Ho Chi Minh City_Son Kim Retail and the International Finance Corporation (IFC) have just signed an investment contract to expand the GS25 store system in Vietnam.
The capital of 20 million USD, equivalent to 460 billion VND, will be used to develop the business activities of GS 25 Vietnam Co., Ltd. (GS25 VN) under the Son Kim Retail ecosystem. According to Son Kim's representative, this is one of the important milestones in the plan to attract more large investments into Son Kim Retail, in order to prepare for the development of the retail industry in the Vietnamese market in the coming years.
Representatives of Son Kim Retail (right) and the International Finance Corporation (IFC) signed a cooperation agreement on June 15. Photo: Son Kim Retail
The signing ceremony was attended by representatives of GS Retail Korea - a partner owning 30% of shares in the GS25 VN joint venture. At the event, GS25 VN also signed a consulting contract with IFC to improve food hygiene and safety standards, reduce food loss and waste.
In the coming time, GS25 VN representative said that they will implement a plan to expand the chain of stores with nationwide coverage, bringing essential, quality, and safe products to people quickly.
At the same time, the expansion of the chain of stores also creates job opportunities for many local young people, helping them both have a source of income and accumulate practical life experience; at the same time, helping the system of manufacturers and suppliers have the opportunity to approach customers more conveniently and professionally...
Representatives of IFC (left) and GS25 (right) signed the consulting contract on June 15. Photo: Son Kim Retail
Vietnam's retail market is facing many challenges. According to the early 2023 report of Mirae Asset Securities Joint Stock Company (Vietnam), increasing inflationary pressure has negatively affected the short-term outlook for Vietnam's retail industry. Core inflation and consumer price index (CPI) by the end of November 2022 recorded high increases of 4.81% and 4.37%. Domestic gasoline prices are likely to increase again from October 2022, the possibility of changes in price regulation policies for essential goods in 2023 (e.g. gasoline, electricity, medicine, etc.), and the weakening strength of the domestic currency increase domestic inflationary pressure, which may lead to a decline in shopping demand in 2023 compared to expectations.
However, Savills experts commented that major brands are still actively expanding due to the positive outlook of the retail market, stable population growth rate as well as the resilience of the economy. In particular, the shopping demand of Vietnamese consumers is still increasing, despite the inflationary context.
The investment cooperation between Son Kim Retail and IFC shows IFC's long-term vision for the potential of the Vietnamese market in general and expectations for the successful development of Son Kim Retail & GS25 VN in particular.
Representatives of Son Kim Retail, IFC, GS25 VN at the investment and consulting contract signing ceremony. Photo: Son Kim Retail |
Son Kim Retail is a member of Son Kim Group - a group operating in diverse business fields, from high-end real estate development (Son Kim Land brand) to retail brands including convenience stores, fashion, F&B, television shopping...
"With a business philosophy of pursuing sustainability and contributing to society, along with high professional experience and an increasingly strong retail infrastructure, Son Kim Retail is confident that it is a unit that major international partners and investors want to make decisions to cooperate or invest in when coming to the Vietnamese market," the company representative shared.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. IFC operates in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2022, IFC will commit a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end poverty and boost shared prosperity as economies grapple with the impact of twin global crises. Meaningful contributions to communities are an important criterion that IFC considers when deciding on investment partners.
GS Retail Korea was founded in 1971 and is a "giant" in the retail industry in the land of kimchi. In Korea, GS Retail operates more than 16,000 convenience stores under the GS25 brand, one of the largest convenience store operators in the market.
Hoai Phong
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