South Korea’s CU convenience store chain will expand its footprint to Vietnam, its second international market after Mongolia.
BGF Retail, the operator of CU, signed a master-franchise agreement with CUVN, a Vietnam-based convenience store operator, on Tuesday. CUVN will be in charge of investment and operations in Vietnam market as BGF Retail contributes its brand and business background.
BGF Retail and CUVN plan to open their first store in Vietnam by June next year.
Park Jae-koo, CEO of BGF Retail, said the company will continue to expand internationally making forays into growing emerging markets.
With the new expansion, the South Korean convenience store operator expects to gain a strong position in the Southeast Asian market as Vietnam’s economy has witnessed significant growth during recent years.
Rival network GS25 has already launched in Vietnam, opening stores in Ho Chi Minh City.