Big C European retailer plans superstore in central Vietnam
Leading European retail group Vindemia plans to bring the Big C superstore model to Vietnam’s central Danang city next year, tapping a market forecast to have plenty of room for foreign players.
In addition to its supermarket chain in northern Vietnam and its most recent outlet in Ho Chi Minh City, the group has entered negotiations with local management agencies for its first site in central Vietnam.
The European retailer targeted to develop the Big C model in Vinh Trung Trade Plaza, under construction by the local Duc Manh Ltd., Co in the heart of Danang city.
The retailer could lease space in Vinh Trung Plaza or set up a joint venture with the Duc Manh Company to build and run the trade center.
The details of the deal have yet to be announced.
The retail company is set to conduct market research in Danang city and the central region, including procedures for an investment license, and organizing human resources for early next year.
Meanwhile Duc Manh Ltd., Co would speed up work on the trade center, scheduled to come on line by the fourth quarter of the next year.
New store
Vindemia inaugurated its third Big C superstore in HCMC last Friday, taking the total to six throughout Vietnam.
The fresh Big C, located at 202 B Hoang Van Thu Street in Phu Nhuan District, covers more than 5,500 sq.m.
The retailer leased the premises of the Mien Dong Supermarket that closed due to poor performance and invested US$3 million in the site, hoping to meet increasing demand of city residents.
The new supermarket has two separate sections: a 3,500 sq.m service area and another one with 35 booths for lease.
Since receiving its license in 1997, the 80:20 joint venture between France's Vindemia and Vietnam's Binh Chanh Construction Investment Shareholding Co. has increased its capital to nearly $66 million from the initial $35 million.
The company has two stores in HCMC.
France's Espace Bourbon, under the Vindemia umbrella, has cooperated with local companies in different cities and provinces to open Big C supermarkets since 1998.
The five other Big C supermarkets in Vietnam are in Dong Nai Province, Hanoi, Hai Phong and two in HCMC - one in Binh Chanh District and one in District 10.
The group targets to build more supermarkets in other places, including the Mekong Delta city of Can Tho and the central coastal city of Danang.
Vietnam has a roadmap for opening up the country’s retail market to foreign investors under the country's WTO commitments to regional and international institutions.
Foreign retailers would be allowed to set up joint-ventures in Vietnam from January 1 next year. Two years later, they would be allowed to set up independent operations.
The move has lured an influx of global retailers to the country in recent months.
By Ha Viet - Thanh Nien - November 13, 2006.
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