INTERNATIONAL IS PROMOTING INVESTMENT IN VIETNAM
From the beginning of the year until now, the total value of foreign capital poured into Vietnam market reached nearly 15 billion USD, an increase of 81% compared to the same period in 2018. Leading is investment from China, followed by South Korea, Singapore.
AEON MALL, one of the major centers in Vietnam.
Clinging to the psychology of Vietnamese people who like to use Japanese goods, Aeon uses a plan to use 1/3 of Japanese goods, 1/3 of Vietnamese goods and 1/3 of goods imported from other countries. According to the plan, at the end of 2014, this "giant" will open another shopping center in Binh Duong and in Hanoi around the beginning of 2015. Not even hiding the intention of "dominating" the Vietnamese
market, They also set a goal, there are 20 trade centers in 2020. With the global economic potential, many Vietnamese retail businesses are feeling the front of this "giant".
Another Korean "shark" has been quietly building up its position in Vietnam recently, including Lotte. Set foot in our country since 2007, but by the end of 2013, Lotte - South Korea's world-famous retail group has opened 6 trade centers across the country.
After opening Lotte at 229 Tay Son (Dong Da - Hanoi) with a floor area of over 20,000m2 in March 2014, this group will continue to develop the system in Lotte Center building (Ba Dinh, Hanoi). ). In particular, in the southern region, Lotte hired all of Pico Plaza, at 20 Cong Hoa Street, Tan Binh District (HCMC). Besides, this year, Lotte's commercial centers in Vung Tau, Can Tho ... will come into operation. All have floor area of 10,000m2 or more and invested 30-40 million USD / center. Lotte's plan is to open in Vietnam 60 commercial centers by 2020. If the investment cost for each shopping center is 30-40 million USD, the amount of capital Lotte can pour into the retail market can reach billions of USD and occupy the leading position in Vietnam.
Một trung tâm bán lẻ LOTTE được đặt tại Việt Nam
After witnessing the "big piece" of the Vietnamese retail market being overlooked by many foreign corporations, recently, the leading retail group Wal-Mart (USA) also voiced, will invest. Large supermarket system in our country. This group not
only sees opportunities to do business in Vietnam but also wants to take advantage of importers when we join the Trans-Pacific Trade Agreement (TPP).
In mid-2013, Deputy Minister of Planning and Investment Dang Huy Dong said that he had a meeting with Mr. Philippe Longuet, CEO of Auchan Group (France). Director of Auchan said, Auchan had been looking to Vietnam market, but because of the context of the time related to real estate instability and low expected profit index, Auchan had to give up the first purpose. private. On this return, Auchan is expected to invest $ 500 million in the next 10 years. Specific investment projects will continue to be discussed to arrive at the actual implementation roadmap.
Auchan is an international retail corporation owned by the Mulliez family, doing business mainly in supermarkets and hypermarkets. Currently Auchan's business has been in 15 countries around the world. With half a billion dollars pouring into Vietnam as affirmed by Auchan CEO, many experts affirmed that this will be a big rival of domestic retail businesses.
Financial capacity is still "fatal"
Talking to reporters, Dr. Vu Dinh Anh, deputy director of the Market Research Institute - Price (Ministry of Finance) said that, with 90 million people, a growth rate of 23% in the retail market, Vietnam is considered a "land" with A lot of potential for development. In particular, when we join the World Trade Organization (WTO), domestic businesses need to determine whether there will be massive landings from foreign businesses. And then, a fierce battle in the retail market will be inevitable.
Last time, for many reasons, the "invasion" speed of international distribution corporations into Vietnam was slower than expected. However, it is not possible to be optimistic because domestic distributors themselves are "too slow".
Obviously, in this war, the weak in management and capacity will be taken over by those with stronger potential. Looking from Vietnamese enterprises, it is certain that the appearance of these "huge" competitors may greatly affect business operations, especially in the context of economic difficulties.
According to this expert, it is easy to see the advantages of foreign businesses. Not only are there reasonable development strategies that are "off-the-ground" but they are always rich in capital. When capital is needed, they can mobilize capital in their country with very low interest rates, much lower than the interest rate level in
Vietnam. If Vietnamese businesses do not have a reasonable "solution", everyone knows how the competition results.
In the same view, Mr. Vu Vinh Phu, Chairman of Hanoi Supermarket Association, said that the inherent weakness of domestic retail businesses is finance and lack of "long-term strategy" and lack of vision.
As for foreign corporations, when entering Vietnam, they not only built big trade centers but also invested in medium and small shops. Besides, they immediately started building their own brands as well as cooperating with manufacturers, including farmers to produce and supply their goods. For many years, Vietnamese enterprises have not been able to realize it, but it is also very slow and fragmented.
However, in retrospect, it was found that, due to lack of capital, domestic firms could not cooperate with other enterprises or localities to develop products for sale in supermarkets. These are the "fatalities" that foreign corporations are trying to dominate the market. Previously, talking to the press, it was Mrs. Dinh Thi My Loan, Chairman of Vietnam Retail Association, that admitted that, in the retail market segment, domestic enterprises still could not equal the " big "foreign.
In the past, in order to compete with foreign businesses, four domestic giants such as Hapro, Satra, Phu Thai and Saigon Co-op have "shook hands" to build a big brand. The purpose of this job is to create a balance with foreign retailers. However, in the past 5-6 years, the joint venture has not been successful. Foreign retailers still have advantages in capital, finance, brand, network, skills, people ... more than domestic enterprises.