Part 1: Foreign capital invests strongly in trade infrastructure
Binh Duong retail market under prompt development attracts many foreign businesses. The plentiful participation of foreign and local companies in the market creates a healthy playground, improving quality of goods and service.
Customers select goods at Metro Binh Duong.
Many “big guys” appear
With more than 1.7 million people, more than 17,500 local and foreign businesses, total goods retail and service turnover worth of approximate VND90,000bil per year and a growth of over 24%, Binh Duong becomes a promising land for local and foreign enterprises involving in business of supermarkets and trade centers. In the short time, system of supermarkets and trade centers in Binh Duong develops rapidly in quantity and scale.
The first investor in supermarket and trade center business is the multinational group of Metro Cash & Carry. In Nov. 2010, Metro Binh Duong was officially inaugurated on the area of more than 2 ha. After nearly 4 years of operation, Metro Binh Duong has contributed to well meet local people’s demand on commodities.
After Metro Cash & Carry, Big C opens 2 supermarkets at Thu Dau Mot City and Di An town. Meanwhile, Lotte Mart – one of Korea’s leading retail groups – also opened a trade center at Thuan An town by the end of 2013. As planned, Lotte Mart’s scope was built on the area of 21,300sqm with the total floor area of about 30,000sqm. With the total investment capital of nearly US$30mil, Lotte Mart is both a trade center and a high grade entertainment area with international standard cinema, bowling, supermarket, gastronomy service and so on in a bid to cater for local people’s demand on shopping and relaxation.
The highlighted investment in supermarket and trade center business is the Japanese project of Aeon Binh Duong trade center capitalized at US$95mil. This trade center adjoining Vietnam-Singapore Industrial Park 1 in Thuan An town covers the total land area of 6ha, of which 75,000sqm is the total construction area. The project will be put into operation in early Nov. 2014 and place jobs for more than 1,500 laborers, according to Aeon Vietnam Co.Ltd general director Yasuo Nishitohge.
Stimulating development
On January 1 2009, Vietnam committed under the World Trade Organisation (WTO) to allow full market access to foreign investors seeking to engage in the retail sector. This means that foreign investors are now allowed to establish a 100% wholly-owned company to engage in trading and distribution. Thenceforth, retailers’ investment in Binh Duong has become lively. The participation of foreign economic units contributes to well meet local residents’ demand on goods and create an impetus for consumption development. Aside from the mentioned investors, many large scaled retail corporations from France, Singapore and so on are learning about Binh Duong’s investment opportunities.
FDI businesses’ participation in supermarket and trade center business contributes to develop consumption trend modernly and ensure supply of goods in vacations and Tet holidays as well as to increase the local retail turnover. Moreover, the participation of FDI enterprises creates a healthy competition.
Experts assess that aside from factors of population, purchasing power, growth level, Binh Duong has many other important elements. Specifically, Binh Duong is located at the key economic zone where possesses a strong development of industry and trade-service. In the other hand, Binh Duong’s rapid growth pace always reaches a high level in the recent years. Furthermore, Binh Duong has other advantages of infrastructure facilities, traffic network and among others.
With the above mentioned factors, Lotte Group said that Binh Duong is a good environment for developing supermarkets and trade centers. This is also a locality Lotte Group gives priorities of investment in its network development strategy in Vietnam.
Like Lotte Group, highly appreciating Binh Duong’s potentials of trading supermarkets and trade centers, Aeon Binh Duong trade center is among 2 trade centers being put into operation soonest in the group’s strategy of developing 20 trade centers in Vietnam till 2020.
Reported by T.Minh – Translated by A.C
