S'pore Retailer Eyeing Vietnamese Market

S’pore Retailer Eyeing Vietnamese Market

Singaporean retailer, Giant South Asia Investment Pt., is looking to cash in on Vietnam’s growing consumer market, which is being fuelled by strong economic growth.

The retailer has filed an application for a wholly foreign-owned investment license to establish and operate a number of supermarkets and small stores in Vietnam, with an initial investment capital of US$5 million.

The company has said in its application that its supermarkets and stores will focus on purchasing and distributing Vietnamese-made products. The firm seeks to sell all sorts of consumer goods, including food and non-food product.

The retailer requested 20 per cent corporate income tax during the first 10 years of operations.

Vietnam remains cautious about permitting overseas operators to enter the retail market due to fears that domestic companies are not strong enough to compete and that foreign firms will end up dominating the market.

However, Germany’s Metro Cash & Carry, France’s Bourbon Group and Malaysia’s Parkson Corporation have managed to enter the country’s growing market.

The retail industry in Vietnam grew 18 per cent to reach around US$24 billion last year. The figure is expected to rise over the next three years if the country can maintain a high economic growth.

VIR