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This event is open for all professionals interested or currently working in Starups in Hanoi, or supply chai professionals in Hanoi, or who are interested in looking for business collaboration for U.S. market through meeting with a delegation of Baylor University (U.S.), Executive Master Program.
Ferguson Global is seeking a Sourcing / Business Development Manager to assist in our Southeast Asia sourcing expansion. This position will report directly to our Regional Manager based in Taiwan and work closely with our staff at Ferguson Enterprises, LLC headquarters in Newport News, VA, USA.
The Project Manager (PMO) is a highly visible role that is responsible for driving the transformation activities for Singapore Replenishment Center (SRC) and 3rd party service providers’ warehouses migration from current location to a new location. This leader will lead cross-functional internal and external resources and has overall accountability of the execution and performance of projects and transformation initiatives.
Manage DC daily operation activities at warehouse facility. To ensure strict execution of the SOP and meet KPIs.
Vietnamese retailers worry as country opens market in 2015
Vietnamese retailers have expressed concerns about the increasingly competitive retail market, as the country plans to open up to an influx of foreign retailers required by the World Trade Organisation (WTO) obligations, which will come into effect from January 11, 2015.
Under the WTO obligations, Vietnam will have to permit the establishment of wholly foreign-owned businesses, including retailers, and some of the world’s leading retailers have expressed great interest in the Vietnamese market.
Since Vietnam began to open its markets to foreign retailers beginning in early 2009, with the entry of companies such as Metro Cash&Carry and Lotte Mart, the landscape of modern retail in Vietnam has changed. Some foreign retailers are even expanding their distribution networks to rural regions.
Statistics from the Ministry of Industry and Trade (MoIT) show that, by the end of 2012, foreign groups accounted for 40% of about 700 supermarkets in Vietnam. Meanwhile, 31 out of 125 commercial centres in the country were foreign-invested.
According to the MoIT, competing with foreign retail businesses will be a challenge for domestic companies. Leading international retail groups have poured large sums of money into their business expansion plans in Vietnam. More outlets and trade centres have been opened to compete with local retail businesses.
Metro Cash & Carry opened 10 new trade centres in 2011, while Parkson added seven new shopping centres in big cities across Vietnam. Big C invested USD14 million in a new trade centre in the central province of Thanh Hoa late last year, increasing the number of outlets for the chain in Vietnam to 17. They plan to increase the figure to 29 this year. With initial investment capital of USD80 million, E-Mart Group, out of South Korea, has signed a joint venture with U&I Group to put their first project into operation in 2013.
Meanwhile, Thai and Japanese firms have also seen potential in the Vietnamese market. The retail business group Berli Jucket decided to acquire 65 percent of shares in Thai An Company, which manages 41 “B’s Mart” convenience stores in HCM City. It opened three more stores in August, bringing the total number of stores to 61 late this year.
Speaking with the “Nation” newspaper in Thailand, Berli Jucket’s Vice President, Phidsanu Pongwatana, said that compared to Thailand, which has fierce competition, Vietnam is seen as a potential market for the retail industry.
According to its development plan, the group will open an additional 100 stores next year, and 300 more in Hanoi and other big cities by 2015.
Japanese retailer Aeon has also recently opened a national headquarters in HCM City and plans to open many retail stores, including convenience shops, shopping centres and supermarkets in Vietnam.
Last December, the company launched its first Mini Stop convenience store in Ho Chi Minh and is intent on running its first shopping centre in Hanoi next year.
Thailand’s leading shopping mall developer, Central Pattana, is currently negotiating with a Vietnamese partner to develop their first shopping complex in Vietnam.
Many Vietnamese retailers see this as a threat and are doing their best to firmly establish their brands in the country.
Saigon Co.op Mart recently opened many more shops in industrial parks and export processing zones to serve workers. They also have got approval for a commercial joint-venture with a Singaporean retailer, Fairprice, and will open two supermarkets named Co.opXtra and Co.opXtraPlus in the near future.
Saigon Co.op Mart’s President, Nguyen Ngoc Hoa, says fierce competition requires greater efforts on their part to meet the high customer demand and secure a firm foothold in the market.
According to Pham Quoc Manh, CEO of Phu Thai Group, which is among leading local retailers, the opening the retail market means that domestic retailers will be well-prepared to compete with their foreign rivals.
“In fact, no Vietnamese enterprise has capital of over USD 100 million,” Manh confirmed. “Besides, revenues from foreign-invested supermarkets are usually 20-30 times higher than those of their Vietnamese counterparts. Vietnamese retailers will face great difficulties if they do not cooperate with one another and find a good development strategy. We are also considering cooperating with a foreign partner to better position ourselves.”
The deputy general director of Vinatex, Hoang Ve Dung, said that the two biggest obstacles that domestic enterprises need to overcome when competing with foreign rivals are capital and human resources. Dung also added that they needed to pay more attention to consumers’ buying habits, quality and prices.
“I think for this, Vietnamese retailers should learn from outlets such as Big C and Metro, who appear very professional in managing the origin, quality and price of their products,” Dung said.
Speaking at a recent online forum held in Hanoi, Deputy Head of the MoIT’s Domestic Market Department Tran Nguyen Nam warned that foreign firms have the benefit of experience, financial resources and qualified workers, so to compete with them, domestic retailers will need to adapt their management systems, training and customer service.
Fiercer competition expected
A recent report, “Vietnam Retail Market Forecast to 2014″, by AT Kearney, says that Vietnam’s total retail market is forecast to see an annual growth rate of 23% by 2014, offering many opportunities for both domestic and foreign retailers.
According to the report, in the next few years, a short wave of consolidation will emerge as foreign retailers try to establish their positions and penetrate the market.
Modern retail is expected to be the key distribution channel in Vietnam in the near future due to its 90 million consumers, AT Kearney’s report remarks. Vietnamese consumers’ shopping habits are changing, with more spending in modern retail outlets due to convenience and health-related issues.
And this means fiercer competition expected for Vietnamese retailers.