Thailand’s Central Retail Corporation has announced it will double the number of its Vietnam stores with its largest ever local investment of 50 billion baht (US$1.45 billion).
The chain’s number of stores will jump to over 600 in 57 of 63 cities and provinces with the new investment over the next five years.
Central Retail CEO Yol Phokasub said the Vietnamese market has immense potential for continued economic growth.
He predicted the country would post GDP growth of 6.7% this year and 7.2% next year, compared with Thailand’s average of 3.5% a year. “This will make Vietnam the fastest-growing market in Southeast Asia,” he said.
Central Retail Vietnam has reported that in this year alone it will invest 6 billion of the baht in developing its businesses nationwide with a focus on food to reinforce its leading position in the nation’s hypermarket segment.
The Thai company also plans to renovate 10-12 Nguyen Kim chain electronics supermarkets while opening 3-5 new supermarkets and Go! Hypermarkets.
Central Retail Vietnam currently operates more than 340 stores. Its revenue surged from 300 million baht ($8.7 million) in 2014 to 38.6 billion baht ($1.12 billion) in 2021.
A Central Retail manager said that in 2022 despite the impact of the economic recession, rising goods prices, and a consumer cut in spending, its sales grew in double digits thanks to its “always low price” policy.
Japan’s Aeon plans to operate 100 supermarkets across Vietnam by 2025. South Korean retail giant Lotte has also said it will open more supermarkets in Vietnam.
After gradually withdrawing from China, Lotte now regards Vietnam as its third most important market after South Korea and Japan.