Vietnam's Largest Retail Distributor Set up
Four leading retailers in Vietnam on February 1 jointly inked a contract to establish Vietnam distribution system development and investment holding company (VDA) with a total capital of VND6 trillion (US$375 million).
This will be the largest of its kind in Vietnam to date, and is expected to become a concentrated distribution group holding the leading role in circulating goods and assisting domestic producers in competing with foreign distributors.
The four retailers include the Saigon Trading Group (Satra), the Hanoi Trade Corporation (Hapro), the Ho Chi Minh City Commercial Cooperative Union (Saigon Co.op), and the Phu Thai Group.
They pledged to assist each other and ensure mutual benefit.
With average annual growth of 20 per cent in retail sales, Vietnam is proving very attractive for foreign retail businesses. The country is opening its service market in phases in line with World Trade Organization (WTO) commitments.
Also, under WTO commitments, Vietnam will completely open its distribution market for foreign partners from January 1, 2009.
According to official statistics, there are 170 supermarkets and trade centers currently operational in the country operated by local investors. (Vietnam Economic Times, Labour)
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