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This in-depth guide to Vietnam explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
We review Alfamart's current performance, its growth forecasts for the next five years, plus progress against key strategic objectives.
AEON has sold its 30% stake in small grocery chain Fivimart to Vinmart in Vietnam.
After four years of being a part owner and mounting losses, AEON has sold its share in Fivimart (23 stores). It has been reported that the decision to exit was due to poor performance and strategic differences between stakeholders.
All Fivimart stores will be rebranded to Vinmart supermarkets. In addition to fresh and general groceries, these stores will sell the Group’s private label brands, VinEco, VinMart Cook, and Vinmart Home.
AEON is still planning to expand its footprint in Vietnam, aiming to reach 500 stores by 2025. The retailer operates around 120 Ministop convenience outlets in the country. For the foreseeable future, it will maintain its 49% stake in Citimart, which it invested at the same time as Fivimart and previously announced ambitious expansion plans. AEON also operates four shopping malls in Hanoi, Binh Duong and Ho Chi Minh City, and two more are under construction in Hanoi and Haiphong.
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After three years in operation, VinMart supermarkets and VinMart+ convenience stores form the largest retail chain in Vietnam. Building on this success, the retailer is looking to continue its development over the next two years.
In December 2017 alone, the retailer added 100 new outlets in 11 provinces. On average, three convenience stores were opened per day. At a recent supplier conference, Vincommerce's owner, Thai Thi Thanh Hai, said that there were 65 VinMart supermarkets and over 1,000 VinMart+ convenience stores across 26 provinces.
"In the next phase of development, our top priority is to build strategic partnerships with key suppliers while optimizing supply chain efficiencies," said Mr. Thai Thi.
The retailer's plan is to have 200 supermarkets and 4,000 convenience stores by 2020. It aims to provide quality products with its private label brands across the network. It retails VinEco fruit and vegetables which meets VietGAP standards, produced in its own farms. It also carries VinMart Cook which supplies fresh and ready to eat food, and VinMart Home which produces safe household appliances.
Food safety is a key concern in Vietnam. With its own farms and private label food products, VinMart can control the food quality delivered to its consumers.
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