Japan's Best Denki Taps Vietnam's Retail Market
Japan-based Best Denki Corporation and Ben Thanh Marketing Co. Ltd on December 8 jointly inked a franchising contract, the first of its kind after Vietnam’s WTO accession.
Accordingly, Best Denki will provide technical and marketing support for the Carings Supermarket Chain of Electronic Goods, which is owned by Ben Thanh Marketing.
Ben Thanh company will raise the number of stores in the chain to ten nationwide from the current of two, and aim to generate VND2 trillion (US$125 million) in revenue by 2012.
Le Hong Xuan, General Director of Ben Thanh Marketing said that the franchising agreement was a major part of the company's development strategy. It not only wants to expand the scale of its operation but also benefit from new business opportunities.
He added that Best Denki, one of the five leading electronic retailers in Japan with yearly revenue of $2 billion, will help its Vietnamese partner implement new management methods, improve services and train staff.
Vietnam has arisen as the third most attractive retail market in the world, according to the 2006 Global Retail Development Index (GRDI), an annual study conducted by AT Kearney of retail investment attractiveness among 30 emerging markets.
Total retail sales revenues for goods and services across Vietnam between January and November were estimated to grow 20.7 per cent from a year earlier to VND523.427 trillion (US$32.7 billion), reported the government’s General Statistics Office (GSO).
VNA, Investment
Vietnamese
