Vietnam’s retail market attractive to foreign investors
Foreign investors poured US$9 billion into Vietnamese retail and wholesale markets between January and November, accounting for 2.2% of the country’s total capital, the Ministry of Planning and Investment said.
The retail sector has been seen as the brightest aspect of the national economy, the General Statistics Office (GSO) said, noting that in the 11-month period, the total retail sales of consumer goods and services reached over VND4 quadrillion.
If the growth pace is maintained, the domestic retail market would hit US$200 billion in the next two years, experts have forecast.
The Vietnamese retail market, therefore, has become a magnet to foreign investors.
Earlier this year, SK Group, one of the largest conglomerates of the Republic of Korea (RoK) with businesses across energy, chemicals, telecommunications, semiconductors, logistics, and services, had invested US$410 million to buy 16.26% of WinCommerce.
In November, the group continued to buy a 4.9% stake in the The CrownX for US$345 million of Masan Group Corporation.
Masan announced in June the completion of a private issuance of a 5.5% stake in The CrownX to a consortium led by Alibaba Group and Baring Private Equity Asia for a cash consideration of US$400 million.
On December 13, Masan signed a deal for US$350 million primary investment in The CrownX by a consortium of investors comprising TPG, Platinum Orchid – wholly owned by the Abu Dhabi Investment Authority, and SeaTown Master Fund – managed by an indirect subsidiary of Temasek Holdings.
It marks the final round of funding for the TCX eco-system, which now adds up to over US$1.5 billion from marquee global investors since it began in the first half of 2020.
It gives TCX a valuation of US$8.2 billion, equivalent to US$105 per share and representing a 12% increase since the previous round.
After the deal, Masan will own 81.4% of The CrownX. It intends to use the proceeds to invest in growth initiatives and do a share buyback.
Dinh Thi My Loan, Chairwoman of the Vietnamese Retailers' Association, said to grow further, domestic retail firms need to catch up with new retail trends and reform their business strategies.
Economist Vu Vinh Phu suggested the enterprises perfect themselves amid the development of digital technology to become more attractive to foreign investors.