Vingroup takes over Vinatexmart, plans aggressive retail expansion across Vietnam

A view of a VinMart supermarket (visual from the company website)

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.

Also read: Vietnam’s realty major Vingroup spends $468m for M&A deals, diversification

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.

Related stories:

Vinatex plans $441m investment after IPO

Vietnam’s Vingroup buys 80% stake in VEFAC via IPO

Vietnam realty major Vingroup eyes stake in Saigon & Hai Phong Ports

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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