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Vietnam’s retail market: global giants unexpectedly fall short

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Vietnamese have turned the tables to become dominant in the retail market, while many foreign giants have had to leave.

Vietnam’s retail market: global giants unexpectedly fall short

Lotte decided to shut down Lotte Mart Dong Da on July 1 in a move which is part of an adjusted development strategy on expanding its network nationwide.

Inaugurated in March 2014, Lotte Mart Dong Da was the largest center with more than 20,000 square meters of retail premises floor, which was seven times larher than the other two centers in Cau Giay and Ba Dinh districts.

The center in late 2018 upgraded the cashier area interior, and the electricity, water supply and lighting systems.

Lotte Mart belongs to South Korean Lotte Group. In 2008, Lotte Mart opened its first supermarket in in Vietnam. In 2015, Lotte Mart announced a plan to open 60 shopping malls nationwide by 2020. However, the figure had reached 14 only as of July 2021, after Lotte Mart Dong Da shut down.

Meanwhile, E-Mart, another South Korean retailer, has left Vietnam. According to Korea Time, E-Mart’s board of directors decided to sell 100 percent of E-Mart Vietnam’s shares to Thaco, a 100 percent Vietnamese owned automobile manufacturer after many years of facing obstacles in expanding its operation in Vietnam.

With the deal, E-Mart Vietnam will be run under the mode of franchising, i.e. it will be managed by Thaco which pays franchising fee to E-Mart.

Prior to that, Auchan officially announced the shutdown of its 15 supermarkets in Vietnam. The French retailer opened first Auchan supermarket in 2015 and once planned to invest $500 million in Vietnam to develop its chain of 300 supermarkets and stores in the country. However, only 18 supermarkets opened in Hanoi, HCMC and Tay Ninh.

Auchan’s business performance in Vietnam was unsatisfactory despite big investments. It had revenue of 45 million euros in 2018 and incurred losses.

The biggest affair was the sale of Metro Cash & Carry chain with 19 Metro supermarkets to TCC Group from Thailand after many consecutive years of losses.

In 2016, Casino also transferred Big C chain to Central Group from Thailand.

Parkson, the Malaysian retail group, which came to Vietnam in 2005 and developed a large shopping chain in HCM City, Hanoi and Hai Phong, has closed many stores since 2015.

In the online retail market segment, the year 2019 witnessed the departure of Robins.vn (Central Group) and Lotte.vn (Lotte). In April 2016, Central Group took over Zalora Vietnam through Nguyen Kim home appliance distribution chain, and Zalora Thailand as well. The stiff competition among online sale websites in Vietnam forced Robins to give up the game within one year.

Vietnam’s retail market has been compared to a multi-billion dollar cake that attracted foreign retailers. The reports of market analysis firms all listed Vietnam among the most potential markets in Asia with an estimated growth rate of 37 percent per annum and the value of $180 billion by 2020.

Vietnam’s retail market has been compared to a multi-billion dollar cake that attracted foreign retailers. The reports of market analysis firms all listed Vietnam among the most potential markets in Asia with an estimated growth rate of 37 percent per annum and the value of $180 billion by 2020.

However, not all giants have succeeded in Vietnam. Walmart had to leave South Korea, while Family Mart, the Japanese style convenience store chain, had to leave Thailand.

Success

Matthew Powell from Savills Hanoi said foreign investors are having certain challenges when investing in Vietnam’s retail market. In Vietnam, traditional retail prevails.

Nielsen reported that traditional retail, including groceries and traditional markets, still hold 74 percent of the market share and have a growth rate of 1 percent per annum, while modern retail has 26 percent of market share and 12 percent per annum.

Though big retail players in the world have been present in Vietnam, the market is still dominated by domestic brands such as Vingroup, Masan and MWG.

Because of weak competitiveness, some foreign retailers have left the market. Meanwhile, some Vietnamese retailers successfully took full advantage of the departure to expand their chains by taking over the foreign retailers.

Bod Hayward from KPMG commented that Vietnam is in the good period of the retail industry and will continue to develop and prosper. However, enterprises need to compete well. New players will appear and Chinese enterprises won’t miss the Vietnamese market. In order to win rivals, enterprises need to master technology and online shopping channels.

Commenting about the solutions for international retailers, Powell said strictly managing resources and maintaining profit margins will help retail businesses achieve more success in the Vietnamese market.

The factors that can help businesses make the most of opportunities in the retail market include relationships and scale, commitments on attractive value, solid business models, branding, understanding of the retail market, unceasing innovation, and development on omni-channel platforms.

Many retailers have left and others will come as Vietnam remains an attractive market. The GDP per capita is at nearly $3,000 and Vietnam’s middle class now accounts for 13 percent of total population, according to the World Bank, (the figure is expected to reach 26 percent by 2026). This will create optimistic changes in total domestic consumer spending. 

Duy Anh

Source: https://vietnamnet.vn/en/feature/vietnam-s-retail-market-global-giants-unexpectedly-fall-short-753769.html

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EVN reduces electricity purchases as consumption drops

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Because of low electricity consumption, thermopower, hydropower, wind and solar power plants have had to cut their capacity.

EVN reduces electricity purchases as consumption drops

According to the Vietnam Electricity Regulatory Authority (A0), electricity consumption in the country continued to decrease in the first two weeks of September 2021.

The peak daily capacity of the whole country was 29,700MW, while the total output of the entire electricity system was 624.3 million kwh per day.

As such, the country’s electricity consumption in the first half of the month was 24 percent lower than before, when large-scale social distancing began in mid-July and 15 percent lower than the same period last year.

The peak daily capacity in the south in the first two weeks of September was 12,200MW, while the total output was 243 million kwh per day.

The electricity consumption of the southern region during that time was 29 percent lower than before, when social distancing began and 23 percent lower than the same period last year.

To ensure the safe operation of the national electricity system when consumption goes down as a result of social distancing, A0 and local regulatory units have adjusted the mobilization of electricity to the demand of the whole country and every region, while ensuring technical requirements to regulate the national system safely.

“The regulation of the national system must fit the structure of power sources and transmission capacity among regions. The mobilization of electricity sources in the system is always implemented with the principle of transparency and equality, with no discriminatory treatment to the types of electricity sources,” the Electricity of Vietnam (EVN) stated.

EVN has asked owners of power plants to closely cooperate with A0 and local regulatory units and strictly implement commands on electricity mobilization to ensure the safe operation of the national electricity system, especially when consumption decreases as a result of Covid-19.

This means that power plants will have to cut capacity and their electricity would be unsold.

According to EVN, the power generating units that connect and provide electricity to the national grid have the responsibility of strictly complying with the operation method and commands of the regulatory units which have the right to control and examine as prescribed in Circular 40/2014/TT-BCT stipulating the process of regulating the national power system, and Circular 31/2019/TT-BCT that amends and supplements a number of articles of the process. They have to take responsibility for violations of the law.

In related news, EVN Hanoi reported that as of the end of August, it had reduced electricity prices and electricity bills for clients hit by Covid-19, totaling VND329.58 billion. 

Luong Bang

Source: https://vietnamnet.vn/en/business/evn-reduces-electricity-purchases-as-consumption-drops-776785.html

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Ministry investigates evasion of trade remedies for cane sugar

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Bags of sugar displayed for sale at a supermarket in Bangkok. — VNA/ Photo Ngọc Quang

HÀ NỘI — The Ministry of Industry and Trade (MoIT) on Tuesday issued a decision to investigate the evasion of trade remedies for cane sugar products originating from Thailand after considering requests from domestic sugar producers.

The ministry said it has received the petition of the Vietnam Sugarcane and Sugar Association (VSSA) and domestic cane sugar refineries, which submitted evidence that Thai cane sugar products subject to anti-dumping and anti-subsidy taxes have entered the Vietnamese market through five ASEAN countries of Laos, Cambodia, Indonesia, Malaysia and Myanmar.

The MoIT officially imposed anti-dumping and anti-subsidy duties on a number of sugar cane products originating from Thailand on June 15, 2021.

Data of local customs agencies shows that the volume of sugar imported from the five above-mentioned ASEAN countries had increased sharply to 527,200 tonnes from 107,600 tonnes after Viet Nam initiated an anti-dumping and anti-subsidy investigation into sugar from Thailand from October 2020 to June 2021.

Meanwhile, the import volume from Thailand has decreased by nearly 38 per cent, from 955,500 tonnes to 595,000 tonnes in the period.

The MoIT has actively coordinated with the VSSA to monitor the import of cane sugar products and actively consulted and assisted the VSSA, as well as the domestic cane sugar industry, in collecting information and data and making a petition to request an investigation into this behaviour. —

Source: https://vietnamnews.vn/economy/1036330/ministry-investigates-evasion-of-trade-remedies-for-cane-sugar.html

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Santorini masterpiece on the most beautiful avenue of Vung Tau downtown

Léman Cap Residence has taken inspiration from paradise island Santorini in Greece to bring the Mediterranean breath to Ha Long street, the most beautiful avenue in the coastal city of Vung Tau.

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Project inspired by Santorini Paradise, a destination of Hollywood stars

Santorini is a mainstay on the list of Top 10 paradise islands by the famous American Travel + Leisure Magazine. The island has also been voted as one of the Top 20 most expensive vacation destinations in the world with five-star luxury resorts. It is apparent why many famous Hollywood stars choose Santorini for vacationing.

Rumor has it that “Mrs. Smith” Angelina Jolie once bought a villa right on Santorini island for annual vacations. If you ever get lost here, you will most likely come across Tom Hanks and his wife, Shakira and Pique, or basketball player Michael Jordan. Music star Justin Bieber has also been to Santorini to enjoy the delicious food and wine. The island’s famous specialty is made from grapes grown on the volcanic mountains.

Santorini has always been an irresistible magnet with its characteristic Cycladic architecture, an integral part of the Mediterranean culture. Cycladic architecture is famous for its uniqueness and charm, providing the islands with minimal aesthetics but with a daring style. The most prominent characteristic of this architectural style, are the white washed cube houses built next to and on top of one another.

Léman Cap Residence – a diamond at the most expensive luxury boulevard in the coastal city of Vung Tau
Léman Cap Residence – a diamond at the most expensive luxury boulevard in the coastal city of Vung Tau

Visit Léman Cap Residence – a diamond at the most expensive luxury boulevard in the coastal city of Vung Tau

Visitors looking for a taste of Greece need not go that far anymore. Léman Cap Residence now captures the essence of the paradise island Santorini in its design and architecture. Travel lovers can now visit the made in Vietnam Santorini to admire the beauty of the island on Ha Long Street in Vung Tau.

Ha Long is the most bustling street in Vung Tau with well-developed transport infrastructure surrounded by thousands of five-star entertainment services. Along the avenue lie many famous tourist attractions such as Front Beach, Pineapple Beach, Nghinh Phong Cape, Bai Dau and Bai Sau tourist areas, which welcome millions of tourists every year.

Just a few minutes walk from Léman Cap Residence apartment to Ha Long Street, you can easily access a variety of branded shophouses, specialty restaurants, entertainment services, temples and churches, which are the cultural symbols of Vung Tau. Being located on the central route of the city, visitors can reach other areas quickly and easily via Long Thanh International Airport, Ring Road 4 connecting Vung Tau with the western region, as well as many other highways.

The masterpiece Léman Cap Residence fascinates with its unique Santorini architecture with characteristic white and blue colours. The project offers remarkable and unique ocean views while leaning against the green hills. A forest in the middle of the busy street, Léman Cap Residence is a separate resort complex with green nature, blooming flowers and chirping birds all year round.

Léman Cap Residence is located in Ha Long street - the most beautiful central avenue in the coastal city of Vung Tau
Léman Cap Residence is located in Ha Long street – the most beautiful central avenue in the coastal city of Vung Tau

Léman Cap Residence will leave impression on people with its beauty. Léman Cap Residence is a unique Santorini masterpiece with the immense blue sea in front and the fresh green mountains behind. Meanwhile, the surrounding areas are bustling and colourful entertainment complex. 

Léman Cap Residence: Masterpiece Santorini – A diamond on the most beautiful central avenue in the coastal city of Vung Tau

Hotline: 0918887920

Website: https://lemancapresidence.vn/

Fanpage: https://www.facebook.com/lemancapresidences

Source: https://e.nhipcaudautu.vn/real-estate/santorini-masterpiece-on-the-most-beautiful-avenue-of-vung-tau-downtown-3342113/

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