After four year-expansion, Vietnam’s retail market has received special attention from foreign investors. With the participation of foreign investors, the retail market of Vietnam in general and of Binh Duong in particularly has become more animated…

Attractive to investors

With its commitment under WTO, Vietnam opened its retail market to foreign investors in the form of a wholly foreign-owned enterprise on January 1, 2009. Since then, Binh Duong’s retail market has got more animated with the participation of many foreign investors. At first, Metro Cash & Carry Group put its Binh Duong Metro distribution center into operation in TDM city in 2010; following this, Big C Group opened its Binh Duong Commercial Center in TDM city in 2012. 

Big C Binh Duong commercial center

Realizing that Binh Duong’s retail market has a very great potential, Big C is building another center in Di An town. South Korean retailer, Lotte Mart (a member of Lotte Group) will open business in the Song Than Charm Plaza in Di An town. According to representative of Lotte Group, the project covers 12,500 sq.m with a total investment capital of US$7mln and is expected to be put into operation in 2013.

In 2012, provincial People’s Committee granted an investment certificate for Japan-based Aeon Co. to develop a large commercial center in Thuan An town. The three-floor commercial center will be built on a total area of 75,000 sq.m, including 45,000 sq.m for business. Once completed, the province will create stable jobs for more than 1,500 laborers.

Many other investors have also regularly come to Binh Duong to seek investment opportunities in the local retail market. Yasuo Nisitohge, Director of Aeon Vietnam Co.Ltd. said: “We have decided to select Binh Duong for implementing our investment project because of its favorable investment climate. Our motto is to associate business activities with contributions to the society. When being put into operation, the project will contribute to promoting domestic retail market, increasing the localization ratio and promote production-export activities of many other enteprises in Binh Duong in particular and in Vietnam in general”.

Upholding advantages

Four years after Vietnam opened up its retail market to wholly foreign-invested enterprises, domestic retailers have constantly developed and affirmed their trademarks. In addition to TDM city and towns, Vinatex supermarket chain has been expanded to districts across Binh Duong. Vinatex last year continued putting its second supermarket into operation in Ben Cat district. With its logical strategy, Co.op Mart has also won the faith of customers in Binh Duong.

Opening up Vietnam’s retail market to wholly foreign-invested enterprises has brought domestic enteprises both challenges and opportunities. Ly Ngoc Minh, General Director of Minh Long I Porcelain Co.Ltd. said that the company’s export ratio accounted for 98% in 1995 and 1996. But now, the company’s business activities see stability in the domestic market with revenue accounting for 75% of total.

Possibly speaking, the domestic retail market has got more animated after four-year expansion. This has contributed to stimulating demand and increasing purchasing power in Binh Duong. Despite difficulties, Binh Duong’s total revenue of trade sector in 2012 still increased by 30.6% compared to the previous year.

Dr. Dinh Thi My Loan, Vice Chairwoman and Secretary General of the Vietnam Retailers Association said that if well upholding elements on consumption psychology, knowing more about shopping habits, domestic enterprises will firmly stand in the domestic retail market…

Reported by T.Minh-Translated by K.T