VOV.VN - Featuring a large market size and an open domestic market development policy, the local retail market has developed into a magnet to hordes of foreign investors, according to industry insiders.
At a recent meeting with Prime Minister Pham Minh Chinh, Motoya Okada, president and CEO of leading Japanese retailer AEON Group, revealed that the group has been deploying its medium and long-term plans in Vietnam, and that it will increase the number of shopping malls nationwide in the near future.
Nguyen Thi Ngoc Hue, general manager of Strategic Human Resource Management, Corporate Communication & External Affairs at AEON, said the group has so far grown a presence in six provinces and cities across the country, spanning a range of business areas such as shopping malls, department stores, bicycle, pet, and cosmetic shops.
Alongside AEON, other large foreign retail corporations such as FamilyMart, K-Mart, Lotte, Central Group, and Circle K have been accelerating the pace of their expansion strategy within the Vietnamese market.
Most notably, a series of mergers and acquisitions (M&A) deals recently highlighted the attractiveness of the Vietnamese market.
Previously, a group of investors, including e-commerce giant Alibaba and Banring Private Equity Asia investment fund, injecting US$400 million into The Crownx, while the Republic of Korea’s SK Group also invested US$410 million in Vietnam’s largest retailer VinCommerce.
Economists largely attribute the keen interest of foreign financiers in the Vietnamese retail market to a steady increase in population and rapid rise in consumer spending.
Furthermore, middle class people locally now account for 13% of the total population, and the figure is anticipated to increase a double by 2026.
Le Viet Nga, deputy director of the Domestic Market Department under the Ministry of Industry and Trade, also underscored the importance of a healthy business climate, which will serve to create more favourable conditions for foreign investors to inject additional capital into the domestic market.