Leading chain store operator Saigon Co-op is seeking to set up stores in all the 64 cities and provinces in the coming years before Vietnam swings open its distribution market to foreign players in line with WTO principles.
Saigon Co-op’s general director Nguyen Ngoc Hoa said on October 12 the operator would open at least one Co-opmart store in each province or city, and would have to rush against the time as several international giants are eyeing the local market.
“We will continue cooperation with the Saigon Trading Corp and companies in cities and provinces to set up supermarkets from south to north, including the plan to establish wholesales centres nationwide,” Hoa said.
The mammoth investment plan will help promote the brand name of Saigon Co-op among the public, and draw consumers to the modern shopping method, Hoa said. Hoa, however, did not elaborate on the investment capital.
Saigon Co-op is operating 13 stories, comprising of ten in HCM City, one in Binh Dinh province’s Quy Nhon City and one in Can Tho City in the Mekong Delta. The total invested capital for these stores amounts to one trillion dong, or some US$65 million.
It is also joining forces with other trading companies to open five more stores next year at a cost of 200 billion dong in Binh Thuan, Vinh Long, Dong Nai’s Bien Hoa, Tien Giang’s My Tho, and An Giang’s Long Xuyen Municipality.
Its near-tern investment will also include stores in Quang Nam, Da Nang, Hue, Phu Yen, and Ninh Thuan.
The Asia Retail Magazine has recently ranked Saigon Co-op the 330th biggest one out of 500 chain operators across Asia.
In the first nine months of this year, Saigon Co-op had revenue of 1,131 billion dong, an increase of 50% year on year. The operator is spending US$1.5 million ion computerisation to perfect its activities of commodity stockpiling, transport and financial management.