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Tag: Ho Chi Minh City

  • Grab Cuts Maximum Take on Vietnam Rides to 32% from 40%

    Grab Cuts Maximum Take on Vietnam Rides to 32% from 40%

    Singapore-based ride-hailing operator Grab will reduce its maximum take from rides in Vietnam to 32 per cent from roughly 40 per cent, according to the country’s antimonopoly regulator.

    The ceiling reduction follows an official review prompted by driver complaints, which culminated in a two-day boycott in Ho Chi Minh City during September.

    Regulatory Pressure Drives Platform Changes

    Vietnam’s antimonopoly authority intervened after drivers lodged formal complaints regarding platform deductions from passenger fares. Across the broader region, fee adjustments and driver support measures are set to cost the Singapore-headquartered mobility group $115 million.

    The policy overhaul follows a similar intervention in Indonesia, where regulators capped ride-hailing commissions to shield gig workers from escalating platform fees. Southeast Asian antitrust authorities are increasingly targeting take rates that platforms expanded during their push toward profitability.

    The Cost of Driver Retention

    Aggressive fee reductions compress margins across Grab’s core mobility arm, altering unit economics in one of its key growth markets. For fleet operators and individual drivers, an eight percentage point cut in maximum platform deductions provides immediate relief against rising vehicle operating costs.

    Competitors across Southeast Asia face identical pressures. Platforms that extracted higher commissions to satisfy public market investors must now calculate whether absorbing the $115 million cost hit will insulate them from deeper statutory fee limits in neighbouring jurisdictions.

    Labor Friction Preceded Intervention

    Driver dissatisfaction boiled over into operational disruption in Ho Chi Minh City during September, when drivers staged a two-day boycott protesting excessive fees. That strike accelerated regulatory scrutiny, pushing authorities to review how the company structures driver compensation.

    Southeast Asian transport authorities are tracking whether the 32 per cent ceiling stabilizes driver supply before deciding on formal nationwide statutory caps.

  • Grab Cuts Maximum Take on Vietnam Rides to 32% from 40%

    Singapore-based ride-hailing operator Grab will reduce its maximum take from rides in Vietnam to 32 per cent from roughly 40 per cent, according to the country’s antimonopoly regulator.

    The ceiling reduction follows an official review prompted by driver complaints, which culminated in a two-day boycott in Ho Chi Minh City during September.

    Regulatory Pressure Drives Platform Changes

    Vietnam’s antimonopoly authority intervened after drivers lodged formal complaints regarding platform deductions from passenger fares. Across the broader region, fee adjustments and driver support measures are set to cost the Singapore-headquartered mobility group $115 million.

    The policy overhaul follows a similar intervention in Indonesia, where regulators capped ride-hailing commissions to shield gig workers from escalating platform fees. Southeast Asian antitrust authorities are increasingly targeting take rates that platforms expanded during their push toward profitability.

    The Cost of Driver Retention

    Aggressive fee reductions compress margins across Grab’s core mobility arm, altering unit economics in one of its key growth markets. For fleet operators and individual drivers, an eight percentage point cut in maximum platform deductions provides immediate relief against rising vehicle operating costs.

    Competitors across Southeast Asia face identical pressures. Platforms that extracted higher commissions to satisfy public market investors must now calculate whether absorbing the $115 million cost hit will insulate them from deeper statutory fee limits in neighbouring jurisdictions.

    Labor Friction Preceded Intervention

    Driver dissatisfaction boiled over into operational disruption in Ho Chi Minh City during September, when drivers staged a two-day boycott protesting excessive fees. That strike accelerated regulatory scrutiny, pushing authorities to review how the company structures driver compensation.

    Southeast Asian transport authorities are tracking whether the 32 per cent ceiling stabilizes driver supply before deciding on formal nationwide statutory caps.

  • Alibaba Buys Minority Stake in Vietnam Beauty Retailer Hasaki

    Alibaba Buys Minority Stake in Vietnam Beauty Retailer Hasaki

    Alibaba has agreed to acquire a minority stake in Vietnamese cosmetics chain Hasaki, securing direct exposure to an omnichannel beauty network with more than 140 physical stores.

    According to a report on November 18, 2023, the transaction gives the Chinese retail giant direct access to a domestic beauty and personal care sector valued at $2.2 billion that is growing at 7 per cent annually.

    Hiep Dinh, founder and chief executive of Hasaki, confirmed the partnership with Alibaba International as modern specialty chains continue to displace independent merchants across Vietnam.

    Terms and Network Scale

    Hasaki operates a retail platform spanning its nationwide branch footprint, an e-commerce website, a mobile application and online store accounts. Ho Chi Minh City-based Koru Capital served as the financial advisor to Hasaki for the transaction.

    Hong Kong venture capital firm Excelsior Capital Asia previously backed the retailer, which was founded in 2016. As of November 2023, the chain counts 3.8 million members and has approximately 750,000 monthly shoppers.

    Modern Trade Displaces Independent Shops

    Vietnam’s beauty trade is shifting away from fragmented street shops and individual vendors toward standardised retail chains. Structured store networks offer verified supply chains, which matter to consumers wary of counterfeit products in personal care.

    Specialty chains also hold bargaining use against international beauty brands seeking reliable nationwide distribution. For commercial landlords, dedicated health and beauty outlets represent steady footfall drivers as shopping centres expand outside tier-one urban cores.

    Strategic Deployment in Southeast Asia

    Alibaba completed the transaction through Alibaba International Digital Commerce (AIDC), the business unit formed during the parent group’s corporate restructuring in March 2023. AIDC runs wholesale platform Alibaba.com alongside regional consumer operations including Lazada, AliExpress, Trendyol and Daraz.

    AIDC lifted its third-quarter 2023 revenue by 53 per cent year-on-year to $3.36 billion. Backing offline networks provides Alibaba with logistics and customer-acquisition infrastructure that purely digital storefronts struggle to duplicate efficiently.

    Competition for organised cosmetics sales in Vietnam has accelerated over the past three years. Mekong Capital backed local chain Beauty Box in 2021, following the market entry of Social Bella with support from L Catterton in 2020.

    Building Offline Reach in Vietnam

    The deal builds on previous capital deployments by Alibaba in Vietnamese consumer infrastructure. In 2021, Alibaba teamed up with BPEA EQT to lead a $400 million cash purchase of a 5.5 per cent stake in The CrownX, the integrated retail subsidiary of Masan Group.

    That transaction paired Lazada’s online channel with Masan’s grocery network, setting a precedent for integrating tech operations with brick-and-mortar shelf space.

    Hasaki has set a target to control at least 35 per cent of Vietnam’s domestic beauty and cosmetics market share by 2027.

  • Chinese Capital Pours 4.5 Billion Dollars into Vietnam Manufacturing

    Chinese Capital Pours 4.5 Billion Dollars into Vietnam Manufacturing

    Chinese and Hong Kong investors registered 4.5 billion dollars in capital across 1,104 new Vietnamese projects in the first nine months of 2026, targeting industrial supply lines.

    Bilateral trade between China and Vietnam expanded 37.6 per cent year on year to exceed 253 billion dollars during the same nine-month period, following a full-year total of more than 256 billion dollars in 2025.

    Factory Lines Take the Bulk of Inbound Funds

    Manufacturing absorbed 80.61 per cent of the registered capital committed by Chinese groups, placing China fourth among foreign direct investment sources in Vietnam. The figures, presented at the Autumn Economic Forum in Ho Chi Minh City, reveal an accelerating shift from basic merchandise exchange toward deep factory linkages.

    Cross-border commerce now relies on coordinated production networks rather than simple container shipments. Electronics assemblers and industrial component vendors are shifting sub-tier operations directly into Vietnamese industrial parks to retain tariff efficiency while drawing technical oversight from mainland supply hubs.

    Consulate Calls for Direct Process Integration

    Xu Shou, acting consul general of China in Ho Chi Minh City, said the two economies hold complementary industrial structures that demand technical coordination.

    Cooperation between Chinese and Vietnamese businesses has moved beyond traditional trade in goods into a new phase of supply chain coordination, technology exchange, and knowledge sharing

    Xu urged suppliers and downstream manufacturers to align quality control, factory automation, and workforce training. He also pressed for joint ventures in urban rail systems, digital trade infrastructure, and cross-border settlement channels.

    Sourcing Hubs Deepen Downstream Roots

    For consumer brands and contract electronics manufacturers operating across Southeast Asia, these capital commitments reduce the friction of sourcing raw components. Moving intermediate fabrication closer to Vietnamese assembly plants cuts lead times for export-bound goods, but it ties regional factory schedules even tighter to Chinese industrial design and material supplies.

    The operational risk sits squarely in logistics bottlenecks at overland crossing points. Factory operators face acute delays whenever northern border gates back up, which makes physical rail integration and unified technical customs standards the primary gating factor for factory productivity.

    Transport Corridors Form the Next Test

    Hanoi is pushing infrastructure projects to match the incoming industrial volume. Vietnamese Deputy Minister of Finance Nguyen Thi Bich Ngoc met with China’s State Council Research Office in late October, laying out five priority areas that feature the planned Lao Cai-Hanoi-Hai Phong railway line alongside smart border checkpoints.

    Regional conglomerates are building commercial networks around the trade flow. Sunwah Group, through its Sunwah Innovations unit established in 2020, runs business hubs across Ho Chi Minh City, Hanoi, and Da Nang to link early-stage technology and factory partnerships between domestic firms and mainland investors.

  • Vietnam’s PNJ Shuts 30 Stores and Sheds 1,041 Jobs as Losses Mount

    Vietnam’s PNJ Shuts 30 Stores and Sheds 1,041 Jobs as Losses Mount

    Phu Nhuan Jewelry incurred a net loss of nearly VND258 billion (US$10 million) during the third quarter of fiscal 2026 as consumer demand softened.

    The financial strain forced the Vietnamese jewellery retailer to scale down operations, trimming its store network to 424 locations by September 30.

    That closure of 30 doors since June accompanied significant staff cuts, with payroll shrinking from 8,164 workers in December to 7,123 employees by the end of the quarter.

    Headcount drops past thousand mark

    PNJ’s payroll contracted alongside the store closures. The company had 7,123 employees on its books at the end of September, compared to 8,164 workers at the close of December, according to its latest financial disclosures. That represents a reduction of 1,041 jobs over nine months.

    Trading conditions across Vietnam’s discretionary retail sector deteriorated through the middle of the year as consumer sentiment flagged. For branded jewellery chains, fixed lease obligations and floor-staff costs turn cash-negative quickly when ticket sizes drop and shopper traffic thins.

    Pruning prime retail footprints

    The swift reversal at PNJ alters leasing dynamics for mall operators and high-street landlords. Retail landlords counted on domestic jewellery powerhouses to anchor regional centres and street corners through earlier retail cycles. With PNJ pruning underperforming locations rather than defending store counts, commercial property owners face lease renegotiations or vacancies in prime retail corridors.

    Competitors face identical consumer belt-tightening across Vietnam. Unbranded gold shops and local chains carry lower real estate overheads, leaving large organised networks exposed whenever discretionary spending retreats. PNJ is prioritising balance-sheet protection and working capital control over market coverage.

    Reversing post-pandemic network scale

    The retrenchment follows years of aggressive retail network expansion across second- and third-tier provincial markets. PNJ had scaled its retail presence beyond 400 branches to consolidate market share away from traditional independent gold stalls, betting on rising middle-income household consumption.

    That momentum reversed sharply during the third quarter. The abrupt shift from network additions to network consolidation indicates that the drop in discretionary spending caught the retailer with surplus floor space and excess store payroll.

    Targets and fourth-quarter demand

    Attention turns to whether fourth-quarter bridal purchases and holiday demand can stem further store closures before the Lunar New Year shopping period. PNJ’s upcoming full-year filing will show whether the network contraction stabilised at 424 branches or extended deeper into secondary cities.

  • Keppel to Mobilize up to $1 Billion Through Vietnam Financial Center

    Keppel to Mobilize up to $1 Billion Through Vietnam Financial Center

    Keppel has joined the Vietnam International Financial Center as an inaugural member, setting up investment platforms to direct up to $1 billion into real estate assets nationwide.

    This week, the Singaporean group received its founding membership certificate from Truong Minh Huy Vu, vice chairman of the Ho Chi Minh City People’s Committee and head of the executive body for the center, known as VIFC.

    Alongside its own balance sheet, Keppel plans to source the bulk of the $1 billion from third-party institutional backers, deploying capital into commercial, residential and infrastructure property.

    Terms of the financial center platform

    The vehicle operates under the charter of the Vietnam International Financial Center, known as VIFC, which Vietnam’s National Assembly authorized in 2025. VIFC runs across dual hubs in Ho Chi Minh City and Da Nang under standalone regulatory rules designed to attract overseas capital.

    Those special rules permit direct foreign-currency settlements, offer tax incentives for registered projects and establish international dispute-resolution mechanisms outside the standard domestic court circuit. Truong Minh Huy Vu, vice chairman of the Ho Chi Minh City People’s Committee and head of the executive body for the VIFC, handed Keppel its founding membership certificate this week.

    Deployments remain contingent on project approvals, market conditions and external partner commitments. Keppel’s Real Estate Division will manage the vehicles, targeting urban developments that mix commercial, residential and retail square footage.

    The shift to fee-bearing asset management

    For cross-border developers, the vehicle shows how global real estate firms are restructuring their presence in Vietnam. Direct balance-sheet acquisitions in Southeast Asian emerging markets tie up heavy capital during lengthy land-clearance and permitting phases. By establishing third-party co-investment platforms, Keppel shifts toward fee-bearing asset management, spreading development exposure across global limited partners while retaining operating control.

    Institutional investors have historically treated Vietnam as a high-yield, high-friction destination. The legal ring-fencing provided by the VIFC, particularly foreign-currency transactions and international arbitration, addresses the primary governance risks that keep global pension funds and sovereign vehicles from underwriting Vietnamese projects at scale.

    Building on four decades in Vietnam

    Keppel entered Vietnam roughly forty years ago, steadily building an operating portfolio that now spans 30 real estate projects. Its registered capital in the country exceeds S$5 billion ($3.9 billion), making the company one of the largest foreign property players in the market.

    The company framed the new setup around long-term economic expansion rather than short-term trading gains.

    Keppel is honored to be selected as an inaugural member of the VIFC. This reflects our longstanding commitment to Vietnam and our confidence in the country’s long-term growth potential.

    Joseph Low, chief representative for Vietnam and president of Vietnam Real Estate at Keppel, confirmed the firm will work with municipal agencies and institutional partners to channel international funding through the center.

    Capital deployment targets to watch

    The financial center’s first 10 members have pledged to raise $2.7 billion for projects, with Keppel accounting for more than a third of that targeted total.

    Attention now turns to the specific asset pipelines Keppel puts forward under the VIFC structure, with the first co-investment vehicles expected to test how quickly municipal regulators process site approvals under the 2025 financial center decree.

  • VinFast Cuts Net Loss to $56 Million on Factory Disposals

    VinFast Cuts Net Loss to $56 Million on Factory Disposals

    VinFast narrowed its net loss to $56 million in the second quarter of 2026 after booking a $1.18 billion gain from selling its Vietnam factories.

    Operating losses from continuing operations rose 48 per cent from the previous quarter to $1.24 billion. The carmaker delivered 70,085 electric vehicles during the three-month period, bringing first-half deliveries to 43 per cent of its full-year target of 300,000 units.

    Factory Disposals and Debt Offloading

    The accounting relief stems from a broader balance-sheet overhaul. VinFast sold its two primary assembly plants in Vietnam and transferred $7 billion in debt to entities linked to parent company Vingroup and its founder, Pham Nhat Vuong.

    Vehicles will continue rolling off those domestic lines under long-term contract manufacturing agreements matching company specifications. The restructuring shifts heavy fixed capital off the carmaker’s books while keeping production flowing without direct factory ownership.

    Chief executive Pham Nhat Quan Anh, who took over leadership last month from his father, defended the transition toward an asset-light operating model during his debut analyst call.

    “We continue to hold and operate our plants in India and Indonesia, supporting local production,” Quan Anh said.

    Domestic Reliance and Asian Expansion

    Home-market buyers continue to absorb almost all output. Vietnam accounted for 89 per cent of deliveries in the second quarter, leaving overseas volumes heavily reliant on affiliate fleet deployments rather than direct consumer sales.

    Green SM, the taxi operator established by Vuong that runs exclusively on VinFast vehicles, serves as the primary distribution channel across new territories. The fleet operator expanded into Jakarta with motorbike services and launched operations in India, establishing initial vehicle volume ahead of retail dealer networks.

    Management identified Indonesia, India, and the Philippines as the core drivers for foreign market growth. Keeping physical factories in India and Indonesia allows the company to meet local manufacturing requirements while ducking heavy import duties in high-potential Asian markets.

    Pivot Away From Western Assembly

    The Asian focus follows severe friction in Western markets where direct sales and manufacturing stalled. North Carolina state authorities filed a lawsuit against the carmaker over missed construction deadlines and unmet job creation targets at its proposed US assembly site.

    Direct consumer demand in North America remains weak. Green SM recently launched taxi operations in Los Angeles to put vehicles on roads after private retail sales failed to gain traction, though the company plans to introduce its VF7 compact SUV and electric buses to US dealers later this year.

    Chief investment officer Chien Nguyen indicated that further expansion into the Americas and Europe remains under review, with details expected in the third quarter.

    Targets for the Second Half

    Meeting the annual 300,000-vehicle delivery target will require more than 170,000 handovers across the final six months of 2026. That push depends on ramping up the new VF Wild REEV, a range-extended electric pickup incorporating a backup combustion generator to alleviate range anxiety in developing markets.

    VinFast must now prove whether its asset-light manufacturing setup and captive taxi orders can generate real cash flow once the one-off financial gains from factory sales clear off the ledger.

  • Vietnam Cuts Reserve Price by 44% for Truong My Lan Luxury Yacht

    Vietnam Cuts Reserve Price by 44% for Truong My Lan Luxury Yacht

    Vietnamese auctioneers have cut the reserve price on Truong My Lan’s luxury yacht to VND29.2 billion. Six consecutive auctions failed to draw a single bidder.

    That is a 44.3 per cent drop from its original VND52.4 billion price tag when state liquidators first offered it in January. The Ho Chi Minh City Asset Auction Service Center will run the seventh auction on Oct. 28. Interested buyers must deposit 20 per cent of the reserve price, or VND5.84 billion, before bidding begins.

    The Reverie Saigon and the Fleet

    The 2018 French-built yacht sits moored at the Tam Son Swan Bay Marina in Dong Nai Province. It was named The Reverie Saigon after Lan’s flagship luxury hotel in downtown Ho Chi Minh City. State investigators seized the vessel in late 2023 alongside two smaller passenger craft, Thalia and Electra. Both companion boats were built in 2017 and are also heading into their seventh auction attempt.

    Liquidators slashed opening bids for Thalia and Electra from an initial VND5.1 billion each to roughly VND2.3 billion per hull. That brings the combined starting price for all three vessels to just under VND34 billion. Bidders must participate in person. Under national asset disposal rules, the auction uses an ascending verbal bid structure.

    Discounting Seized Luxury Assets

    Distressed luxury vessels pose a steep liquidity challenge for Vietnamese judicial enforcement agencies. Prime commercial real estate still attracts institutional interest despite legal encumbrances. Bespoke superyachts do not. They carry high berthing fees and rapid depreciation. Very few domestic buyers are willing to risk an association with criminal proceedings.

    Secondary buyers know enforcement agencies face statutory pressure to liquidate seized holdings for court-mandated restitution. Bidders simply wait out early rounds. That forces recurring price cuts until valuations fall well below global charter and resale benchmarks. Watercraft from Van Thinh Phat follow a familiar regional pattern. Specialized lifestyle assets across Southeast Asia routinely sit through half a dozen public tenders before finding clearing prices.

    Asset Recovery in the Van Thinh Phat Fallout

    Lan, the former chairwoman of property conglomerate Van Thinh Phat, received a death sentence in 2024. She was convicted of embezzling funds from Saigon Commercial Bank and causing losses calculated at VND677 trillion. An appeals court upheld that verdict. In a separate second-phase trial, the court ordered her to pay more than VND30,081 billion in compensation to 43,108 bondholders.

    Authorities froze more than 1,200 real estate properties and seized hundreds of luxury personal items across Lan’s business network to service those claims. Courts rejected Lan’s appeals to retain personal items like the yacht and luxury fashion pieces. Other auctions have found buyers. Liquidators previously cleared a Maybach luxury vehicle for VND16.6 billion, a diamond jewelry collection for nearly VND25 billion, and two rare Hermes crocodile handbags for over VND13 billion.

    Next Steps at the Auction Center

    Registration dossiers and mandatory deposits are due at the Ho Chi Minh City Asset Auction Service Center before the Oct. 28 morning session. Live bidding will determine whether this 44 per cent reduction clears the three hulls or forces an eighth round of mandated valuation cuts.

  • Vietnam Fruit Traders Pay 5% Finder Fee for Scarce Musang King Durian

    Vietnam Fruit Traders Pay 5% Finder Fee for Scarce Musang King Durian

    Vietnamese fruit brokers are offering commissions of up to VND6,000 per kilogram to spotters who can locate harvest-ready Musang King durian orchards across the country.

    The sourcing fee represents nearly 5 percent of the fruit’s farm-gate price of VND130,000 ($4.95) per kilogram, triple the standard VND2,000 fee paid for common domestic cultivars like Ri6.

    Sourcing Brokers Battle Supermarket Buyers

    Mekong Delta trader Manh Khuong pays spotters VND6,000 per kilogram to secure volume across orchards in Dong Thap and Vinh Long provinces. Most growers told him their trees require at least 10 more days before harvesting can begin.

    Procurement friction has intensified because supermarket chains and specialty fruit retailers from Hanoi and Ho Chi Minh City bypass regional intermediaries entirely. Retail purchasing teams now send buyers directly to farm gates, bidding up scarce tonnage on the tree.

    Another merchant operating in Dong Thap offers VND5,000 per kilogram in finder fees. Despite the cash incentive, his operation secures only one ton of fruit every two to three days.

    Cultivation Hurdles and Crop Timing

    Musang King originated in Malaysia and requires exacting soil and climate conditions that make it difficult to cultivate in Vietnam. Plantings remain scattered in small pockets across the Mekong Delta and the Central Highlands.

    Dong Thap Durian Association Chairman Vo Tan Loi said the primary harvest cycle in the province concluded two months ago. Most commercial growers in the region have turned to pruning, fertilizing, and preparing their trees for the next crop cycle.

    Central Highlands orchards offer limited off-season availability, but weather disruptions have hit yields. Dak Lak-based trader Hang collects roughly 500 kilograms a day from smallholder plots, down from seven to 10 tons daily during the August peak, with poor weather causing quality defects in five to 10 percent of the fruit.

    Export Demand Squeezes Regional Inventory

    The domestic scramble coincides with a seasonal supply void across Southeast Asia. Malaysia has concluded its primary harvest, leaving Chinese importers looking to Vietnamese packing houses to fill distribution pipelines.

    Vietnam durian shipments to China surged 62 percent year-on-year to $956 million in August, according to customs data. That export pull lifted farm-gate rates across all major commercial varieties between August and mid-September.

    Ri6 durian traded up to VND70,000 per kilogram, Monthong reached VND90,000, Musang King climbed to VND130,000, and Black Thorn commanded VND150,000 at the farm gate. In Ho Chi Minh City wholesale channels, distributors priced Musang King to city retailers at VND140,000 per kilogram.

    Price Floor to Hold Through Late October

    For cross-border traders and urban food retailers, the margin squeeze will persist until secondary off-season harvests begin late in October. Exporters operating on fixed forward contracts with mainland Chinese buyers must either absorb finder commissions or risk defaulting on delivery schedules.

    Vietnamese agricultural authorities are working through trade clearance procedures to push total durian export revenue to between $3.85 billion and $4 billion for the full calendar year. Packing houses in Dak Lak and Dong Thap are watching the late-October harvest turn to determine whether volume can meet those targets before winter trade slowdowns take hold.

  • Vietnam Convenience Store Network to Triple to 30,000 Outlets by 2030

    Vietnam Convenience Store Network to Triple to 30,000 Outlets by 2030

    Vietnam will expand its convenience store network to roughly 30,000 locations by 2030, tripling its current footprint. Consumer buying habits are shifting toward neighborhood shopping and packaged fresh food.

    Between 10,000 and 11,000 mini-supermarkets operate across the country today. The opening pace doubled this year from five new locations daily to 10 per day.

    Urban routines drive this shift. Shoppers who once visited wet markets in the morning now buy dinner ingredients at neighborhood convenience outlets after work. Retail tracking surveys in Hanoi and Ho Chi Minh City show 81 percent of shoppers choose convenience formats due to proximity to homes or workplaces. Another 28 percent point to extended operating hours. Households also make smaller, more frequent purchases to reduce food waste. Consequently, refrigerated food inventories in urban homes have dropped by as much as 20 percent.

    Rural Expansion Drives Physical Footprint

    Chain operators are pushing outside tier-one urban centres to find growth and curb occupancy costs. Roughly 70 percent of recently surveyed mini-supermarket openings were in rural communes. Commercial rents there remain lower, and formal retail penetration is minimal.

    Modern trade accounts for 16 percent of retail sales across Vietnam. Projections from the Business Studies and Assistance Center show modern channels will reach a 20 percent share by 2030. Meanwhile, traditional wet markets and unorganised family stalls will retreat from 68 percent to 60 percent of total market value.

    Domestic grocery chains hold the advantage despite overseas entrants such as Chinese convenience brand Ohmee. Local operators WinMart+, Bach Hoa Xanh, Co.op Food, and Satrafoods control the largest store networks and run established regional distribution systems. The expansion creates dependable long-term tenancies for commercial landlords in second-tier provinces. Packaged goods manufacturers, however, face rising shelf fees as corporate retail buying desks replace fragmented wholesale distribution.

    Independent Grocers Counter Modern Chains

    Traditional mom-and-pop grocery stores are adapting rather than ceding neighborhood trade to corporate chains. Independent stores in Vietnam are undergoing a generational handover. Operators in their 30s and 40s are taking over legacy family shops or opening upgraded retail points.

    These younger shopkeepers deploy point-of-sale inventory software, accept digital payments, and take orders through community groups on Zalo and Facebook. Some run regular social commerce livestreams to clear seasonal stock. These efforts transform traditional counter stores into hybrid offline-online businesses.

    Larger family-run stores make up 20 percent to 30 percent of traditional outlets and are projected to capture 20 percent of grocery sales value. Their resilience rests on larger shop floors and localized stock tailored to neighborhood spending power. They also offer home deliveries within walking distance.

    Policy Shifts and Regional Precedents

    Government policy now backs this modernization push. On July 2, 2026, the Ministry of Industry and Trade approved Decision No. 1626/QD-BCT. The decision establishes the implementation plan for the Vietnamese Retail Market Development Strategy to 2030 with a vision toward 2050. Under the framework, direct state backing supports digital transformation and modernized distribution networks across urban and rural zones.

    Foreign retail operators have struggled in Vietnam without substantial fresh food operations. International chains scaled successfully in markets like Thailand and Taiwan on ready-to-eat meals. In Vietnam, consumers demand broad fresh produce selections, favoring localized supply chains like Bach Hoa Xanh and WinMart+.

    Market share now hinges on cold-chain efficiency outside major metropolitan centers. Thousands of village outlets will open along provincial corridors by 2030. Corporate operators must maintain daily fresh deliveries to distant rural communes without eroding profit margins.

  • Vietnam Gold Prices Slip as SJC Bars Fall to VND143.3 Million

    Vietnam Gold Prices Slip as SJC Bars Fall to VND143.3 Million

    Saigon Jewelry Company lowered its gold bar price by 0.69 percent to VND143.3 million ($5,533.89) per tael on Wednesday morning in Ho Chi Minh City. Gold rings matched the downward step, falling at an identical rate to VND142.8 million per tael as local buyers pulled back from recent highs.

    One tael equals 37.5 grams or roughly 1.2 troy ounces. The drop breaks a multi-session run of elevated domestic retail trading across Vietnamese counters, where retail premiums over international benchmarks have remained wide throughout October.

    Global bullion rates stayed largely steady while the Vietnamese retail market retreated. Spot gold held at $4,165.25 per ounce during early trading hours, while United States gold futures for December delivery added 0.3 percent to reach $4,188.70 per ounce. Front-month Comex gold contracts for October delivery had earlier settled down 0.31 percent, losing $12.90 to finish at $4,152.90 per troy ounce.

    Domestic Margins Under Pressure

    Physical jewelry retail outlets and licensed bullion desks in Vietnam face shifting spreads between raw bar costs and processed jewelry items. With plain rings settling at VND142.8 million per tael, the narrow difference between bars and rings reflects cautious retail sentiment rather than aggressive speculative buying.

    Consumer demand across Asian retail markets often contracts when bullion tests higher price bands. Retail jewelers that built inventory at higher rates earlier in the year now manage tighter inventory turns as shoppers delay major purchases ahead of festival seasons.

    Local currency swings add friction to retail gold trading desks. Even minor fluctuations in the Vietnamese dong alter the import parity calculation for authorized bullion distributors, forcing daily adjustments across shop counters in Hanoi and Ho Chi Minh City.

    Global Rates and Macro Pressures

    International traders kept metal prices in a narrow corridor as financial markets prepared for fresh United States consumer price index data. Precious metals analysts note that wider macro trends continue to limit sharp directional swings in bullion trade.

    “What we’re looking at here is not a big move, it’s within a range. But the fact that we are able to hold ⁠a range while oil is rallying suggests that gold is trying to find a reason to rally,” said Ilya Spivak, head of global macro at Tastylive.

    Alternative safe-haven assets and yield benchmarks maintain pressure on non-yielding physical commodities. The United States Dollar Index traded near 102.4, while 10-year Treasury yields held near 5.23 percent, keeping holding costs for bullion elevated across international trading books. Silver tracked the broader commodities pullback, dropping 1.6 percent to $59.161 per troy ounce.

    Retail Trends Across Regional Counters

    Shifting pricing dynamics across Southeast Asian physical markets highlight how domestic demand patterns diverge from paper contracts. When domestic spot rates drop by nearly one percent in a single morning, local buyers frequently hold cash rather than accumulating inventory.

    Jewelry chain operators must navigate higher financing costs for store stock while counter traffic remains sensitive to ticket prices. Retail groups that expanded their retail store footprints during previous commodity rallies face higher working capital requirements to keep display cases fully stocked.

    Merchant margins on standard gold rings remain thin compared to high-margin fashion jewelry lines. When retail buyers focus exclusively on investment rings and standardized bars, overall retail operating margins compress across regional retail networks.

    Data Releases Dictate Near Term Levels

    Vietnam gold prices previously gained ground earlier in the week before Tuesday morning trading brought an initial dip. That volatility followed mixed sessions where global bullion swung between minor gains and losses without establishing a clear trend.

    Earlier quarterly trading saw major producers realizing prices between $4,400 and $4,500 an ounce before global rates adjusted into the current $4,150 to $4,200 band. The ongoing consolidation test shows physical retail buyers adjusting to a structurally higher baseline price environment.

    Market participants across Asian trading desks now track the release of United States producer price index data and upcoming retail sales reports for monetary policy signals.

  • Vietnam Cosmetics Stores Reach 574 as Hasaki Leads Expansion

    Vietnam Cosmetics Stores Reach 574 as Hasaki Leads Expansion

    Vietnam’s beauty retail sector recorded 574 stores as of March 2026, up 4.5 percent from 2025 as the pace of store openings moderated after years of rapid growth.

    According to market research firm Q&Me, the physical expansion unfolded alongside rapid digital adoption, with beauty and personal care online sales reaching VND74.4 trillion ($2.83 billion) in 2025.

    Domestic chains take market share

    Hasaki Beauty & Clinic remained the industry’s fastest-growing chain by store openings, adding 52 outlets in a single year to expand its footprint from 172 locations in 2024 to 252 in 2025, with projections to reach 304 stores in 2026.

    Founded in 2016, Hasaki operates an integrated business model combining beauty retail with on-site aesthetic clinics. The retailer raised capital repeatedly to fund network growth, increasing its charter capital to VND350 billion ($13.27 million) in October 2024.

    Co Mem, a domestic brand focused on natural beauty formulas, posted store count growth exceeding 20 percent. The chain is on track to expand from 62 stores in 2025 to 80 locations in 2026 by targeting provincial retail markets beyond Hanoi and Ho Chi Minh City.

    International players slow the pace

    Pan-Asian pharmacy and beauty chains maintained their networks while opening fewer new outlets than local competitors. Guardian is projected to increase its Vietnamese footprint from 125 to 127 stores, while regional rival Watsons maintained steady store counts.

    Smaller multi-brand operators also posted incremental gains. Aeon-backed Glam Beautique is expected to rise from 14 to 16 outlets, and domestic competitor The Gioi SkinFood is projected to increase from 10 to 12 locations.

    Single-brand formats lose ground

    Single-brand cosmetics stores recorded sharp contractions across Vietnamese high streets and shopping centers. Korean beauty chain The Face Shop is projected to shrink its retail presence from 28 stores in 2025 to nine outlets in 2026.

    British retailer The Body Shop also reduced its physical footprint, bringing its store count down to 29 nationwide. Shoppers have shifted spending toward multi-brand formats that offer broader product selections, cross-brand promotions and rapid delivery fulfillment.

    Shifting retail economics

    The divergence between multi-brand store growth and mono-brand closures alters leasing terms for shopping mall operators and streetfront landlords. Landlords in secondary cities now rely on multi-brand beauty chains to anchor personal care floors rather than standalone boutique stores.

    Alibaba International Digital Commerce Group completed the purchase of a minority stake in Hasaki in late 2023. That backing gave the local chain the financial reserves needed to build density across secondary provinces, where lower commercial rents allow larger floorplates.

    Retailers now face the task of sustaining store-level profit margins as physical network growth slows toward single digits. The next milestone for the sector comes at the end of 2026, when Hasaki aims to cross the 300-store mark across Vietnam.

  • The Capital Grille Opens First Asia Venue on 50Th Floor of Bitexco Tower

    The Capital Grille Opens First Asia Venue on 50Th Floor of Bitexco Tower

    The Capital Grille opened its first restaurant in Asia last month on the 50th floor of Bitexco Financial Tower in Ho Chi Minh City. Diners reach the venue via a dedicated private lift overlooking the skyline.

    Taipei-based Ko Hospitality Group operates the steakhouse under a franchise agreement with parent company Darden Restaurants. The opening gives the Taiwanese family business its first restaurant in Vietnam.

    Steakhouse Expansion into Southeast Asia

    Darden chose Vietnam over traditional regional gateway hubs like Singapore or Tokyo for the brand’s regional debut. Guests walk straight into a dining room overlooking the city below. The kitchen serves American steakhouse staples tailored to local executives and expatriate diners.

    Ko Hospitality Group manages daily floor service, kitchen staffing, and brand standards under the licensing agreement. Securing a space in District 1 puts the operator directly in front of corporate accounts, high-net-worth diners, and private event bookings in the country’s commercial center.

    Operator Strategy and Regional Footprint

    Running an upscale steakhouse in Ho Chi Minh City challenges established independent venues and hotel dining rooms. Global brand recognition gives Darden an immediate footprint in a market where demand for imported beef and luxury dining remains steady.

    Cold-chain reliability and imported meat logistics will test the operation. Serving dry-aged beef and wine at standard requires dependable supply partnerships along international shipping routes. Import clearance delays and tariff structures can quickly squeeze kitchen margins.

    High-Rise Commercial Placement

    Securing the 50th floor of Bitexco Financial Tower anchors the property as a destination venue rather than standard mall retail. High-floor commercial tenancies command steep rents. In exchange, they offer built-in differentiation through exclusivity and panoramic views.

    Expanding into Vietnam takes Ko Hospitality Group outside its home market of Taiwan for the first time. Managing cross-border supply chains and local staffing will show whether the operator can scale Western restaurant concepts across Southeast Asian commercial centers.

    The Pipeline for Regional Dining

    Performance in Ho Chi Minh City will serve as a live benchmark for Darden as it evaluates broader franchise expansion across Asia. Fine-dining concepts carry higher overheads than casual formats. Customer retention and average check sizes will be critical in the opening quarters.

    Watch the operator’s corporate bookings and private dining receipts over the coming months to see whether Ko Hospitality Group pushes the brand into Hanoi or neighboring regional markets.

  • Pandora Opens US$150 Million Jewellery Facility in Vietnam

    Pandora Opens US$150 Million Jewellery Facility in Vietnam

    Last week, Pandora chief executive Berta de Pablos-Barbier stood alongside Vietnamese officials on the northern fringe of Ho Chi Minh City to unveil the first piece of jewellery the Danish company has ever made outside Thailand.

    The group spent US$150 million on the 7.5-hectare plant in Vietnam-Singapore Industrial Park III, which it describes as the world’s largest fine jewellery crafting facility. At full capacity, the site can produce up to 60 million pieces a year.

    Breaking the Thailand monopoly

    The new plant shifts Pandora’s production footprint. For decades, the Copenhagen-listed company concentrated all manufacturing in Thailand. It relied on large craft facilities in Bangkok and Lamphun.

    Vietnam gives the jeweller a second manufacturing base in Southeast Asia. The industrial corridor north of Ho Chi Minh City provides established logistics links, deep-water port access, and a large manufacturing workforce.

    Production scale at VSIP III

    Located inside Vietnam-Singapore Industrial Park III, the facility adds volume to Pandora’s global supply network. Capital expenditure of US$150 million covers precision crafting equipment, casting lines, and finishing stations.

    Pandora designed the site to lift total group production as it expands its store network across Europe, the Americas, and Asia-Pacific. Full ramp-up depends on steady order volumes across core charm bracelet and fashion jewellery lines.

    Supply chain concentration risk

    Single-country sourcing created operational risks for Pandora during past supply chain disruptions. Building in Vietnam reduces political, regulatory, and labor exposure tied to a single operating market.

    Other global fashion and accessories brands have also shifted manufacturing capacity into Vietnam. Pandora must now build local technical expertise to match craftsmanship standards honed over decades in Thai facilities.

    Factory output and market demand

    Adding 60 million units of annual capacity requires sustained sales growth across key consumer markets. Global retail footfall and discretionary spending remain uneven across major shopping districts.

    Operations will test how fast Pandora integrates the Vietnam facility into its global fulfillment chain. Management will track initial run rates from the Ho Chi Minh City site as production scales toward the 60 million piece ceiling.

  • Global Cafe and ISHCMC Open Community Cafe by the Terrazzo

    Global Cafe and ISHCMC Open Community Cafe by the Terrazzo

    Global Cafe and International School Ho Chi Minh City have opened 1 campus venue, ISHCMC Community Cafe by The Terrazzo, in Ho Chi Minh City this week.

    The venue serves students, educators, administrative personnel and visiting parents across the academic year.

    On-Campus Foodservice Expansion

    This collaboration brings commercial cafe operations into an educational facility. Global Cafe developed the site under The Terrazzo concept. The space handles daily dining demand alongside community events.

    Dining formats in private international education continue shifting away from traditional canteens toward branded hospitality concepts. Operators design these spaces to keep daily footfall on campus. They also accommodate parent meetings and informal study sessions.

    Institutional Dining Dynamics

    Long-term institutional agreements give food and beverage operators steady foot traffic insulated from street-level retail volatility. For school administrations, partnering with dedicated cafe operators upgrades campus amenities without requiring internal culinary management.

    The model requires tight operational controls around food safety, allergen management and peak-hour throughput. International schools enforce strict vendor compliance standards. That creates high entry barriers for standard independent cafe brands.

    Vietnam Education and Hospitality Overlap

    Ho Chi Minh City remains a primary growth hub for private bilingual and international schools across Southeast Asia. Expansion in this segment drives ancillary demand for institutional catering, specialty coffee counters and tailored retail services.

    Urban Vietnam’s specialty coffee culture heavily influences student and parent expectations on campus. Operators that establish early footprints within premium school networks build brand loyalty among affluent local and expatriate demographics.

    Operational Footprint in Ho Chi Minh City

    The Terrazzo rollout at ISHCMC establishes an operational template for campus food services within the city’s private education sector. Performance across daily service periods and campus functions will determine how operators structure future institutional contracts in the market.