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Tag: Vietnam

  • Huy Vietnam secures offshore funding

    Huy Vietnam secures offshore funding

    Private equity firms in Singapore and Hong Kong have invested US$15 million into Huy Vietnam Group, Vietnam’s largest operator of local Vietnamese food restaurants.

    The Series C round of funding will be used to support the company’s network expansion in Ho Chi Minh City, Hanoi and other cities in Vietnam – as it clearly works towards regional expansion.

    Just five years old, Huy is one of Vietnam’s first international, professionally managed restaurant companies serving traditional Vietnamese food prepared from formulated family recipes. It already runs over 70 restaurants under the Mon Hue Vietnam, Com Express and Pho Ong Hung brands, serving affordable and authentic local Vietnamese cuisines.

    Mon Hue restaurant 1-415

    Huy Vietnam plans to continue opening additional Mon Hue, Com Express and Pho Ong Hung restaurants during the course of 2015. It also intends to expand its geographical footprint to include restaurants in Nha Trang, Hue and Dalat in the second half of 2015.

    KY Huy, co-founder, chairman and CEO of Huy Vietnam said the Series C financing allows the company to leverage its multi-restaurant brand strategy in Ho Chi Minh City and Hanoi and expand to second tier cities in Vietnam.

    Dennis Nguyen, co-founder, vice chairman of Huy Vietnam and chairman of New Asia Partners, a Hong Kong-based private equity group and a cornerstone Huy shareholder, said the investors in this round include Templeton Strategic Emerging Markets Fund, Welkin Capital and Prosperous Alliance.

    “I especially look forward to working with Templeton on the Huy Vietnam board as it brings well-respected market analysis and corporate governance to the company,” said Nguyen.

    Mark Mobius, chairman of Templeton Emerging Markets Group, said Huy has impressed investors by successfully growing its restaurant chains, satisfying local Vietnamese and foreigners alike with its cuisine and comfortable restaurant ambience.

    Mon Hue restaurant 2-415

    “We are excited about the company’s prospects under its existing brands and others which may come. Templeton is therefore happy to be able to play a part in Huy Vietnam’s growth.”

    Johnny Kong, CEO of Welkin, a Hong Kong-based private equity firm, provided a hint at the company’s broader long term ambitions beyond Vietnam’s shores.

    “Welkin is proud to make Huy Vietnam its first China-plus investment. We are confident in the leadership of Mr Huy and his management team and we look forward to working together to continue developing the company as a leading restaurant chain in Vietnam and across the region.”

    Vietnam is forecast to achieve 6.5 per cent GDP growth in 2015 and has averaged more than seven per cent annually over the past decade. That strong growth has fuelled the development of the restaurant business in Vietnam due to the local culture of eating out, and many international QSR concepts have entered in the market during the last three years, including, McDonald’s Starbucks, Dunkin Donuts, Popeye’s and Texas Chicken.

    Huy’s brands focus on different regional Vietnamese cuisines: Mon Hue on central foods, Com Express on southern Vietnamese rice cuisine and Pho Ong Hung on northern Vietnamese noodles.

    Huy says the chains are each continuing to expand their market share.

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  • Vingroup buys VinatexMart chain

    Vingroup buys VinatexMart chain

    The Vinmart Supermarket Joint Stock Company of Vietnam’s leading property firm Vingroup has signed a contract to buy a 100 percent stake in the VinatexMart supermarket chain.

    VinatexMart, one arm of the State-run Vietnam National Textile and Garment Group (Vinatex), has 58 outlets in 26 provinces and cities nationwide.

    Its supermarkets stock 60,000 items from five main categories of goods such as garments and textiles, fresh food, cosmetics and home appliances.

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  • Shinsegae Vietnam prepares for launch

    Shinsegae Vietnam prepares for launch

    South Korean retailer Shinsegae Group will launch in Vietnam by the end of 2015.

    Shinsegae Vietnam subsidiary E-mart will roll out discount stores in the fast-growing retail economy after five years of research and planning.

    Shinsegae has secured at least two sites in Ho Chi Minh City, the first in an undisclosed part of the city where it will build a flagship discount store on a 20,000sqm site, the second near Tan Son Nhat international airport.

    The Korean company has worked closely with Vietnamese government officials and last week in a public ceremony announced a charity initiative to donate 10,000 motorcycle helmets annually to children in Ho Chi Minh City after signing a Memorandum of Understanding.

    The Korea Herald reports that the corporate social responsibility program is an E-mart marketing strategy “to enhance its corporate image with government officials and Vietnamese consumers”.

    “E-mart has been preparing for this project, which will become an important momentum that signals the beginning of its business in Vietnam,” said Choi Gwang-ho, general director of E-mart Vietnam.

    “We will focus on maximising the corporate brand image to stabilise our business here by persistently carrying out campaigns in which the Vietnam government and other civil organizations can participate,” Choi said.

    With a population of more than 90 million, rising disposable incomes and a retail industry dominated by traditional markets, retailers like Shinsegae see enormous potential if they establish a foothold in the market now, despite the near certainty of losses while initial customer numbers grow.

    The Korea Herald reported E-mart will be keen not to repeat its “bitter Chinese experience” in Vietnam. In December the company closed four stores in Tianjin leaving it with just 10, 17 fewer than at its peak in 1997. Since 2014, it has posted accumulated losses in China nearing US$50 million.

     

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  • Chow Tai Fook to partner in Vietnam casino

    Chow Tai Fook to partner in Vietnam casino

    Hong Kong based retail jeweller Chow Tai Fook is to partner in a US$4 billion casino project in Vietnam.

    Chow Tai Fook Enterprises, an affiliate of Chow Tai Fook Jewellery Group, the world’s largest jewellery retailer by market value, has already committed to investing in casino resorts in Brisbane, in the state of Queensland, Australia, and in South Korea.

    Now it will partner with Vietnamese investment group VinaCapital and Suncity, a Macau-based casino tour operator.

    Strict regulations in Vietnam prevent locals from gambling inside the country, however the government allows developments to serve tourists or those locals who hold a foreign passport. New casino licences will only be issued to developments with an investment value in excess of $4 billion, which deters minor players.

    Other international gambling businesses, like Sheldon Adelson’s Sands Group have gone as far as creating plans for integrated resorts featuring casinos, but have stopped short of commencing construction until the government loosens restrictions on locals playing.

    Reuters reports the new resort will be located in Quang Nam in the central part of Vietnam

    The news agency said Chow Tai Fook’s involvement was confirmed by VinaCapital after the jeweller issued no comment beyond confirming “preliminary studies”.

    Chow Tai Fook has reportedly replaced Malaysian casino operator Genting which withdrew from the project in 2012 due to the local gambling restrictions.

    Reuters said the government was “mulling” a change in the legislation but has not released a policy as yet.

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  • Lotte Vietnam boosts investment

    Lotte Vietnam boosts investment

    South Korea’s Lotte has acquired a majority share in a Ho Chi Minh City shopping centre, office and apartment complex as it protects its Vietnam beachhead.

    Lotte Vietnam has bought out another Korean business’ 70 per cent stake in Diamond Plaza, a high profile 20-story tower housing a multi-level department store, foodcourt and other retail facilities, along with offices, a medical centre, cinema and apartments.

    It was one of the first modern era shopping developments in the country’s largest city, although its footprint is dwarfed by more recent developments such as Vincom and Union Square, also in the CBD, and Crescent Mall in the Asian-expatriate hub of District 7.

    Lotte already has extensive investments, and reach, in Vietnam, operating Lotte Mart hypermarkets, cinemas, a hotel on the Saigon riverfront and a chain of Lotteria fast food outlets which was well established before US rival McDonald’s debuted in Vietnam in late 2013.

    Diamond Plaza was opened in August 2000, then valued at US$60 million. It was a joint venture between local developer Construction Corporation No.1 and Korean steel company Posec, a subsidiary of steel maker Posco. Lotte has bought out Posec’s interest for an undisclosed amount.

    In another transaction not officially released, Lotte has purchased two Pico Plaza branded shopping centres in Hanoi and Ho Chi Minh City and rebranded them Lotte after converting supermarkets into Lotte Mart hypermarkets.

  • Vietnam’s Vingroup announces new retail venture in electronics

    Vietnam’s Vingroup announces new retail venture in electronics

    A Vingroup official announced the establishment of the firm’s new technology and electronics retail brand on Wednesday called VinPro.

    A group representative said opening the chain was part of the group’s strategy to become a leading retail brand in Vietnam, adding that it will open four VinPro stores in Hanoi and HCM City on 21 March.

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  • Gap, H&M and Levi’s among the most ethical brands

    Gap, H&M and Levi’s among the most ethical brands

    Gap, H&M and Levi’s are the three fashion brands that have been named on the Ethisphere Institute’s ninth annual list of the World’s Most Ethical Companies. The New York-based research firm listed 132 groups and companies that it believes foster a culture of ethics and transparency at every level from 21 countries, representing over 50 industries.

    Gap is one of only fifteen to have been honoured every year since the list’s inception. It received qualifying scores across five categories including ethics and compliance; corporate citizenship and responsibility; culture of ethics, governance, and leadership; innovation; and reputation. French cosmetic giant L’Oreal, Brazil’s Natura Cosméticos and Japanese brand Shiseido are also honoured in the list at the Health and Beauty category. Marks & Spencer and US pet food retailer Petco Animal Supplies are featured in the list at the retail category.

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  • Online shopping on the rise in Vietnam

    Online shopping on the rise in Vietnam

    Online shopping in Vietnam was continuing to increase and was well-positioned to hold the key to success for e-commerce in Vietnam, according to the MasterCard Survey on Online Shopping 2014.

    The MasterCard Survey is commissioned annually and was conducted online from October to December last year in 14 Asia-Pacific countries and 11 Middle Eastern and African countries with a minimum of 500 respondents per country.

    The number of Vietnamese people who shopped online in the last three months increased from 68.4 to 80.2 percent, recording the second highest growth rate (11.8 percent) in the Asia-Pacific region, the survey revealed.

     

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  • Vietnam online shopping rises

    Vietnam online shopping rises

    Vietnamese may have been slower to adopt to online shopping than counterparts in other southeast Asian countries – but they are starting to catch up.

    Data released by the Vietnam eCommerce and Information Technology Agency (VECITA) shows Vietnam online shopping was worth US$2.97 billion in 2014 with each consumer spending an average of $145 during the year.

    Fashion and cosmetics accounted for 60 per cent of sales.

    While $3 billion may seem a lot, it amounted to just 2.12 per cent of the country’s gross retail sales. In China, online shopping now accounts for just over 10 per cent of the total retail market.

    One factor hindering Vietnam’s online retailing growth is the low penetration of credit cards. Two thirds of purchases are paid for in cash upon the delivery of the purchases.

    Other figures show about four in 10 of Vietnam’s 94 million population have access to the internet, with penetration far higher in major cities. More than 50 per cent of people using social networking also shop online.

    While major online portals like Lazada are building significant market share, a huge percentage of Vietnam online shopping is conducted informally via Facebook pages, Line and even WeChat. It is common for younger women, particularly, to bulk purchase clothes, handbags, cosmetics and accessories and market them to fan bases online in a way which is difficult for authorities to track or measure.

    The one shrinking sector online in Vietnam is group buying. VECITA said just 35 per cent of Vietnam’s online shoppers bought from group buying sites in 2014, down from 51 per cent in 2013.

    Regionally, Vietnam ranks above only Indonesia, where the online market was estimated at $2.6 billion last year.

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  • Prada Vietnam makes debut

    Prada Vietnam makes debut

    Italian luxury brand Prada has opened its first store in Vietnam – in Hanoi.

    Prada Vietnam has debuted in Hoan Kiem, the capital city’s premier shopping strip

    Designed by architect Roberto Baciocchi, the store covers a total area of 360 sqm on a single level and houses the women’s and men’s leather goods, accessories and footwear collections.

    The store is strategically located on the corner of one of Hanoi’s historic buildings overlooking the renowned August Revolution Square. White stone pillars and a series of windows and light boxes inserted into black marble volumes set the rhythm of the external façade.

    The entrance overlooking the square is enhanced by a large canopy extending over it. The interior comprises a succession of spaces, each featuring a different atmosphere.

    The area housing the women’s leather goods collection is defined by the signature black and white marble chequered flooring – a legacy of Prada’s identity worldwide – and green fabric-clad walls with cut-in niches exalting the display of the products.

    In the space dedicated to women’s small leather goods and accessories, black marble-clad walls create an elegant atmosphere. Polished steel display counters with drawers covered in coloured saffiano leather complete the furnishing.

    The area hosting women’s footwear is characterised by beige carpeting, green velvet sofas and walls with Prada’s iconic display niches. The space devoted to men features masculine materials and finishes: ebony floorboards and walls, dark brown carpeting and cotto-coloured leather sofas.

    Polished steel display cases and counters with drawers covered in coloured saffiano leather complete the setting.

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  • Microsoft helps Big C to deploy cloud solution at its supermarkets

    Microsoft helps Big C to deploy cloud solution at its supermarkets

    US technology giant Microsoft Corp signed an enterprise agreement with Big C in Ho Chi Minh City on 6 February to deploy cloud solution “Office 365” in Big C’s supermarket chains.

    The cloud solution is expected to enhance the quality of customer service by optimising operation costs and boosting system capacity, while ensuring safety and security at the same time.

    Starting in Vietnam in 1998, the Big C supermarket chain currently has 30 commercial centres and supermarkets in 20 cities and provinces in the country.

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  • Electronics firms face stiff competition in Vietnam

    Electronics firms face stiff competition in Vietnam

    The recent closure of a number of Topcare stores following a series of big-name shutdowns, was evidence of the fierce competition in the electronics retail market in Vietnam.

    Before Topcare, the electronics market witnessed the withdrawal of Wonder Buy in 2011, Best Caring in 2012, HomeOne in 2013, and Viet Long in 2014.

    “A lot of enterprises are forced to shut up shop due to economic difficulties these days. However, the electronics market poses more risks with very fierce competition,” said chairman of Ha Noi Supermarket Association, Vu Vinh Phu.

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  • Vietnam’s Tran Anh to close electronics stores

    Vietnam’s Tran Anh to close electronics stores

    Vietnamese electronics retailer Tran Anh Digital World JSC said it will close its electronics supermarkets in Vincom’s Times City and Royal City on February 24.

    The closure was announced after Vingroup, the owner of the two retail and entertainment complexes, said it plans to occupy the rented space.

    Tran Anh Digital made the announcement regarding the closures on February 12, saying it is committed to ensuring warranty and other services for customers purchasing products at the two supermarkets.

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  • Jewellers in Vietnam make new products to meet surging Tet demand

    Jewellers in Vietnam make new products to meet surging Tet demand

    Gold shops in HCM City are stocking many kinds of original products and hope to make big profits on them during Tet.

    Gold traders expect the demand for gold products to be particularly high on the 10th day of the new year, which is the birthday of the God of Wealth.

    Last year, many gold shops were hit by a shortage of stock after people flocked to buy gold on that day, according to market observers.

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  • Circle K opens 100th outlet in Vietnam, to add 50 more by year end

    Circle K opens 100th outlet in Vietnam, to add 50 more by year end

    US-owned 24-hour convenience store Circle K has opened its 100th outlet in Vietnam and expects to have 150 by the year’s end.

    Vietnam CEO Tony Yan was optimistic about achieving the target, saying Vietnam’s modern retail industry was in the initial development phase.

    While modern retail represented only 13 percent of the total market share in the country compared to 50 percent elsewhere in Asia, Vietnam was a promising market of 90 million people with rising incomes, he said.

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