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Thailand’s largest retailer, Central Retail Corporation (CRC), has announced its intention to invest THB 50 billion (equivalent to USD 1.45 billion) in Vietnam between 2023 and 2027, the country’s largest investment to date. The move is aimed at strengthening the company’s market presence in Vietnam, which it sees as a high-potential market that has experienced steady economic growth.
Central Retail Corporation has already established a solid foundation in Vietnam, investing more than THB 10 billion in its retail business between 2012 and 2022. Current operations include more than 340 stores with a combined gross floor area of more than 1.2 million square feet. 40 counties. The Vietnamese retail market is currently valued at USD 49.7 billion and is growing at a rate of 10% to 12.5% per annum.
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According to Yol Phokasub, CEO of Central Retail Corporation, the company plans to follow a five-year roadmap for expansion in Vietnam, focusing on nationwide food business growth. To achieve this, Central Retail Corporation wants ten of its existing GO! branches, as well as the expansion of the Tops market and Mini go! branches by adding 8-10 new branches. The company also plans to strengthen its fresh food and non-food categories through renovation and the launch of new branches, renovating 10-12 branches of the Nguyen Kim electrical appliances chain and opening 3-5 new branches are added, including stores in GO ! shopping centres.
Olivier Langlet, CEO of Central Retail Vietnam, expressed optimism about the future growth prospects for the Vietnamese economy, with GDP growth expected to reach 6.7% and 7.2% in 2023 and 2024 respectively. Thailand is expected to grow at just 3.5% per annum over the next two years. Langlet sees this as an opportunity for Central Retail Corporation to position itself as the leading player in Vietnam’s hypermarket segment, with plans to expand its business and increase sales even further.
