January 25th 2016.
Vietnam’s retail sector looks to be ever-changing. Seven Eleven Inc. in July 2015 signed a contract with IFB Vietnam, owner of Pizza Hut’s Vietnamese chain, to open the first 7-Eleven convenience stores in HCMC. With over 56,400 stores worldwide, 7-Eleven is currently the world’s leading convenience store chain, and its expansion to Vietnam looks to intensify competition in the retail sector as it competes with other foreign retailers as well as domestic enterprises in Vietnam.
Other foreign companies are also trying to claim their stake in Vietnam’s need for convenience store in major cities. ThaiBerli Jucker Plc is looking to set up 205 B’s Mart utility stores in Vietnam by 2018. Ministop Co., owned by Japanese Aeon Group and Sojitz Corp., looks to open 200 outlets in the next three years, with plans to expand to 800 within a decade.
Vietnamese enterprises are also increasing their share of convenience stores with hopes to become the leading Vietnamese retailer. Vingroup opened 30 VinMart+ last year and plan to develop 1,000 more within the next five years.
With Seven Eleven Inc.’s expansion to Vietnam, Vietnam’s distribution channel for Fast Moving Consumer Goods (FMCG) is expected to change. According to Nielsen’s 2015 report, traditional retail stores accounted for 80 percent of FMCG revenue, but Vietnamese consumers are gradually moving away from that and more towards convenience stores.