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Korean retailer E-mart pledges $200m in Vietnam

2016-11-24 17:37:40

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Korean retailer E-mart has announced a US$200 million investment into Vietnam.

The agreement between the Shinsegae-owned discount giant and Ho Chi Minh City was signed last week and will see E-mart invest in building supermarkets, commercial facilities and local ‘social development’ facilities over the next four years.

Last year, the Korean firm opened Shinsegae Hope Toy Library in Ho Chi Minh City and followed that up with a $60 million supermarket in Go Vap District.

E-mart originally planned to open 52 stores in Vietnam by 2020, citing fast-growing consumer spending power in urban Vietnam. Central government data shows retail sales rose 7.4 per cent year-on-year last August and is predicted to reach $109 billion in 2017.

Thanks to a free trade agreement, Vietnam has welcomed foreign retailers to come in with Miniso andTakashimaya the latest two examples. Convenience store giant 7-Eleven has promised to launch there next year with a local partner.

Meanwhile, Thailand’s Central Group acquired Big C, a controlling stake in electronics chain Nguyen Kim and eCommerce platform Zalora within the last three years. Central has since said it will suspend further acquisitions in Vietnam.