Businesses set up retail chains to seek part of multi-billion dollar pie


Just two months after listing its shares on the HCMC bourse in July 2014, The Gioi Di Dong (MWG), the largest computing device distributor, caused shock to the public with its plan to open one shop every two days.The plan raised doubts about its feasibility, because it is difficult to set up a shop. Big players in the retail market can open two to three new supermarkets a year on average.In 2013, a home appliance chain in Hanoi set a record when opening seven supermarkets.However, it had to close one in the same year. MWG in 2011 opened 130 supermarkets within 52 weeks. It opened 135 supermarkets in 2014 and 235 supermarkets in 2015, raising the total number of shops in its chain to 600. Nguyen Duc Tai, the owner of MWG, a businessman from Nam Dinh City, said he plans to have 1,000 shops by the end of 2016. Meanwhile, more and more shops bearing the brands of Mon Hue and Pho Ong Hung owned by Huy Viet Nam have opened recently in Vietnam by a business owned by a Vietnamese in Cayman Islands.Golden Gate with many different brands also plans to open hundreds of more restaurants to raise the total number of restaurants to 400 by 2018.Retaining the home marketVingroup’s owner, Pham Nhat Vuong, the richest stock millionaire and a dollar billionaire recognized by Forbes, is known as the businessman who has real strength in the domestic market.The businessman has successfully built up a lot of brands famous not only in Vietnam, but also in the region — Vinhomes (real estate), Vinmex (healthcare), Vinpro & VinEcom (retail), Vinpearl (tourism & hotel) and Vinschool (education).Analysts have said that Vuong strives to create a system of products and services with international standards and 5-star facilities, and value chains which support each other.Vietnamese enterprises in the textile & garment and seafood sectors have also gathered strength to set up more factories to scale up production.New garment factories have opened in Bac Giang, Nam Dinh and Ben Tre provinces, while big players in the seafood sector such as Hung Vuong and Minh Phu have acquired many smaller businesses to upgrade production capacity.

Source: Vietnamnet