Many domestic businesses are opening more store chains to retain market positioning in the face of mounting competition of foreign retailers.
|Customers shop for home electronics at the Nguyen Kim store in Ha Noi. Domestic retailers are opening more stores to compete with foreign rivals. |
Last year, Nguyen Kim, a retailer of electronics and home appliances, has spent hundreds of billion of Vietnamese dong to open five shopping centres in HCM City, Da Nang and Vung Tau and Bien Hoa provinces.
This year it plans to open 12 more centres, raising the total number to 30 by the end of 2012 and 50 by 2015.
Nguyen Kim will spend at least VND600 billion (US$28.8 million) to open about 40 stores in the next four years to retain a strong presence in the market.
Phan Linh Phuong, marketing deputy director of Nguyen Kim, said revenue from items such as mobilephones, televisions and laptops in Viet Nam would increase sharply in the next five to seven years.
In December, Vinatex Mart, a retail textile and garment department store under the Viet Nam National Textile and Garment Group, opened five stores in HCM City and the provinces of Hoa Binh, An Giang, Tay Ninh and Gia Lai.
Total investment capital was more than VND100 billion ($4.8 million).
It plans to open 200 stores throughout the country by 2015.
Nguyen Thi Hong Huong, director of Vinatex Mart, said this year it would open 12 new stores, raising the total number to 75 by the end of this year.
Even though the Ha Noi Textile and Garment Joint Stock Company has nine stores and 69 agents in the country, it plans to expand its network. It has just opened the Hanosimex Trade Centre in Ha Dong District in Ha Noi.
Chu Tran Truong, general director of Hanosimex, said in the 2011-2020 period Hanosimex would make a major investment of VND4.541 trillion ($218.3 million) to expand and re-organise a network of agents and stores to fully exploit growth opportunities in the local market.
Domestic retailers are beefing up their presence as many international brands, including The Gap, Warehouse, Karen Millen, E-Mart and AEON have opened in the country recently.
The Gap, a US leading garment retailer, has opened two stores in HCM City, and plans to open more in Ha Noi and HCM City this year.