According to the Bangkok Post, Thailand’s largest retailer, Central Retail Corporation (CRC), would invest 50 billion baht (about 1.45 billion USD) in Vietnam between 2023 and 2027 to expand its footprint in the market.
According to CRC CEO Yol Phokasub, Vietnam is a promising market with steady economic growth.
CRC spent more than 10 billion baht ($290 million) on its retail operations in Vietnam between 2012 and 2022.
Central Retail Vietnam now has over 340 shops in 40 provinces with a total floor space of more than 1.2 million m2.
The company’s sales revenue in the nation increased rapidly, rising from 300 million baht ($8.7 million) in 2014 to 38.6 billion baht ($1.1 billion) in 2021.
“Despite uncertainties, Vietnam’s economy continues to thrive. Vietnam’s GDP is expected to rise by 6.7% and 7.2% in 2023 and 2024, respectively, compared to Thailand’s 3.5% each year over the next two years. As a result, Vietnam will be the fastest expanding market in Southeast Asia”, according to Olivier Langlet, General Director of Central Retail Vietnam.
Vietnam’s retail market is predicted to be 49.7 billion USD each year, rising at a rate of 10-12% per year.
Urban populations expanded in tandem with modern trade. Thus, by 2027, the group is predicted to account for 13% of Vietnam’s overall retail market, up from 8% in 2016.
Furthermore, the number of international tourists is expected to rise again this year, with 19 million arrivals this year, rising to 21 million arrivals in 2025.
With these encouraging signs, Central Retail Vietnam intends to expand its food operations across the country to consolidate its leadership position in the Vietnamese hypermarket market. To accommodate consumer demand, the business rebranded and refurbished 10 GO! branches and expanded Tops Market and Mini go! by adding 8 to 10 outlet locations.
Langlet stated that the company is committed to growing its fresh and non-food categories in order to increase client traffic. In addition, we are planning the opening of a new branch in the near future. Now, the firm intends to refurbish 10-12 Nguyen Kim electronics chain locations and open 3-5 new branches, including GO! stores.
Mr. Langlet stated that Central Retail Vietnam wishes to build a loyal customer base to better support and increase the 66 million customer transactions recorded last year.
Central Retail Vietnam intends to raise the number of stores to 600 throughout 57 of Vietnam’s 63 provinces by 2027, with a total floor space of 2 million m2.