we plan to open a new branch in the near future. Now the company plans to renovate 10-12 Nguyen Kim electronics chain locations and open 3-5 new branches, including GO! stores.
Mr. Langlet stated that Central Retail Vietnam wants to build a loyal customer base to better support and expand the 66 million customer transactions recorded last year.
Central Retail Vietnam wants to increase the number of stores to 600 by 2027 in 57 of Vietnam’s 63 provinces, with a total floor space of 2 million m2.
@vtc.vn
