Vietnam’s realty major Vingroup has strengthened its presence in the local retail market by acquiring 100 per cent of Vinatexmart, the retail arm of the Vietnam National Textile and Garment Group. The details regarding the value of the deal werre not disclosed by either company.
Thus, the property giant has expanded its supermarket chain by adding 39 more outlets, after taking over 13 Ocean Mart stores from Ocean Group for VND560 billion ($26 million) in October last year.
Duong Thi Mai Hoa, Vingroup’s general director, said in a statement regarding the Vinatexmart deal: “The Vietnamese retail market is an attractive area with long-term potentials, which has recently seen the forays of many global retailers. This acquisition is the stepping stone for us to reach our goal of establishing 100 supermarkets and 1,000 convenience stores by 2017.”
Vingroup aims to usurp other players to become Vietnam’s biggest retailer that has a wide coverage across maximum geographical areas in the country. The giant’s subsidiary VinMart has so far launched 14 supermarkets and 23 convenience stores, while Vinatexmart’s network concentrates in the central and southern regions of Vietnam.
The consolidation, Vingroup said, will combine the strengths in terms of goods supply and distribution system of Vinatexmart, with the huge financial resources of Vingroup and help in quick development of the operation of its supermarkets.
In addition, Vingroup has pledged to assure the benefits as well as professional development opportunities for people in Vinatexmart post acquisition.
The Vietnam National Textile and Garment Group executed its initial public offer last year, when Vingroup purchased a 10 per cent stake. Selling Vinatexmart is in line with the textile conglomerate’s restructuring plan.