2 weeks Ago
Vietnam is one of the fastest-growing economies in Southeast Asia with favourable macroeconomic factors such as a young population, skilled labour force, investment-friendly policies, and a recovering tourism sector. In its recent forecast, the World Bank said Vietnam's GDP is expected to grow by 6.1% this year and 6.
5% in 2025, driven by a rebound in manufacturing exports, tourism, consumption and business investment. High market potential SET-listed Central Retail Corporation (CRC), Thailand's leading retail firm, views Vietnam as a key market and is confident the country's retail sector will continue to experience sustained growth in the coming years. This optimism is supported by several factors, including the nation's population of nearly 100 million with a median age of 32, meaning most of the population is of working age.
The daily minimum wage of around US$11 also makes Vietnam an attractive destination for investors. The country offers numerous investment-friendly policies, including changes to regulations that make it easier for foreigners to establish businesses there. Vietnam has successfully persuaded large companies to relocate their production base to the country based on its low investment and export taxes, as well as policies that reduce trade barriers for foreign investors, according to the retailer.
Since 2023, the Vietnamese government has also adopted measures to rapidly revitalise and sustainably develop the tourism industry, aiming to become a leading destination in Southeast Asia. As a result, the tourism and service sectors have experienced a strong recovery, with foreign arrivals tallying 8.8 million in the first half of 2024, up 58% year-on-year.
GROWTH JOURNEY In 2012, CRC started its operations in Vietnam as a fashion merchandiser before entering into a joint venture with electronics retail chain Nguyen Kim and Lanchi Mart supermarket in 2015. In 2016, the company made a bold move by expanding into the food sector with the acquisition of Big C Vietnam. From 2017 to 2018, CRC diversified into the non-food sector by launching the retail playground brand Kubo.
In 2018, it launched GO! Mall, operating under the concept "Eat – Shop – Play – Learn – Sustain". There are 40 GO! Malls across 30 provinces in Vietnam, making it the second-largest lifestyle mall in the country. Also in 2018, the company unveiled GO! hypermarkets, which have since become the leading chain in the country, with 39 branches across 30 provinces.
In 2019, CRC rebranded Big C to GO! and acquired full ownership of Nguyen Kim. In 2020, the company launched the go! supermarket, aiming to improve the shopping experience in suburban areas and medium-sized towns in Vietnam. There are 11 go! supermarket branches across eight provinces, with plans to expand the chain as suburban communities grow in Vietnam, according to CRC.
In 2021, the company introduced the Tops market brand from Thailand in Vietnam, opened three new GO! malls and hypermarkets, renovated eight GO! locations, and launched the GO! application. In February of this year, Central Marketing Group, a subsidiary of CRC and a distributor of top global brands in the fashion, beauty, watch and technology segments, was established in Vietnam. The next move Central Retail Vietnam's target for this year is to operate 42 malls, with more than 300 stores across 42 of 63 provinces nationwide, covering three business segments: food, non-food and property.
The company wants omni-channel services in both physical stores and online platforms. CRC is the largest multinational retailer in Vietnam, ranking No.1 for hypermarkets and No.
2 for lifestyle malls, with a customer base of 12 million, according to the company. Central Retail Vietnam plans to expand its business to cover 55 provinces in five years. The rapid growth of Vietnam's economy, favourable investment policies, and the success of CRC has driven the company's expansion of its retail business there.
CRC is determined to fully develop its operations in the food, non-food and property sectors to meet the evolving needs of the Vietnamese, while remaining competitive in a changing business environment..
