Thailand’s largest retailer, Central Retail Corporation (CRC), has announced its intention to invest 50 billion THB (equivalent to 1.45 billion USD) in Vietnam between 2023 and 2027, marking its largest investment in the country to date. The move is aimed at bolstering the company’s market presence in Vietnam, which it views as a high-potential market that has enjoyed steady economic growth.
Central Retail Corporation has already established a solid foundation in Vietnam, having invested more than 10 billion THB in its retail business there between 2012 and 2022. Its current operations include over 340 stores with a combined gross floor area of more than 1.2 million square metres across 40 provinces. The Vietnamese retail market is currently valued at 49.7 billion USD and is expanding at a rate of between 10% and 12.5% per year.
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According to Yol Phokasub, CEO of Central Retail Corporation, the company plans to follow a five-year roadmap for expansion in Vietnam, with a focus on growing its food business nationwide. To achieve this, Central Retail Corporation aims to rebrand and renovate ten of its existing GO! branches, as well as expand its Tops market and Mini go! branches by adding 8-10 new outlets. The company also plans to strengthen its fresh food and non-food categories through renovation and new branch launches, with 10-12 branches of the Nguyen Kim electrical appliance chain set to be renovated, and 3-5 new branches added, including stores in GO! malls.
Olivier Langlet, CEO of Central Retail Vietnam, expressed optimism about the future growth prospects for the Vietnamese economy, with GDP expected to increase by 6.7% and 7.2% in 2023 and 2024, respectively. In contrast, Thailand’s GDP is projected to grow by just 3.5% per year over the next two years. Langlet sees this as an opportunity for Central Retail Corporation to position itself as the leading player in Vietnam’s hypermarket segment, with plans to expand its operations and increase sales revenue even further.